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Shenzhen Huakong Seg Co (000068) Fair Value & Analysis

Technology · CN · Market cap 3.4B CNY

SH Shenzhen Huakong Seg Co 000068 · SHE
Price¥2.86
Fair Value¥1.40
Upside-51.1%
Quality47/100
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Mixed Growth
Loss-making · -14.1% net margin
Moderate debt · generates free cash flow
Trails peers (3/11)
Narrow moat 18/100
Evidence: Medium Range ¥0.7800 – ¥2.02 Share as image

Fair value as of: Jul 21, 2026

From 11 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from ¥1.80 to ¥1.40 (−22.2%) since Jun 25, 2026. Share price +3.6% over the past month.

Below-average quality, and screening another 51% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥2.02). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥0.7800 to ¥2.02) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥6.06 ¥2.39 Fair Value ¥1.40 Feb 2021 Aug 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 ¥2.39 – ¥6.06 · fair‑value band ¥0.7800 – ¥2.02 · the ¥2.86 price screens above the ¥1.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

Full chart & analysis →

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Analysis

Shenzhen Huakong Seg Co (000068) currently trades at ¥2.86, while our model-based Fair Value estimate is ¥1.40, implying the stock looks roughly 51.1% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Technology 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 Huakong Seg Co generated revenue of 745M CNY at a net margin of -14.1%. Revenue declined 64.4% year over year. It earns a return on equity of -8.7%. Net debt stands at 665M CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥0.7800 (bear case) to ¥2.02 (bull case); at ¥2.86, 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. The share trades about 32% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at -51%, 000068 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥4.20 ¥8.40 ¥15.17 80
Rev-Margin DCF ¥2.34 ¥4.10 ¥7.81 74
Gordon GGM ¥0.3500 ¥0.6900 ¥1.05 70
All 11 models by family
DCF Models
FCF DCF ¥4.50 ¥7.17 ¥15.51 38
5Y Revenue Exit ¥2.10 ¥3.52 ¥6.45 39
5Y EBITDA Exit ¥0.9700 ¥1.23 ¥1.72 41
10Y Revenue Exit ¥2.80 ¥5.64 ¥7.12 36
10Y EBITDA Exit ¥2.06 ¥3.26 ¥4.76 37
Dividend Discount
Gordon GGM ¥0.3500 ¥0.6900 ¥1.05 70
DDM Multi-Stage ¥0.3500 ¥0.6000 ¥0.7300 61
Multiples
EV/Revenue ¥0.9900 ¥1.61 ¥2.22 43
Asset-Based
NCAV (Graham) ¥0.3000 ¥0.4000 ¥0.6000 50
Growth DCF
Growth DCF ¥4.20 ¥8.40 ¥15.17 80
Rev-Margin DCF ¥2.34 ¥4.10 ¥7.81 74

Widest divergence: Growth DCF (¥4.10) versus Asset-Based (¥0.4000). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 745M CNY
Revenue growth (YoY) -64.4%
Net margin -14.1%
Return on equity -8.7%
Free cash flow 314M CNY FY2025
Operating margin -31.1%
More key figures
EPS (TTM) ¥-0.1000
EPS growth (YoY) -67.7%
Net debt 665M CNY FY2025

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

Quality Score breakdown

Overall quality 47/100

Of which business quality 48 · Market factors (momentum, volatility) 35

Profitability 4
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 83
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 Huakong Seg Co., Ltd., together with its subsidiaries, operates in the public utility environmental protection engineering industry in China.

Full company description

Shenzhen Huakong Seg Co., Ltd., together with its subsidiaries, operates in the public utility environmental protection engineering industry in China. The company is involved in sponge city construction, water engineering construction and services, technical consulting and planning services, engineering consulting, planning and design, graphite and carbon manufacturing, software and information technology service, and centralized procurement and supply services. Shenzhen Huakong Seg Co., Ltd. was founded in 1997 and is based in Shenzhen, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shenzhen Huakong Seg Co reported revenue of ¥830M in FY2025 versus ¥936M in FY2021, a compound −2.9%/yr. Reported net income was −¥105M in FY2025.

Growth Quality 53/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
830M CNY
Latest YoY
−17.8%
Avg. growth/yr (3Y)
−9.2%
Avg. growth/yr (5Y)
+29.4%
Avg. growth/yr (31Y)
+3.3%
Revenue −2.9%/yr
FY21 ¥936M
FY22 ¥1.1B
FY23 ¥921M
FY24 ¥1.0B
FY25 ¥830M
Net income
FY21 −¥97.7M
FY22 −¥217M
FY23 ¥654M
FY24 ¥13.1M
FY25 −¥105M

000068 screens 51% overvalued. Compare with Delta Electronics, Inc →

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Cite: Fair Value Calculator (2026). "Shenzhen Huakong Seg Co Fair Value". https://www.fairvalue-calculator.com/stock/000068

Peer Group

Electronic Components · 626 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 47 · Below median
Fair Value upside −51% · Below median
Return on assets -0% · Below median
Net margin (TTM) -14% · Bottom 25%
Operating margin (TTM) -31% · Bottom 25%
Revenue growth -64% · Bottom 25%
Debt / equity 0.89× · Higher than 75% of peers

Valuation Multiples vs Electronic Components median · lower = cheaper

P/B 0.84× · Cheaper than 75% of peers
P/S (TTM) 0.68× · Cheaper than median
P/FCF 1.6× · Cheaper than median

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 32
PAST 0 · sector 24
HEALTH 55 · sector 95
DIVIDEND 0 · sector 25

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

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$297.00 HK$103.98 -65%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is Shenzhen Huakong Seg Co (000068) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥1.40 versus a price of ¥2.86, about −51% (overvalued).
What is the fair value of 000068?
Our model-based fair value for Shenzhen Huakong Seg Co is ¥1.40 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥2.86.
What is the quality score of 000068?
Shenzhen Huakong Seg Co has a Quality Score of 47/100. 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 Huakong Seg Co (000068)?
Shenzhen Huakong Seg Co reported trailing-twelve-month revenue of about 745M CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000068?
The net profit margin of Shenzhen Huakong Seg Co is about -14.1%, meaning it is currently running at a net loss. 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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