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China Three Gorges New Energy Group Co Ltd (600905) Fair Value & Analysis

Utilities · CN · Market cap 108B CNY (≈ $16.1B) · ISIN CNE1000051F2

What is China Three Gorges New Energy Group Co Ltd really worth?

CT China Three Gorges New Energy Group Co Ltd 600905 · SHG
Price¥3.68
Fair Value¥2.40
Upside−34.8%
Quality40/100

Below-average quality, and trading another 53% above our fair value of ¥2.40.

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Risks

!Mixed Growth (revenue 5y +20.2 %/yr)
!Thin margins · 8.3% net margin
!High debt · negative free cash flow
!Trails peers (3/14)
!Moderate moat 50/100
!Evidence only low, so the estimate is less certain
!Weak on past: 10 out of 100
!Weak on balance sheet: 5 out of 100

For context

·1.11% dividend yield
Evidence: Low Range ¥2.23 – ¥2.76

Fair value as of: Aug 24, 2026

From 13 valuation models · updated 12 days ago

Share price −3.7% 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 (¥2.76). The favourable scenario is already priced in.
  • Weak quality (40/100) 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)

¥7.56 ¥3.61 Fair Value ¥2.40 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

60‑month range ¥3.61 – ¥7.56 · fair‑value band ¥2.23 – ¥2.76 · the ¥3.68 price screens above the ¥2.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 24, 2026.

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Analysis

China Three Gorges New Energy Group Co Ltd (600905) currently trades at ¥3.68, while our model-based Fair Value estimate is ¥2.40, implying the stock looks roughly 53.3% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Utilities sector. Bull case: the Dividend Discount group reads highest at a median of ¥3.42 per share, and 2 of the 12 models we run sit above the ¥3.68 price. Bear case: the Asset-Based group reads lowest at ¥2.08, and 10 of the 12 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, China Three Gorges New Energy Group Co Ltd generated revenue of 27.7B CNY at a net margin of 8.3%. Revenue declined 8.9% year over year. It earns a return on equity of 2.5%. Net debt stands at 168B CNY. Fundamentals as of Aug 24, 2026

Our scenario range runs from ¥2.23 (bear case) to ¥2.76 (bull case); at ¥3.68, 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 21% below its 52-week high, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −12% fair-value upside, at −35%, 600905 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 ¥0.0265 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 ¥2.35 ¥2.37 ¥2.20 76
DDM Multi-Stage ¥1.95 ¥3.42 ¥4.25 67
Growth-Adj P/E ¥2.13 ¥3.04 ¥3.96 67
All 13 models by family
Earnings-Based
Graham-Dodd ¥0.8800 ¥5.54 ¥7.74 63
Lynch FV ¥1.60 ¥2.28 ¥2.97 61
PEG = 1.0 ¥1.60 ¥2.28 ¥2.97 57
Dividend Discount
Gordon GGM ¥1.95 ¥4.05 ¥6.43 66
DDM Multi-Stage ¥1.95 ¥3.42 ¥4.25 67
Multiples
P/E Multiple ¥1.75 ¥2.34 ¥2.92 63
P/S Multiple ¥1.66 ¥2.21 ¥2.76 58
P/B Multiple ¥1.66 ¥2.21 ¥2.76 55
EV/EBIT ¥0.6100 61
EV/EBITDA ¥0.4600 ¥2.55 ¥4.63 60
Asset-Based
NCAV (Graham) ¥1.55 ¥2.08 ¥3.10 54
Economic Profit
Residual Income best evidence ¥2.35 ¥2.37 ¥2.20 76
Growth Earnings
Growth-Adj P/E ¥2.13 ¥3.04 ¥3.96 67

Widest divergence: Dividend Discount (¥3.42) versus Asset-Based (¥2.08). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 46.0
P/S ratio 6.02 P/E × margin
EPS (TTM) ¥0.0800 price ÷ EPS = P/E 46.0
Dividend yield 1.1% payout 51.3%
Net margin 13.1% FY2025
Return on equity 2.5% TTM
More key figures
Profitability
Return on assets (EBIT) 3.0% avg 5y
Operating margin 30.8% TTM
Growth
Revenue (TTM) 27.7B CNY TTM
Revenue growth (YoY) −8.9% 3y avg +6.0%
EPS growth (YoY) −57.4%
Balance sheet & cash flow
Free cash flow −11.2B CNY FY2025
Net debt 168B CNY FY2025

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 37 · Market factors (momentum, volatility) 44

Profitability 23
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 99
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 11
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

China Three Gorges Renewables (Group) Co.,Ltd. engages in the development, investment, and operation of wind and solar energy in China.

