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HeNan Splendor Science & Technology Co (002296) Fair Value & Analysis

Industrials · CN · Market cap 3.8B CNY

HS HeNan Splendor Science & Technology Co 002296 · SHE
Price¥9.00
Fair Value¥9.61
Upside+6.8%
Quality65/100
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Healthy Growth
Solidly profitable · 19.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (6/13)
Wide moat 65/100
Evidence: High Range ¥6.39 – ¥12.01 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Share price +4.5% 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.
  • A fairly wide model range (¥6.39 to ¥12.01) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥15.13 ¥4.75 Fair Value ¥9.61 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 ¥4.75 – ¥15.13 · fair‑value band ¥6.39 – ¥12.01 · the ¥9.00 price screens below the ¥9.61 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

HeNan Splendor Science & Technology Co (002296) currently trades at ¥9.00, while our model-based Fair Value estimate is ¥9.61, implying the stock looks roughly 6.8% fairly valued today. The Quality Score stands at 65/100 (solid 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: high), always confirm before acting.

Over the trailing twelve months, HeNan Splendor Science & Technology Co generated revenue of 885M CNY at a net margin of 19.9%. Revenue grew 3.2% year over year. It earns a return on equity of 7.0%. The balance sheet holds a net cash position of 274M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥6.39 (bear case) to ¥12.01 (bull case); at ¥9.00, 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 41% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at 7%, 002296 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 ¥5.19 ¥7.98 ¥12.26 80
Residual Income ¥5.08 ¥5.39 ¥5.88 76
Rev-Margin DCF ¥4.69 ¥7.32 ¥10.55 74
All 26 models by family
DCF Models
FCF DCF ¥5.18 ¥8.13 ¥12.75 38
Owner Earnings ¥7.12 ¥11.32 ¥17.90 31
5Y Revenue Exit ¥4.69 ¥7.35 ¥10.83 39
5Y EBITDA Exit ¥7.74 ¥13.35 ¥20.20 41
5Y P/E Exit ¥6.45 ¥10.80 ¥15.59 38
10Y Revenue Exit ¥4.70 ¥7.19 ¥10.74 36
10Y EBITDA Exit ¥6.76 ¥11.38 ¥18.07 37
10Y P/E Exit ¥5.94 ¥9.60 ¥14.47 35
Earnings-Based
Graham-Dodd ¥3.27 ¥12.73 ¥17.26 54
Lynch FV ¥3.13 ¥4.47 ¥5.81 50
PEG = 1.0 ¥3.13 ¥4.47 ¥5.81 46
EPV ¥7.51 ¥8.60 ¥9.54 59
Dividend Discount
Gordon GGM ¥1.76 ¥3.50 ¥5.30 70
DDM Multi-Stage ¥1.76 ¥3.02 ¥3.69 61
Multiples
P/E Multiple ¥7.20 ¥9.61 ¥12.01 63
P/S Multiple ¥4.23 ¥5.64 ¥7.05 58
P/B Multiple ¥6.12 ¥8.16 ¥10.21 55
EV/EBIT ¥12.00 ¥15.80 ¥19.59 53
EV/EBITDA ¥10.01 ¥13.15 ¥16.28 54
EV/Revenue ¥4.56 ¥6.25 ¥7.94 43
Asset-Based
NCAV (Graham) ¥3.11 ¥4.17 ¥6.23 50
Growth DCF
Growth DCF ¥5.19 ¥7.98 ¥12.26 80
Rev-Margin DCF ¥4.69 ¥7.32 ¥10.55 74
Economic Profit
Residual Income ¥5.08 ¥5.39 ¥5.88 76
ROIC Compounder ¥7.94 ¥10.16 ¥13.07 72
Growth Earnings
Growth-Adj P/E ¥5.44 ¥7.77 ¥10.10 68

Widest divergence: DCF Models (¥9.60) versus Dividend Discount (¥3.02). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 885M CNY
Revenue growth (YoY) +3.2%
Net margin 19.9%
Return on equity 7.0%
Free cash flow 155M CNY FY2025
P/E ratio 21.5
More key figures
Operating margin 41.6%
EPS (TTM) ¥0.4500
EPS growth (YoY) -11.2%
Net cash 274M CNY FY2024

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

Quality Score breakdown

Overall quality 65/100

Of which business quality 63 · Market factors (momentum, volatility) 31

Profitability 42
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 71
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

HeNan Splendor Science & Technology Co., Ltd. engages in the research and development and promotion of rail transit measurement and control technologies for the rail transit industry in China.

