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Zangge Holding Co Ltd (000408) Fair Value & Analysis

Basic Materials · CN · Market cap 109B CNY (≈ $16.2B) · ISIN CNE000000L08

What is Zangge Holding Co Ltd really worth?

ZH Zangge Holding Co Ltd 000408 · SHE
Price¥75.62
Fair Value¥20.99
Upside−72.2%
Quality78/100

A strong business, but trading 260% above our fair value of ¥20.99.

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Strengths

Highly profitable · 125.1% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)

Risks

!Weak Growth (revenue 5y +13.3 %/yr)
!Moderate moat 60/100
!The models disagree: range ¥16.09 to ¥82.88

For context

·3.31% dividend yield
Evidence: High Range ¥16.09 – ¥82.88

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from ¥22.76 to ¥20.99 (−7.8%) since Jul 11, 2026. Share price −6.6% over the past month.

What runs behind every stock

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

What matters now

  • A high-quality business (quality 78/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The model range is unusually wide (¥16.09 to ¥82.88). The outcome hinges heavily on assumptions, so read the point estimate with caution.

Price vs Fair Value (5 years)

¥93.25 ¥7.43 Fair Value ¥20.99 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥7.43 – ¥93.25 · fair‑value band ¥16.09 – ¥82.88 · the ¥75.62 price screens above the ¥20.99 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Zangge Holding Co Ltd (000408) currently trades at ¥75.62, while our model-based Fair Value estimate is ¥20.99, implying the stock looks roughly 260.2% overvalued today. The Quality Score stands at 78/100 (high quality), in the Basic Materials sector. Bull case: the Growth Earnings group reads highest at a median of ¥112.41 per share, and 7 of the 25 models we run sit above the ¥75.62 price. Bear case: the Asset-Based group reads lowest at ¥6.94, and 18 of the 25 models stay below the price. Evidence for this calculation is high.

Trailing-twelve-month revenue stands at 3.7B CNY. Revenue grew 29.6% year over year. It earns a return on equity of 29.1%. The balance sheet holds a net cash position of 1.7B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥16.09 (bear case) to ¥82.88 (bull case); at ¥75.62, the current price sits within 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 21% below its 52-week high and 112% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −31% fair-value upside, at −72%, 000408 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.3248 per share, which is 1.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
EPV best evidence ¥8.95 ¥10.26 ¥11.40 74
FCF DCF ¥39.38 ¥61.33 ¥131.22 71
Growth DCF ¥37.10 ¥72.55 ¥130.64 70
All 25 models by family
DCF Models
FCF DCF ¥39.38 ¥61.33 ¥131.22 71
Owner Earnings ¥43.32 ¥97.17 ¥210.22 66
5Y Revenue Exit ¥13.89 ¥18.12 ¥26.54 69
5Y EBITDA Exit ¥20.80 ¥32.08 ¥54.06 69
5Y P/E Exit ¥40.79 ¥90.49 ¥158.34 63
10Y Revenue Exit ¥21.37 ¥33.73 ¥37.87 64
10Y EBITDA Exit ¥26.54 ¥48.60 ¥84.11 62
10Y P/E Exit ¥41.13 ¥91.65 ¥174.99 56
Earnings-Based
Graham-Dodd ¥16.70 ¥116.44 ¥163.41 59
Lynch FV ¥60.16 ¥85.94 ¥111.72 57
PEG = 1.0 ¥60.16 ¥85.94 ¥111.72 54
EPV best evidence ¥8.95 ¥10.26 ¥11.40 74
Dividend Discount
Gordon GGM ¥9.18 ¥19.09 ¥30.29 62
DDM Multi-Stage ¥9.18 ¥16.10 ¥20.04 63
Multiples
P/E Multiple ¥38.67 ¥51.56 ¥64.45 63
P/S Multiple ¥3.40 ¥4.53 ¥5.66 58
P/B Multiple ¥31.31 ¥41.74 ¥52.18 55
EV/EBIT ¥13.38 ¥17.47 ¥21.56 66
EV/EBITDA ¥13.31 ¥17.37 ¥21.44 67
EV/Revenue ¥3.96 ¥5.19 ¥6.41 54
Asset-Based
NCAV (Graham) ¥5.18 ¥6.94 ¥10.35 54
Growth DCF
Growth DCF ¥37.10 ¥72.55 ¥130.64 70
Economic Profit
Residual Income ¥16.39 ¥21.38 ¥103.26 59
ROIC Compounder ¥8.95 ¥10.26 ¥13.29 68
Growth Earnings
Growth-Adj P/E ¥78.69 ¥112.41 ¥146.13 64

Widest divergence: Growth Earnings (¥112.41) versus Asset-Based (¥6.94). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 25.4
P/S ratio 27.5 P/E × margin
EPS (TTM) ¥2.98 price ÷ EPS = P/E 25.4
Dividend yield 3.3% payout 83.9%
Net margin 108% FY2025
Return on equity 29.1% TTM
More key figures
Profitability
Return on assets (EBIT) 24.4% avg 5y
Operating margin 45.6% TTM
Growth
Revenue (TTM) 3.7B CNY TTM
Revenue growth (YoY) +29.6% 3y avg −24.3%
EPS growth (YoY) +108%
Balance sheet & cash flow
Free cash flow 3.6B CNY FY2025
Net cash 1.7B CNY FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 78/100

Of which business quality 77 · Market factors (momentum, volatility) 63

Profitability 61
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 86
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

Zangge Mining Company Limited, together with its subsidiaries, researches, develops, manufactures, and sells potassium chloride and lithium carbonate in China and internationally.

