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Jiangsu Lianfa Textile Co (002394) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 3.0B CNY

JL Jiangsu Lianfa Textile Co 002394 · SHE
Price¥9.98
Fair Value¥12.61
Upside+26.4%
Quality56/100
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Weak Growth
Thin margins · 6.3% net margin
Low debt · negative free cash flow
5.34% dividend yield
Ranks above peers (11/13)
Narrow moat 36/100
Evidence: High Range ¥11.09 – ¥14.11 Share as image

Fair value as of: Jul 22, 2026

From 16 valuation models · updated 19 days ago

Share price +8.5% over the past month.

A solid business, screening 26% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥11.09). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥19.13 ¥5.41 Fair Value ¥12.61 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 ¥5.41 – ¥19.13 · fair‑value band ¥11.09 – ¥14.11 · the ¥9.98 price screens below the ¥12.61 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

Jiangsu Lianfa Textile Co (002394) currently trades at ¥9.98, while our model-based Fair Value estimate is ¥12.61, implying the stock looks roughly 26.4% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Consumer Cyclical 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, Jiangsu Lianfa Textile Co generated revenue of 3.8B CNY at a net margin of 6.3%. Revenue declined 19.4% year over year. It earns a return on equity of 5.6%. Net debt stands at 285M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥11.09 (bear case) to ¥14.11 (bull case); at ¥9.98, 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 48% below its 52-week high and 37% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at 26%, 002394 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 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
Residual Income ¥10.68 ¥11.13 ¥11.68 76
ROIC Compounder ¥9.94 ¥11.24 ¥12.37 72
Gordon GGM ¥1.32 ¥1.95 ¥2.58 70
All 16 models by family
DCF Models
Owner Earnings ¥12.23 ¥16.26 ¥21.63 31
Earnings-Based
Graham-Dodd ¥6.38 ¥13.36 ¥16.90 54
PEG = 1.0 ¥1.99 ¥2.84 ¥3.70 46
EPV ¥9.94 ¥11.24 ¥12.37 59
Dividend Discount
Gordon GGM ¥1.32 ¥1.95 ¥2.58 70
DDM Multi-Stage ¥1.32 ¥1.86 ¥2.44 61
Multiples
P/E Multiple ¥15.48 ¥20.64 ¥25.80 63
P/S Multiple ¥11.17 ¥14.90 ¥18.62 58
P/B Multiple ¥11.96 ¥15.95 ¥19.94 55
EV/EBIT ¥15.31 ¥19.86 ¥24.41 53
EV/EBITDA ¥17.07 ¥22.21 ¥27.34 54
EV/Revenue ¥10.87 ¥14.81 ¥18.75 43
Asset-Based
NCAV (Graham) ¥6.72 ¥9.00 ¥13.43 50
Economic Profit
Residual Income ¥10.68 ¥11.13 ¥11.68 76
ROIC Compounder ¥9.94 ¥11.24 ¥12.37 72
Growth Earnings
Growth-Adj P/E ¥11.32 ¥16.18 ¥21.03 68

Widest divergence: DCF Models (¥16.26) versus Dividend Discount (¥1.86). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 3.8B CNY
Revenue growth (YoY) -19.4%
Net margin 6.3%
Return on equity 5.6%
Free cash flow −116M CNY FY2025
P/E ratio 12.5
More key figures
Operating margin 7.9%
EPS (TTM) ¥0.7500
Dividend yield 5.3%
EPS growth (YoY) -84.6%
Net debt 285M CNY FY2024

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

Quality Score breakdown

Overall quality 56/100

Of which business quality 53 · Market factors (momentum, volatility) 36

Profitability 37
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 85
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

Jiangsu Lianfa Textile Co.,Ltd, together with its subsidiaries, engages in the manufacture and sale of textile products in China.

Full company description

Jiangsu Lianfa Textile Co.,Ltd, together with its subsidiaries, engages in the manufacture and sale of textile products in China. It offers fabric products, including long staple length cotton, texture, natural, and functional finishing fabrics; garment products, such as formal and casual shirts for men and formal shirts and casual wear for women; and cotton and compact yarns which are suitable for woven fabrics and yarn-dyed yarns. The company is also involved in the yarn spinning, dyeing, weaving, finishing, and printing activities as well as engages in home textiles fabric manufacturing, garment manufacturing, and brand operation. In addition, it engages in the thermal power generation, trade logistic, and new energy development businesses. The company exports its products to approximately 36 countries, including Japan, the United States, Europe, and South East Asia. Jiangsu Lianfa Textile Co.,Ltd was founded in 1955 and is headquartered in Nantong, China..

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangsu Lianfa Textile Co reported revenue of ¥4.0B in FY2025 versus ¥3.9B in FY2021, a compound +0.8%/yr. Reported net income was ¥304M in FY2025, compounding +13.7%/yr from FY2021.

Growth Quality 20/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
4.0B CNY
Latest YoY
−3.8%
Avg. 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.
−1.5%
Avg. 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.
+0.7%
Avg. growth/yr (19Y) 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.
+9.9%
Revenue +0.8%/yr
FY21 ¥3.9B
FY22 ¥4.2B
FY23 ¥4.3B
FY24 ¥4.2B
FY25 ¥4.0B
Net income +13.7%/yr
FY21 ¥182M
FY22 ¥160M
FY23 ¥149M
FY24 ¥202M
FY25 ¥304M
Character of growth · EPS growth decomposed (2013-2024) −5.9 % p.a.
Revenue per share +2.5 pp

of which total revenue +2.6 pp · buybacks/dilution −0.1 pp

EBIT margin −9.6 pp
Tax rate +1.2 pp
Residual (interest, one-offs) +0.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Jiangsu Lianfa Textile Co Fair Value". https://www.fairvalue-calculator.com/stock/002394

Peer Group

Textile Manufacturing · 307 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 56 · Above median
Fair Value upside +26% · Above median
Return on equity (TTM) 6% · Above median
Return on assets 3% · Above median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth -19% · Bottom 25%
Dividend yield (TTM) 5.3% · Top 25%
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 12.5× · Cheaper than median
P/B 0.70× · Cheaper than median
P/S (TTM) 0.80× · Pricier than median
EV/EBITDA 4.9× · 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 69 · sector 8
FUTURE 0 · sector 0
PAST 22 · sector 15
HEALTH 97 · sector 95
DIVIDEND 100 · sector 34

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

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
HMT (Xiamen) New Technical Materials Co 603306 ¥91.75 ¥12.85 -86%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Shandong Fiberglass Group 605006 ¥16.75 ¥6.42 -62%

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Frequently asked questions

Is Jiangsu Lianfa Textile Co (002394) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥12.61 versus a price of ¥9.98, about +26% (undervalued).
What is the fair value of 002394?
Our model-based fair value for Jiangsu Lianfa Textile Co is ¥12.61 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥9.98.
What is the quality score of 002394?
Jiangsu Lianfa Textile Co has a Quality Score of 56/100. 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 Jiangsu Lianfa Textile Co (002394)?
Jiangsu Lianfa Textile Co reported trailing-twelve-month revenue of about 3.8B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002394?
The net profit margin of Jiangsu Lianfa Textile Co is about 6.3%, meaning it keeps roughly 6.3% of revenue as net income. Based on the latest reported figures.
Does Jiangsu Lianfa Textile Co pay a dividend?
Jiangsu Lianfa Textile Co currently shows a dividend yield of about 5.34% relative to its recent price (as of Jul 22, 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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