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Guangdong Hongxing Industrial Co (001209) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 2.4B CNY

GH Guangdong Hongxing Industrial Co 001209 · SHE
Price¥17.22
Fair Value¥4.78
Upside-72.2%
Quality57/100
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Healthy Growth
Thin margins · 1.2% net margin
Low debt · generates free cash flow
Trails peers (4/14)
Narrow moat 32/100
Evidence: High Range ¥2.64 – ¥4.99 Share as image

Fair value as of: Jul 21, 2026

From 23 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from ¥10.07 to ¥4.78 (−52.5%) since Jun 25, 2026. Share price +5.7% over the past month.

A solid business, but screening 72% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥4.99). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥2.64 to ¥4.99) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥32.52 ¥10.17 Fair Value ¥4.78 Jul 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 ¥10.17 – ¥32.52 · fair‑value band ¥2.64 – ¥4.99 · the ¥17.22 price screens above the ¥4.78 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

Guangdong Hongxing Industrial Co (001209) currently trades at ¥17.22, while our model-based Fair Value estimate is ¥4.78, implying the stock looks roughly 72.2% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Consumer Cyclical 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, Guangdong Hongxing Industrial Co generated revenue of 1.8B CNY at a net margin of 1.2%. Revenue grew 8.2% year over year. It earns a return on equity of 1.6%. The balance sheet holds a net cash position of 155M CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥2.64 (bear case) to ¥4.99 (bull case); at ¥17.22, 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 51% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 1% fair-value upside, at -72%, 001209 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 ¥6.47 ¥9.60 ¥14.55 80
Residual Income ¥6.71 ¥6.27 ¥4.70 76
Rev-Margin DCF ¥7.43 ¥11.74 ¥17.20 74
All 23 models by family
DCF Models
FCF DCF ¥6.50 ¥9.91 ¥15.48 38
5Y Revenue Exit ¥7.43 ¥11.87 ¥17.88 39
5Y EBITDA Exit ¥8.79 ¥14.61 ¥21.89 41
5Y P/E Exit ¥5.00 ¥6.92 ¥9.05 38
10Y Revenue Exit ¥6.86 ¥10.88 ¥16.99 36
10Y EBITDA Exit ¥7.93 ¥12.83 ¥20.23 37
10Y P/E Exit ¥5.49 ¥7.37 ¥9.88 35
Earnings-Based
Graham-Dodd ¥1.09 ¥4.78 ¥6.54 54
Lynch FV ¥1.23 ¥1.76 ¥2.29 50
PEG = 1.0 ¥1.23 ¥1.76 ¥2.29 46
EPV ¥5.69 ¥6.30 ¥6.83 59
Multiples
P/E Multiple ¥2.64 ¥3.52 ¥4.40 63
P/S Multiple ¥2.04 ¥2.72 ¥3.40 58
P/B Multiple ¥2.04 ¥2.72 ¥3.40 55
EV/EBIT ¥11.05 ¥14.13 ¥17.21 53
EV/EBITDA ¥10.72 ¥13.69 ¥16.65 54
EV/Revenue ¥8.04 ¥10.71 ¥13.37 43
Asset-Based
NCAV (Graham) ¥4.90 ¥6.56 ¥9.80 50
Growth DCF
Growth DCF ¥6.47 ¥9.60 ¥14.55 80
Rev-Margin DCF ¥7.43 ¥11.74 ¥17.20 74
Economic Profit
Residual Income ¥6.71 ¥6.27 ¥4.70 76
ROIC Compounder ¥5.69 ¥6.30 ¥6.83 72
Growth Earnings
Growth-Adj P/E ¥2.09 ¥2.99 ¥3.89 68

Widest divergence: DCF Models (¥10.88) versus Earnings-Based (¥1.76). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.8B CNY
Revenue growth (YoY) +8.2%
Net margin 1.2%
Return on equity 1.6%
Free cash flow 51.5M CNY FY2025
P/E ratio 108.5
More key figures
Operating margin 9.5%
EPS (TTM) ¥0.1700
EPS growth (YoY) +6.3%
Net cash 155M CNY FY2024

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

Quality Score breakdown

Overall quality 57/100

Of which business quality 58 · Market factors (momentum, volatility) 30

Profitability 35
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 80
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

Guangdong Hongxing Industrial Co., Ltd. manufactures and sells knitted apparel in China. It offers household apparel, underwear, and other categories for women, men, and children under the Fenteng, Malenza, Fenteng Kean, and Qianxianyi brand names. The company was founded in 2004 and is based in Guangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guangdong Hongxing Industrial Co reported revenue of ¥1.8B in FY2025 versus ¥1.3B in FY2021, a compound +9.2%/yr. Reported net income was ¥21.1M in FY2025, compounding −32.6%/yr from FY2021.

Growth Quality 76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
1.8B CNY
Latest YoY
+3.1%
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.
+11.3%
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.
+10.1%
Avg. growth/yr (8Y) 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.
+13.8%
Revenue +9.2%/yr
FY21 ¥1.3B
FY22 ¥1.3B
FY23 ¥1.6B
FY24 ¥1.8B
FY25 ¥1.8B
Net income −32.6%/yr
FY21 ¥102M
FY22 −¥15.0M
FY23 ¥87.1M
FY24 ¥80.3M
FY25 ¥21.1M

001209 screens 72% overvalued. Compare with H & M Hennes & Mauritz AB →

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Cite: Fair Value Calculator (2026). "Guangdong Hongxing Industrial Co Fair Value". https://www.fairvalue-calculator.com/stock/001209

Peer Group

Apparel Manufacturing · 212 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 57 · Above median
Fair Value upside −72% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 3% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 10% · Above median
Revenue growth 8% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.08× · Higher than median

Valuation Multiples vs Apparel Manufacturing median · lower = cheaper

P/E (TTM) 108.5× · Pricier than 75% of peers
P/B 1.88× · Pricier than median
P/S (TTM) 1.33× · Pricier than median
P/FCF 7.0× · Pricier than 75% of peers
EV/EBITDA 18.0× · 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 32
FUTURE 41 · sector 4
PAST 6 · sector 21
HEALTH 96 · sector 98
DIVIDEND 0 · sector 49

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

Stock Price Fair Value vs Fair Value
H & M Hennes & Mauritz AB HMB kr 163.45 kr 165.47 +1%
Ralph Lauren Corporation RL $374.08 $224.21 -40%
Moncler S.p.A MONC €52.08 €50.69 -3%
LPP SA LPP 19,380 PLN 17,754 PLN -8%
Bosideng International Holdings 3998 HK$4.88 HK$5.92 +21%
Youngor Fashion Co 600177 ¥7.57 ¥5.59 -26%
Page Industries Limited PAGEIND ₹39,900 ₹12,395 -69%
Hla Group 600398 ¥6.05 ¥9.92 +64%
Eclat Textile Co 1476 333.50 TWD 357.81 TWD +7%
Youngone Corporation 111770 87,600 KRW 196,629 KRW +124%

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Frequently asked questions

Is Guangdong Hongxing Industrial Co (001209) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥4.78 versus a price of ¥17.22, about −72% (overvalued).
What is the fair value of 001209?
Our model-based fair value for Guangdong Hongxing Industrial Co is ¥4.78 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥17.22.
What is the quality score of 001209?
Guangdong Hongxing Industrial Co has a Quality Score of 57/100. 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 Guangdong Hongxing Industrial Co (001209)?
Guangdong Hongxing Industrial Co reported trailing-twelve-month revenue of about 1.8B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 001209?
The net profit margin of Guangdong Hongxing Industrial Co is about 1.2%, meaning it keeps roughly 1.2% 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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