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Qingdao Daneng Environmental Protection Equipment Co (688501) Fair Value & Analysis

Industrials · CN · Market cap 2.8B CNY

QD Qingdao Daneng Environmental Protection Equipment Co 688501 · SHG
Price¥13.45
Fair Value¥25.35
Upside+88.5%
Quality50/100
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Expensive Growth
Thin margins · 7.6% net margin
Low debt · generates free cash flow
1.24% dividend yield
Ranks above peers (9/14)
Moderate moat 45/100
Evidence: High Range ¥16.75 – ¥48.99 Share as image

Fair value as of: Jul 12, 2026

From 25 valuation models · updated 30 days ago

Fair value updated Jul 12, 2026, revised from ¥28.50 to ¥25.35 (−11.1%) since Jun 24, 2026. Share price −26.0% over the past month.

A solid business, screening 88% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥16.75). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (¥16.75 to ¥48.99). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥32.70 ¥9.93 Fair Value ¥25.35 Jul 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥9.93 – ¥32.70 · fair‑value band ¥16.75 – ¥48.99 · the ¥13.45 price screens below the ¥25.35 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Qingdao Daneng Environmental Protection Equipment Co (688501) currently trades at ¥13.45, while our model-based Fair Value estimate is ¥25.35, implying the stock looks roughly 88.5% undervalued today. The Quality Score stands at 50/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Qingdao Daneng Environmental Protection Equipment Co generated revenue of 1.8B CNY at a net margin of 7.6%. Revenue declined 40.1% year over year. It earns a return on equity of 12.4%. Net debt stands at 168M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥16.75 (bear case) to ¥48.99 (bull case); at ¥13.45, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 59% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 88%, 688501 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ¥2.72 ¥3.34 ¥4.54 80
Residual Income ¥9.30 ¥12.37 ¥37.03 76
ROIC Compounder ¥19.29 ¥28.36 ¥34.35 72
All 25 models by family
DCF Models
FCF DCF ¥2.77 ¥3.21 ¥4.59 38
Owner Earnings ¥19.10 ¥39.95 ¥82.12 31
5Y Revenue Exit ¥14.83 ¥27.79 ¥55.20 39
5Y EBITDA Exit ¥16.98 ¥32.12 ¥61.96 41
5Y P/E Exit ¥19.13 ¥45.79 ¥83.06 38
10Y Revenue Exit ¥10.69 ¥29.17 ¥43.42 36
10Y EBITDA Exit ¥12.92 ¥33.68 ¥72.21 37
10Y P/E Exit ¥14.45 ¥38.20 ¥79.36 35
Earnings-Based
Graham-Dodd ¥9.90 ¥69.07 ¥96.94 54
Lynch FV ¥27.56 ¥39.37 ¥51.18 50
PEG = 1.0 ¥27.56 ¥39.37 ¥51.18 46
EPV ¥15.15 ¥17.24 ¥19.04 59
Dividend Discount
Gordon GGM ¥3.43 ¥6.83 ¥10.35 70
DDM Multi-Stage ¥3.43 ¥5.91 ¥7.21 61
Multiples
P/E Multiple ¥22.94 ¥30.59 ¥38.24 63
P/S Multiple ¥18.57 ¥24.76 ¥30.95 58
P/B Multiple ¥18.57 ¥24.76 ¥30.95 55
EV/EBIT ¥24.35 ¥31.81 ¥39.27 53
EV/EBITDA ¥21.98 ¥28.66 ¥35.33 54
EV/Revenue ¥17.94 ¥24.79 ¥31.63 43
Asset-Based
NCAV (Graham) ¥4.51 ¥6.05 ¥9.03 50
Growth DCF
Growth DCF ¥2.72 ¥3.34 ¥4.54 80
Economic Profit
Residual Income ¥9.30 ¥12.37 ¥37.03 76
ROIC Compounder ¥19.29 ¥28.36 ¥34.35 72
Growth Earnings
Growth-Adj P/E ¥34.69 ¥49.56 ¥64.43 68

Widest divergence: Growth Earnings (¥49.56) versus Growth DCF (¥3.34). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.8B CNY
Revenue growth (YoY) -40.1%
Net margin 7.6%
Return on equity 12.4%
Free cash flow 6.4M CNY FY2025
P/E ratio 20.3
More key figures
Operating margin 10.8%
EPS (TTM) ¥1.09
Dividend yield 1.2%
EPS growth (YoY) -58.9%
Net debt 168M CNY FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 49 · Market factors (momentum, volatility) 19

Profitability 43
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 45
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 6
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 77
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Qingdao Daneng Environmental Protection Equipment Co., Ltd. engages in the design, manufacture, and sale of energy-saving and environmental protection equipment in China.

Full company description

Qingdao Daneng Environmental Protection Equipment Co., Ltd. engages in the design, manufacture, and sale of energy-saving and environmental protection equipment in China. The company provides slag energy saving and environmental protection treatment systems, such as dry slag and wet slag, and CFB boiler slag treatment systems; flue gas energy saving and environmental protection treatment systems; clean energy consumption systems; and desulfurization wastewater environmental protection treatment systems. It also offers energy-saving and environmentally protection treatment system for the metallurgical industry; and high thermal conductivity modified PPS pipes. The company serves customers in the fields of electricity, heat, chemical industry, metallurgy, waste disposal, new energy, etc. The company was founded in 2006 and is based in Qingdao, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Qingdao Daneng Environmental Protection Equipment Co reported revenue of ¥2.0B in FY2025 versus ¥628M in FY2021, a compound +34.3%/yr. Reported net income was ¥181M in FY2025, compounding +34.1%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
2.0B CNY
Latest YoY
+55.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+38.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+29.6%
Avg. growth/yr (8Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.0%
Revenue +34.3%/yr
FY21 ¥628M
FY22 ¥762M
FY23 ¥1.0B
FY24 ¥1.3B
FY25 ¥2.0B
Net income +34.1%/yr
FY21 ¥55.9M
FY22 ¥58.6M
FY23 ¥86.7M
FY24 ¥93.0M
FY25 ¥181M

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Cite: Fair Value Calculator (2026). "Qingdao Daneng Environmental Protection Equipment Co Fair Value". https://www.fairvalue-calculator.com/stock/688501

Peer Group

Specialty Industrial Machinery · 805 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 50 · Below median
Fair Value upside +89% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 4% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth -40% · Bottom 25%
Dividend yield (TTM) 1.2% · Above median
Debt / equity 0.11× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 20.3× · Cheaper than median
P/B 2.46× · Pricier than median
P/S (TTM) 1.56× · Cheaper than median
P/FCF 63.9× · Pricier than 75% of peers
EV/EBITDA 11.7× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 0 · sector 23
PAST 50 · sector 28
HEALTH 94 · sector 96
DIVIDEND 25 · sector 24

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Qingdao Daneng Environmental Protection Equipment Co (688501) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥25.35 versus a price of ¥13.45, about +88% (undervalued).
What is the fair value of 688501?
Our model-based fair value for Qingdao Daneng Environmental Protection Equipment Co is ¥25.35 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥13.45.
What is the quality score of 688501?
Qingdao Daneng Environmental Protection Equipment Co has a Quality Score of 50/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Qingdao Daneng Environmental Protection Equipment Co (688501)?
Qingdao Daneng Environmental Protection Equipment Co reported trailing-twelve-month revenue of about 1.8B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688501?
The net profit margin of Qingdao Daneng Environmental Protection Equipment Co is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does Qingdao Daneng Environmental Protection Equipment Co pay a dividend?
Qingdao Daneng Environmental Protection Equipment Co currently shows a dividend yield of about 1.24% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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