As of 2025-05-28, the Fair Value of China Machinery Engineering Corp (1829.HK) is 5.61 HKD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 3.68 HKD, the upside of China Machinery Engineering Corp is 52.3%.

Is 1829.HK a good investment?

With the market price of 3.68 HKD and our fair value calculation, China Machinery Engineering Corp (1829.HK) is a good investment. Investing in 1829.HK stocks now will result in a potential gain of 52.3%.

3.68 HKD

Stock Price

5.61 HKD

Fair Price

FAIR VALUE CALCULATION

1829.HK Fair Value

Peter Lynch's formula is:

1829.HK Fair Value

= Earnings Growth Rate x TTM EPS

1829.HK Fair Value

= 5 x 1.03 CNY

1829.HK Fair Value

= 5 x 1.12 HKD

1829.HK Fair Value

= 5.61

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 0 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	0Y Avg
Net income
YoY growth	-100%

1829.HK Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
China Machinery Engineering Corp	15,183	1	5.61	52.3%
China Nuclear Engineering & Construction Corp Ltd	28,209	0.7	7.85	-16.1%
Shanghai Tunnel Engineering Co Ltd	18,770	0.9	4.63	-22.5%
China Aluminum International Engineering Corp Ltd	13,138	0.1	0.31	-93%
Zhejiang Communications Technology Co Ltd	10,629	0.5	8.02	101.5%
Bestway Marine & Energy Technology Co Ltd	10,161	0.1	2.15	-63.5%
JSTI Group	8,551	0.3	1.3	-85.1%
Guangzhou Metro Design & Research Institute Co Ltd	5,998	1.1	17.27	17.6%
Greentown Management Holdings Company Ltd	5,347	0.4	9.45	255.3%
Shenzhen Cheng Chung Design Co Ltd	4,358	0.3	1.28	-90.9%
Suzhou Institute of Building Science Group Co Ltd	2,004	0.1	0.49	-87.9%

1829.HK Fair Value - Key Data

Market Cap (mil)	15,183
P/E	4.1x
Forward P/E	11.2x

EPS	1.03
Avg earnings growth rate	-100%
TTM earnings	3,380

1829.HK Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.