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Zhejiang Wanliyang Co (002434) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 7.6B CNY

ZW Zhejiang Wanliyang Co 002434 · SHE
Price¥5.78
Fair Value¥3.11
Upside-46.2%
Quality41/100
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Mixed Growth
Thin margins · 4.1% net margin
Low debt · negative free cash flow
0.85% dividend yield
Trails peers (3/13)
Narrow moat 34/100
Evidence: High Range ¥2.33 – ¥3.89 Share as image

Fair value as of: Aug 7, 2026

From 17 valuation models · updated yesterday

Share price −4.9% over the past month.

Below-average quality, and screening another 46% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥3.89). The favourable scenario is already priced in.
  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥15.88 ¥4.24 Fair Value ¥3.11 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 7, 2026.

How to read this chart

60‑month range ¥4.24 – ¥15.88 · fair‑value band ¥2.33 – ¥3.89 · the ¥5.78 price screens above the ¥3.11 fair value. Dashed = 300-day average. As of Aug 7, 2026.

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Analysis

Zhejiang Wanliyang Co (002434) currently trades at ¥5.78, while our model-based Fair Value estimate is ¥3.11, implying the stock looks roughly 46.2% overvalued today. We read business quality at 41/100 (below-average quality), in the Consumer Cyclical 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: high).

Over the trailing twelve months, Zhejiang Wanliyang Co generated revenue of 5.0B CNY at a net margin of 4.1%. Revenue declined 31.0% year over year. It earns a return on equity of 3.8%. Net debt stands at 1.3B CNY. Fundamentals as of Aug 7, 2026

Our scenario range runs from ¥2.33 (bear case) to ¥3.89 (bull case); at ¥5.78, 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 49% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at -46%, 002434 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 ¥3.26 ¥3.27 ¥2.98 76
ROIC Compounder ¥1.89 ¥2.17 ¥2.42 72
Gordon GGM ¥3.12 ¥6.21 ¥9.41 70
All 17 models by family
DCF Models
Owner Earnings ¥2.00 ¥3.66 ¥6.60 31
Earnings-Based
Graham-Dodd ¥1.24 ¥6.54 ¥9.06 54
Lynch FV ¥1.80 ¥2.57 ¥3.34 50
PEG = 1.0 ¥1.80 ¥2.57 ¥3.34 46
EPV ¥1.89 ¥2.17 ¥2.42 59
Dividend Discount
Gordon GGM ¥3.12 ¥6.21 ¥9.41 70
DDM Multi-Stage ¥3.12 ¥5.37 ¥6.56 61
Multiples
P/E Multiple ¥2.74 ¥3.66 ¥4.57 63
P/S Multiple ¥2.33 ¥3.11 ¥3.89 58
P/B Multiple ¥2.33 ¥3.11 ¥3.89 55
EV/EBIT ¥3.05 ¥4.04 ¥5.02 53
EV/EBITDA ¥5.91 ¥7.85 ¥9.79 54
EV/Revenue ¥2.09 ¥2.94 ¥3.80 43
Asset-Based
NCAV (Graham) ¥2.19 ¥2.93 ¥4.37 50
Economic Profit
Residual Income ¥3.26 ¥3.27 ¥2.98 76
ROIC Compounder ¥1.89 ¥2.17 ¥2.42 72
Growth Earnings
Growth-Adj P/E ¥2.61 ¥3.72 ¥4.84 68

Widest divergence: Dividend Discount (¥5.37) versus Economic Profit (¥2.17). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 5.0B CNY
Revenue growth (YoY) -31.0%
Net margin 4.1%
Return on equity 3.8%
Free cash flow −78.5M CNY FY2024
P/E ratio 38.5
More key figures
Operating margin 5.2%
EPS (TTM) ¥0.1500
Dividend yield 0.9%
EPS growth (YoY) -37.5%
Net debt 1.3B CNY FY2024

Figures from reported company fundamentals · as of Aug 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 48 · Market factors (momentum, volatility) 25

Profitability 27
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 70
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

Zhejiang Wanliyang Co., Ltd. engages in the research and development, production, and sale of automotive transmissions and transmission/drive system products for new energy vehicles in China and internationally.

