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Fujian Star-net Communication Co (002396) Fair Value & Analysis

Technology · CN · Market cap 14.5B CNY

FS Fujian Star-net Communication Co 002396 · SHE
Price¥29.60
Fair Value¥10.75
Upside-63.7%
Quality68/100
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Healthy Growth
Thin margins · 2.1% net margin
Low debt · generates free cash flow
1.02% dividend yield
Mixed vs. peers (8/14)
Narrow moat 37/100
Evidence: Medium Range ¥8.06 – ¥13.44 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from ¥19.58 to ¥10.75 (−45.1%) since Jun 25, 2026. Share price +11.9% over the past month.

A solid business, but screening 64% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥13.44). The favourable scenario is already priced in.
  • Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥33.93 ¥9.09 Fair Value ¥10.75 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 ¥9.09 – ¥33.93 · fair‑value band ¥8.06 – ¥13.44 · the ¥29.60 price screens above the ¥10.75 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

Fujian Star-net Communication Co (002396) currently trades at ¥29.60, while our model-based Fair Value estimate is ¥10.75, implying the stock looks roughly 63.7% overvalued today. The Quality Score stands at 68/100 (solid 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, Fujian Star-net Communication Co generated revenue of 19.6B CNY at a net margin of 2.1%. Revenue grew 12.0% year over year. It earns a return on equity of 8.4%. The balance sheet holds a net cash position of 1.1B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥8.06 (bear case) to ¥13.44 (bull case); at ¥29.60, 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 near its 52-week high and 96% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at -64%, 002396 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
Growth DCF ¥37.27 ¥68.86 ¥117.99 80
Residual Income ¥7.22 ¥7.45 ¥7.51 76
Rev-Margin DCF ¥24.35 ¥37.07 ¥54.58 74
All 26 models by family
DCF Models
FCF DCF ¥38.03 ¥66.97 ¥131.36 38
Owner Earnings ¥13.60 ¥21.62 ¥36.76 31
5Y Revenue Exit ¥24.35 ¥37.27 ¥54.87 39
5Y EBITDA Exit ¥27.35 ¥43.84 ¥64.99 41
5Y P/E Exit ¥20.72 ¥29.33 ¥39.11 38
10Y Revenue Exit ¥28.05 ¥42.40 ¥64.96 36
10Y EBITDA Exit ¥30.56 ¥47.38 ¥73.95 37
10Y P/E Exit ¥26.05 ¥36.37 ¥50.96 35
Earnings-Based
Graham-Dodd ¥3.66 ¥20.56 ¥28.57 54
Lynch FV ¥5.76 ¥8.23 ¥10.70 50
PEG = 1.0 ¥5.76 ¥8.23 ¥10.70 46
EPV ¥17.48 ¥19.47 ¥21.21 59
Dividend Discount
Gordon GGM ¥2.12 ¥4.41 ¥6.99 70
DDM Multi-Stage ¥2.12 ¥3.72 ¥4.63 61
Multiples
P/E Multiple ¥8.06 ¥10.75 ¥13.44 63
P/S Multiple ¥6.85 ¥9.14 ¥11.42 58
P/B Multiple ¥6.85 ¥9.14 ¥11.42 55
EV/EBIT ¥24.34 ¥30.60 ¥36.87 53
EV/EBITDA ¥23.67 ¥29.72 ¥35.76 54
EV/Revenue ¥18.21 ¥23.64 ¥29.07 43
Asset-Based
NCAV (Graham) ¥4.58 ¥6.14 ¥9.17 50
Growth DCF
Growth DCF ¥37.27 ¥68.86 ¥117.99 80
Rev-Margin DCF ¥24.35 ¥37.07 ¥54.58 74
Economic Profit
Residual Income ¥7.22 ¥7.45 ¥7.51 76
ROIC Compounder ¥19.41 ¥24.32 ¥30.68 72
Growth Earnings
Growth-Adj P/E ¥8.43 ¥12.04 ¥15.65 68

Widest divergence: DCF Models (¥37.27) versus Dividend Discount (¥3.72). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 19.6B CNY
Revenue growth (YoY) +12.0%
Net margin 2.1%
Return on equity 8.4%
Free cash flow 1.8B CNY FY2025
P/E ratio 35.2
More key figures
Operating margin 3.6%
EPS (TTM) ¥0.5400
Dividend yield 1.0%
EPS growth (YoY) -11.5%
Net cash 1.1B CNY FY2024

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

Quality Score breakdown

Overall quality 68/100

Of which business quality 68 · Market factors (momentum, volatility) 74

Profitability 46
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 51
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 77
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

Fujian Star-net Communication Co., LTD. engages in the provision of ICT infrastructure and AI application solutions in China. The company offers communication infrastructure; and network infrastructure solutions, such as network equipment, network security, and cloud desktop solutions.

