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Merchant Express Class A (001965) Fair Value & Analysis

Industrials · CN · Market cap 67.3B CNY (≈ $10.0B) · ISIN CNE1000032B1

What is Merchant Express Class A really worth?

ME Merchant Express Class A 001965 · SHE
Price¥9.80
Fair Value¥10.25
Upside+4.6%
Quality59/100

A solid business, currently priced close to our fair value of ¥10.25.

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Strengths

Healthy Growth (revenue 5y +13.6 %/yr)
Highly profitable · 32.8% net margin
Moderate debt · generates free cash flow

Risks

!Trails peers (4/14)
!Moderate moat 57/100
!Weak on past: 22 out of 100

For context

·3.81% dividend yield
Evidence: High Range ¥4.24 – ¥13.33

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from ¥9.16 to ¥10.25 (+11.9%) since Jul 17, 2026. Share price +0.2% over the past month.

What runs behind every stock

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

What matters now

  • The model range is unusually wide (¥4.24 to ¥13.33). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.

Price vs Fair Value (5 years)

¥13.45 ¥5.65 Fair Value ¥10.25 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 ¥5.65 – ¥13.45 · fair‑value band ¥4.24 – ¥13.33 · the ¥9.80 price screens below the ¥10.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Merchant Express Class A (001965) currently trades at ¥9.80, while our model-based Fair Value estimate is ¥10.25, implying the stock looks roughly 4.4% fairly valued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of ¥15.42 per share, and 15 of the 23 models we run sit above the ¥9.80 price. Bear case: the Growth DCF group reads lowest at ¥2.30, and 8 of the 23 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Merchant Express Class A generated revenue of 14.1B CNY at a net margin of 32.8%. Revenue grew 26.9% year over year. It earns a return on equity of 5.6%. Net debt stands at 39.3B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥4.24 (bear case) to ¥13.33 (bull case); at ¥9.80, 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 19% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 6% fair-value upside, at 5%, 001965 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 ¥0.1950 per share, which is 1.9 % 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 ¥8.76 ¥9.16 ¥9.44 76
FCF DCF ¥5.32 ¥15.20 ¥36.39 72
Growth DCF ¥5.08 ¥15.66 ¥32.05 72
All 23 models by family
DCF Models
FCF DCF ¥5.32 ¥15.20 ¥36.39 72
Owner Earnings ¥9.49 ¥24.39 ¥52.36 70
5Y Revenue Exit ¥2.27 ¥5.95 69
5Y EBITDA Exit ¥4.17 ¥12.59 ¥23.55 70
5Y P/E Exit ¥4.71 ¥13.77 ¥24.61 66
10Y Revenue Exit ¥1.17 ¥4.66 ¥9.88 60
10Y EBITDA Exit ¥4.47 ¥12.48 ¥25.45 63
10Y P/E Exit ¥4.84 ¥13.38 ¥26.40 59
Earnings-Based
Graham-Dodd ¥4.61 ¥25.69 ¥35.66 63
Lynch FV ¥7.18 ¥10.25 ¥13.33 61
PEG = 1.0 ¥7.18 ¥10.25 ¥13.33 57
Dividend Discount
Gordon GGM ¥6.07 ¥12.62 ¥20.01 66
DDM Multi-Stage ¥6.07 ¥10.64 ¥13.24 66
Multiples
P/E Multiple ¥10.69 ¥14.25 ¥17.81 63
P/S Multiple ¥2.95 ¥3.93 ¥4.92 58
P/B Multiple ¥8.65 ¥11.53 ¥14.42 55
EV/EBIT ¥1.70 ¥3.54 61
EV/EBITDA ¥4.21 ¥7.50 ¥10.78 65
Asset-Based
NCAV (Graham) ¥5.47 ¥7.32 ¥10.93 54
Growth DCF
Growth DCF ¥5.08 ¥15.66 ¥32.05 72
Rev-Margin DCF ¥2.30 ¥6.21 69
Economic Profit
Residual Income best evidence ¥8.76 ¥9.16 ¥9.44 76
Growth Earnings
Growth-Adj P/E ¥10.79 ¥15.42 ¥20.04 67

Widest divergence: Growth Earnings (¥15.42) versus Growth DCF (¥2.30). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 14.8
P/S ratio 5.12 P/E × margin
EPS (TTM) ¥0.6600 price ÷ EPS = P/E 14.8
Dividend yield 3.8% payout 56.5%
Net margin 34.5% FY2025
Return on equity 5.6% TTM
More key figures
Profitability
Return on assets (EBIT) 4.2% avg 5y
Operating margin 20.1% TTM
Growth
Revenue (TTM) 14.1B CNY TTM
Revenue growth (YoY) +26.9% 3y avg +17.2%
EPS growth (YoY) +2.7%
Balance sheet & cash flow
Free cash flow 5.3B CNY FY2025
Net debt 39.3B CNY FY2025 · ≈ 7.3 yrs of FCF

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

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 52

Profitability 34
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 85
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 94
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

China Merchants Expressway Network & Technology Holdings Co.,Ltd. operates as a highway investment and operation service provider in the People's Republic of China. It operates through Investment Operation, Transportation Technology, Smart Transportation, and Traffic Ecology segments.