Full company description

Zhejiang Wanliyang Co., Ltd. engages in the research and development, production, and sale of automotive transmissions and transmission/drive system products for new energy vehicles in China and internationally. It offers automotive transmission products, including passenger car transmissions and commercial vehicle transmissions, which are used in passenger cars, SUVs, MPVs, commercial vehicles, including logistics transportation trucks, low speed and heavy-duty dumpers, buses, municipal vehicles, school buses, pickups. The company also offers launched CVT for tractors, agricultural machinery power shifting system, humanoid robot transmission device, electric drive system of construction machine; precision mechanical components providing quality and cost parts such as housings, gears, differentials, synchronizers, and other products. The company was formerly known as Zhejiang Wanliyang Transmission Company Ltd. and changed its name to Zhejiang Wanliyang Co., Ltd. in January 2016. Zhejiang Wanliyang Co., Ltd. was founded in 2003 and is headquartered in Jinhua, China.

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

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Zhejiang Wanliyang Co reported revenue of ¥6.0B in FY2024 versus ¥6.1B in FY2020, a compound −0.2%/yr. Reported net income was ¥240M in FY2024, compounding −21.0%/yr from FY2020.

Growth Quality 25/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
6.0B CNY
Latest YoY
+1.7%
Avg. growth/yr (3Y)
+3.1%
Avg. growth/yr (5Y)
+3.3%
Avg. growth/yr (17Y)
+15.7%
Revenue −0.2%/yr
FY20 ¥6.1B
FY21 ¥5.5B
FY22 ¥5.1B
FY23 ¥5.9B
FY24 ¥6.0B
Net income −21.0%/yr
FY20 ¥617M
FY21 −¥775M
FY22 ¥300M
FY23 ¥301M
FY24 ¥240M

002434 screens 46% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Zhejiang Wanliyang Co Fair Value". https://www.fairvalue-calculator.com/stock/002434

Peer Group

Auto Parts · 644 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 41 · Below median
Fair Value upside −46% · Below median
Return on equity (TTM) 4% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 5% · Below median
Revenue growth -31% · Bottom 25%
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 38.5× · Pricier than median
P/B 1.32× · Cheaper than median
P/S (TTM) 1.51× · Pricier than median
EV/EBITDA 14.4× · 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 0 · sector 17
FUTURE 0 · sector 23
PAST 15 · sector 26
HEALTH 95 · sector 95
DIVIDEND 17 · sector 30

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 Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 7, 2026).

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Magna International Inc MGAN 1,122 MXN 1,172 MXN +4%
Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
Sona BLW Precision Forgings Limited SONACOMS ₹792.00 ₹207.06 -74%

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Frequently asked questions

Is Zhejiang Wanliyang Co (002434) overvalued or undervalued?
As of Aug 7, 2026, our model estimates a fair value of ¥3.11 versus a price of ¥5.78, about −46% (overvalued).
What is the fair value of 002434?
Our model-based fair value for Zhejiang Wanliyang Co is ¥3.11 (as of Aug 7, 2026), built from audited fundamentals. The current price is ¥5.78.
What is the quality score of 002434?
Zhejiang Wanliyang Co has a Quality Score of 41/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Zhejiang Wanliyang Co (002434)?
Zhejiang Wanliyang Co reported trailing-twelve-month revenue of about 5.0B CNY (latest available figure, as of Aug 7, 2026).
What is the net profit margin of 002434?
The net profit margin of Zhejiang Wanliyang Co is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Wanliyang Co pay a dividend?
Zhejiang Wanliyang Co currently shows a dividend yield of about 0.85% relative to its recent price (as of Aug 7, 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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