Full company description

Fujian Star-net Communication Co., LTD. engages in the provision of ICT infrastructure and AI application solutions in China. The company offers communication infrastructure; and network infrastructure solutions, such as network equipment, network security, and cloud desktop solutions. It also provides AI application solutions, including IT solutions, such as desktop cloud terminals, thin clients, domestically developed IT systems, domestically developed cloud services, financial services, and digital payments; media, cloud technology, mobile internet, artificial intelligence, 5G, and AI; smart space; smart video network; smart manufacturing; and smart retail solutions. The company was founded in 1996 and is headquartered in Fuzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Fujian Star-net Communication Co reported revenue of ¥19.2B in FY2025 versus ¥13.5B in FY2021, a compound +9.0%/yr. Reported net income was ¥409M in FY2025, compounding −6.8%/yr from FY2021.

Growth Quality 88/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
19.2B CNY
Latest YoY
+14.3%
Avg. growth/yr (3Y)
+6.8%
Avg. growth/yr (5Y)
+13.2%
Avg. growth/yr (20Y)
+18.4%
Revenue +9.0%/yr
FY21 ¥13.5B
FY22 ¥15.7B
FY23 ¥15.9B
FY24 ¥16.8B
FY25 ¥19.2B
Net income −6.8%/yr
FY21 ¥542M
FY22 ¥577M
FY23 ¥425M
FY24 ¥405M
FY25 ¥409M

002396 screens 64% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "Fujian Star-net Communication Co Fair Value". https://www.fairvalue-calculator.com/stock/002396

Peer Group

Communication Equipment · 290 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 68 · Top 25%
Fair Value upside −64% · Below median
Return on equity (TTM) 8% · Above median
Return on assets 3% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth 12% · Above median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 35.2× · Pricier than median
P/B 2.07× · Pricier than median
P/S (TTM) 0.74× · Cheaper than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 9.1× · Cheaper than 75% of peers

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 60 · sector 30
PAST 34 · sector 15
HEALTH 100 · sector 98
DIVIDEND 20 · sector 24

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

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $119.25 $43.05 -64%
Zhongji Innolight Co 300308 ¥1,094 ¥171.09 -84%
Foxconn Industrial Internet Co 601138 ¥56.50 ¥28.65 -49%
Eoptolink Technology Inc 300502 ¥482.88 ¥155.05 -68%
Nokia Oyj NOK $11.25 $2.67 -76%
Motorola Solutions, Inc MSI $413.31 $190.43 -54%
Suzhou TFC Optical Communication Co 300394 ¥244.13 ¥32.04 -87%
Telefonaktiebolaget LM Ericsson (publ), ERIC $11.72 $15.96 +36%
Accton Technology Corporation 2345 2,090 TWD 846.28 TWD -60%
ZTE Corporation 000063 ¥40.00 ¥15.75 -61%

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Frequently asked questions

Is Fujian Star-net Communication Co (002396) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥10.75 versus a price of ¥29.60, about −64% (overvalued).
What is the fair value of 002396?
Our model-based fair value for Fujian Star-net Communication Co is ¥10.75 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥29.60.
What is the quality score of 002396?
Fujian Star-net Communication Co has a Quality Score of 68/100. 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 Fujian Star-net Communication Co (002396)?
Fujian Star-net Communication Co reported trailing-twelve-month revenue of about 19.6B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002396?
The net profit margin of Fujian Star-net Communication Co is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. Based on the latest reported figures.
Does Fujian Star-net Communication Co pay a dividend?
Fujian Star-net Communication Co currently shows a dividend yield of about 1.02% 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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