Full company description

Zangge Mining Company Limited, together with its subsidiaries, researches, develops, manufactures, and sells potassium chloride and lithium carbonate in China and internationally. The company is also involved in mineral product development; investment activities; trade business; research and development of lithium extraction technology; and import and export of goods activities. In addition, it engages in the mining of copper, silver, and molybdenum deposits. The company was formerly known as Zangge Holding Company Limited and changed its name to Zangge Mining Company Limited in December 2021. Zangge Mining Company Limited was founded in 1996 and is headquartered in Golmud, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zangge Holding Co Ltd reported revenue of 3.6B CNY in FY2025 versus 3.6B CNY in FY2021, a compound −0.5%/yr. Reported net income was 3.9B CNY in FY2025, compounding +28.2%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
3.6B CNY
Latest YoY
+9.3%
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.
−24.3%
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.
+13.3%
Avg. revenue growth/yr (32Y) 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.
+12.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+78.3% (75.0 + 3.3)
Revenue −0.5%/yr
FY21 3.6B CNY
FY22 8.2B CNY
FY23 5.2B CNY
FY24 3.3B CNY
FY25 3.6B CNY
Net income +28.2%/yr
FY21 1.4B CNY
FY22 5.7B CNY
FY23 3.4B CNY
FY24 2.6B CNY
FY25 3.9B CNY
Character of growth · EPS growth decomposed (2014-2025) +12.4 % p.a.
Revenue per share +2.1 %

of which total revenue +4.6 % · buybacks/dilution −2.4 %

EBIT margin +7.7 %
Tax rate +1.0 %
Residual (interest, one-offs) +1.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

000408 screens 260% overvalued. Compare with Saudi Basic Industries Corporation →

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Cite: Fair Value Calculator (2026). "Zangge Holding Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/000408

Peer Group

Chemicals · 339 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 78 · Top 25%
Fair Value upside −72% · Bottom 25%
Return on equity (TTM) 29% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 125% · Top 25%
Operating margin (TTM) 46% · Top 25%
Revenue growth 30% · Top 25%
Dividend yield (TTM) 3.3% · Top 25%
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 25.4× · Cheaper than median
P/B 6.69× · Pricier than 75% of peers
P/S (TTM) 29.07× · Pricier than 75% of peers
P/FCF 4.6× · Pricier than median
EV/EBITDA 51.6× · Pricier than 75% of peers

Strength profile in five axes (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
VALUE0 · sector 0
FUTURE100 · sector 22
PAST100 · sector 20
HEALTH99 · sector 94
DIVIDEND66 · sector 32

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

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

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Saudi Basic Industries Corporation 2010 49.50 SAR 18.13 SAR −63%
A. Schulman, Inc SLMNP $849.00 $203.64 −76%
Ningxia Baofeng Energy Group 600989 ¥24.49 ¥20.17 −18%
Dow Inc DOW $30.51 $21.03 −31%
Zhejiang Juhua Co 600160 ¥41.32 ¥21.62 −48%
Rongsheng Petrochemical Co 002493 ¥13.76 ¥2.39 −83%
Ganfeng Lithium Group 002460 ¥52.53 ¥16.17 −69%
PT Barito Pacific Tbk, BRPT 1,855 IDR 1,584 IDR −15%
Hengli Petrochemical Co 600346 ¥18.87 ¥17.09 −9%
LG Chem, Ltd 051910 263,000 KRW 587,755 KRW +123%

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Frequently asked questions

Is Zangge Holding Co Ltd (000408) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥20.99 versus a price of ¥75.62, about −72% upside (overvalued).
What is the fair value of 000408?
Our model-based fair value for Zangge Holding Co Ltd is ¥20.99 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥75.62.
What is the quality score of 000408?
Zangge Holding Co Ltd has a Quality Score of 78/100. 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 Zangge Holding Co Ltd (000408)?
Zangge Holding Co Ltd reported trailing-twelve-month revenue of about 3.7B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 000408?
The net profit margin of Zangge Holding Co Ltd is about 125.1%, meaning it keeps roughly 125.1% of revenue as net income. Based on the latest reported figures.
Does Zangge Holding Co Ltd pay a dividend?
Zangge Holding Co Ltd currently shows a dividend yield of about 3.31% relative to its recent price (as of Aug 13, 2026).
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