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China Natl Chem Engineering Co (601117) Fair Value & Analysis

Industrials · CN · Market cap 47.4B CNY (≈ $7.1B) · ISIN CNE100000KC0

What is China Natl Chem Engineering Co really worth?

CN China Natl Chem Engineering Co 601117 · SHG
Price¥7.42
Fair Value¥18.76
Upside+152.8%
Quality49/100

Below-average quality, trading 60% below our fair value of ¥18.76.

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Strengths

Ranks above peers (10/13)

Risks

!Expensive Growth (revenue 5y +11.6 %/yr)
!Thin margins · 3.4% net margin
!Low debt · negative free cash flow
!Narrow moat 34/100
!Weak on future: 16 out of 100

For context

·2.84% dividend yield
Evidence: High Range ¥9.60 – ¥20.41

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 22 days ago

Share price −4.1% 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 is below even our cautious bear case (¥9.60). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥9.60 to ¥20.41) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

¥14.53 ¥5.78 Fair Value ¥18.76 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 ¥5.78 – ¥14.53 · fair‑value band ¥9.60 – ¥20.41 · the ¥7.42 price screens below the ¥18.76 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Natl Chem Engineering Co (601117) currently trades at ¥7.42, while our model-based Fair Value estimate is ¥18.76, implying the stock looks roughly 60.4% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of ¥27.78 per share, and 14 of the 17 models we run sit above the ¥7.42 price. Bear case: the Dividend Discount group reads lowest at ¥4.61, and 3 of the 17 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, China Natl Chem Engineering Co generated revenue of 191B CNY at a net margin of 3.4%. Revenue grew 3.2% year over year. It earns a return on equity of 9.7%. The balance sheet holds a net cash position of 13.9B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥9.60 (bear case) to ¥20.41 (bull case); at ¥7.42, the current price sits below 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 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at 153%, 601117 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 ¥0.5904 per share, which is 3.1 % 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
Owner Earnings ¥17.65 ¥27.78 ¥45.80 75
Residual Income ¥9.56 ¥10.56 ¥15.96 75
EPV ¥16.77 ¥18.59 ¥20.19 74
All 17 models by family
DCF Models
Owner Earnings ¥17.65 ¥27.78 ¥45.80 75
Earnings-Based
Graham-Dodd ¥7.17 ¥35.09 ¥48.36 64
Lynch FV ¥9.42 ¥13.46 ¥17.50 61
PEG = 1.0 ¥9.42 ¥13.46 ¥17.50 57
EPV ¥16.77 ¥18.59 ¥20.19 74
Dividend Discount
Gordon GGM ¥2.63 ¥5.47 ¥8.68 66
DDM Multi-Stage ¥2.63 ¥4.61 ¥5.74 66
Multiples
P/E Multiple ¥16.60 ¥22.14 ¥27.67 63
P/S Multiple ¥13.44 ¥17.92 ¥22.40 58
P/B Multiple ¥13.44 ¥17.92 ¥22.40 55
EV/EBIT ¥23.32 ¥29.15 ¥34.98 66
EV/EBITDA ¥21.93 ¥27.30 ¥32.67 67
EV/Revenue ¥18.31 ¥23.66 ¥29.01 54
Asset-Based
NCAV (Graham) ¥5.50 ¥7.37 ¥11.00 54
Economic Profit
Residual Income ¥9.56 ¥10.56 ¥15.96 75
ROIC Compounder ¥18.40 ¥22.86 ¥28.66 72
Growth Earnings
Growth-Adj P/E ¥14.57 ¥20.81 ¥27.05 67

Widest divergence: DCF Models (¥27.78) versus Dividend Discount (¥4.61). Highest evidence: Owner Earnings (75).

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Key figures & financial health

P/E ratio 6.9
P/S ratio 0.23 P/E × margin
EPS (TTM) ¥1.08 price ÷ EPS = P/E 6.9
Dividend yield 2.8% payout 19.5%
Net margin 3.4% FY2025
Return on equity 9.7% TTM
More key figures
Profitability
Return on assets (EBIT) 3.3% avg 5y
Operating margin 4.2% TTM
Growth
Revenue (TTM) 191B CNY TTM
Revenue growth (YoY) +3.2% 3y avg +6.4%
EPS growth (YoY) +8.3%
Balance sheet & cash flow
Free cash flow −1.2B CNY FY2025
Net cash 13.9B CNY FY2025