Full company description

China Three Gorges Renewables (Group) Co.,Ltd. engages in the development, investment, and operation of wind and solar energy in China. The company develops offshore wind power projects with a cumulative installed capacity of 7.0498 million kilowatts, onshore wind power projects with a cumulative installed capacity of over 7.5 million kilowatts, photovoltaic power stations with a cumulative installed capacity of over 7 gigawatts, and small and medium-sized hydropower project with an installed capacity of 220 megawatts. China Three Gorges Renewables (Group) Co.,Ltd. was founded in 1985 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Three Gorges New Energy Group Co Ltd reported revenue of 28.4B CNY in FY2025 versus 16.4B CNY in FY2021, a compound +14.7%/yr. Reported net income was 3.7B CNY in FY2025, compounding −12.9%/yr from FY2021.

Growth Quality 38/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
28.4B CNY
Latest YoY
−4.4%
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.
+6.0%
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.
+20.2%
Avg. revenue growth/yr (21Y) 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.
+12.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+18.9% (17.8 + 1.1)
Revenue +14.7%/yr
FY21 16.4B CNY
FY22 23.8B CNY
FY23 26.5B CNY
FY24 29.7B CNY
FY25 28.4B CNY
Net income −12.9%/yr
FY21 6.4B CNY
FY22 7.1B CNY
FY23 7.2B CNY
FY24 6.1B CNY
FY25 3.7B CNY

600905 screens 53% overvalued. Compare with China Yangtze Power Co →

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Cite: Fair Value Calculator (2026). "China Three Gorges New Energy Group Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600905

Peer Group

Utilities - Renewable · 213 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 40 · Below median
Fair Value upside −35% · Below median
Return on equity (TTM) 2% · Below median
Return on assets 1% · Below median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 31% · Above median
Revenue growth −9% · Below median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 1.91× · Higher than 75% of peers

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

P/E (TTM) 46.0× · Pricier than 75% of peers
P/B 1.22× · Pricier than median
P/S (TTM) 3.89× · Pricier than median
EV/EBITDA 12.3× · Pricier than median
PEG 0.80× · Cheaper 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 6
FUTURE0 · sector 0
PAST10 · sector 14
HEALTH5 · sector 68
DIVIDEND22 · sector 44

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.

None of the checked exposures detected

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥27.96 ¥25.13 −10%
Ørsted A/S ORSTED kr 139.25 kr 31.40 −77%
Huaneng Lancang River Hydropower Inc 600025 ¥9.79 ¥5.57 −43%
Adani Green Energy Limited ADANIGREEN ₹1,319 ₹169.61 −87%
AXIA Energia SA AXIAP $10.74 $9.49 −12%
VERBUND AG OEWA €57.00 €66.19 +16%
BEP BEP $31.27 $70.40 +125%
BEPUN BEPUN C$45.05 C$42.83 −5%
Fortum Oyj FORTUM €19.80 €13.55 −32%
China Longyuan Power Group 001289 ¥15.92 ¥7.55 −53%

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Frequently asked questions

Is China Three Gorges New Energy Group Co Ltd (600905) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of ¥2.40 versus a price of ¥3.68, about −35% upside (overvalued).
What is the fair value of 600905?
Our model-based fair value for China Three Gorges New Energy Group Co Ltd is ¥2.40 (as of Aug 24, 2026), built from audited fundamentals. The current price: ¥3.68.
What is the quality score of 600905?
China Three Gorges New Energy Group Co Ltd has a Quality Score of 40/100. 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 China Three Gorges New Energy Group Co Ltd (600905)?
China Three Gorges New Energy Group Co Ltd reported trailing-twelve-month revenue of about 27.7B CNY (latest available figure, as of Aug 24, 2026).
What is the net profit margin of 600905?
The net profit margin of China Three Gorges New Energy Group Co Ltd is about 8.3%, meaning it keeps roughly 8.3% of revenue as net income. Based on the latest reported figures.
Does China Three Gorges New Energy Group Co Ltd pay a dividend?
China Three Gorges New Energy Group Co Ltd currently shows a dividend yield of about 1.11% relative to its recent price (as of Aug 24, 2026).
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