Hongrun Construction Group (002062) Fair Value & Analysis

Industrials · CN · Market cap 9.8B CNY

Below-average quality, and screening another 50% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥5.04). The favourable scenario is already priced in.
• Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

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 ¥3.07 – ¥12.34 · fair‑value band ¥3.03 – ¥5.04 · the ¥8.09 price screens above the ¥4.04 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

Hongrun Construction Group (002062) currently trades at ¥8.09, while our model-based Fair Value estimate is ¥4.04, implying the stock looks roughly 50.1% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Industrials 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, Hongrun Construction Group generated revenue of 5.6B CNY at a net margin of 4.7%. Revenue declined 9.7% year over year. It earns a return on equity of 4.3%. The balance sheet holds a net cash position of 1.1B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥3.03 (bear case) to ¥5.04 (bull case); at ¥8.09, 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 37% below its 52-week high and 97% 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 -50%, 002062 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.

Widest divergence: DCF Models (¥8.06) versus Earnings-Based (¥1.88). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Hongrun Construction Group Co., Ltd. engages in the construction business in China. The company is involved in the rail transit construction; municipal engineering; highway and bridge; underground space and comprehensive pipe gallery; water and environmental protection; marine engineering; and housing construction businesses.

Full company description

Hongrun Construction Group Co., Ltd. engages in the construction business in China. The company is involved in the rail transit construction; municipal engineering; highway and bridge; underground space and comprehensive pipe gallery; water and environmental protection; marine engineering; and housing construction businesses. It also engages in the real estate development, hospitality and tourism, commercial real estate, investment and construction of infrastructure projects, photovoltaic, and international education businesses. The company was founded in 1994 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hongrun Construction Group reported revenue of ¥5.7B in FY2025 versus ¥10.3B in FY2021, a compound −13.6%/yr. Reported net income was ¥280M in FY2025, compounding −8.5%/yr from FY2021.

002062 screens 50% overvalued. Compare with Larsen & Toubro Limited →

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.

Valuation Multiples vs Engineering & Construction median · lower = cheaper

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: 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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.