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Huafu Fashion Co (002042) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 6.2B CNY

HF Huafu Fashion Co 002042 · SHE
Price¥3.82
Fair Value¥1.37
Upside-64.1%
Quality51/100
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Weak Growth
Thin margins · 0.9% net margin
Low debt · generates free cash flow
Trails peers (4/13)
Narrow moat 20/100
Evidence: High Range ¥0.5800 – ¥1.66 Share as image

Fair value as of: Jul 21, 2026

From 23 valuation models · updated 20 days ago

Share price +3.2% over the past month.

A solid business, but screening 64% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.66). The favourable scenario is already priced in.
  • The model range is unusually wide (¥0.5800 to ¥1.66). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥7.41 ¥2.71 Fair Value ¥1.37 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 ¥2.71 – ¥7.41 · fair‑value band ¥0.5800 – ¥1.66 · the ¥3.82 price screens above the ¥1.37 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

Huafu Fashion Co (002042) currently trades at ¥3.82, while our model-based Fair Value estimate is ¥1.37, implying the stock looks roughly 64.1% overvalued today. The Quality Score stands at 51/100 (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, Huafu Fashion Co generated revenue of 7.9B CNY at a net margin of 0.9%. Revenue declined 7.0% year over year. It earns a return on equity of 1.6%. Net debt stands at 5.1B CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥0.5800 (bear case) to ¥1.66 (bull case); at ¥3.82, 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 36% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at -64%, 002042 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 ¥6.46 ¥12.19 ¥20.94 80
Residual Income ¥2.29 ¥2.11 ¥1.50 76
Rev-Margin DCF ¥3.22 ¥4.62 ¥6.58 74
All 23 models by family
DCF Models
FCF DCF ¥6.65 ¥11.46 ¥23.33 38
5Y Revenue Exit ¥3.22 ¥4.59 ¥6.37 39
5Y EBITDA Exit ¥5.03 ¥8.64 ¥13.36 41
5Y P/E Exit ¥2.84 ¥3.75 ¥4.73 38
10Y Revenue Exit ¥4.26 ¥6.07 ¥8.76 36
10Y EBITDA Exit ¥5.51 ¥9.10 ¥14.95 37
10Y P/E Exit ¥4.05 ¥5.44 ¥7.31 35
Earnings-Based
Graham-Dodd ¥0.2300 ¥1.37 ¥1.91 54
Lynch FV ¥0.3900 ¥0.5600 ¥0.7200 50
PEG = 1.0 ¥0.3900 ¥0.5600 ¥0.7200 46
EPV ¥1.54 ¥1.69 ¥1.82 59
Multiples
P/E Multiple ¥0.5600 ¥0.7400 ¥0.9300 63
P/S Multiple ¥0.4300 ¥0.5700 ¥0.7200 58
P/B Multiple ¥0.4300 ¥0.5700 ¥0.7200 55
EV/EBIT ¥2.16 ¥2.68 ¥3.21 53
EV/EBITDA ¥4.49 ¥5.79 ¥7.09 54
EV/Revenue ¥1.65 ¥2.10 ¥2.56 43
Asset-Based
NCAV (Graham) ¥1.70 ¥2.28 ¥3.41 50
Growth DCF
Growth DCF ¥6.46 ¥12.19 ¥20.94 80
Rev-Margin DCF ¥3.22 ¥4.62 ¥6.58 74
Economic Profit
Residual Income ¥2.29 ¥2.11 ¥1.50 76
ROIC Compounder ¥1.54 ¥1.69 ¥1.82 72
Growth Earnings
Growth-Adj P/E ¥0.5800 ¥0.8300 ¥1.08 68

Widest divergence: DCF Models (¥6.07) versus Earnings-Based (¥0.5600). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 7.9B CNY
Revenue growth (YoY) -7.0%
Net margin 0.9%
Return on equity 1.6%
Free cash flow 755M CNY FY2025
P/E ratio 121.3
More key figures
Operating margin 2.3%
EPS (TTM) ¥0.0300
Net debt 5.1B CNY FY2025

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

Quality Score breakdown

Overall quality 51/100

Of which business quality 49 · Market factors (momentum, volatility) 33

Profitability 19
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 26
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 14
Distance to the 52-week high (market factor)
Net Issuance 89
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

Huafu Fashion Co., Ltd. manufactures and supplies colored yarns in China and internationally. It offers middle and high-class color spun yarns, semi-worsted color yarns, vortex spun color yarns, rotor spun color yarns, high-class new-type grey yarns and dyed yarns.

Full company description

Huafu Fashion Co., Ltd. manufactures and supplies colored yarns in China and internationally. It offers middle and high-class color spun yarns, semi-worsted color yarns, vortex spun color yarns, rotor spun color yarns, high-class new-type grey yarns and dyed yarns. It also provides value-added services, such as fashion trends, certification of raw materials and products, hanging of tags, and technical consulting. The company was founded in 1993 and is headquartered in Shenzhen, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Huafu Fashion Co reported revenue of ¥8.1B in FY2025 versus ¥16.7B in FY2021, a compound −16.7%/yr. Reported net income was ¥57.4M in FY2025, compounding −43.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
8.1B CNY
Latest YoY
−25.2%
Avg. growth/yr (3Y)
−17.7%
Avg. growth/yr (5Y)
−10.8%
Avg. growth/yr (23Y)
+15.0%
Revenue −16.7%/yr
FY21 ¥16.7B
FY22 ¥14.5B
FY23 ¥13.7B
FY24 ¥10.8B
FY25 ¥8.1B
Net income −43.7%/yr
FY21 ¥570M
FY22 −¥350M
FY23 ¥66.8M
FY24 −¥208M
FY25 ¥57.4M

002042 screens 64% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "Huafu Fashion Co Fair Value". https://www.fairvalue-calculator.com/stock/002042

Peer Group

Textile Manufacturing · 309 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 51 · Above median
Fair Value upside −64% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 0% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth -7% · Below median
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 121.3× · Pricier than 75% of peers
P/B 1.07× · Cheaper than median
P/S (TTM) 0.78× · Cheaper than median
P/FCF 1.2× · Pricier than median
EV/EBITDA 8.1× · 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 11
FUTURE 0 · sector 0
PAST 6 · sector 14
HEALTH 94 · sector 95
DIVIDEND 0 · sector 34

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

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
HMT (Xiamen) New Technical Materials Co 603306 ¥91.75 ¥12.85 -86%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Shandong Fiberglass Group 605006 ¥16.75 ¥6.42 -62%

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Frequently asked questions

Is Huafu Fashion Co (002042) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥1.37 versus a price of ¥3.82, about −64% (overvalued).
What is the fair value of 002042?
Our model-based fair value for Huafu Fashion Co is ¥1.37 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥3.82.
What is the quality score of 002042?
Huafu Fashion Co has a Quality Score of 51/100. 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 Huafu Fashion Co (002042)?
Huafu Fashion Co reported trailing-twelve-month revenue of about 7.9B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 002042?
The net profit margin of Huafu Fashion Co is about 0.9%, meaning it keeps roughly 0.9% 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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