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Zhongshan Public Utilities Group Co Ltd (000685) Fair Value & Analysis

Utilities · CN · Market cap 16.4B CNY (≈ $2.4B) · ISIN CNE0000006B7

What is Zhongshan Public Utilities Group Co Ltd really worth?

ZP Zhongshan Public Utilities Group Co Ltd 000685 · SHE
Price¥11.43
Fair Value¥16.82
Upside+47.2%
Quality42/100

Below-average quality, trading 32% below our fair value of ¥16.82.

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Strengths

Highly profitable · 46.5% net margin

Risks

!Expensive Growth (revenue 5y +16.1 %/yr)
!Low debt · negative free cash flow
!Mixed vs. peers (7/13)
!Moderate moat 55/100
!Weak on future: 15 out of 100

For context

·3.37% dividend yield
Evidence: High Range ¥12.61 – ¥21.18

Fair value as of: Aug 15, 2026

From 13 valuation models · updated 21 days ago

Fair value updated Aug 15, 2026, revised from ¥21.77 to ¥16.82 (−22.7%) since Jul 24, 2026. Share price +2.9% over the past month.

What runs behind every stock

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

What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥12.61). The market is more pessimistic than our downside scenario.

Price vs Fair Value (5 years)

¥14.42 ¥5.83 Fair Value ¥16.82 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range ¥5.83 – ¥14.42 · fair‑value band ¥12.61 – ¥21.18 · the ¥11.43 price screens below the ¥16.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

Zhongshan Public Utilities Group Co Ltd (000685) currently trades at ¥11.43, while our model-based Fair Value estimate is ¥16.82, implying the stock looks roughly 32.0% undervalued today. The Quality Score stands at 42/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of ¥30.88 per share, and 8 of the 12 models we run sit above the ¥11.43 price. Bear case: the Multiples group reads lowest at ¥7.86, and 4 of the 12 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Zhongshan Public Utilities Group Co Ltd generated revenue of 4.6B CNY at a net margin of 46.5%. Revenue grew 2.9% year over year. It earns a return on equity of 11.5%. Net debt stands at 6.8B CNY. Fundamentals as of Aug 15, 2026

Our scenario range runs from ¥12.61 (bear case) to ¥21.18 (bull case); at ¥11.43, 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 23% below its 52-week high and 36% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at 12% fair-value upside, at 47%, 000685 screens cheaper 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 ¥0.7342 per share, which is 4.4 % 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
Residual Income best evidence ¥11.21 ¥12.48 ¥20.54 74
Owner Earnings ¥11.06 ¥28.44 ¥63.58 69
Growth-Adj P/E ¥21.62 ¥30.88 ¥40.15 67
All 13 models by family
DCF Models
Owner Earnings ¥11.06 ¥28.44 ¥63.58 69
Earnings-Based
Graham-Dodd ¥8.71 ¥56.49 ¥79.03 63
Lynch FV ¥16.41 ¥23.45 ¥30.48 61
PEG = 1.0 ¥16.41 ¥23.45 ¥30.48 57
Multiples
P/E Multiple ¥17.29 ¥23.05 ¥28.81 63
P/S Multiple ¥5.89 ¥7.86 ¥9.82 58
P/B Multiple ¥16.33 ¥21.77 ¥27.21 55
EV/EBIT ¥0.2500 ¥1.27 61
EV/EBITDA ¥1.60 ¥3.40 ¥5.19 64
EV/Revenue ¥0.7700 50
Asset-Based
NCAV (Graham) ¥6.37 ¥8.53 ¥12.73 54
Economic Profit
Residual Income best evidence ¥11.21 ¥12.48 ¥20.54 74
Growth Earnings
Growth-Adj P/E ¥21.62 ¥30.88 ¥40.15 67

Widest divergence: Growth Earnings (¥30.88) versus Multiples (¥7.86). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 7.8
P/S ratio 3.17 P/E × margin
EPS (TTM) ¥1.47 price ÷ EPS = P/E 7.8
Dividend yield 3.4% payout 26.2%
Net margin 40.7% FY2025
Return on equity 11.5% TTM
More key figures
Profitability
Return on assets (EBIT) 4.0% avg 5y
Operating margin 13.2% TTM
Growth
Revenue (TTM) 4.6B CNY TTM
Revenue growth (YoY) +2.9% 3y avg +8.4%
EPS growth (YoY) +90.5%
Balance sheet & cash flow
Free cash flow −794M CNY FY2025
Net debt 6.8B CNY FY2025

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 39 · Market factors (momentum, volatility) 52

Profitability 39
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 36
Balance sheet, leverage, solvency risk
Investment 35
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 76
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

Zhongshan Public Utilities Group Co.,Ltd., together with its subsidiaries, engages in the environmental water, solid waste, new energy, engineering construction, and auxiliary businesses in China and internationally.

