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Hangzhou Zhongheng Electric Co Ltd (002364) Fair Value & Analysis

Industrials · CN · Market cap 30.0B CNY (≈ $4.5B) · ISIN CNE100000M05

What is Hangzhou Zhongheng Electric Co Ltd really worth?

HZ Hangzhou Zhongheng Electric Co Ltd 002364 · SHE
Price¥37.44
Fair Value¥4.09
Upside−89.1%
Quality76/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

A strong business, but trading 816% above our fair value of ¥4.09.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +10.8 %/yr)
!Thin margins · 6.1% net margin
!Trails peers (4/13)
!Narrow moat 30/100
!Evidence only low, so the estimate is less certain
!Weak on past: 22 out of 100
!Weak on dividend: 5 out of 100

For context

·0.27% dividend yield
Evidence: Low Range ¥3.06 – ¥5.11

Fair value as of: Aug 21, 2026

From 26 valuation models · updated 15 days ago

Share price −0.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 76/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥5.11). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Price vs Fair Value (5 years)

¥59.15 ¥4.25 Fair Value ¥4.09 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ¥4.25 – ¥59.15 · fair‑value band ¥3.06 – ¥5.11 · the ¥37.44 price screens above the ¥4.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Hangzhou Zhongheng Electric Co Ltd (002364) currently trades at ¥37.44, while our model-based Fair Value estimate is ¥4.09, implying the stock looks roughly 815.8% overvalued today. The Quality Score stands at 76/100 (high quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of ¥9.71 per share, and 0 of the 26 models we run sit above the ¥37.44 price. Bear case: the Dividend Discount group reads lowest at ¥0.8100, and 26 of the 26 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Hangzhou Zhongheng Electric Co Ltd generated revenue of 2.2B CNY at a net margin of 6.1%. Revenue grew 7.8% year over year. It earns a return on equity of 5.4%. The balance sheet holds a net cash position of 693M CNY. Fundamentals as of Aug 21, 2026

Our scenario range runs from ¥3.06 (bear case) to ¥5.11 (bull case); at ¥37.44, 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 38% below its 52-week high and 169% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −89%, 002364 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2024 figures, and about 12 months have passed since. In that time the company retained roughly ¥0.1200 per share, which is 2.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥0.8100 to ¥22.01). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF ¥12.11 ¥22.01 ¥40.01 77
Growth DCF ¥11.94 ¥20.75 ¥36.19 76
Residual Income ¥3.26 ¥3.26 ¥3.02 76
All 26 models by family
DCF Models
FCF DCF ¥12.11 ¥22.01 ¥40.01 77
Owner Earnings ¥4.67 ¥7.81 ¥13.51 74
5Y Revenue Exit ¥6.13 ¥8.58 ¥11.68 73
5Y EBITDA Exit ¥6.66 ¥9.71 ¥13.40 75
5Y P/E Exit ¥6.58 ¥9.52 ¥12.82 71
10Y Revenue Exit ¥7.93 ¥11.01 ¥15.41 67
10Y EBITDA Exit ¥8.37 ¥11.85 ¥16.90 68
10Y P/E Exit ¥8.31 ¥11.72 ¥16.40 64
Earnings-Based
Graham-Dodd ¥1.32 ¥6.84 ¥9.46 64
Lynch FV ¥1.87 ¥2.67 ¥3.47 61
PEG = 1.0 ¥1.87 ¥2.67 ¥3.47 57
EPV ¥3.16 ¥3.49 ¥3.77 74
Dividend Discount
Gordon GGM ¥0.4600 ¥0.9600 ¥1.52 66
DDM Multi-Stage ¥0.4600 ¥0.8100 ¥1.00 67
Multiples
P/E Multiple ¥3.06 ¥4.09 ¥5.11 63
P/S Multiple ¥2.48 ¥3.31 ¥4.13 58
P/B Multiple ¥2.48 ¥3.31 ¥4.13 55
EV/EBIT ¥4.32 ¥5.35 ¥6.39 66
EV/EBITDA ¥4.41 ¥5.48 ¥6.54 67
EV/Revenue ¥3.43 ¥4.38 ¥5.33 54
Asset-Based
NCAV (Graham) ¥2.16 ¥2.89 ¥4.31 54
Growth DCF
Growth DCF ¥11.94 ¥20.75 ¥36.19 76
Rev-Margin DCF ¥6.13 ¥8.64 ¥12.01 73
Economic Profit
Residual Income ¥3.26 ¥3.26 ¥3.02 76
ROIC Compounder ¥3.16 ¥3.49 ¥3.77 72
Growth Earnings
Growth-Adj P/E ¥2.80 ¥4.01 ¥5.21 67

