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Hengdian Group (002056) Fair Value & Analysis

Technology · CN · Market cap 42.2B CNY

HG Hengdian Group 002056 · SHE
Price¥22.20
Fair Value¥22.76
Upside+2.5%
Quality62/100
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Healthy Growth
Thin margins · 7.8% net margin
Low debt · generates free cash flow
2.36% dividend yield
Ranks above peers (11/15)
Moderate moat 51/100
Evidence: High Range ¥17.07 – ¥28.45 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Share price −28.3% 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.
  • Our model range runs from ¥17.07 (bear) to ¥28.45 (bull), base ¥22.76. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 62/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥32.82 ¥10.58 Fair Value ¥22.76 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥10.58 – ¥32.82 · fair‑value band ¥17.07 – ¥28.45 · the ¥22.20 price screens below the ¥22.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Hengdian Group (002056) currently trades at ¥22.20, while our model-based Fair Value estimate is ¥22.76, implying the stock looks roughly 2.5% fairly valued today. The Quality Score stands at 62/100 (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, Hengdian Group generated revenue of 22.8B CNY at a net margin of 7.8%. Revenue grew 4.9% year over year. It earns a return on equity of 17.5%. Net debt stands at 2.0B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥17.07 (bear case) to ¥28.45 (bull case); at ¥22.20, 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 27% below its 52-week high and 68% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -16% fair-value upside, at 3%, 002056 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 ¥19.27 ¥35.61 ¥61.54 80
Residual Income ¥7.35 ¥9.07 ¥21.25 76
Rev-Margin DCF ¥17.95 ¥30.34 ¥47.70 74
All 26 models by family
DCF Models
FCF DCF ¥19.73 ¥33.44 ¥68.16 38
Owner Earnings ¥14.36 ¥25.73 ¥47.66 31
5Y Revenue Exit ¥17.95 ¥30.89 ¥49.35 39
5Y EBITDA Exit ¥21.18 ¥38.06 ¥60.55 41
5Y P/E Exit ¥19.77 ¥34.93 ¥53.41 38
10Y Revenue Exit ¥17.92 ¥30.86 ¥52.76 36
10Y EBITDA Exit ¥20.63 ¥36.36 ¥62.87 37
10Y P/E Exit ¥19.66 ¥33.95 ¥56.42 35
Earnings-Based
Graham-Dodd ¥7.74 ¥45.67 ¥63.59 54
Lynch FV ¥12.96 ¥18.52 ¥24.07 50
PEG = 1.0 ¥12.96 ¥18.52 ¥24.07 46
EPV ¥14.90 ¥16.80 ¥18.46 59
Dividend Discount
Gordon GGM ¥7.52 ¥15.64 ¥24.81 70
DDM Multi-Stage ¥7.52 ¥13.19 ¥16.41 61
Multiples
P/E Multiple ¥17.07 ¥22.76 ¥28.45 63
P/S Multiple ¥14.51 ¥19.35 ¥24.18 58
P/B Multiple ¥14.51 ¥19.35 ¥24.18 55
EV/EBIT ¥23.40 ¥30.02 ¥36.65 53
EV/EBITDA ¥22.71 ¥29.11 ¥35.50 54
EV/Revenue ¥16.93 ¥22.67 ¥28.41 43
Asset-Based
NCAV (Graham) ¥3.27 ¥4.38 ¥6.53 50
Growth DCF
Growth DCF ¥19.27 ¥35.61 ¥61.54 80
Rev-Margin DCF ¥17.95 ¥30.34 ¥47.70 74
Economic Profit
Residual Income ¥7.35 ¥9.07 ¥21.25 76
ROIC Compounder ¥16.70 ¥21.26 ¥27.12 72
Growth Earnings
Growth-Adj P/E ¥18.56 ¥26.51 ¥34.46 68

Widest divergence: DCF Models (¥33.44) versus Asset-Based (¥4.38). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 22.8B CNY
Revenue growth (YoY) +4.9%
Net margin 7.8%
Return on equity 17.5%
Free cash flow 1.8B CNY FY2025
P/E ratio 23.4
More key figures
Operating margin 9.7%
EPS (TTM) ¥1.11
Dividend yield 2.4%
EPS growth (YoY) -15.6%
Net debt 2.0B CNY FY2025

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 68

Profitability 48
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 46
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 73
Price trend over the last 3–12 months (market factor)
52W Momentum 77
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

Hengdian Group DMEGC Magnetics Co., Ltd., together with its subsidiaries, provides magnetic materials, photovoltaic products, lithium batteries, and devices in China and internationally.

