EN DE

GEM Co Ltd (002340) Fair Value & Analysis

Industrials · CN · Market cap 38.9B CNY (≈ $5.8B) · ISIN CNE100000KT4

What is GEM Co Ltd really worth?

GC GEM Co Ltd 002340 · SHE
Price¥6.46
Fair Value¥5.27
Upside−18.4%
Quality42/100

Below-average quality, and trading another 23% above our fair value of ¥5.27.

Watch GEM Co Ltd for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free

Risks

!Expensive Growth (revenue 5y +24.4 %/yr)
!Thin margins · 4.2% net margin
!Moderate debt · negative free cash flow
!Mixed vs. peers (8/14)
!Narrow moat 37/100
!Evidence only low, so the estimate is less certain
!Weak on valuation: 9 out of 100
!Weak on future: 26 out of 100

For context

·1.47% dividend yield
Evidence: Low Range ¥3.95 – ¥6.58

Fair value as of: Aug 29, 2026

From 16 valuation models · updated 7 days ago

Share price −4.3% over the past month.

What runs behind every stock

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

What matters now

  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Price vs Fair Value (5 years)

¥13.32 ¥4.05 Fair Value ¥5.27 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range ¥4.05 – ¥13.32 · fair‑value band ¥3.95 – ¥6.58 · the ¥6.46 price screens above the ¥5.27 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

GEM Co Ltd (002340) currently trades at ¥6.46, while our model-based Fair Value estimate is ¥5.27, implying the stock looks roughly 22.6% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of ¥10.26 per share, and 6 of the 16 models we run sit above the ¥6.46 price. Bear case: the Asset-Based group reads lowest at ¥2.81, and 10 of the 16 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, GEM Co Ltd generated revenue of 37.6B CNY at a net margin of 4.2%. Revenue grew 5.1% year over year. It earns a return on equity of 7.0%. Net debt stands at 15.0B CNY. Fundamentals as of Aug 29, 2026

Our scenario range runs from ¥3.95 (bear case) to ¥6.58 (bull case); at ¥6.46, 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 37% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −35% fair-value upside, at −18%, 002340 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 ¥0.1455 per share, which is 2.8 % 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 ¥3.47 ¥3.70 ¥4.01 76
EPV ¥3.56 ¥4.43 ¥5.20 74
ROIC Compounder ¥3.56 ¥4.78 ¥6.80 71
All 16 models by family
Earnings-Based
Graham-Dodd ¥2.11 ¥14.69 ¥20.61 63
Lynch FV ¥6.23 ¥8.90 ¥11.57 61
PEG = 1.0 ¥6.23 ¥8.90 ¥11.57 57
EPV ¥3.56 ¥4.43 ¥5.20 74
Dividend Discount
Gordon GGM ¥2.34 ¥4.86 ¥7.71 66
DDM Multi-Stage ¥2.34 ¥4.10 ¥5.10 66
Multiples
P/E Multiple ¥3.95 ¥5.27 ¥6.58 63
P/S Multiple ¥3.95 ¥5.27 ¥6.58 58
P/B Multiple ¥3.95 ¥5.27 ¥6.58 55
EV/EBIT ¥4.74 ¥6.88 ¥9.02 65
EV/EBITDA ¥6.86 ¥9.71 ¥12.56 67
EV/Revenue ¥3.88 ¥6.27 ¥8.65 53
Asset-Based
NCAV (Graham) ¥2.10 ¥2.81 ¥4.19 54
Economic Profit
Residual Income best evidence ¥3.47 ¥3.70 ¥4.01 76
ROIC Compounder ¥3.56 ¥4.78 ¥6.80 71
Growth Earnings
Growth-Adj P/E ¥7.18 ¥10.26 ¥13.34 67

Widest divergence: Growth Earnings (¥10.26) versus Asset-Based (¥2.81). Highest evidence: Residual Income (76).

Notify me when 002340 reaches fair value

Put 002340 on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Free, no payment details. Unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 20.8
P/S ratio 0.89 P/E × margin
EPS (TTM) ¥0.3100 price ÷ EPS = P/E 20.8
Dividend yield 1.5% payout 30.6%
Net margin 4.3% FY2025
Return on equity 7.0% TTM
More key figures
Profitability
Return on assets (EBIT) 3.2% avg 5y
Operating margin 11.5% TTM
Growth
Revenue (TTM) 37.6B CNY TTM
Revenue growth (YoY) +5.1% 3y avg +8.1%
Balance sheet & cash flow
Free cash flow −5.4B CNY FY2025
Net debt 15.0B CNY FY2025

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 41 · Market factors (momentum, volatility) 32

Profitability 27
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 27
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 21
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

GEM Co., Ltd. operates in the resource comprehensive utilization industry in China and internationally. The company offers basic raw materials, cobalt tetroxide, lithium cobalt oxide, ternary precursor and cathode materials, and other products; cobalt, tungsten, and nickel products; cemented carbide rods and mineral-related cemented carbide products; and …

