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Newland Digital Technology Co (000997) Fair Value & Analysis

Technology · CN · Market cap 18.5B CNY

ND Newland Digital Technology Co 000997 · SHE
Price¥18.36
Fair Value¥19.96
Upside+8.7%
Quality61/100
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Mixed Growth
Solidly profitable · 10.4% net margin
Low debt · generates free cash flow
1.40% dividend yield
Ranks above peers (11/14)
Moderate moat 54/100
Evidence: High Range ¥14.41 – ¥26.69 Share as image

Fair value as of: Jul 21, 2026

From 26 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from ¥21.52 to ¥19.96 (−7.2%) since Jun 25, 2026. Share price +15.5% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (¥14.41 to ¥26.69) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥33.31 ¥10.22 Fair Value ¥19.96 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 ¥10.22 – ¥33.31 · fair‑value band ¥14.41 – ¥26.69 · the ¥18.36 price screens below the ¥19.96 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

Newland Digital Technology Co (000997) currently trades at ¥18.36, while our model-based Fair Value estimate is ¥19.96, implying the stock looks roughly 8.7% fairly valued today. The Quality Score stands at 61/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Newland Digital Technology Co generated revenue of 9.4B CNY at a net margin of 10.4%. Revenue grew 33.9% year over year. It earns a return on equity of 14.0%. The balance sheet holds a net cash position of 3.4B CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥14.41 (bear case) to ¥26.69 (bull case); at ¥18.36, the current price sits within 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 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at 9%, 000997 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 ¥9.32 ¥13.93 ¥22.07 80
Residual Income ¥6.98 ¥8.93 ¥23.29 76
Rev-Margin DCF ¥15.09 ¥25.83 ¥40.36 74
All 26 models by family
DCF Models
FCF DCF ¥9.43 ¥14.64 ¥24.26 38
Owner Earnings ¥17.43 ¥30.15 ¥53.60 31
5Y Revenue Exit ¥15.09 ¥26.41 ¥42.58 39
5Y EBITDA Exit ¥15.56 ¥27.42 ¥43.02 41
5Y P/E Exit ¥15.29 ¥26.85 ¥40.72 38
10Y Revenue Exit ¥12.72 ¥22.98 ¥40.29 36
10Y EBITDA Exit ¥13.53 ¥23.75 ¥40.68 37
10Y P/E Exit ¥13.35 ¥23.32 ¥38.67 35
Earnings-Based
Graham-Dodd ¥6.79 ¥36.18 ¥50.11 54
Lynch FV ¥9.98 ¥14.26 ¥18.54 50
PEG = 1.0 ¥9.98 ¥14.26 ¥18.54 46
EPV ¥16.74 ¥18.89 ¥20.77 59
Dividend Discount
Gordon GGM ¥2.13 ¥4.42 ¥7.02 70
DDM Multi-Stage ¥2.13 ¥3.73 ¥4.64 61
Multiples
P/E Multiple ¥14.97 ¥19.96 ¥24.95 63
P/S Multiple ¥12.72 ¥16.96 ¥21.20 58
P/B Multiple ¥12.72 ¥16.96 ¥21.20 55
EV/EBIT ¥24.15 ¥30.91 ¥37.67 53
EV/EBITDA ¥19.24 ¥24.37 ¥29.50 54
EV/Revenue ¥17.54 ¥23.40 ¥29.26 43
Asset-Based
NCAV (Graham) ¥3.59 ¥4.81 ¥7.17 50
Growth DCF
Growth DCF ¥9.32 ¥13.93 ¥22.07 80
Rev-Margin DCF ¥15.09 ¥25.83 ¥40.36 74
Economic Profit
Residual Income ¥6.98 ¥8.93 ¥23.29 76
ROIC Compounder ¥18.38 ¥22.88 ¥28.37 72
Growth Earnings
Growth-Adj P/E ¥14.37 ¥20.53 ¥26.69 68

