EN DE

HGTECH Company (000988) Fair Value & Analysis

Industrials · CN · Market cap 118B CNY

HC HGTECH Company 000988 · SHE
Price¥103.01
Fair Value¥24.87
Upside-75.9%
Quality60/100
Watch HGTECH Company for free, get notified when fair value or trend changes. Watch for free
Expensive Growth
Solidly profitable · 11.1% net margin
Low debt · generates free cash flow
0.19% dividend yield
Mixed vs. peers (6/14)
Moderate moat 52/100
Evidence: High Range ¥14.51 – ¥43.38 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 21 days ago

Share price −32.9% over the past month.

A solid business, but screening 76% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥43.38). The favourable scenario is already priced in.
  • The model range is unusually wide (¥14.51 to ¥43.38). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

¥184.61 ¥14.74 Fair Value ¥24.87 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range ¥14.74 – ¥184.61 · fair‑value band ¥14.51 – ¥43.38 · the ¥103.01 price screens above the ¥24.87 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

HGTECH Company (000988) currently trades at ¥103.01, while our model-based Fair Value estimate is ¥24.87, implying the stock looks roughly 75.9% overvalued today. We read business quality at 60/100 (solid quality), in the Industrials 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: high).

Over the trailing twelve months, HGTECH Company generated revenue of 15.3B CNY at a net margin of 11.1%. Revenue grew 27.1% year over year. It earns a return on equity of 15.1%. Net debt stands at 2.0B CNY. Fundamentals as of Jul 17, 2026

Our scenario range runs from ¥14.51 (bear case) to ¥43.38 (bull case); at ¥103.01, 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 41% below its 52-week high and 137% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -76%, 000988 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥6.87 ¥10.54 ¥17.23 80
Residual Income ¥10.52 ¥13.36 ¥36.13 76
Rev-Margin DCF ¥12.78 ¥23.15 ¥38.15 74
All 26 models by family
DCF Models
FCF DCF ¥7.00 ¥9.82 ¥17.32 38
Owner Earnings ¥16.13 ¥30.82 ¥60.28 31
5Y Revenue Exit ¥12.78 ¥23.35 ¥40.43 39
5Y EBITDA Exit ¥15.45 ¥29.33 ¥50.12 41
5Y P/E Exit ¥19.42 ¥39.07 ¥64.07 38
10Y Revenue Exit ¥10.54 ¥20.77 ¥37.01 36
10Y EBITDA Exit ¥12.84 ¥25.55 ¥48.63 37
10Y P/E Exit ¥15.59 ¥32.63 ¥61.60 35
Earnings-Based
Graham-Dodd ¥9.95 ¥63.53 ¥88.81 54
Lynch FV ¥18.39 ¥26.27 ¥34.15 50
PEG = 1.0 ¥18.39 ¥26.27 ¥34.15 46
EPV ¥13.74 ¥15.47 ¥16.99 59
Dividend Discount
Gordon GGM ¥1.84 ¥3.82 ¥6.06 70
DDM Multi-Stage ¥1.84 ¥3.22 ¥4.01 61
Multiples
P/E Multiple ¥21.94 ¥29.25 ¥36.57 63
P/S Multiple ¥18.65 ¥24.87 ¥31.08 58
P/B Multiple ¥18.65 ¥24.87 ¥31.08 55
EV/EBIT ¥20.28 ¥25.93 ¥31.57 53
EV/EBITDA ¥19.49 ¥24.88 ¥30.26 54
EV/Revenue ¥14.76 ¥19.66 ¥24.55 43
Asset-Based
NCAV (Graham) ¥5.50 ¥7.37 ¥11.00 50
Growth DCF
Growth DCF ¥6.87 ¥10.54 ¥17.23 80
Rev-Margin DCF ¥12.78 ¥23.15 ¥38.15 74
Economic Profit
Residual Income ¥10.52 ¥13.36 ¥36.13 76
ROIC Compounder ¥15.56 ¥21.47 ¥26.58 72
Growth Earnings
Growth-Adj P/E ¥25.48 ¥36.40 ¥47.32 68