Full company description

GEM Co., Ltd. operates in the resource comprehensive utilization industry in China and internationally. The company offers basic raw materials, cobalt tetroxide, lithium cobalt oxide, ternary precursor and cathode materials, and other products; cobalt, tungsten, and nickel products; cemented carbide rods and mineral-related cemented carbide products; and gold, silver, palladium, copper, and rhodium metal products. It also provides wood-plastic composite profiles; green recycled plastics; construction machinery, electricity storage, and low-speed vehicle products; waste plastics, scrap aluminum and alloy, scrap copper scraps and scrap copper alloys, and iron scraps; glass, rubber, plastic, aluminum, copper, and scrap steel products; and eco-friendly bricks. The company was formerly known as Shenzhen Green Eco-manufacture Hi-tech Co., Ltd. and changed its name to GEM Co., Ltd. in April 2015. GEM Co., Ltd. was founded in 2001 and is based in Shenzhen, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

GEM Co Ltd reported revenue of 37.1B CNY in FY2025 versus 19.3B CNY in FY2021, a compound +17.8%/yr. Reported net income was 1.6B CNY in FY2025, compounding +14.4%/yr from FY2021.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
37.1B CNY
Latest YoY
+11.8%
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.
+8.1%
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.
+24.4%
Avg. revenue growth/yr (19Y) 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.
+36.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+12.9% (11.4 + 1.5)
Revenue +17.8%/yr
FY21 19.3B CNY
FY22 29.4B CNY
FY23 30.5B CNY
FY24 33.2B CNY
FY25 37.1B CNY
Net income +14.4%/yr
FY21 923M CNY
FY22 1.3B CNY
FY23 934M CNY
FY24 1.0B CNY
FY25 1.6B CNY
Character of growth · EPS growth decomposed (2013-2024) +15.6 % p.a.
Revenue per share +17.5 %

of which total revenue +25.0 % · buybacks/dilution −6.0 %

EBIT margin +0.4 %
Tax rate −0.7 %
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).

002340 screens 23% overvalued. Compare with Waste Management, Inc →

Share or link this analysis
𝕏 Post WhatsApp LinkedIn Reddit
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "GEM Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002340

Peer Group

Waste Management · 165 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 −18% · Above median
Return on equity (TTM) 7% · Above median
Return on assets 3% · Above median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 12% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 1.5% · Below median
Debt / equity 0.69× · Higher than median

Valuation Multiples vs Waste Management median · lower = cheaper

P/E (TTM) 20.8× · Pricier than median
P/B 1.82× · Pricier than median
P/S (TTM) 1.04× · Cheaper than median
EV/EBITDA 7.6× · Cheaper than median
PEG 0.93× · Cheaper 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
VALUE9 · sector 2
FUTURE26 · sector 19
PAST28 · sector 26
HEALTH65 · sector 82
DIVIDEND29 · sector 45

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 Waste Management stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Waste Management, Inc WM $217.76 $128.02 −41%
Republic Services, Inc RSG $220.92 $120.63 −45%
Waste Connections, Inc WCN C$230.52 C$78.67 −66%
Veolia Environnement SA VIE €32.60 €23.26 −29%
Clean Harbors, Inc CLH $311.81 $154.01 −51%
GFL Environmental Inc GFL C$57.62 C$44.27 −23%
Fomento de Construcciones y Contratas, S.A FCC €11.30 €7.30 −35%
Zhejiang Weiming Environment Protection Co 603568 ¥14.86 ¥20.95 +41%
Cleanaway Waste Management Limited CWY A$2.60 A$1.18 −55%
Beijing GeoEnviron Engineering & Technology, Inc 603588 ¥14.10 ¥9.35 −34%

Compare GEM Co Ltd with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Extrinsic Value Calculator (Options) Splits an option premium into intrinsic and extrinsic (time) value. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is GEM Co Ltd (002340) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of ¥5.27 versus a price of ¥6.46, about −18% upside (overvalued).
What is the fair value of 002340?
Our model-based fair value for GEM Co Ltd is ¥5.27 (as of Aug 29, 2026), built from audited fundamentals. The current price: ¥6.46.
What is the quality score of 002340?
GEM 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 GEM Co Ltd (002340)?
GEM Co Ltd reported trailing-twelve-month revenue of about 37.6B CNY (latest available figure, as of Aug 29, 2026).
What is the net profit margin of 002340?
The net profit margin of GEM Co Ltd is about 4.2%, meaning it keeps roughly 4.2% of revenue as net income. Based on the latest reported figures.
Does GEM Co Ltd pay a dividend?
GEM Co Ltd currently shows a dividend yield of about 1.47% relative to its recent price (as of Aug 29, 2026).
Free · no account needed

Watch GEM Co Ltd in the live analysis

One click puts GEM Co Ltd on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.