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Chinese heavy-industry maker of large forged rings and bearings, notably for wind turbines.
Chinese heavy-industry maker of large forged rings and bearings, notably for wind turbines.
Makes forged rings for wind turbines, and bearings, to order, usually pricing them as the cost of steel plus a processing charge. Sales therefore follow turbine makers' order books and the pace of wind installation, rather than anything it sells off the shelf.
Moat: narrow (scale, process know-how). Heavy forging for wind components needs large presses and certified quality control.
Headquarters: China · Employees: 5,004
Size Riyue Heavy Industry (603218.SS) is a China Industrials company (Metal Fabrication) with a market value of $1.41B, the 1722nd largest of 4,839 China companies the cockpit tracks. Shares closed at CN¥9.17 on 6 Nov 2026.
Performance Over six months the shares fell 28.1%, against -22.6% for the median peer and -16.4% for the China market (cap-weighted) — 10th lowest of 21 in its peer set.
Growth Revenue fell 17.2% over the last twelve months (peer median +16.4%); the operating margin is 4.5% (peer median 8.2%).
Valuation It trades at 24.6× forward earnings against a peer median of 40.5× (8th cheapest of 16).
Price implies For today's price to make sense, revenue must grow about 5% a year for seven years (Req g). Recent delivered growth is +4%, so the hurdle is +1 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 3.0 points below its cost of capital (7.8% WACC).
Next results Next results expected around 28 Apr 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | CN¥5.27B | CN¥6.24B | CN¥4.69B | CN¥4.65B | CN¥4.86B |
| Revenue growth | — | +33% | +1% | -4% | — |
| Gross profit | CN¥1.20B | CN¥1.00B | CN¥761M | CN¥816M | CN¥580M |
| EBITDA | n/a | CN¥981M | CN¥743M | CN¥693M | CN¥403M |
| Net income | CN¥329M | CN¥553M | CN¥624M | CN¥482M | CN¥344M |
| Free cash flow | CN¥605M | CN¥363M | -CN¥859M | -CN¥1.13B | -CN¥931M |
| Capital expenditure | CN¥447M | CN¥422M | CN¥763M | CN¥1.80B | CN¥1.18B |
| Total debt | CN¥1.58B | CN¥1.19B | CN¥1.55B | CN¥1.86B | CN¥1.53B |
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| Measure | 603218.SS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -3.6% | -10.3% | 8th highest of 21 |
| 6-month return | -28.1% | -22.6% | 10th lowest of 21 |
| Distance from 52-week high | -46.3% | -47.2% | 11th highest of 21 |
| Revenue growth (TTM) | -17.2% | +16.4% | 2nd lowest of 21 |
| Operating margin | 4.5% | 8.2% | 5th lowest of 21 |
| Forward P/E | 24.6× | 40.5× | 8th cheapest of 16 |
| Growth the price implies (Req g, 7 yrs) | 5.0% | 21.3% | least demanding of 6 |
| Growth delivered (Del g) | +4.1% | +18.5% | lowest of 6 |
| Hurdle (Req g minus delivered) | +0.9 pp | +2.8 pp | 3rd least demanding of 6 |
| ROIC minus cost of capital | -3.0 pp | -2.4 pp | 11th highest of 21 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Riyue Heavy Industry 603218.SS | China | $1.41B | -28% | -17% | 5% | 24.6× | 5.0% | +4.1% |
| Freewon China 688678.SS | China | $1.41B | -13% | +33% | 6% | 19.6× | n/a | n/a |
| Richelieu Hardware RCH.TO | Canada | $1.48B | -2% | +7% | 7% | 20.5× | 5.7% | +11.7% |
| Wuxi Paike New Materials and Technology 605123.SS | China | $1.34B | -31% | +23% | 8% | 22.0× | n/a | n/a |
| Ramkrishna Forgings RKFORGE.NS | India | $1.34B | +12% | +25% | 9% | 46.9× | n/a | n/a |
| HENGHUI Technology 301678.SZ | China | $1.53B | -28% | +10% | 8% | n/a | n/a | n/a |
| Shenzhen Vital New Material 301319.SZ | China | $1.53B | +15% | +34% | 5% | 82.0× | n/a | n/a |
| Usha Martin USHAMART.NS | India | $1.54B | 0% | +9% | 17% | 22.8× | 23.1% | +12.0% |
| Luoyang Xinqianglian Slewing Bearing 300850.SZ | China | $1.54B | -42% | +10% | 21% | 11.1× | n/a | n/a |
| Essence Fastening Systems (Shanghai) 301005.SZ | China | $1.54B | -55% | +17% | 0% | n/a | n/a | n/a |
| Suzhou UIGreen Micro&Nano Technologies 688661.SS | China | $1.55B | -44% | -7% | -3% | 44.2× | n/a | n/a |
| Hunan Boyun New Materials 002297.SZ | China | $1.25B | -41% | +37% | 15% | n/a | n/a | n/a |
| Guangdong Xianglu Tungsten 002842.SZ | China | $1.23B | -38% | +126% | 15% | n/a | n/a | n/a |
| Shanghai Unison Aluminium Products 603418.SS | China | $1.23B | -18% | +26% | 11% | n/a | n/a | n/a |
| Changzhou Nrb 002708.SZ | China | $1.63B | +50% | +29% | 1% | 74.0× | n/a | n/a |
| Qingdao Yunlu Advanced Materials Technology 688190.SS | China | $1.22B | -17% | -2% | 12% | 21.9× | 20.5% | +21.5% |
| Azad Engineering AZAD.NS | India | $1.66B | +8% | +29% | 28% | 91.6× | n/a | n/a |
| Nanshan Aluminium International 2610.HK | Hong Kong | $1.67B | -45% | -19% | 21% | 7.8× | n/a | n/a |
| Dongguan Eontec 300328.SZ | China | $1.18B | -37% | +9% | -9% | 569.5× | n/a | n/a |
| Happy Forging HAPPYFORGE.NS | India | $1.70B | +20% | +16% | 25% | 40.5× | 42.7% | +21.2% |
| Gaona Aero Material 300034.SZ | China | $1.71B | -29% | +5% | 5% | 49.0× | 21.3% | +18.5% |