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Shenzhen GuoHua Network Security Technology Co (000004) Fair Value & Analysis

Healthcare · CN · Market cap 365M CNY

SG Shenzhen GuoHua Network Security Technology Co 000004 · SHE
Price¥0.4600
Fair Value¥0.1800
Upside-60.9%
Quality77/100
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Weak Growth
Thin margins · 6.7% net margin
Low debt · generates free cash flow
Ranks above peers (8/13)
Moderate moat 45/100
Evidence: Medium Range ¥0.1300 – ¥0.2200 Share as image

Fair value as of: Jul 21, 2026

From 24 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from ¥1.74 to ¥0.1800 (−89.7%) since Jun 25, 2026. Share price −83.3% over the past month.

A strong business, but screening 61% overvalued on our models.

What matters now

  • A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥0.2200). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

¥25.97 ¥0.2600 Fair Value ¥0.1800 Jan 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range ¥0.2600 – ¥25.97 · fair‑value band ¥0.1300 – ¥0.2200 · the ¥0.4600 price screens above the ¥0.1800 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Shenzhen GuoHua Network Security Technology Co (000004) currently trades at ¥0.4600, while our model-based Fair Value estimate is ¥0.1800, implying the stock looks roughly 60.9% overvalued today. The Quality Score stands at 77/100 (high quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Shenzhen GuoHua Network Security Technology Co generated revenue of 175M CNY at a net margin of 6.7%. Revenue declined 9.3% year over year. It earns a return on equity of 26.1%. The balance sheet holds a net cash position of 62.7M CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥0.1300 (bear case) to ¥0.2200 (bull case); at ¥0.4600, 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. For context, the median of 10 Healthcare peers we cover trades at -43% fair-value upside, at -61%, 000004 screens richer 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
Growth DCF ¥0.4900 ¥0.6500 ¥0.8800 80
Residual Income ¥0.0900 ¥0.0900 ¥0.0900 76
Rev-Margin DCF ¥0.3600 ¥0.4700 ¥0.6000 74
All 24 models by family
DCF Models
FCF DCF ¥0.4900 ¥0.6700 ¥0.9300 38
Owner Earnings ¥0.3900 ¥0.5200 ¥0.7000 31
5Y Revenue Exit ¥0.3600 ¥0.4700 ¥0.5900 39
5Y EBITDA Exit ¥0.4900 ¥0.7000 ¥0.9600 41
5Y P/E Exit ¥0.3500 ¥0.4400 ¥0.5300 38
10Y Revenue Exit ¥0.4100 ¥0.5100 ¥0.6400 36
10Y EBITDA Exit ¥0.4800 ¥0.6600 ¥0.9100 37
10Y P/E Exit ¥0.4000 ¥0.4900 ¥0.6000 35
Earnings-Based
Graham-Dodd ¥0.0600 ¥0.2100 ¥0.2800 54
Lynch FV ¥0.0500 ¥0.0700 ¥0.0900 50
PEG = 1.0 ¥0.0500 ¥0.0700 ¥0.0900 46
EPV ¥0.2600 ¥0.2800 ¥0.2900 59
Multiples
P/E Multiple ¥0.1300 ¥0.1800 ¥0.2200 63
P/S Multiple ¥0.1000 ¥0.1400 ¥0.1700 58
P/B Multiple ¥0.1000 ¥0.1400 ¥0.1700 55
EV/EBIT ¥0.3500 ¥0.4200 ¥0.4900 53
EV/EBITDA ¥0.5300 ¥0.6500 ¥0.7800 54
EV/Revenue ¥0.2900 ¥0.3600 ¥0.4200 43
Asset-Based
NCAV (Graham) ¥0.0600 ¥0.0800 ¥0.1200 50
Growth DCF
Growth DCF ¥0.4900 ¥0.6500 ¥0.8800 80
Rev-Margin DCF ¥0.3600 ¥0.4700 ¥0.6000 74
Economic Profit
Residual Income ¥0.0900 ¥0.0900 ¥0.0900 76
ROIC Compounder ¥0.2600 ¥0.2800 ¥0.2900 72
Growth Earnings
Growth-Adj P/E ¥0.1000 ¥0.1400 ¥0.1800 68

Widest divergence: DCF Models (¥0.5100) versus Earnings-Based (¥0.0700). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 175M CNY
Revenue growth (YoY) -9.3%
Net margin 6.7%
Return on equity 26.1%
Free cash flow 27.4M CNY FY2025
P/E ratio 30.7
More key figures
Operating margin -11.9%
EPS (TTM) ¥0.0900
EPS growth (YoY) -47.7%
Net cash 62.7M CNY FY2024

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 77/100

Of which business quality 73 · Market factors (momentum, volatility) 18

Profitability 35
Margins and returns on capital today
Quality Growth 98
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 90
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

Shenzhen GuoHua Network Security Technology Co., Ltd. engages in mobile Internet services, emergency security, and smart cities businesses.

