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Topsec Technologies Group (002212) Fair Value & Analysis

Technology · CN · Market cap 7.5B CNY

TT Topsec Technologies Group 002212 · SHE
Price¥6.80
Fair Value¥1.32
Upside-80.6%
Quality49/100
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Weak Growth
Thin margins · 1.7% net margin
Low debt · negative free cash flow
Trails peers (2/12)
Narrow moat 26/100
Evidence: Medium Range ¥0.9900 – ¥1.65 Share as image

Fair value as of: Jul 22, 2026

From 15 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from ¥1.63 to ¥1.32 (−19.0%) since Jun 25, 2026. Share price +25.2% over the past month.

Below-average quality, and screening another 81% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.65). The favourable scenario is already priced in.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥22.89 ¥4.06 Fair Value ¥1.32 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 ¥4.06 – ¥22.89 · fair‑value band ¥0.9900 – ¥1.65 · the ¥6.80 price screens above the ¥1.32 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

Topsec Technologies Group (002212) currently trades at ¥6.80, while our model-based Fair Value estimate is ¥1.32, implying the stock looks roughly 80.6% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Technology 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: medium).

Over the trailing twelve months, Topsec Technologies Group generated revenue of 2.5B CNY at a net margin of 1.7%. Revenue declined 32.9% year over year. It earns a return on equity of 0.4%. The balance sheet holds a net cash position of 588M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥0.9900 (bear case) to ¥1.65 (bull case); at ¥6.80, 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 50% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -50% fair-value upside, at -81%, 002212 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
Residual Income ¥5.45 ¥5.00 ¥3.50 76
ROIC Compounder ¥1.17 ¥1.28 ¥1.38 72
Gordon GGM ¥0.1800 ¥0.2400 ¥0.3100 70
All 15 models by family
DCF Models
Owner Earnings ¥1.45 ¥1.81 ¥2.37 31
Earnings-Based
Graham-Dodd ¥0.4300 ¥0.8000 ¥1.00 54
EPV ¥1.17 ¥1.28 ¥1.38 59
Dividend Discount
Gordon GGM ¥0.1800 ¥0.2400 ¥0.3100 70
DDM Multi-Stage ¥0.1800 ¥0.2500 ¥0.3200 61
Multiples
P/E Multiple ¥0.9900 ¥1.32 ¥1.65 63
P/S Multiple ¥0.8000 ¥1.07 ¥1.34 58
P/B Multiple ¥0.8000 ¥1.07 ¥1.34 55
EV/EBIT ¥1.57 ¥1.94 ¥2.31 53
EV/EBITDA ¥4.09 ¥5.30 ¥6.51 54
EV/Revenue ¥1.25 ¥1.59 ¥1.93 43
Asset-Based
NCAV (Graham) ¥4.08 ¥5.47 ¥8.16 50
Economic Profit
Residual Income ¥5.45 ¥5.00 ¥3.50 76
ROIC Compounder ¥1.17 ¥1.28 ¥1.38 72
Growth Earnings
Growth-Adj P/E ¥0.7100 ¥1.01 ¥1.31 68

Widest divergence: Asset-Based (¥5.47) versus Dividend Discount (¥0.2400). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.5B CNY
Revenue growth (YoY) -32.9%
Net margin 1.7%
Return on equity 0.4%
Free cash flow −127M CNY FY2025
P/E ratio 158.0
More key figures
Operating margin -84.7%
EPS (TTM) ¥0.0400
EPS growth (YoY) +12.1%
Net cash 588M CNY FY2024

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

Quality Score breakdown

Overall quality 49/100

Of which business quality 50 · Market factors (momentum, volatility) 30

Profitability 19
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 56
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

Topsec Technologies Group Inc., together with its subsidiaries, provides network security and intelligent cloud solutions for basic networks, industrial internet, internet of vehicles, and internet of things in China.

Full company description

Topsec Technologies Group Inc., together with its subsidiaries, provides network security and intelligent cloud solutions for basic networks, industrial internet, internet of vehicles, and internet of things in China. It is involved in technical development and consulting, software development and sales, network and information security software development, electronic product sales, and communication equipment sales, as well as the provision of computer systems and technical services. The company was formerly known as Nanyang Topsec Technologies Group Inc. and changed its name to Topsec Technologies Group Inc. in November 2020. Topsec Technologies Group Inc. was founded in 1985 and is headquartered in Shantou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Topsec Technologies Group reported revenue of ¥2.6B in FY2025 versus ¥3.4B in FY2021, a compound −6.4%/yr. Reported net income was ¥74.2M in FY2025, compounding −24.6%/yr from FY2021.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
2.6B CNY
Latest YoY
−8.8%
Avg. growth/yr (3Y)
−10.1%
Avg. growth/yr (5Y)
−14.7%
Avg. growth/yr (21Y)
+8.2%
Revenue −6.4%/yr
FY21 ¥3.4B
FY22 ¥3.5B
FY23 ¥3.1B
FY24 ¥2.8B
FY25 ¥2.6B
Net income −24.6%/yr
FY21 ¥230M
FY22 ¥205M
FY23 −¥371M
FY24 ¥83.0M
FY25 ¥74.2M

002212 screens 81% overvalued. Compare with Microsoft Corporation →

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Cite: Fair Value Calculator (2026). "Topsec Technologies Group Fair Value". https://www.fairvalue-calculator.com/stock/002212

Peer Group

Software - Infrastructure · 368 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 49 · Below median
Fair Value upside −81% · Bottom 25%
Return on equity (TTM) 0% · Below median
Return on assets -0% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) -85% · Bottom 25%
Revenue growth -33% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Software - Infrastructure median · lower = cheaper

P/E (TTM) 158.0× · Pricier than 75% of peers
P/B 0.77× · Cheaper than 75% of peers
P/S (TTM) 3.03× · Pricier 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 0
FUTURE 0 · sector 46
PAST 2 · sector 15
HEALTH 100 · sector 99
DIVIDEND 0 · sector 28

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

Stock Price Fair Value vs Fair Value
Microsoft Corporation MSFT $384.00 $274.17 -29%
Oracle Corporation ORAC C$9.08 C$2.94 -68%
Fortinet, Inc FTNT $160.78 $44.96 -72%
Synopsys, Inc 1SNPS €354.50 €93.61 -74%
Block, Inc XYZ A$114.53 A$70.69 -38%
CoreWeave, Inc CRWV $79.94 $44.89 -44%
Range Intelligent Computing Technology Group 300442 ¥71.60 ¥34.00 -53%
Oracle Financial Services Software Limited OFSS ₹11,651 ₹5,821 -50%
360 Security Technology Inc 601360 ¥9.64 ¥5.05 -48%
One97 Communications Limited PAYTM ₹1,342 ₹181.50 -86%

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Frequently asked questions

Is Topsec Technologies Group (002212) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥1.32 versus a price of ¥6.80, about −81% (overvalued).
What is the fair value of 002212?
Our model-based fair value for Topsec Technologies Group is ¥1.32 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥6.80.
What is the quality score of 002212?
Topsec Technologies Group has a Quality Score of 49/100. 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 Topsec Technologies Group (002212)?
Topsec Technologies Group reported trailing-twelve-month revenue of about 2.5B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002212?
The net profit margin of Topsec Technologies Group is about 1.7%, meaning it keeps roughly 1.7% 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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