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Zhejiang Communications Technology Co (002061) Fair Value & Analysis

Industrials · CN · Market cap 9.6B CNY

ZC Zhejiang Communications Technology Co 002061 · SHE
Price¥3.51
Fair Value¥6.13
Upside+74.6%
Quality39/100
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Mixed Growth
Thin margins · 2.1% net margin
Low debt · generates free cash flow
3.02% dividend yield
Mixed vs. peers (6/13)
Narrow moat 31/100
Evidence: Medium Range ¥4.82 – ¥7.66 Share as image

Fair value as of: Jul 24, 2026

From 26 valuation models · updated 17 days ago

Share price −0.3% over the past month.

Below-average quality, screening 75% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (39/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥4.82). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥4.63 ¥2.92 Fair Value ¥6.13 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range ¥2.92 – ¥4.63 · fair‑value band ¥4.82 – ¥7.66 · the ¥3.51 price screens below the ¥6.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Zhejiang Communications Technology Co (002061) currently trades at ¥3.51, while our model-based Fair Value estimate is ¥6.13, implying the stock looks roughly 74.6% undervalued today. The Quality Score stands at 39/100 (below-average quality), in the Industrials 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: medium), always confirm before acting.

Over the trailing twelve months, Zhejiang Communications Technology Co generated revenue of 46.4B CNY at a net margin of 2.1%. It earns a return on equity of 6.1%. Net debt stands at 1.1B CNY. The stock trades on a trailing P/E of 10.3. Fundamentals as of Jul 24, 2026

Our scenario range runs from ¥4.82 (bear case) to ¥7.66 (bull case); at ¥3.51, the current price sits below 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 20% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 75%, 002061 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 ¥8.25 ¥12.45 ¥20.28 80
Residual Income ¥4.65 ¥4.83 ¥4.88 76
Rev-Margin DCF ¥8.90 ¥14.55 ¥23.08 74
All 26 models by family
DCF Models
FCF DCF ¥8.50 ¥11.66 ¥20.64 38
Owner Earnings ¥9.92 ¥17.79 ¥33.72 31
5Y Revenue Exit ¥8.90 ¥13.81 ¥23.47 39
5Y EBITDA Exit ¥9.14 ¥14.32 ¥23.85 41
5Y P/E Exit ¥8.11 ¥13.01 ¥19.33 38
10Y Revenue Exit ¥8.54 ¥14.49 ¥21.32 36
10Y EBITDA Exit ¥8.92 ¥14.93 ¥26.04 37
10Y P/E Exit ¥8.20 ¥12.99 ¥21.22 35
Earnings-Based
Graham-Dodd ¥2.45 ¥17.10 ¥24.00 54
Lynch FV ¥5.21 ¥7.45 ¥9.68 50
PEG = 1.0 ¥5.21 ¥7.45 ¥9.68 46
EPV ¥7.17 ¥7.75 ¥8.26 59
Dividend Discount
Gordon GGM ¥2.46 ¥4.91 ¥7.43 70
DDM Multi-Stage ¥2.46 ¥4.24 ¥5.18 61
Multiples
P/E Multiple ¥4.60 ¥6.13 ¥7.66 63
P/S Multiple ¥4.60 ¥6.13 ¥7.66 58
P/B Multiple ¥4.60 ¥6.13 ¥7.66 55
EV/EBIT ¥9.62 ¥11.68 ¥13.75 53
EV/EBITDA ¥9.52 ¥11.55 ¥13.58 54
EV/Revenue ¥8.80 ¥11.10 ¥13.39 43
Asset-Based
NCAV (Graham) ¥2.96 ¥3.96 ¥5.91 50
Growth DCF
Growth DCF ¥8.25 ¥12.45 ¥20.28 80
Rev-Margin DCF ¥8.90 ¥14.55 ¥23.08 74
Economic Profit
Residual Income ¥4.65 ¥4.83 ¥4.88 76
ROIC Compounder ¥7.97 ¥10.12 ¥11.85 72
Growth Earnings
Growth-Adj P/E ¥6.49 ¥9.28 ¥12.06 68

