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ShanXi Coking Co Ltd (600740) Fair Value & Analysis

Basic Materials · CN · Market cap 9.1B CNY (≈ $1.4B) · ISIN CNE000000LD7

What is ShanXi Coking Co Ltd really worth?

SC ShanXi Coking Co Ltd 600740 · SHG
Price¥3.88
Fair Value¥2.35
Upside−39.5%
Quality31/100

Below-average quality, and trading another 65% above our fair value of ¥2.35.

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Risks

!Weak Growth (revenue 5y +2.5 %/yr)
!Thin margins · 2.3% net margin
!Low debt · negative free cash flow
!Trails peers (3/12)
!Narrow moat 14/100
!Evidence only low, so the estimate is less certain
!Weak on past: 3 out of 100
!Weak on dividend: 13 out of 100

For context

·0.64% dividend yield
Evidence: Low Range ¥1.76 – ¥2.93

Fair value as of: Aug 16, 2026

From 13 valuation models · updated 20 days ago

Fair value updated Aug 16, 2026, revised from ¥1.75 to ¥2.35 (+34.2%) since Aug 9, 2026. Share price +9.6% over the past month.

What runs behind every stock

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

What matters now

  • The price sits above even our optimistic bull case (¥2.93). The favourable scenario is already priced in.
  • Weak quality (31/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Price vs Fair Value (5 years)

¥10.81 ¥3.19 Fair Value ¥2.35 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 16, 2026.

How to read this chart

60‑month range ¥3.19 – ¥10.81 · fair‑value band ¥1.76 – ¥2.93 · the ¥3.88 price screens above the ¥2.35 fair value. Dashed = 300-day average. As of Aug 16, 2026.

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Analysis

ShanXi Coking Co Ltd (600740) currently trades at ¥3.88, while our model-based Fair Value estimate is ¥2.35, implying the stock looks roughly 65.2% overvalued today. The Quality Score stands at 31/100 (below-average quality), in the Basic Materials sector. Bull case: the Asset-Based group reads highest at a median of ¥4.00 per share, and 2 of the 13 models we run sit above the ¥3.88 price. Bear case: the Earnings-Based group reads lowest at ¥1.01, and 11 of the 13 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, ShanXi Coking Co Ltd generated revenue of 6.0B CNY at a net margin of 2.3%. Revenue declined 13.0% year over year. It earns a return on equity of 0.8%. Net debt stands at 4.8B CNY. Fundamentals as of Aug 16, 2026

Our scenario range runs from ¥1.76 (bear case) to ¥2.93 (bull case); at ¥3.88, the current price sits above 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 29% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −60% fair-value upside, at −39%, 600740 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2024 figures, and about 12 months have passed since. In that time the company retained roughly ¥0.0250 per share, which is 1.1 % 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 ¥4.14 ¥3.95 ¥3.01 76
Owner Earnings ¥1.21 ¥2.61 ¥4.83 72
Gordon GGM ¥1.44 ¥2.86 ¥4.34 67
All 13 models by family
DCF Models
Owner Earnings ¥1.21 ¥2.61 ¥4.83 72
Earnings-Based
Graham-Dodd ¥0.7000 ¥2.83 ¥3.84 64
Lynch FV ¥0.7100 ¥1.01 ¥1.31 61
PEG = 1.0 ¥0.7100 ¥1.01 ¥1.31 57
Dividend Discount
Gordon GGM ¥1.44 ¥2.86 ¥4.34 67
DDM Multi-Stage ¥1.44 ¥2.47 ¥3.02 67
Multiples
P/E Multiple ¥1.31 ¥1.75 ¥2.18 63
P/S Multiple ¥1.31 ¥1.75 ¥2.18 58
P/B Multiple ¥1.31 ¥1.75 ¥2.18 55
EV/EBITDA ¥0.4800 ¥0.9300 ¥1.39 64
Asset-Based
NCAV (Graham) ¥2.99 ¥4.00 ¥5.97 54
Economic Profit
Residual Income best evidence ¥4.14 ¥3.95 ¥3.01 76
Growth Earnings
Growth-Adj P/E ¥1.09 ¥1.56 ¥2.03 67

Widest divergence: Asset-Based (¥4.00) versus Earnings-Based (¥1.01). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 77.6
P/S ratio 2.72 P/E × margin
EPS (TTM) ¥0.0500 price ÷ EPS = P/E 77.6
Dividend yield 0.6% payout 50.0%
Net margin 3.5% FY2024
Return on equity 0.8% TTM
More key figures
Profitability
Return on assets (EBIT) 5.3% avg 5y
Operating margin −12.5% TTM
Growth
Revenue (TTM) 6.0B CNY TTM
Revenue growth (YoY) −13.0% 3y avg −12.6%
EPS growth (YoY) −60.1%
Balance sheet & cash flow
Free cash flow −2.3B CNY FY2024
Net debt 4.8B CNY FY2024

Figures from reported company fundamentals · as of Aug 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 31/100

Of which business quality 30 · Market factors (momentum, volatility) 41

Profitability 16
Margins and returns on capital today
Quality Growth 5
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 31
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

