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Shanghai Challenge Textile Co (002486) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 1.9B CNY

SC Shanghai Challenge Textile Co 002486 · SHE
Price¥2.43
Fair Value¥1.15
Upside-52.7%
Quality63/100
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Weak Growth
Thin margins · 4.5% net margin
Low debt · generates free cash flow
Mixed vs. peers (6/14)
Narrow moat 30/100
Evidence: High Range ¥0.8100 – ¥1.55 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Share price +4.7% over the past month.

A solid business, but screening 53% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.55). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥0.8100 to ¥1.55) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥3.94 ¥1.35 Fair Value ¥1.15 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 ¥1.35 – ¥3.94 · fair‑value band ¥0.8100 – ¥1.55 · the ¥2.43 price screens above the ¥1.15 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

Shanghai Challenge Textile Co (002486) currently trades at ¥2.43, while our model-based Fair Value estimate is ¥1.15, implying the stock looks roughly 52.7% overvalued today. The Quality Score stands at 63/100 (solid 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, Shanghai Challenge Textile Co generated revenue of 1.2B CNY at a net margin of 4.5%. Revenue grew 2.6% year over year. It earns a return on equity of 5.5%. The balance sheet holds a net cash position of 251M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥0.8100 (bear case) to ¥1.55 (bull case); at ¥2.43, 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 27% below its 52-week high and 8% 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 -53%, 002486 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 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
Growth DCF ¥0.5300 ¥0.6100 ¥0.7000 80
Residual Income ¥0.9100 ¥0.8800 ¥0.7300 76
Rev-Margin DCF ¥0.7800 ¥1.10 ¥1.46 74
All 26 models by family
DCF Models
FCF DCF ¥0.5300 ¥0.6100 ¥0.7300 38
Owner Earnings ¥0.3300 ¥0.3400 ¥0.3500 31
5Y Revenue Exit ¥0.7800 ¥1.10 ¥1.52 39
5Y EBITDA Exit ¥0.9800 ¥1.48 ¥2.05 41
5Y P/E Exit ¥0.8900 ¥1.31 ¥1.75 38
10Y Revenue Exit ¥0.6500 ¥0.9100 ¥1.25 36
10Y EBITDA Exit ¥0.7900 ¥1.14 ¥1.61 37
10Y P/E Exit ¥0.7400 ¥1.04 ¥1.40 35
Earnings-Based
Graham-Dodd ¥0.3800 ¥1.11 ¥1.47 54
Lynch FV ¥0.2300 ¥0.3300 ¥0.4300 50
PEG = 1.0 ¥0.2300 ¥0.3300 ¥0.4300 46
EPV ¥0.8500 ¥0.9200 ¥0.9800 59
Dividend Discount
Gordon GGM ¥0.0100 ¥0.0100 70
DDM Multi-Stage ¥0.0100 ¥0.0100 61
Multiples
P/E Multiple ¥0.9300 ¥1.24 ¥1.55 63
P/S Multiple ¥0.7200 ¥0.9600 ¥1.19 58
P/B Multiple ¥0.7200 ¥0.9600 ¥1.19 55
EV/EBIT ¥1.31 ¥1.64 ¥1.97 53
EV/EBITDA ¥1.42 ¥1.78 ¥2.15 54
EV/Revenue ¥0.9900 ¥1.27 ¥1.56 43
Asset-Based
NCAV (Graham) ¥0.6500 ¥0.8700 ¥1.31 50
Growth DCF
Growth DCF ¥0.5300 ¥0.6100 ¥0.7000 80
Rev-Margin DCF ¥0.7800 ¥1.10 ¥1.46 74
Economic Profit
Residual Income ¥0.9100 ¥0.8800 ¥0.7300 76
ROIC Compounder ¥0.8500 ¥0.9200 ¥0.9800 72
Growth Earnings
Growth-Adj P/E ¥0.7500 ¥1.07 ¥1.39 68

Widest divergence: Multiples (¥1.24) versus Dividend Discount (¥0.0100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.2B CNY
Revenue growth (YoY) +2.6%
Net margin 4.5%
Return on equity 5.5%
Free cash flow 18.5M CNY FY2025
P/E ratio 46.2
More key figures
Operating margin 8.3%
EPS (TTM) ¥0.0500
EPS growth (YoY) -32.1%
Net cash 251M CNY FY2024

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

Quality Score breakdown

Overall quality 63/100

Of which business quality 63 · Market factors (momentum, volatility) 35

Profitability 39
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 40
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 87
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

Shanghai Challenge Textile Co.,Ltd. engages in the research and development of knitted weft-knitted functional fabrics and garments. It offers sports functional fabrics; fleece fabrics; functional chemical fiber fabrics, wool products, ready-made clothes and other high-end fabrics, and medical protective equipments. Shanghai Challenge Textile Co.,Ltd.

Full company description

Shanghai Challenge Textile Co.,Ltd. engages in the research and development of knitted weft-knitted functional fabrics and garments. It offers sports functional fabrics; fleece fabrics; functional chemical fiber fabrics, wool products, ready-made clothes and other high-end fabrics, and medical protective equipments. Shanghai Challenge Textile Co.,Ltd. was founded in 2001 and is headquartered in Shanghai, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Challenge Textile Co reported revenue of ¥1.3B in FY2025 versus ¥1.2B in FY2021, a compound +2.3%/yr. Reported net income was ¥46.3M in FY2025, compounding +23.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.3B CNY
Latest YoY
+7.0%
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.
−2.5%
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.
+1.6%
Avg. 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.
+6.9%
Revenue +2.3%/yr
FY21 ¥1.2B
FY22 ¥1.4B
FY23 ¥988M
FY24 ¥1.2B
FY25 ¥1.3B
Net income +23.5%/yr
FY21 ¥19.9M
FY22 ¥93.2M
FY23 ¥51.5M
FY24 ¥19.1M
FY25 ¥46.3M
Character of growth · EPS growth decomposed (2013-2024) −1.6 % p.a.
Revenue per share +3.0 pp

of which total revenue +3.1 pp · buybacks/dilution −0.1 pp

EBIT margin −1.0 pp
Tax rate +0.6 pp
Residual (interest, one-offs) −4.1 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).

002486 screens 53% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "Shanghai Challenge Textile Co Fair Value". https://www.fairvalue-calculator.com/stock/002486

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 63 · Top 25%
Fair Value upside −53% · Below median
Return on equity (TTM) 5% · Above median
Return on assets 2% · Below median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth 3% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 46.2× · Pricier than 75% of peers
P/B 1.77× · Pricier than median
P/S (TTM) 1.57× · Pricier than median
P/FCF 15.2× · Pricier than 75% of peers
EV/EBITDA 26.4× · Pricier 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 8
FUTURE 13 · sector 0
PAST 22 · sector 15
HEALTH 100 · sector 95
DIVIDEND 0 · sector 34

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 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 Shanghai Challenge Textile Co (002486) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥1.15 versus a price of ¥2.43, about −53% (overvalued).
What is the fair value of 002486?
Our model-based fair value for Shanghai Challenge Textile Co is ¥1.15 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥2.43.
What is the quality score of 002486?
Shanghai Challenge Textile Co has a Quality Score of 63/100. 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 Shanghai Challenge Textile Co (002486)?
Shanghai Challenge Textile Co reported trailing-twelve-month revenue of about 1.2B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002486?
The net profit margin of Shanghai Challenge Textile Co is about 4.5%, meaning it keeps roughly 4.5% 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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