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Chengdu Hongqi Chain Co (002697) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 6.2B CNY

CH Chengdu Hongqi Chain Co 002697 · SHE
Price¥4.57
Fair Value¥7.42
Upside+62.4%
Quality70/100
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Weak Growth
Thin margins · 4.9% net margin
generates free cash flow
2.33% dividend yield
Ranks above peers (9/13)
Moderate moat 45/100
Evidence: High Range ¥5.57 – ¥9.28 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 ¥7.91 to ¥7.42 (−6.2%) since Jun 25, 2026. Share price +4.8% over the past month.

A solid business, screening 62% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (¥5.57). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥6.87 ¥3.84 Fair Value ¥7.42 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 ¥3.84 – ¥6.87 · fair‑value band ¥5.57 – ¥9.28 · the ¥4.57 price screens below the ¥7.42 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

Chengdu Hongqi Chain Co (002697) currently trades at ¥4.57, while our model-based Fair Value estimate is ¥7.42, implying the stock looks roughly 62.4% undervalued today. The Quality Score stands at 70/100 (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, Chengdu Hongqi Chain Co generated revenue of 9.5B CNY at a net margin of 4.9%. Revenue declined 1.0% year over year. It earns a return on equity of 9.8%. The balance sheet holds a net cash position of 2.1B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥5.57 (bear case) to ¥9.28 (bull case); at ¥4.57, 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 38% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 50% fair-value upside, at 62%, 002697 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 BearBaseBull Evidence
Highest evidence
Residual Income ¥3.05 ¥3.37 ¥4.94 76
Growth DCF ¥11.52 ¥15.70 ¥21.42 72
Gordon GGM ¥1.01 ¥2.01 ¥3.05 70
All 26 models by family
DCF Models
FCF DCF ¥11.38 ¥16.12 ¥23.01 38
Owner Earnings ¥11.40 ¥16.15 ¥23.06 31
5Y Revenue Exit ¥8.21 ¥10.93 ¥14.28 39
5Y EBITDA Exit ¥11.06 ¥16.23 ¥22.19 41
5Y P/E Exit ¥8.65 ¥11.75 ¥14.92 38
10Y Revenue Exit ¥9.19 ¥11.90 ¥15.35 36
10Y EBITDA Exit ¥11.09 ¥15.49 ¥21.22 37
10Y P/E Exit ¥9.59 ¥12.46 ¥15.83 35
Earnings-Based
Graham-Dodd ¥2.40 ¥7.30 ¥9.69 54
Lynch FV ¥1.56 ¥2.23 ¥2.90 50
PEG = 1.0 ¥1.56 ¥2.23 ¥2.90 46
EPV ¥6.09 ¥6.71 ¥7.24 59
Dividend Discount
Gordon GGM ¥1.01 ¥2.01 ¥3.05 70
DDM Multi-Stage ¥1.01 ¥1.62 ¥2.12 61
Multiples
P/E Multiple ¥5.57 ¥7.42 ¥9.28 63
P/S Multiple ¥4.51 ¥6.01 ¥7.51 58
P/B Multiple ¥4.51 ¥6.01 ¥7.51 55
EV/EBIT ¥8.42 ¥10.51 ¥12.60 53
EV/EBITDA ¥11.98 ¥15.26 ¥18.54 54
EV/Revenue ¥6.63 ¥8.54 ¥10.46 43
Asset-Based
NCAV (Graham) ¥1.76 ¥2.36 ¥3.52 50
Growth DCF
Growth DCF ¥11.52 ¥15.70 ¥21.42 72
Rev-Margin DCF ¥8.21 ¥11.04 ¥14.30 67
Economic Profit
Residual Income ¥3.05 ¥3.37 ¥4.94 76
ROIC Compounder ¥6.32 ¥7.27 ¥8.29 67
Growth Earnings
Growth-Adj P/E ¥4.56 ¥6.52 ¥8.48 68

Widest divergence: DCF Models (¥12.46) versus Dividend Discount (¥1.62). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 9.5B CNY
Revenue growth (YoY) -1.0%
Net margin 4.9%
Return on equity 9.8%
Free cash flow 1.2B CNY FY2025
P/E ratio 13.8
More key figures
Operating margin 6.6%
EPS (TTM) ¥0.3300
Dividend yield 2.3%
EPS growth (YoY) -16.7%
Net cash 2.1B CNY FY2024

