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Sichuan Huiyuan Optical Com (000586) Fair Value & Analysis

Technology · CN · Market cap 2.9B CNY (≈ $440M) · ISIN CNE0000000H7

What is Sichuan Huiyuan Optical Com really worth?

SH Sichuan Huiyuan Optical Com 000586 · SHE
Price¥13.46
Fair Value¥1.35
Upside−90.0%
Quality53/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

A solid business, but trading 897% above our fair value of ¥1.35.

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Strengths

Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y +1.1 %/yr)
!Loss-making · -1.9% net margin
!Trails peers (4/12)
!Narrow moat 5/100
!Evidence only low, so the estimate is less certain
!Weak on dividend: 1 out of 100
Evidence: Low Range ¥1.10 – ¥1.77

Fair value as of: Aug 26, 2026

From 13 valuation models · updated 10 days ago

Share price +18.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (¥1.77). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

¥25.12 ¥6.19 Fair Value ¥1.35 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 26, 2026.

How to read this chart

60‑month range ¥6.19 – ¥25.12 · fair‑value band ¥1.10 – ¥1.77 · the ¥13.46 price screens above the ¥1.35 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 26, 2026.

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Analysis

Sichuan Huiyuan Optical Com (000586) currently trades at ¥13.46, while our model-based Fair Value estimate is ¥1.35, implying the stock looks roughly 897.0% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Technology sector. Bull case: the Multiples group reads highest at a median of ¥2.27 per share, and 0 of the 13 models we run sit above the ¥13.46 price. Bear case: the Asset-Based group reads lowest at ¥1.12, and 13 of the 13 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Sichuan Huiyuan Optical Com generated revenue of 522M CNY at a net margin of −1.9%. Revenue grew 10.6% year over year. It earns a return on equity of −2.9%. The balance sheet holds a net cash position of 38.1M CNY. Fundamentals as of Aug 26, 2026

Our scenario range runs from ¥1.10 (bear case) to ¥1.77 (bull case); at ¥13.46, 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 46% below its 52-week high and 33% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −52% fair-value upside, at −90%, 000586 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF best evidence ¥1.01 ¥1.18 ¥1.51 82
Growth DCF ¥1.03 ¥1.20 ¥1.48 80
5Y EBITDA Exit ¥1.57 ¥2.20 ¥3.03 76
All 13 models by family
DCF Models
FCF DCF best evidence ¥1.01 ¥1.18 ¥1.51 82
5Y Revenue Exit ¥1.07 ¥1.35 ¥1.76 74
5Y EBITDA Exit ¥1.57 ¥2.20 ¥3.03 76
10Y Revenue Exit ¥1.02 ¥1.26 ¥1.53 68
10Y EBITDA Exit ¥1.34 ¥1.81 ¥2.35 69
Earnings-Based
EPV ¥1.09 ¥1.19 ¥1.27 74
Multiples
EV/EBIT ¥1.82 ¥2.27 ¥2.71 66
EV/EBITDA ¥2.15 ¥2.71 ¥3.27 67
EV/Revenue ¥1.16 ¥1.45 ¥1.74 54
Asset-Based
NCAV (Graham) ¥0.8400 ¥1.12 ¥1.68 54
Growth DCF
Growth DCF ¥1.03 ¥1.20 ¥1.48 80
Rev-Margin DCF ¥1.07 ¥1.36 ¥1.72 74
Economic Profit
ROIC Compounder ¥1.09 ¥1.19 ¥1.27 72

Widest divergence: Multiples (¥2.27) versus Asset-Based (¥1.12). Highest evidence: FCF DCF (82).

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Key figures & financial health

P/S ratio 5.65 TTM
EPS (TTM) ¥−0.0500
Dividend yield 0.1%
Net margin −0.4% FY2025
Return on equity −2.9% TTM
Return on assets (EBIT) 3.2% avg 5y
More key figures
Profitability
Operating margin −3.5% TTM
Growth
Revenue (TTM) 522M CNY TTM
Revenue growth (YoY) +10.6% 3y avg +4.7%
EPS growth (YoY) +93.8%
Balance sheet & cash flow
Free cash flow 10.5M CNY FY2025
Net cash 38.1M CNY FY2024

Figures from reported company fundamentals · as of Aug 26, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 54 · Market factors (momentum, volatility) 32