Widest divergence: DCF Models (¥23.75) versus Dividend Discount (¥3.73). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 9.4B CNY
Revenue growth (YoY) +33.9%
Net margin 10.4%
Return on equity 14.0%
Free cash flow 412M CNY FY2025
P/E ratio 18.6
More key figures
Operating margin 14.6%
EPS (TTM) ¥0.9800
Dividend yield 1.4%
EPS growth (YoY) -8.4%
Net cash 3.4B CNY FY2024

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

Quality Score breakdown

Overall quality 61/100

Of which business quality 60 · Market factors (momentum, volatility) 27

Profitability 47
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 4
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.

About the company

Newland Digital Technology Co.,Ltd. engages in the design, development, sales, operation, and maintenance of financial POS terminal equipment in China.

Full company description

Newland Digital Technology Co.,Ltd. engages in the design, development, sales, operation, and maintenance of financial POS terminal equipment in China. The company offers digital payment terminals, including SmartPOS, SmartECR, traditional POS, barcode payment terminals, multimodal payment terminals, and self-service and industry equipment, as well as intelligent identification terminals comprising data recognition engines, PDAs, multi-form scanners, RFID, industrial intelligent products, and related equipment management software systems. It also provides merchant operations comprising digital payment, SaaS, marketing, and value-added services, as well as telecom digitalization services. The company was formerly known as Fujian Newland Computer Co., Ltd. and changed its name to Newland Digital Technology Co.,Ltd. in November 2018. Newland Digital Technology Co.,Ltd. was founded in 1994 and is headquartered in Fuzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Newland Digital Technology Co reported revenue of ¥8.8B in FY2025 versus ¥7.7B in FY2021, a compound +3.3%/yr. Reported net income was ¥1.0B in FY2025, compounding +9.5%/yr from FY2021.

Growth Quality 63/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
8.8B CNY
Latest YoY
+13.1%
Avg. growth/yr (3Y)
+5.9%
Avg. growth/yr (5Y)
+4.4%
Avg. growth/yr (28Y)
+16.0%
Revenue +3.3%/yr
FY21 ¥7.7B
FY22 ¥7.4B
FY23 ¥8.2B
FY24 ¥7.7B
FY25 ¥8.8B
Net income +9.5%/yr
FY21 ¥704M
FY22 −¥382M
FY23 ¥1.0B
FY24 ¥1.0B
FY25 ¥1.0B

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Cite: Fair Value Calculator (2026). "Newland Digital Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/000997

Peer Group

Software - Application · 709 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 61 · Above median
Fair Value upside +9% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 6% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 15% · Above median
Revenue growth 34% · Top 25%
Dividend yield (TTM) 1.4% · Above median
Debt / equity 0.05× · Higher than median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 18.6× · Cheaper than median
P/B 2.54× · Pricier than median
P/S (TTM) 1.97× · Pricier than median
P/FCF 6.7× · Cheaper than median
EV/EBITDA 11.3× · 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 45 · sector 0
FUTURE 100 · sector 38
PAST 56 · sector 13
HEALTH 98 · sector 98
DIVIDEND 28 · sector 28

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

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.69 C$16.26 +28%
Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Newland Digital Technology Co (000997) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥19.96 versus a price of ¥18.36, about +9% (fairly valued).
What is the fair value of 000997?
Our model-based fair value for Newland Digital Technology Co is ¥19.96 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥18.36.
What is the quality score of 000997?
Newland Digital Technology Co has a Quality Score of 61/100. 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 Newland Digital Technology Co (000997)?
Newland Digital Technology Co reported trailing-twelve-month revenue of about 9.4B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000997?
The net profit margin of Newland Digital Technology Co is about 10.4%, meaning it keeps roughly 10.4% of revenue as net income. Based on the latest reported figures.
Does Newland Digital Technology Co pay a dividend?
Newland Digital Technology Co currently shows a dividend yield of about 1.40% relative to its recent price (as of Jul 21, 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.

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