Widest divergence: Growth Earnings (¥36.40) versus Dividend Discount (¥3.22). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 15.3B CNY
Revenue growth (YoY) +27.1%
Net margin 11.1%
Return on equity 15.1%
Free cash flow 246M CNY FY2025
P/E ratio 69.2
More key figures
Operating margin 11.3%
EPS (TTM) ¥1.70
Dividend yield 0.2%
EPS growth (YoY) +56.1%
Net debt 2.0B CNY FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 58 · Market factors (momentum, volatility) 61

Profitability 43
Margins and returns on capital today
Quality Growth 68
Are margins and returns improving?
Cashflow 21
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 70
Distance to the 52-week high (market factor)
Net Issuance 87
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

HGTECH Company Limited manufactures and sells laser equipment, hologram products, optical communication devices, and electronic components in China and internationally.

Full company description

HGTECH Company Limited manufactures and sells laser equipment, hologram products, optical communication devices, and electronic components in China and internationally. It operates through four divisions: Laser Processing Equipment and Intelligent Manufacturing Production and Sales Division; Optoelectronic Devices Production and Sales Division; Sensitive Components Production and Sales Division; and Laser Holographic Film Products Production and Sales Division. The company offers laser smart equipment, such as laser marking, laser cutting, laser surface treatment, laser welding, specialized equipment, and sheet metal laser cutting, as well as equipment for laser texturing, laser heat treatment system, laser drilling machine, laser and various supporting devices, and plasma cutting equipment; and hologram products, including hologram stickers, hot stamping foils, security hologram, packaging hologram, metalized paper, and barcode products. It also provides optical communication products, including data center, wireless/transmission, access, silicon optical, network terminal, home terminal, and vehicle optical product line; automotive electronic products; PTC and NTC series products; and NTC thermistors, PTC thermistors, sensors, and automotive PTC heaters. The company was incorporated in 1999 and is headquartered in Wuhan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HGTECH Company reported revenue of ¥14.3B in FY2025 versus ¥10.2B in FY2021, a compound +8.9%/yr. Reported net income was ¥1.5B in FY2025, compounding +17.9%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
14.3B CNY
Latest YoY
+22.3%
Avg. growth/yr (3Y)
+6.0%
Avg. growth/yr (5Y)
+18.5%
Avg. growth/yr (28Y)
+21.7%
Revenue +8.9%/yr
FY21 ¥10.2B
FY22 ¥12.0B
FY23 ¥10.3B
FY24 ¥11.7B
FY25 ¥14.3B
Net income +17.9%/yr
FY21 ¥761M
FY22 ¥906M
FY23 ¥1.0B
FY24 ¥1.2B
FY25 ¥1.5B

000988 screens 76% overvalued. Compare with Contemporary Amperex Technology Co →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "HGTECH Company Fair Value". https://www.fairvalue-calculator.com/stock/000988

Peer Group

Electrical Equipment & Parts · 519 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 60 · Top 25%
Fair Value upside −76% · Bottom 25%
Return on equity (TTM) 15% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth 27% · Above median
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.11× · Higher than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 69.2× · Pricier than 75% of peers
P/B 10.70× · Pricier than 75% of peers
P/S (TTM) 7.75× · Pricier than 75% of peers
P/FCF 71.4× · Pricier than 75% of peers
EV/EBITDA 69.0× · Pricier 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 100 · sector 57
PAST 60 · sector 27
HEALTH 95 · sector 97
DIVIDEND 4 · sector 18

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 12.39 SGD 1.48 SGD -88%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

Compare HGTECH Company with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is HGTECH Company (000988) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of ¥24.87 versus a price of ¥103.01, about −76% (overvalued).
What is the fair value of 000988?
Our model-based fair value for HGTECH Company is ¥24.87 (as of Jul 17, 2026), built from audited fundamentals. The current price is ¥103.01.
What is the quality score of 000988?
HGTECH Company has a Quality Score of 60/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of HGTECH Company (000988)?
HGTECH Company reported trailing-twelve-month revenue of about 15.3B CNY (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 000988?
The net profit margin of HGTECH Company is about 11.1%, meaning it keeps roughly 11.1% of revenue as net income. Based on the latest reported figures.
Does HGTECH Company pay a dividend?
HGTECH Company currently shows a dividend yield of about 0.16% relative to its recent price (as of Jul 17, 2026).

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.

14 days Pro free · no card

Track HGTECH Company and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.