Full company description

HeNan Splendor Science & Technology Co., Ltd. engages in the research and development and promotion of rail transit measurement and control technologies for the rail transit industry in China. The company offers railway signal centralized monitoring systems, hump signal centralized monitoring systems, microcomputer monitoring intelligent analysis and fault diagnosis systems, railway turnout comprehensive monitoring systems, frequency shift track circuit outdoor monitoring systems, railway power environment monitoring systems, signal room UPS and battery online monitoring systems, railway communication tower monitoring systems, electric service comprehensive data analysis platform systems, high-speed railway natural disaster and foreign body intrusion monitoring systems, railway integrated video monitoring systems, high-speed railway perimeter intrusion alarm systems, decentralized autonomous dispatching centralized systems, train dispatching and command systems, wireless shunting locomotive signal and monitoring systems, electric dispatch command center systems, and computer interlocking systems, as well as axle counting and electric heating turnout snow melting system equipment. It also provides urban rail transit signal maintenance support systems, environmental and equipment monitoring systems, urban rail transit integrated monitoring systems, urban rail transit automatic ticket collection systems, closed-circuit television surveillance systems, and automatic train monitoring systems, as well as special railway transport command integrated systems. The company was founded in 1994 and is based in Zhengzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HeNan Splendor Science & Technology Co reported revenue of ¥879M in FY2025 versus ¥737M in FY2021, a compound +4.5%/yr. Reported net income was ¥187M in FY2025, compounding +11.7%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
879M CNY
Avg. growth/yr (3Y)
+19.9%
Avg. growth/yr (5Y)
+20.3%
Avg. growth/yr (18Y)
+15.5%
Revenue +4.5%/yr
FY21 ¥737M
FY22 ¥652M
FY23 ¥740M
FY24 ¥1.3B
FY25 ¥879M
Net income +11.7%/yr
FY21 ¥120M
FY22 ¥104M
FY23 ¥164M
FY24 ¥275M
FY25 ¥187M

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Cite: Fair Value Calculator (2026). "HeNan Splendor Science & Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/002296

Peer Group

Railroads · 111 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 65 · Top 25%
Fair Value upside +7% · Above median
Return on equity (TTM) 7% · Below median
Return on assets 4% · Above median
Net margin (TTM) 20% · Top 25%
Operating margin (TTM) 42% · Top 25%
Revenue growth 3% · Below median
Debt / equity 0.03× · Lower than 75% of peers

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 21.5× · Pricier than median
P/B 1.55× · Pricier than median
P/S (TTM) 4.26× · Pricier than 75% of peers
P/FCF 3.6× · Pricier than median
EV/EBITDA 9.4× · 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 42 · sector 28
FUTURE 16 · sector 20
PAST 28 · sector 31
HEALTH 98 · sector 88
DIVIDEND 0 · sector 41

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

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is HeNan Splendor Science & Technology Co (002296) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥9.61 versus a price of ¥9.00, about +7% (fairly valued).
What is the fair value of 002296?
Our model-based fair value for HeNan Splendor Science & Technology Co is ¥9.61 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥9.00.
What is the quality score of 002296?
HeNan Splendor Science & Technology Co has a Quality Score of 65/100. 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 HeNan Splendor Science & Technology Co (002296)?
HeNan Splendor Science & Technology Co reported trailing-twelve-month revenue of about 885M CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002296?
The net profit margin of HeNan Splendor Science & Technology Co is about 19.9%, meaning it keeps roughly 19.9% 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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