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

Quality Score breakdown

Overall quality 70/100

Of which business quality 70 · Market factors (momentum, volatility) 35

Profitability 54
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 77
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 11
Distance to the 52-week high (market factor)
Net Issuance 80
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

Chengdu Hongqi Chain Co.,Ltd., together with its subsidiaries, engages in the chain operation of convenience supermarkets in China. It also engages in wholesale and retail business. The company was founded in 2000 and is headquartered in Chengdu, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chengdu Hongqi Chain Co reported revenue of ¥9.6B in FY2025 versus ¥9.4B in FY2021, a compound +0.5%/yr. Reported net income was ¥481M in FY2025, compounding −0.0%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
9.6B CNY
Latest YoY
−5.6%
Avg. growth/yr (3Y)
−1.6%
Avg. growth/yr (5Y)
+1.1%
Avg. growth/yr (16Y)
+8.8%
Revenue +0.5%/yr
FY21 ¥9.4B
FY22 ¥10.0B
FY23 ¥10.1B
FY24 ¥10.1B
FY25 ¥9.6B
Net income −0.0%/yr
FY21 ¥481M
FY22 ¥486M
FY23 ¥561M
FY24 ¥521M
FY25 ¥481M

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Cite: Fair Value Calculator (2026). "Chengdu Hongqi Chain Co Fair Value". https://www.fairvalue-calculator.com/stock/002697

Peer Group

Department Stores · 127 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 70 · Top 25%
Fair Value upside +62% · Top 25%
Return on equity (TTM) 10% · Top 25%
Return on assets 4% · Top 25%
Net margin (TTM) 5% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth -1% · Below median
Dividend yield (TTM) 2.3% · Above median

Valuation Multiples vs Department Stores median · lower = cheaper

P/E (TTM) 13.8× · Cheaper than median
P/B 1.29× · Pricier than median
P/S (TTM) 0.65× · Pricier than median
P/FCF 0.8× · Pricier than median
EV/EBITDA 5.4× · 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 100 · sector 26
FUTURE 0 · sector 2
PAST 39 · sector 16
HEALTH 0 · sector 96
DIVIDEND 47 · sector 37

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

Stock Price Fair Value vs Fair Value
Falabella S.A FALABELLA 5,875 CLP 8,880 CLP +51%
El Puerto de Liverpool, S.A. LIVEPOLC1 99.62 MXN 263.70 MXN +165%
99 Speed Mart Retail Holdings 5326 3.70 MYR 1.45 MYR -61%
Cencosud S.A CENCOSUD 2,040 CLP 2,516 CLP +23%
Vishal Mega Mart Limited VMM ₹113.94 ₹37.39 -67%
SHINSEGAE Inc 004170 610,000 KRW 200,259 KRW -67%
Organización Soriana, S. A. B. de C. V., SORIANAB 30.04 MXN 59.59 MXN +98%
Lotte Shopping Co 023530 155,300 KRW 81,725 KRW -47%
Lojas Renner S.A LREN3 R$14.10 R$33.36 +137%
La Comer, S.A. LACOMERUBC 34.37 MXN 51.49 MXN +50%

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Frequently asked questions

Is Chengdu Hongqi Chain Co (002697) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥7.42 versus a price of ¥4.57, about +62% (undervalued).
What is the fair value of 002697?
Our model-based fair value for Chengdu Hongqi Chain Co is ¥7.42 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥4.57.
What is the quality score of 002697?
Chengdu Hongqi Chain Co has a Quality Score of 70/100. 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 Chengdu Hongqi Chain Co (002697)?
Chengdu Hongqi Chain Co reported trailing-twelve-month revenue of about 9.5B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002697?
The net profit margin of Chengdu Hongqi Chain Co is about 4.9%, meaning it keeps roughly 4.9% of revenue as net income. Based on the latest reported figures.
Does Chengdu Hongqi Chain Co pay a dividend?
Chengdu Hongqi Chain Co currently shows a dividend yield of about 2.33% 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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