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Shanghai Zhenhua Heavy Industries Co Ltd B (900947) Fair Value & Analysis

Industrials · CN · Market cap $1.4B

SZ Shanghai Zhenhua Heavy Industries Co Ltd B 900947 · SHG
Price$0.2580
Fair Value$0.4300
Upside+66.7%
Quality55/100
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Strengths

Trades 40% below our fair value of $0.4300
Healthy Growth (revenue 5y +9.9 %/yr)
Moderate debt · generates free cash flow

Risks

!Thin margins · 2.4% net margin
!Trails peers (4/11)
!Narrow moat 27/100
!Weak on future: 5 out of 100
Healthy Growth (revenue 5y +9.9 %/yr)
Thin margins · 2.4% net margin
Moderate debt · generates free cash flow
Trails peers (4/11)
Narrow moat 27/100
Evidence: High Range $0.3200 – $0.5400 Share as image

Fair value as of: Aug 17, 2026

From 26 valuation models · updated 9 days ago

Fair value updated Aug 17, 2026, revised from $0.3500 to $0.4300 (+22.9%) since Aug 13, 2026. Share price +1.6% over the past month.

A solid business, trading 40% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price is below even our cautious bear case ($0.3200). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) 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)

$0.2983 $0.1790 Fair Value $0.4300 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 17, 2026.

How to read this chart

60‑month range $0.1790 – $0.2983 · fair‑value band $0.3200 – $0.5400 · the $0.2580 price screens below the $0.4300 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 17, 2026.

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Analysis

Shanghai Zhenhua Heavy Industries Co Ltd B (900947) currently trades at $0.2580, while our model-based Fair Value estimate is $0.4300, implying the stock looks roughly 66.7% undervalued today. The Quality Score stands at 55/100 (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, Shanghai Zhenhua Heavy Industries Co Ltd B generated revenue of $36.3B at a net margin of 2.4%. Revenue grew 0.9% year over year. It earns a return on equity of 5.8%. Net debt stands at $12.2B. Fundamentals as of Aug 17, 2026

Our scenario range runs from $0.3200 (bear case) to $0.5400 (bull case); at $0.2580, 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 13% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -51% fair-value upside, at 67%, 900947 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 $7.67 $11.18 $15.54 80
Residual Income $2.21 $2.21 $1.95 76
Rev-Margin DCF $4.24 $6.64 $9.44 74
All 26 models by family
DCF Models
FCF DCF $7.61 $11.63 $16.95 38
Owner Earnings $0.7100 $1.72 $3.05 31
5Y Revenue Exit $4.24 $6.50 $9.24 39
5Y EBITDA Exit $5.82 $9.45 $13.58 41
5Y P/E Exit $3.25 $4.66 $6.05 38
10Y Revenue Exit $5.44 $7.71 $10.52 36
10Y EBITDA Exit $6.46 $9.58 $13.53 37
10Y P/E Exit $4.96 $6.55 $8.31 35
Earnings-Based
Graham-Dodd $0.9400 $2.87 $3.81 54
Lynch FV $0.6100 $0.8800 $1.14 50
PEG = 1.0 $0.6100 $0.8800 $1.14 46
EPV $1.39 $1.79 $2.14 59
Dividend Discount
Gordon GGM $1.40 $2.52 $3.47 70
DDM Multi-Stage $1.40 $2.15 $2.69 61
Multiples
P/E Multiple $2.19 $2.92 $3.65 63
P/S Multiple $1.77 $2.36 $2.95 58
P/B Multiple $1.77 $2.36 $2.95 55
EV/EBIT $3.70 $5.46 $7.23 53
EV/EBITDA $5.45 $7.81 $10.16 54
EV/Revenue $2.18 $3.80 $5.42 43
Asset-Based
NCAV (Graham) $1.54 $2.06 $3.07 50
Growth DCF
Growth DCF $7.67 $11.18 $15.54 80
Rev-Margin DCF $4.24 $6.64 $9.44 74
Economic Profit
Residual Income $2.21 $2.21 $1.95 76
ROIC Compounder $1.39 $1.79 $2.14 72
Growth Earnings
Growth-Adj P/E $1.79 $2.56 $3.33 68

