Ronglian Group (002642) Fair Value & Analysis

Technology · CN · Market cap 4.7B CNY

A solid business, but screening 89% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥1.06). The favourable scenario is already priced in.
• Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥4.08 – ¥11.94 · fair‑value band ¥0.6400 – ¥1.06 · the ¥7.39 price screens above the ¥0.8500 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Ronglian Group (002642) currently trades at ¥7.39, while our model-based Fair Value estimate is ¥0.8500, implying the stock looks roughly 88.5% overvalued today. The Quality Score stands at 59/100 (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: high).

Over the trailing twelve months, Ronglian Group generated revenue of 2.0B CNY at a net margin of 1.0%. Revenue grew 34.5% year over year. It earns a return on equity of 1.7%. The balance sheet holds a net cash position of 254M CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥0.6400 (bear case) to ¥1.06 (bull case); at ¥7.39, 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 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 0% fair-value upside, at -89%, 002642 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.

Widest divergence: DCF Models (¥1.99) versus Dividend Discount (¥0.2200). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Ronglian Group Ltd. provides information technology (IT) services in China and internationally. It provides system integration services, including data center construction, data storage, disaster recovery and backup, network and information security, intelligent buildings, security systems, AI artificial intelligence applications, software customization and …

Full company description

Ronglian Group Ltd. provides information technology (IT) services in China and internationally. It provides system integration services, including data center construction, data storage, disaster recovery and backup, network and information security, intelligent buildings, security systems, AI artificial intelligence applications, software customization and development, etc., as well as develops biotechnology and information technology. The company also offers IT services, such as consulting planning, operation and maintenance management, business outsourcing, software implementation and development, computer room relocation, system and data migration, cloud hosting, cloud management services, etc.; Internet of Things solutions comprises energy consumption monitoring, new energy vehicle monitoring, intelligent building operation and control, and integrated collaborative management and control solutions for smart mines; and big data services. It is involved in the provision of telecommunications, internet information, computer system, data processing, and technical services; technical development, consulting, and exchanges; technology transfer and technology promotion; software sales and development; computer software, hardware and auxiliary equipment retail; computer software, hardware and peripheral equipment manufacturing; mechanical equipment and special equipment sales; electronic product sales; sales of intelligent instruments and meters; retail of electronic components; wholesale of computer hardware and software and auxiliary equipment; leasing of computers and communication equipment; import and export of goods; and non-residential housing and real estate leasing. The company was formerly known as UEC Group Ltd. Ronglian Group Ltd. was founded in 2001 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ronglian Group reported revenue of ¥1.9B in FY2025 versus ¥3.6B in FY2021, a compound −14.1%/yr. Reported net income was ¥20.0M in FY2025, compounding −22.8%/yr from FY2021.

002642 screens 89% overvalued. Compare with International Business Machines Corporation →

Peer Group

Information Technology Services · 488 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.

Valuation Multiples vs Information Technology Services median · lower = cheaper

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: 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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.