Full company description

China Merchants Expressway Network & Technology Holdings Co.,Ltd. operates as a highway investment and operation service provider in the People's Republic of China. It operates through Investment Operation, Transportation Technology, Smart Transportation, and Traffic Ecology segments. The company also offers full-process consulting and engineering technical services; and general contracting of engineering, design and construction, and project management services. In addition, it engages in technical service development; traffic information services; intelligent transportation product design; technology research and development; software development and computer network system engineering; technology transfer; business management; engineering consulting management; fund management; photovoltaic power generation; agricultural planting; highway engineering; scientific research and design; engineering supervision; production and installation; development and management of construction facilities; hotels; pipeline corridor leasing; ecological and environmental protection technology-related activities; highway engineering inspection; highway information technology development; water transport project supervision; and other technology promotion services. The company was formerly known as China Merchants Huajian Highway Investment Co.,Ltd. and changed its name to China Merchants Expressway Network & Technology Holdings Co.,Ltd. in September 2016. The company was founded in 1993 and is based in Beijing, the People's Republic of China. China Merchants Expressway Network & Technology Holdings Co.,Ltd. operates as a subsidiary of China Merchants Group Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Merchant Express Class A reported revenue of 13.4B CNY in FY2025 versus 8.6B CNY in FY2021, a compound +11.6%/yr. Reported net income was 4.6B CNY in FY2025, compounding −1.9%/yr from FY2021.

Growth Quality 94/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
13.4B CNY
Latest YoY
+5.1%
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.
+17.2%
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.
+13.6%
Avg. revenue growth/yr (11Y) 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.
+16.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+3.1% (−0.7 + 3.8)
Revenue +11.6%/yr
FY21 8.6B CNY
FY22 8.3B CNY
FY23 9.7B CNY
FY24 12.7B CNY
FY25 13.4B CNY
Net income −1.9%/yr
FY21 5.0B CNY
FY22 4.9B CNY
FY23 6.8B CNY
FY24 5.3B CNY
FY25 4.6B CNY
Character of growth · EPS growth decomposed (2014-2024) +2.7 % p.a.
Revenue per share +11.2 %

of which total revenue +17.6 % · buybacks/dilution −5.5 %

EBIT margin −9.3 %
Tax rate +0.8 %
Residual (interest, one-offs) +1.1 %

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). "Merchant Express Class A Fair Value". https://www.fairvalue-calculator.com/stock/001965

Peer Group

Infrastructure Operations · 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 59 · Above median
Fair Value upside +5% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 33% · Top 25%
Operating margin (TTM) 20% · Below median
Revenue growth 27% · Top 25%
Dividend yield (TTM) 3.8% · Below median
Debt / equity 0.65× · Higher than median

Valuation Multiples vs Infrastructure Operations median · lower = cheaper

P/E (TTM) 14.8× · Pricier than median
P/B 0.91× · Cheaper than median
P/S (TTM) 4.77× · Pricier than 75% of peers
P/FCF 1.9× · Pricier than median
EV/EBITDA 16.3× · 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
VALUE39 · sector 56
FUTURE100 · sector 10
PAST22 · sector 25
HEALTH67 · sector 69
DIVIDEND76 · sector 79

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 Infrastructure Operations stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Expressway Company 600377 ¥12.01 ¥14.47 +20%
Shandong Hi-speed Company 600350 ¥10.90 ¥8.68 −20%
Zhejiang Expressway Co 0576 HK$6.31 HK$18.50 +193%
Guangdong Provincial Expressway Development Co 000429 ¥13.04 ¥13.79 +6%
Anhui Expressway Company 600012 ¥16.15 ¥14.90 −8%
Shenzhen Expressway Corporation 600548 ¥8.37 ¥9.16 +9%
IRB Infrastructure Developers Limited IRB ₹18.95 ₹14.79 −22%
Sichuan Expressway Company 601107 ¥5.53 ¥5.73 +4%
CUBEINVIT CUBEINVIT ₹159.18 ₹33.83 −79%
PT Jasa Marga (Persero) Tbk JSMR 2,740 IDR 7,830 IDR +186%

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Frequently asked questions

Is Merchant Express Class A (001965) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥10.25 versus a price of ¥9.80, about +5% upside (fairly valued).
What is the fair value of 001965?
Our model-based fair value for Merchant Express Class A is ¥10.25 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥9.80.
What is the quality score of 001965?
Merchant Express Class A has a Quality Score of 59/100. 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 Merchant Express Class A (001965)?
Merchant Express Class A reported trailing-twelve-month revenue of about 14.1B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 001965?
The net profit margin of Merchant Express Class A is about 32.8%, meaning it keeps roughly 32.8% of revenue as net income. Based on the latest reported figures.
Does Merchant Express Class A pay a dividend?
Merchant Express Class A currently shows a dividend yield of about 3.81% relative to its recent price (as of Aug 13, 2026).
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