Widest divergence: Growth DCF ($6.64) versus Earnings-Based ($0.8800). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 12.8 as of Jun 16, 2026
P/S ratio 0.04 TTM
Net margin 2.4% TTM
Return on equity 5.8% TTM
Return on assets 1.1% TTM
Operating margin 7.2% TTM
More key figures
Profitability
EPS (TTM) $0.0200
Growth
Revenue (TTM) $36.3B TTM
Revenue growth (YoY) +0.9% 3y avg +6.3%
EPS growth (YoY) +47.9%
Balance sheet & cash flow
Free cash flow $5.2B FY2025
Net debt $12.2B FY2025 · ≈ 2.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 53 · Market factors (momentum, volatility) 52

Profitability 21
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 77
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 82
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Shanghai Zhenhua Heavy Industries Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of heavy-duty equipment in Chinese Mainland, rest of Asia, Africa, North America, Europe, South America, Oceania, and internationally.

Full company description

Shanghai Zhenhua Heavy Industries Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of heavy-duty equipment in Chinese Mainland, rest of Asia, Africa, North America, Europe, South America, Oceania, and internationally. The company offers port machinery, including STS crane, RMG/RTG crane, bulk-cargo machinery, port mobile handling machinery, and automated terminal; offshore engineering equipment, such as heavy lift vessel, dredger vessel, wind power equipment, pipe-laying vessel, special purpose engineering, and jack-up rig; and steel structure comprising bridge, wind power equipment, and building construction steel structure. It also is involved in the provision of installation of heavy port equipment, engineering vessels, and heavy metal structure and its parts; manufacturing and installation of gearbox, container yard crane, super heavy duty bridge steel structure, and heavy marine machinery equipment; leasing of cranes; and contracting of steel structures. In addition, the company sells port loading and unloading machine, bulk cargo and container machine, port engineering vessels, and material handling mechanical products and parts; provides sales and technical services, installation and maintenance, and technical consultation services; marine transport and finance lease business; construction of port, waterway, highway, and bridge; and fabrication and installation of steel structure. Shanghai Zhenhua Heavy Industries Co., Ltd. was founded in 1885 and is headquartered in Shanghai, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Zhenhua Heavy Industries Co Ltd B reported revenue of $36.3B in FY2025 versus $26.0B in FY2021, a compound +8.7%/yr. Reported net income was $732M in FY2025, compounding +13.6%/yr from FY2021.

Growth Quality 81/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$36.3B
Latest YoY
+5.2%
Avg. revenue 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.
+6.3%
Avg. revenue 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.
+9.9%
Avg. revenue growth/yr (9Y) 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.
+4.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+30.5% (30.5 + 0.0)
Revenue +8.7%/yr
FY21 $26.0B
FY22 $30.2B
FY23 $32.9B
FY24 $34.5B
FY25 $36.3B
Net income +13.6%/yr
FY21 $440M
FY22 $372M
FY23 $520M
FY24 $534M
FY25 $732M

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Cite: Fair Value Calculator (2026). "Shanghai Zhenhua Heavy Industries Co Ltd B Fair Value". https://www.fairvalue-calculator.com/stock/900947

Peer Group

Specialty Industrial Machinery · 815 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 55 · Above median
Fair Value upside +67% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth 1% · Below median
Debt / equity 0.81× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 12.8× · Cheaper than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
PEG 7.34× · Pricier than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 0
FUTURE5 · sector 21
PAST23 · sector 28
HEALTH60 · sector 96
DIVIDEND0 · sector 27

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

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Frequently asked questions

Is Shanghai Zhenhua Heavy Industries Co Ltd B (900947) overvalued or undervalued?
As of Aug 17, 2026, our model estimates a fair value of $0.4300 versus a price of $0.2580, about +67% (undervalued).
What is the fair value of 900947?
Our model-based fair value for Shanghai Zhenhua Heavy Industries Co Ltd B is $0.4300 (as of Aug 17, 2026), built from audited fundamentals. The current price: $0.2580.
What is the quality score of 900947?
Shanghai Zhenhua Heavy Industries Co Ltd B has a Quality Score of 55/100. 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 Shanghai Zhenhua Heavy Industries Co Ltd B (900947)?
Shanghai Zhenhua Heavy Industries Co Ltd B reported trailing-twelve-month revenue of about $36.3B (latest available figure, as of Aug 17, 2026).
What is the net profit margin of 900947?
The net profit margin of Shanghai Zhenhua Heavy Industries Co Ltd B is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.

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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