Shanxi Coking Co., Ltd. engages in the production and sale of coke and related chemical products in China. It offers benzene, carbon black, methanol, solid asphalt, naphthalene, liquid asphalt, coked toluene, methyl naphthalene oil, ammonium sulfate, dephenolized phenolic oil, coking xylene, washing oil, non-aromatic, neutral, phenate, light oil, sulfur, …

Full company description

Shanxi Coking Co., Ltd. engages in the production and sale of coke and related chemical products in China. It offers benzene, carbon black, methanol, solid asphalt, naphthalene, liquid asphalt, coked toluene, methyl naphthalene oil, ammonium sulfate, dephenolized phenolic oil, coking xylene, washing oil, non-aromatic, neutral, phenate, light oil, sulfur, molten sulfur, and anthracene oil. The company was founded in 1996 and is headquartered in Linfen, China. Shanxi Coking Co., Ltd. is a subsidiary of Shanxi Coking Group Co., Ltd.

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

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

ShanXi Coking Co Ltd reported revenue of 7.5B CNY in FY2024 versus 7.1B CNY in FY2020, a compound +1.4%/yr. Reported net income was 263M CNY in FY2024, compounding −30.0%/yr from FY2020.

Growth Quality 17/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2024)
7.5B CNY
Latest YoY
−14.2%
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.
−12.6%
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.
+2.5%
Avg. revenue growth/yr (31Y) 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.
+11.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−24.2% (−24.8 + 0.6)
Revenue +1.4%/yr
FY20 7.1B CNY
FY21 11.2B CNY
FY22 12.1B CNY
FY23 8.7B CNY
FY24 7.5B CNY
Net income −30.0%/yr
FY20 1.1B CNY
FY21 1.3B CNY
FY22 2.6B CNY
FY23 1.3B CNY
FY24 263M CNY
Character of growth · EPS growth decomposed (2013-2024) +46.1 % p.a.
Revenue per share −1.6 %

of which total revenue +6.0 % · buybacks/dilution −7.2 %

EBIT margin +34.8 %
Tax rate +0.4 %
Residual (interest, one-offs) +9.6 %

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).

600740 screens 65% overvalued. Compare with PT Alamtri Minerals Indonesia Tbk, →

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Cite: Fair Value Calculator (2026). "ShanXi Coking Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600740

Peer Group

Coking Coal · 27 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 31 · Bottom 25%
Fair Value upside −40% · Below median
Return on equity (TTM) 1% · Above median
Return on assets −2% · Below median
Net margin (TTM) 2% · Above median
Operating margin (TTM) −12% · Below median
Revenue growth −13% · Below median
Dividend yield (TTM) 0.6% · Below median
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Coking Coal median · lower = cheaper

P/E (TTM) 77.6× · Pricier than 75% of peers
P/B 0.59× · Cheaper than median
P/S (TTM) 1.52× · Pricier than median

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
FUTURE0 · sector 17
PAST3 · sector 0
HEALTH89 · sector 97
DIVIDEND13 · sector 20

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

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal

Similar stocks

10 more Coking Coal stocks, each showing price versus our Fair Value estimate (as of Aug 16, 2026).

Stock Price Fair Value vs Fair Value
PT Alamtri Minerals Indonesia Tbk, ADMR 1,710 IDR 969.03 IDR −43%
Warrior Met Coal, Inc HCC $108.26 $18.35 −83%
Shanxi Meijin Energy Co 000723 ¥3.62 ¥1.24 −66%
Alpha Metallurgical Resources, Inc AMR $226.23 $45.15 −80%
Shougang Fushan Resources Group 0639 HK$2.68 HK$2.34 −13%
Kailuan Energy Chemical Co 600997 ¥5.50 ¥1.72 −69%
Baotailong New Materials Co 601011 ¥2.66 ¥1.32 −50%
SunCoke Energy, Inc SXC $9.14 $3.67 −60%
Shandong Jinling Mining Co 000655 ¥7.35 ¥6.29 −14%
Ramaco Resources, Inc METC $14.24 $1.80 −87%

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Frequently asked questions

Is ShanXi Coking Co Ltd (600740) overvalued or undervalued?
As of Aug 16, 2026, our model estimates a fair value of ¥2.35 versus a price of ¥3.88, about −39% upside (overvalued).
What is the fair value of 600740?
Our model-based fair value for ShanXi Coking Co Ltd is ¥2.35 (as of Aug 16, 2026), built from audited fundamentals. The current price: ¥3.88.
What is the quality score of 600740?
ShanXi Coking Co Ltd has a Quality Score of 31/100. 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 ShanXi Coking Co Ltd (600740)?
ShanXi Coking Co Ltd reported trailing-twelve-month revenue of about 6.0B CNY (latest available figure, as of Aug 16, 2026).
What is the net profit margin of 600740?
The net profit margin of ShanXi Coking Co Ltd is about 2.3%, meaning it keeps roughly 2.3% of revenue as net income. Based on the latest reported figures.
Does ShanXi Coking Co Ltd pay a dividend?
ShanXi Coking Co Ltd currently shows a dividend yield of about 0.64% relative to its recent price (as of Aug 16, 2026).
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