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Kailuan Energy Chemical Co Ltd (600997) Fair Value & Analysis

Basic Materials · CN · Market cap 8.6B CNY (≈ $1.3B) · ISIN CNE000001HX1

What is Kailuan Energy Chemical Co Ltd really worth?

KE Kailuan Energy Chemical Co Ltd 600997 · SHG
Price¥5.51
Fair Value¥3.44
Upside−37.6%
Quality46/100

Below-average quality, and trading another 60% above our fair value of ¥3.44.

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Strengths

Ranks above peers (8/11)

Risks

!Weak Growth (revenue 5y −0.9 %/yr)
!Loss-making · -1.2% net margin
!Low debt · negative free cash flow
!Narrow moat 12/100
!Evidence only low, so the estimate is less certain
!Weak on dividend: 7 out of 100

For context

·0.36% dividend yield
Evidence: Low Range ¥3.34 – ¥3.54

Fair value as of: Aug 13, 2026

From 7 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from ¥1.72 to ¥3.44 (+100.0%) since Aug 8, 2026. Share price −1.6% 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 (¥3.54). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
  • The models converge in a tight band (¥3.34 to ¥3.54), unusually little disagreement for a valuation.

Price vs Fair Value (5 years)

¥10.30 ¥4.75 Fair Value ¥3.44 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 ¥4.75 – ¥10.30 · fair‑value band ¥3.34 – ¥3.54 · the ¥5.51 price screens above the ¥3.44 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Kailuan Energy Chemical Co Ltd (600997) currently trades at ¥5.51, while our model-based Fair Value estimate is ¥3.44, implying the stock looks roughly 60.2% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Basic Materials sector. Bull case: the Asset-Based group reads highest at a median of ¥5.75 per share, and 2 of the 7 models we run sit above the ¥5.51 price. Bear case: the Earnings-Based group reads lowest at ¥3.07, and 5 of the 7 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Kailuan Energy Chemical Co Ltd generated revenue of 17.3B CNY at a net margin of −1.2%. Revenue declined 2.0% year over year. It earns a return on equity of −1.5%. The balance sheet holds a net cash position of 2.4B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥3.34 (bear case) to ¥3.54 (bull case); at ¥5.51, 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 27% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −51% fair-value upside, at −38%, 600997 screens cheaper than that median.

Fair Value models

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
Owner Earnings best evidence ¥3.92 ¥4.31 ¥4.85 78
EPV ¥3.06 ¥3.07 ¥3.08 74
ROIC Compounder ¥3.06 ¥3.07 ¥3.08 72
All 7 models by family
DCF Models
Owner Earnings best evidence ¥3.92 ¥4.31 ¥4.85 78
Earnings-Based
EPV ¥3.06 ¥3.07 ¥3.08 74
Multiples
EV/EBIT ¥3.15 ¥3.20 ¥3.25 66
EV/EBITDA ¥7.90 ¥9.53 ¥11.17 67
EV/Revenue ¥3.12 ¥3.18 ¥3.24 54
Asset-Based
NCAV (Graham) ¥4.29 ¥5.75 ¥8.58 54
Economic Profit
ROIC Compounder ¥3.06 ¥3.07 ¥3.08 72

Widest divergence: Asset-Based (¥5.75) versus Earnings-Based (¥3.07). Highest evidence: Owner Earnings (78).

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Key figures & financial health

P/S ratio 0.48 TTM
EPS (TTM) ¥−0.1300
Dividend yield 0.4%
Net margin −0.2% FY2025
Return on equity −1.5% TTM
Return on assets (EBIT) 4.9% avg 5y
More key figures
Profitability
Operating margin −1.4% TTM
Growth
Revenue (TTM) 17.3B CNY TTM
Revenue growth (YoY) −2.0% 3y avg −12.5%
EPS growth (YoY) +18.6%
Balance sheet & cash flow
Free cash flow −1.5B CNY FY2025
Net cash 2.4B CNY FY2024

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

Quality Score breakdown

Overall quality 46/100

Of which business quality 46 · Market factors (momentum, volatility) 42

Profitability 20
Margins and returns on capital today
Quality Growth 17
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 85
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

Kailuan Energy Chemical Co.,Ltd. engages in coal, coal chemical, and other businesses in China and internationally. It is involved in coal mining, raw coal washing and processing; coking; and production and sales of coal chemical products, such as metallurgical coke; investment; and house leasing.

Full company description

Kailuan Energy Chemical Co.,Ltd. engages in coal, coal chemical, and other businesses in China and internationally. It is involved in coal mining, raw coal washing and processing; coking; and production and sales of coal chemical products, such as metallurgical coke; investment; and house leasing. The company offers chemical products, such as methanol, benzene, adipic acid, and polyoxymethylene; coal tar derivatives; technical services; and promotion services for new material technologies. The company was formerly known as Kailuan Coal Co., Ltd. Kailuan Energy Chemical Co.,Ltd. was incorporated in 2001 and is based in Tangshan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kailuan Energy Chemical Co Ltd reported revenue of 17.4B CNY in FY2025 versus 23.2B CNY in FY2021, a compound −6.9%/yr. Reported net income was −32.4M CNY in FY2025.

Growth Quality 3/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
17.4B CNY
Latest YoY
−17.9%
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.
−12.5%
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.
−0.9%
Avg. revenue growth/yr (24Y) 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%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue −6.9%/yr
FY21 23.2B CNY
FY22 26.0B CNY
FY23 22.8B CNY
FY24 21.2B CNY
FY25 17.4B CNY
Net income
FY21 1.9B CNY
FY22 1.9B CNY
FY23 1.1B CNY
FY24 816M CNY
FY25 −32.4M CNY
Character of growth · EPS growth decomposed (2013-2024) +19.9 % p.a.
Revenue per share +1.6 %

of which total revenue +4.2 % · buybacks/dilution −2.5 %

EBIT margin +12.4 %
Tax rate +0.4 %
Residual (interest, one-offs) +4.6 %

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).

600997 screens 60% overvalued. Compare with PT Alamtri Minerals Indonesia Tbk, →

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Cite: Fair Value Calculator (2026). "Kailuan Energy Chemical Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600997

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 46 · Above median
Fair Value upside −38% · Below median
Return on assets −1% · Above median
Net margin (TTM) −1% · Above median
Operating margin (TTM) −1% · Above median
Revenue growth −2% · Below median
Dividend yield (TTM) 0.4% · Below median
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Coking Coal median · lower = cheaper

P/B 0.09× · Cheaper than 75% of peers
P/S (TTM) 0.08× · 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
VALUE0 · sector 0
FUTURE0 · sector 17
PAST0 · sector 0
HEALTH97 · sector 97
DIVIDEND7 · 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 13, 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%
Shanxi Coking Co 600740 ¥3.59 ¥1.75 −51%
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 Kailuan Energy Chemical Co Ltd (600997) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥3.44 versus a price of ¥5.51, about −38% upside (overvalued).
What is the fair value of 600997?
Our model-based fair value for Kailuan Energy Chemical Co Ltd is ¥3.44 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥5.51.
What is the quality score of 600997?
Kailuan Energy Chemical Co Ltd has a Quality Score of 46/100. 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 Kailuan Energy Chemical Co Ltd (600997)?
Kailuan Energy Chemical Co Ltd reported trailing-twelve-month revenue of about 17.3B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 600997?
The net profit margin of Kailuan Energy Chemical Co Ltd is about −1.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Kailuan Energy Chemical Co Ltd pay a dividend?
Kailuan Energy Chemical Co Ltd currently shows a dividend yield of about 0.36% relative to its recent price (as of Aug 13, 2026).
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