Widest divergence: DCF Models (¥9.71) versus Dividend Discount (¥0.8100). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 170.2
P/S ratio 9.51 P/E × margin
EPS (TTM) ¥0.2200 price ÷ EPS = P/E 170.2
Dividend yield 0.3% payout 45.5%
Net margin 5.6% FY2024
Return on equity 5.4% TTM
More key figures
Profitability
Return on assets (EBIT) 1.4% avg 5y
Operating margin 6.9% TTM
Growth
Revenue (TTM) 2.2B CNY TTM
Revenue growth (YoY) +7.8% 3y avg +2.6%
Balance sheet & cash flow
Free cash flow 456M CNY FY2024
Net cash 693M CNY FY2024

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 76/100

Of which business quality 76 · Market factors (momentum, volatility) 51

Profitability 29
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 94
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 25
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 88
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hangzhou Zhongheng Electric Co., Ltd. provides electronics manufacturing solutions in China, rest of Asia, Europe, the United States, and internationally. The company offers prefabricated solution for data center power supply system; and charging and swapping solutions.

Full company description

Hangzhou Zhongheng Electric Co., Ltd. provides electronics manufacturing solutions in China, rest of Asia, Europe, the United States, and internationally. The company offers prefabricated solution for data center power supply system; and charging and swapping solutions. It also provides solutions for communication power supply and distribution system, as well as power system solutions. In addition, the company provides energy storage, operation, and maintenance, microgrid, and power operation solutions. The company was incorporated in 1996 and is headquartered in Hangzhou, China.

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

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Hangzhou Zhongheng Electric Co Ltd reported revenue of 2.0B CNY in FY2024 versus 1.4B CNY in FY2020, a compound +8.2%/yr. Reported net income was 110M CNY in FY2024, compounding +6.6%/yr from FY2020.

Growth Quality 75/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
2.0B CNY
Latest YoY
+26.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.8%
Avg. revenue growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
≈ +7.4% (approximate, leans on 2024) · in CNY
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+7.1%
Dividend yield0.3%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 7.1% vs 10Y −2.4%, picking up
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7.2% (2019) → 7.0% (2024) · steady
Worst earnings drop162% (2022) (loss year, drop beyond 100%) · in CNY
⚠ Rate leans on 2024: that final year sits 72% above its own trend (e.g. a one-off disposal gain) and could not be adjusted
Revenue +8.2%/yr
FY20 1.4B CNY
FY21 1.8B CNY
FY22 1.6B CNY
FY23 1.6B CNY
FY24 2.0B CNY
Net income +6.6%/yr
FY20 85.0M CNY
FY21 89.3M CNY
FY22 −55.8M CNY
FY23 39.4M CNY
FY24 110M CNY
Character of growth · EPS growth decomposed (2013-2024) −5.7 % p.a.
Revenue per share +10.5 %

of which total revenue +11.5 % · buybacks/dilution −0.9 %

EBIT margin −13.1 %
Tax rate +0.1 %
Residual (interest, one-offs) −1.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

002364 screens 816% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Hangzhou Zhongheng Electric Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002364

Peer Group

Electrical Equipment & Parts · 543 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 76 · Top 25%
Fair Value upside −89% · Bottom 25%
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth 8% · Below median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 170.2× · Pricier than 75% of peers
P/B 12.34× · Pricier than 75% of peers
P/S (TTM) 13.84× · Pricier than 75% of peers
P/FCF 9.8× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE39 · sector 56
PAST22 · sector 26
HEALTH100 · sector 97
DIVIDEND5 · sector 23

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

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 −40%
ABB Ltd ABBN CHF 80.10 CHF 28.70 −64%
Delta Electronics (Thailand) Public Company TDED 10.40 SGD 1.47 SGD −86%
Vertiv Holdings VRT $257.08 $63.13 −75%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW −45%
Prysmian S.p.A PRY €117.10 €84.15 −28%
Legrand SA LR €139.65 €78.82 −44%
Sungrow Power Supply Co 300274 ¥86.40 ¥123.83 +43%
Hubbell Incorporated HUBB $443.31 $285.77 −36%
Shenzhen Inovance Technology Co 300124 ¥61.07 ¥33.04 −46%

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Frequently asked questions

Is Hangzhou Zhongheng Electric Co Ltd (002364) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ¥4.09 versus a price of ¥37.44, about −89% upside (overvalued).
What is the fair value of 002364?
Our model-based fair value for Hangzhou Zhongheng Electric Co Ltd is ¥4.09 (as of Aug 21, 2026), built from audited fundamentals. The current price: ¥37.44.
What is the quality score of 002364?
Hangzhou Zhongheng Electric Co Ltd has a Quality Score of 76/100. 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 Hangzhou Zhongheng Electric Co Ltd (002364)?
Hangzhou Zhongheng Electric Co Ltd reported trailing-twelve-month revenue of about 2.2B CNY (latest available figure, as of Aug 21, 2026).
What is the net profit margin of 002364?
The net profit margin of Hangzhou Zhongheng Electric Co Ltd is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does Hangzhou Zhongheng Electric Co Ltd pay a dividend?
Hangzhou Zhongheng Electric Co Ltd currently shows a dividend yield of about 0.27% relative to its recent price (as of Aug 21, 2026).
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