Profitability 29
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 19
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 82
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Sichuan Huiyuan Optical Communication Co., Ltd. produces and sells optical fiber cables in China. The company offers plastic optical fiber, power optical cable, online monitoring, air-blown micro cable, plastic optical fiber and related supporting products; research and development, manufacturing, and sales of plastic optical fibers and cables, jumpers, and …

Full company description

Sichuan Huiyuan Optical Communication Co., Ltd. produces and sells optical fiber cables in China. The company offers plastic optical fiber, power optical cable, online monitoring, air-blown micro cable, plastic optical fiber and related supporting products; research and development, manufacturing, and sales of plastic optical fibers and cables, jumpers, and related supporting devices and equipment; and highway electromechanical engineering and communication engineering construction. Sichuan Huiyuan Optical Communication Co., Ltd. was founded in 1988 and is based in Chengdu, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sichuan Huiyuan Optical Com reported revenue of 513M CNY in FY2025 versus 450M CNY in FY2021, a compound +3.3%/yr. Reported net income was −1.9M CNY in FY2025.

Growth Quality 31/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
513M CNY
Latest YoY
+21.4%
Avg. revenue 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.
+4.7%
Avg. revenue 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.
+1.1%
Avg. revenue growth/yr (30Y) 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.
−2.5%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +3.3%/yr
FY21 450M CNY
FY22 446M CNY
FY23 496M CNY
FY24 422M CNY
FY25 513M CNY
Net income
FY21 26.1M CNY
FY22 18.2M CNY
FY23 19.9M CNY
FY24 −9.3M CNY
FY25 −1.9M CNY
Character of growth · EPS growth decomposed (2013-2024) +4.0 % p.a.
Revenue per share +0.0 %

of which total revenue +0.8 % · buybacks/dilution −0.8 %

EBIT margin +12.2 %
Tax rate −1.0 %
Residual (interest, one-offs) −6.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

000586 screens 897% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "Sichuan Huiyuan Optical Com Fair Value". https://www.fairvalue-calculator.com/stock/000586

Peer Group

Communication Equipment · 302 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 53 · Below median
Fair Value upside −90% · Bottom 25%
Return on assets −1% · Below median
Net margin (TTM) −2% · Below median
Operating margin (TTM) −4% · Bottom 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/B 1.36× · Cheaper than median
P/S (TTM) 0.84× · Cheaper than median
P/FCF 41.7× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE53 · sector 39
PAST0 · sector 15
HEALTH100 · sector 98
DIVIDEND1 · sector 22

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

Similar stocks

10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Aug 26, 2026).

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $112.15 $61.53 −45%
Zhongji Innolight Co 300308 ¥866.12 ¥171.09 −80%
Foxconn Industrial Internet Co 601138 ¥61.83 ¥28.65 −54%
Eoptolink Technology Inc 300502 ¥429.90 ¥176.99 −59%
Nokia Oyj NOK $10.21 $3.78 −63%
Motorola Solutions, Inc MSI $491.24 $236.33 −52%
Yangtze Optical Fibre And Cable Joint Stock Limited 601869 ¥400.03 ¥201.38 −50%
Suzhou TFC Optical Communication Co 300394 ¥276.25 ¥43.67 −84%
Telefonaktiebolaget LM Ericsson (publ), ERIC $10.13 $19.85 +96%
Accton Technology Corporation 2345 2,270 TWD 1,135 TWD −50%

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Frequently asked questions

Is Sichuan Huiyuan Optical Com (000586) overvalued or undervalued?
As of Aug 26, 2026, our model estimates a fair value of ¥1.35 versus a price of ¥13.46, about −90% upside (overvalued).
What is the fair value of 000586?
Our model-based fair value for Sichuan Huiyuan Optical Com is ¥1.35 (as of Aug 26, 2026), built from audited fundamentals. The current price: ¥13.46.
What is the quality score of 000586?
Sichuan Huiyuan Optical Com has a Quality Score of 53/100. 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 Sichuan Huiyuan Optical Com (000586)?
Sichuan Huiyuan Optical Com reported trailing-twelve-month revenue of about 522M CNY (latest available figure, as of Aug 26, 2026).
What is the net profit margin of 000586?
The net profit margin of Sichuan Huiyuan Optical Com is about −1.9%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Sichuan Huiyuan Optical Com pay a dividend?
Sichuan Huiyuan Optical Com currently shows a dividend yield of about 0.06% relative to its recent price (as of Aug 26, 2026).
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