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China National Chemical Engineering Co (601117) Fair Value & Analysis

Industrials · CN · Market cap 47.4B CNY

CN China National Chemical Engineering Co 601117 · SHG
Price¥7.47
Fair Value¥18.76
Upside+151.1%
Quality49/100
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Expensive Growth
Thin margins · 3.4% net margin
Low debt · negative free cash flow
2.87% dividend yield
Ranks above peers (10/13)
Narrow moat 34/100
Evidence: High Range ¥9.60 – ¥20.41 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated today

Share price −1.1% over the past month.

Below-average quality, screening 151% undervalued on our models.

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.
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Price vs Fair Value (5 years)

¥14.53 ¥5.78 Fair Value ¥18.76 Mar 2021 Aug 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 ¥7.47 price screens below the ¥18.76 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China National Chemical Engineering Co (601117) currently trades at ¥7.47, while our model-based Fair Value estimate is ¥18.76, implying the stock looks roughly 151.1% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, China National Chemical 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 ¥7.47, 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 -34% fair-value upside, at 151%, 601117 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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 ¥9.56 ¥10.56 ¥15.96 76
ROIC Compounder ¥18.40 ¥22.86 ¥28.66 72
Gordon GGM ¥2.63 ¥5.47 ¥8.68 70
All 17 models by family
DCF Models
Owner Earnings ¥17.65 ¥27.78 ¥45.80 31
Earnings-Based
Graham-Dodd ¥7.17 ¥35.09 ¥48.36 54
Lynch FV ¥9.42 ¥13.46 ¥17.50 50
PEG = 1.0 ¥9.42 ¥13.46 ¥17.50 46
EPV ¥16.77 ¥18.59 ¥20.19 59
Dividend Discount
Gordon GGM ¥2.63 ¥5.47 ¥8.68 70
DDM Multi-Stage ¥2.63 ¥4.61 ¥5.74 61
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 53
EV/EBITDA ¥21.93 ¥27.30 ¥32.67 54
EV/Revenue ¥18.31 ¥23.66 ¥29.01 43
Asset-Based
NCAV (Graham) ¥5.50 ¥7.37 ¥11.00 50
Economic Profit
Residual Income ¥9.56 ¥10.56 ¥15.96 76
ROIC Compounder ¥18.40 ¥22.86 ¥28.66 72
Growth Earnings
Growth-Adj P/E ¥14.57 ¥20.81 ¥27.05 68

Widest divergence: DCF Models (¥27.78) versus Dividend Discount (¥4.61). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 191B CNY
Revenue growth (YoY) +3.2%
Net margin 3.4%
Return on equity 9.7%
Free cash flow −1.2B CNY FY2025
P/E ratio 6.9
More key figures
Operating margin 4.2%
EPS (TTM) ¥1.08
Dividend yield 2.9%
EPS growth (YoY) +8.3%
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) 39

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 26
Price trend over the last 3–12 months (market factor)
52W Momentum 18
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.

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 National Chemical Engineering Co reported revenue of ¥190B in FY2025 versus ¥137B in FY2021, a compound +8.4%/yr. Reported net income was ¥6.4B 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. 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. 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. 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%
Revenue +8.4%/yr
FY21 ¥137B
FY22 ¥158B
FY23 ¥178B
FY24 ¥186B
FY25 ¥190B
Net income +8.6%/yr
FY21 ¥4.6B
FY22 ¥5.4B
FY23 ¥5.4B
FY24 ¥5.7B
FY25 ¥6.4B
Character of growth · EPS growth decomposed (2014-2025) +6.9 % p.a.
Revenue per share +10.2 pp

of which total revenue +12.9 pp · buybacks/dilution −2.7 pp

EBIT margin −2.7 pp
Tax rate +0.2 pp
Residual (interest, one-offs) −0.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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

Peer Group

Engineering & Construction · 839 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 +151% · 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) 2.9% · 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

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.

VALUE 100 · sector 14
FUTURE 16 · sector 14
PAST 39 · sector 26
HEALTH 94 · sector 94
DIVIDEND 57 · sector 33

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

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

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 45,400 KRW 43,924 KRW -3%

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Frequently asked questions

Is China National Chemical Engineering Co (601117) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥18.76 versus a price of ¥7.47, about +151% (undervalued).
What is the fair value of 601117?
Our model-based fair value for China National Chemical Engineering Co is ¥18.76 (as of Aug 13, 2026), built from audited fundamentals. The current price is ¥7.47.
What is the quality score of 601117?
China National Chemical 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 National Chemical Engineering Co (601117)?
China National Chemical 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 National Chemical 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 National Chemical Engineering Co pay a dividend?
China National Chemical Engineering Co currently shows a dividend yield of about 2.87% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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