Full company description

Shenzhen GuoHua Network Security Technology Co., Ltd. engages in mobile Internet services, emergency security, and smart cities businesses. The company focuses on mobile application security, big data security, Internet of Things security, mobile security consulting, mobile security training, mobile security detection, mobile security reinforcement, mobile security awareness, mobile security management, and other product systems. It is also involved in the mobile game distribution and operation services business. Shenzhen GuoHua Network Security Technology Co., Ltd. was founded in 1981 and is based in Shenzhen, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shenzhen GuoHua Network Security Technology Co reported revenue of ¥177M in FY2025 versus ¥289M in FY2021, a compound −11.5%/yr. Reported net income was ¥6.5M in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
177M CNY
Latest YoY
+79.4%
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.
+2.1%
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.
−8.8%
Avg. growth/yr (34Y) 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.
+3.8%
Revenue −11.5%/yr
FY21 ¥289M
FY22 ¥166M
FY23 ¥110M
FY24 ¥98.7M
FY25 ¥177M
Net income
FY21 −¥509M
FY22 −¥596M
FY23 −¥157M
FY24 −¥132M
FY25 ¥6.5M

000004 screens 61% overvalued. Compare with Vertex Pharmaceuticals Incorporated →

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Cite: Fair Value Calculator (2026). "Shenzhen GuoHua Network Security Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/000004

Peer Group

Biotechnology · 601 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 77 · Top 25%
Fair Value upside −61% · Below median
Return on equity (TTM) 26% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) -12% · Below median
Revenue growth -9% · Below median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Biotechnology median · lower = cheaper

P/E (TTM) 30.7× · Pricier than median
P/B 3.90× · Pricier than 75% of peers
P/S (TTM) 2.09× · Cheaper than median
P/FCF 2.0× · Cheaper than median
EV/EBITDA 5.9× · 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 0 · sector 0
FUTURE 0 · sector 0
PAST 100 · sector 0
HEALTH 100 · sector 98
DIVIDEND 0 · sector 23

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.

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 Biotechnology stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Vertex Pharmaceuticals Incorporated VRTX $486.03 $278.78 -43%
Regeneron Pharmaceuticals, Inc REGN $664.45 $594.40 -11%
Samsung Biologics Co 207940 1,368,000 KRW 1,091,384 KRW -20%
Celltrion, Inc 068270 175,800 KRW 76,325 KRW -57%
WuXi Biologics (Cayman) Inc 2269 HK$39.54 HK$30.42 -23%
Innovent Biologics, Inc 1801 HK$86.70 HK$19.66 -77%
Sino Biopharmaceutical Limited 1177 HK$5.26 HK$3.36 -36%
ALTEOGEN Inc 196170 276,500 KRW 44,444 KRW -84%
RemeGen Co 688331 ¥134.02 ¥26.99 -80%
Biocon Limited BIOCON ₹440.70 ₹57.36 -87%

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Frequently asked questions

Is Shenzhen GuoHua Network Security Technology Co (000004) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥0.1800 versus a price of ¥0.4600, about −61% (overvalued).
What is the fair value of 000004?
Our model-based fair value for Shenzhen GuoHua Network Security Technology Co is ¥0.1800 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥0.4600.
What is the quality score of 000004?
Shenzhen GuoHua Network Security Technology Co has a Quality Score of 77/100. 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 Shenzhen GuoHua Network Security Technology Co (000004)?
Shenzhen GuoHua Network Security Technology Co reported trailing-twelve-month revenue of about 175M CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000004?
The net profit margin of Shenzhen GuoHua Network Security Technology Co is about 6.7%, meaning it keeps roughly 6.7% of revenue as net income. Based on the latest reported figures.

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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