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

Quality Score breakdown

Overall quality 49/100

Of which business quality 46 · Market factors (momentum, volatility) 40

Profitability 33
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 86
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 National Chemical Engineering Co., Ltd. engages in the chemical engineering business in China. It is involved in the contracting of construction engineering, petrochemicals, coal chemical industry, fine chemicals, pharmaceuticals, electric power, environmental ecological protection, infrastructure engineering and overseas engineering; and engineering …

Full company description

China National Chemical Engineering Co., Ltd. engages in the chemical engineering business in China. It is involved in the contracting of construction engineering, petrochemicals, coal chemical industry, fine chemicals, pharmaceuticals, electric power, environmental ecological protection, infrastructure engineering and overseas engineering; and engineering consulting, surveying, design, construction, and project management and services. The company also engages in the provision of engineering supervision services; technology research and development and promotion of results; manufacturing and installation of complete sets of pipelines, lines and equipment; quality inspection technical services; import and export business; and machinery and equipment leasing. In addition, it is involved in investment and management of industrial equipment and infrastructure; dispatching labor personnel required for the implementation of overseas engineering projects; and sale of electrical equipment. The company was founded in 1953 and is based in Beijing, China. China National Chemical Engineering Co., Ltd. is a subsidiary of China National Chemical Engineering Group Corporation Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Natl Chem Engineering Co reported revenue of 190B CNY in FY2025 versus 137B CNY in FY2021, a compound +8.4%/yr. Reported net income was 6.4B CNY in FY2025, compounding +8.6%/yr from FY2021.

Growth Quality 53/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
190B CNY
Latest YoY
+2.2%
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.
+6.4%
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.
+11.6%
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.
+15.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+10.2% (7.4 + 2.8)
Revenue +8.4%/yr
FY21 137B CNY
FY22 158B CNY
FY23 178B CNY
FY24 186B CNY
FY25 190B CNY
Net income +8.6%/yr
FY21 4.6B CNY
FY22 5.4B CNY
FY23 5.4B CNY
FY24 5.7B CNY
FY25 6.4B CNY
Character of growth · EPS growth decomposed (2014-2025) +6.9 % p.a.
Revenue per share +10.2 %

of which total revenue +12.9 % · buybacks/dilution −2.4 %

EBIT margin −2.7 %
Tax rate +0.2 %
Residual (interest, one-offs) −0.6 %

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).

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Cite: Fair Value Calculator (2026). "China Natl Chem Engineering Co Fair Value". https://www.fairvalue-calculator.com/stock/601117

Peer Group

Engineering & Construction · 816 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 49 · Below median
Fair Value upside +153% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 2% · Below median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth 3% · Above median
Dividend yield (TTM) 2.8% · Above median
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 6.9× · Cheaper than 75% of peers
P/B 0.71× · Cheaper than median
P/S (TTM) 0.25× · Cheaper than median
EV/EBITDA 1.3× · 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
VALUE100 · sector 16
FUTURE16 · sector 11
PAST39 · sector 26
HEALTH94 · sector 94
DIVIDEND57 · sector 39

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Vinci SA DG €114.35 €185.62 +62%
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Larsen & Toubro Limited LT ₹4,072 ₹2,196 −46%
Ferrovial N.V FER €57.28 €19.17 −67%
HOCHTIEF Aktiengesellschaft HOT €426.40 €203.87 −52%
Samsung C&T Corporation 028260 373,000 KRW 261,411 KRW −30%
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MasTec, Inc MTZ $241.00 $100.00 −59%
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Frequently asked questions

Is China Natl Chem Engineering Co (601117) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥18.76 versus a price of ¥7.42, about +153% upside (undervalued).
What is the fair value of 601117?
Our model-based fair value for China Natl Chem Engineering Co is ¥18.76 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥7.42.
What is the quality score of 601117?
China Natl Chem Engineering Co has a Quality Score of 49/100. 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 Natl Chem Engineering Co (601117)?
China Natl Chem Engineering Co reported trailing-twelve-month revenue of about 191B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 601117?
The net profit margin of China Natl Chem Engineering Co is about 3.4%, meaning it keeps roughly 3.4% of revenue as net income. Based on the latest reported figures.
Does China Natl Chem Engineering Co pay a dividend?
China Natl Chem Engineering Co currently shows a dividend yield of about 2.84% relative to its recent price (as of Aug 13, 2026).
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