Full company description

Zhongshan Public Utilities Group Co.,Ltd., together with its subsidiaries, engages in the environmental water, solid waste, new energy, engineering construction, and auxiliary businesses in China and internationally. The company is involved in the urban water supply comprising water quality monitoring, engineering design, construction installation, information technology, and water treatment technology research and development and other related businesses, sewage treatment and reuse, drainage facility operation, flood control management, municipal and power industry, and new energy power generation and grid franchise projects; and financial investment, market operation, port passenger transportation, and other, as well as photovoltaic power generation, and electrochemical energy storage businesses. It also engages in market leasing management; sale of materials; agency sale of tickets; municipal engineering, building construction engineering, power engineering, water conservancy and hydropower engineering, water supply and drainage network construction, water treatment, and gas engineering, and construction of water management; and garbage disposal and sanitation services. The company was formerly known as Zhongshan Public Utilities Science and Technology Company Limited and changed its name to Zhongshan Public Utilities Group Co.,Ltd. in August 2008. Zhongshan Public Utilities Group Co.,Ltd. was founded in 1992 and is headquartered in Zhongshan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhongshan Public Utilities Group Co Ltd reported revenue of 4.6B CNY in FY2025 versus 2.4B CNY in FY2021, a compound +18.1%/yr. Reported net income was 1.9B CNY in FY2025, compounding +6.4%/yr from FY2021.

Growth Quality 51/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
4.6B CNY
Latest YoY
−18.8%
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.
+8.4%
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.
+16.1%
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.
+5.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+9.9% (6.5 + 3.4)
Revenue +18.1%/yr
FY21 2.4B CNY
FY22 3.6B CNY
FY23 5.2B CNY
FY24 5.7B CNY
FY25 4.6B CNY
Net income +6.4%/yr
FY21 1.5B CNY
FY22 1.1B CNY
FY23 967M CNY
FY24 1.2B CNY
FY25 1.9B CNY
Character of growth · EPS growth decomposed (2013-2024) +0.9 % p.a.
Revenue per share +15.9 %

of which total revenue +16.4 % · buybacks/dilution −0.4 %

EBIT margin −13.1 %
Tax rate +0.0 %
Residual (interest, one-offs) +0.1 %

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).

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Cite: Fair Value Calculator (2026). "Zhongshan Public Utilities Group Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/000685

Peer Group

Utilities - Regulated Water · 64 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 42 · Below median
Fair Value upside +47% · Top 25%
Return on equity (TTM) 12% · Top 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) 47% · Top 25%
Operating margin (TTM) 13% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 3.4% · Above median
Debt / equity 0.39× · Lower than median

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 7.8× · Cheaper than 75% of peers
P/B 0.88× · Cheaper than median
P/S (TTM) 3.53× · Pricier than median
EV/EBITDA 20.5× · 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
VALUE96 · sector 0
FUTURE15 · sector 28
PAST46 · sector 31
HEALTH81 · sector 65
DIVIDEND67 · sector 52

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 Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Aug 15, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $138.30 $65.80 −52%
SBS SBS $4.82 $8.13 +69%
Essential Utilities, Inc WTRG $41.10 $21.81 −47%
Guangdong Investment Limited 0270 HK$8.15 HK$12.82 +57%
Grandblue Environment Co 600323 ¥29.61 ¥33.29 +12%
American States Water Company AWR $89.88 $47.94 −47%
Chengdu Xingrong Environment Co 000598 ¥7.35 ¥9.09 +24%
California Water Service Group CWT $50.48 $33.56 −34%
Chongqing Water Group 601158 ¥4.14 ¥2.77 −33%
Beijing Enterprises Water Group 0371 HK$1.74 HK$3.00 +73%

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Frequently asked questions

Is Zhongshan Public Utilities Group Co Ltd (000685) overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of ¥16.82 versus a price of ¥11.43, about +47% upside (undervalued).
What is the fair value of 000685?
Our model-based fair value for Zhongshan Public Utilities Group Co Ltd is ¥16.82 (as of Aug 15, 2026), built from audited fundamentals. The current price: ¥11.43.
What is the quality score of 000685?
Zhongshan Public Utilities Group Co Ltd has a Quality Score of 42/100. 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 Zhongshan Public Utilities Group Co Ltd (000685)?
Zhongshan Public Utilities Group Co Ltd reported trailing-twelve-month revenue of about 4.6B CNY (latest available figure, as of Aug 15, 2026).
What is the net profit margin of 000685?
The net profit margin of Zhongshan Public Utilities Group Co Ltd is about 46.5%, meaning it keeps roughly 46.5% of revenue as net income. Based on the latest reported figures.
Does Zhongshan Public Utilities Group Co Ltd pay a dividend?
Zhongshan Public Utilities Group Co Ltd currently shows a dividend yield of about 3.37% relative to its recent price (as of Aug 15, 2026).
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