Widest divergence: DCF Models (¥13.81) versus Asset-Based (¥3.96). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 46.4B CNY
Net margin 2.1%
Return on equity 6.1%
Free cash flow 898M CNY FY2025
P/E ratio 10.3
Operating margin 3.2%
More key figures
EPS (TTM) ¥0.3500
Dividend yield 3.0%
EPS growth (YoY) -11.1%
Net debt 1.1B CNY FY2024

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 38 · Market factors (momentum, volatility) 45

Profitability 24
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 40
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 48
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

Zhejiang Communications Technology Co., Ltd. engages in infrastructure engineering business in China. It is involved in the investment, designing, construction, maintenance, and engineering project consulting and management of transportation infrastructure, such as roads, bridges, tunnels, rail transit, ports and docks, underground projects, etc.

Full company description

Zhejiang Communications Technology Co., Ltd. engages in infrastructure engineering business in China. It is involved in the investment, designing, construction, maintenance, and engineering project consulting and management of transportation infrastructure, such as roads, bridges, tunnels, rail transit, ports and docks, underground projects, etc. The company also engages in municipal projects, such as housing construction and municipal engineering, water affairs, and lighting; and production and sales of prefabricated concrete components, steel structures, traffic safety, and protective equipment. In addition, it engages in design, consulting, testing, supply chain management, new material manufacturing, and other upstream and downstream supporting industries, as well as lighting engineering construction. The company was formerly known as Zhejiang Jiangshan Chemical Co.,Ltd. and changed its name to Zhejiang Communications Technology Co., Ltd. in December 2017. Zhejiang Communications Technology Co., Ltd. was incorporated in 1998 and is based in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Communications Technology Co reported revenue of ¥46.4B in FY2025 versus ¥46.1B in FY2021, a compound +0.2%/yr. Reported net income was ¥964M in FY2025, compounding −0.1%/yr from FY2021.

Growth Quality 58/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
46.4B CNY
Latest YoY
−2.9%
Avg. growth/yr (3Y)
−0.1%
Avg. growth/yr (5Y)
+5.1%
Avg. growth/yr (22Y)
+24.2%
Revenue +0.2%/yr
FY21 ¥46.1B
FY22 ¥46.6B
FY23 ¥46.0B
FY24 ¥47.8B
FY25 ¥46.4B
Net income −0.1%/yr
FY21 ¥968M
FY22 ¥1.6B
FY23 ¥1.3B
FY24 ¥1.3B
FY25 ¥964M

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Cite: Fair Value Calculator (2026). "Zhejiang Communications Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/002061

Peer Group

Engineering & Construction · 837 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 39 · Bottom 25%
Fair Value upside +75% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 0% · Below median
Dividend yield (TTM) 3.0% · Above median
Debt / equity 0.34× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 10.3× · Cheaper than 75% of peers
P/B 0.61× · Cheaper than median
P/S (TTM) 0.21× · Cheaper than 75% of peers
P/FCF 1.6× · 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 100 · sector 16
FUTURE 0 · sector 18
PAST 24 · sector 26
HEALTH 83 · sector 94
DIVIDEND 60 · sector 33

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Zhejiang Communications Technology Co (002061) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of ¥6.13 versus a price of ¥3.51, about +75% (undervalued).
What is the fair value of 002061?
Our model-based fair value for Zhejiang Communications Technology Co is ¥6.13 (as of Jul 24, 2026), built from audited fundamentals. The current price is ¥3.51.
What is the quality score of 002061?
Zhejiang Communications Technology Co has a Quality Score of 39/100. 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 Zhejiang Communications Technology Co (002061)?
Zhejiang Communications Technology Co reported trailing-twelve-month revenue of about 46.4B CNY (latest available figure, as of Jul 24, 2026).
What is the net profit margin of 002061?
The net profit margin of Zhejiang Communications Technology Co is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Communications Technology Co pay a dividend?
Zhejiang Communications Technology Co currently shows a dividend yield of about 3.02% relative to its recent price (as of Jul 24, 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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