Full company description

Hengdian Group DMEGC Magnetics Co., Ltd., together with its subsidiaries, provides magnetic materials, photovoltaic products, lithium batteries, and devices in China and internationally. The company offers tile-shaped, ring, microwave oven, square, dry pressing and irregularly shaped, and bonded composite permanent magnets; manganese-zinc power and high-conductivity ferrite, nickel-zinc ferrite, magnetic powder core, nanocrystals, magnetic sheet, and magnetic design tool; rubber magnetic sheet, extruded magnetic strip, motor magnetic strip and sensor magnetic ring, water pump rotor, glue-coated parts, and magnetic ring and rotor assembly; and permanent magnet ferrite sintering and binder powder. It also provides solar modules and cells; lithium battery cells and energy storage and pack modules; cemented carbide, including carbide top hammer, composite substrate, non-standard cemented carbide for molds, non-standard oil hard alloy, and high-density tungsten products; in-vehicle and consumer goods inductance; flat, linear, and brushless vibration motors, as well as acoustic and cylindrical motors; and RF devices, such as power circulators and isolators. In addition, the company offers electromagnetic exciters, lithium battery caps; wireless charging modules; and motor housing and components. Further, it is involved in trade brokerage; investment and agency; piped gas activities; scientific research and technical services; and power engineering. The company was founded in 1980 and is headquartered in Dongyang, China. Hengdian Group DMEGC Magnetics Co., Ltd. operates as a subsidiary of Hengdian Group Holding Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengdian Group reported revenue of ¥22.5B in FY2025 versus ¥12.6B in FY2021, a compound +15.6%/yr. Reported net income was ¥1.9B in FY2025, compounding +13.4%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
22.5B CNY
Latest YoY
+21.1%
Avg. growth/yr (3Y)
+4.9%
Avg. growth/yr (5Y)
+22.6%
Avg. growth/yr (22Y)
+17.3%
Revenue +15.6%/yr
FY21 ¥12.6B
FY22 ¥19.5B
FY23 ¥19.7B
FY24 ¥18.6B
FY25 ¥22.5B
Net income +13.4%/yr
FY21 ¥1.1B
FY22 ¥1.7B
FY23 ¥1.8B
FY24 ¥1.8B
FY25 ¥1.9B

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Cite: Fair Value Calculator (2026). "Hengdian Group Fair Value". https://www.fairvalue-calculator.com/stock/002056

Peer Group

Solar · 119 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 62 · Top 25%
Fair Value upside +3% · Above median
Return on equity (TTM) 17% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 2.4% · Top 25%

Valuation Multiples vs Solar median · lower = cheaper

P/E (TTM) 23.4× · Cheaper than median
P/B 3.97× · Pricier than 75% of peers
P/S (TTM) 1.85× · Pricier than median
P/FCF 3.4× · Cheaper than median
EV/EBITDA 11.7× · Pricier than median
PEG 1.48× · 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 37 · sector 22
FUTURE 25 · sector 0
PAST 70 · sector 0
HEALTH 100 · sector 85
DIVIDEND 47 · sector 14

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 Solar stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
First Solar, Inc FSLR $221.03 $284.45 +29%
Nextpower Inc NXT $111.50 $69.61 -38%
Waaree Energies Limited WAAREEENER ₹2,923 ₹3,613 +24%
Tongwei Co 600438 ¥13.08 ¥12.13 -7%
Jinko Solar Co 688223 ¥4.39 ¥4.75 +8%
CSI Solar Co 688472 ¥10.11 ¥7.01 -31%
Enphase Energy, Inc ENPH $44.83 $22.20 -50%
Premier Energies Limited PREMIERENE ₹1,086 ₹912.32 -16%
Trina Solar Co 688599 ¥12.98 ¥7.97 -39%
JA Solar Technology Co 002459 ¥7.06 ¥3.32 -53%

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Frequently asked questions

Is Hengdian Group (002056) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥22.76 versus a price of ¥22.20, about +3% (fairly valued).
What is the fair value of 002056?
Our model-based fair value for Hengdian Group is ¥22.76 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥22.20.
What is the quality score of 002056?
Hengdian Group has a Quality Score of 62/100. 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 Hengdian Group (002056)?
Hengdian Group reported trailing-twelve-month revenue of about 22.8B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002056?
The net profit margin of Hengdian Group is about 7.8%, meaning it keeps roughly 7.8% of revenue as net income. Based on the latest reported figures.
Does Hengdian Group pay a dividend?
Hengdian Group currently shows a dividend yield of about 2.36% relative to its recent price (as of Jul 22, 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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