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Hangzhou Weiguang Electronic Co (002801) Fair Value & Analysis

Industrials · CN · Market cap 7.1B CNY

HW Hangzhou Weiguang Electronic Co 002801 · SHE
Price¥27.98
Fair Value¥25.05
Upside-10.5%
Quality73/100
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Mixed Growth
Highly profitable · 28.3% net margin
generates free cash flow
1.61% dividend yield
Ranks above peers (8/13)
Wide moat 72/100
Evidence: High Range ¥15.06 – ¥39.30 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Share price −2.9% over the past month.

A solid business, but screening 10% overvalued on our models.

What matters now

  • The model range is unusually wide (¥15.06 to ¥39.30). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from ¥15.06 (bear) to ¥39.30 (bull), base ¥25.05. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 73/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥39.76 ¥14.73 Fair Value ¥25.05 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 ¥14.73 – ¥39.76 · fair‑value band ¥15.06 – ¥39.30 · the ¥27.98 price screens above the ¥25.05 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

Hangzhou Weiguang Electronic Co (002801) currently trades at ¥27.98, while our model-based Fair Value estimate is ¥25.05, implying the stock looks roughly 10.5% overvalued today. The Quality Score stands at 73/100 (solid quality), in the Industrials 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, Hangzhou Weiguang Electronic Co generated revenue of 1.5B CNY at a net margin of 28.3%. Revenue declined 2.4% year over year. It earns a return on equity of 22.0%. The balance sheet holds a net cash position of 545M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥15.06 (bear case) to ¥39.30 (bull case); at ¥27.98, the current price sits within 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 30% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -10%, 002801 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 ¥10.01 ¥13.20 ¥46.07 76
Growth DCF ¥12.86 ¥20.22 ¥32.09 72
Gordon GGM ¥4.35 ¥8.67 ¥13.13 70
All 26 models by family
DCF Models
FCF DCF ¥12.97 ¥21.12 ¥34.79 38
Owner Earnings ¥20.59 ¥34.64 ¥58.21 31
5Y Revenue Exit ¥11.22 ¥17.52 ¥26.00 39
5Y EBITDA Exit ¥14.86 ¥25.02 ¥37.81 41
5Y P/E Exit ¥21.27 ¥38.27 ¥57.91 38
10Y Revenue Exit ¥11.47 ¥17.57 ¥26.83 36
10Y EBITDA Exit ¥14.09 ¥22.95 ¥36.51 37
10Y P/E Exit ¥18.25 ¥32.45 ¥52.98 35
Earnings-Based
Graham-Dodd ¥10.79 ¥50.40 ¥69.26 54
Lynch FV ¥13.32 ¥19.03 ¥24.74 50
PEG = 1.0 ¥13.32 ¥19.03 ¥24.74 46
EPV ¥12.34 ¥13.90 ¥15.25 59
Dividend Discount
Gordon GGM ¥4.35 ¥8.67 ¥13.13 70
DDM Multi-Stage ¥4.35 ¥7.49 ¥9.15 61
Multiples
P/E Multiple ¥24.99 ¥33.33 ¥41.66 63
P/S Multiple ¥9.58 ¥12.77 ¥15.96 58
P/B Multiple ¥20.23 ¥26.98 ¥33.72 55
EV/EBIT ¥19.49 ¥25.18 ¥30.87 53
EV/EBITDA ¥16.96 ¥21.81 ¥26.66 54
EV/Revenue ¥10.47 ¥13.92 ¥17.36 43
Asset-Based
NCAV (Graham) ¥4.17 ¥5.58 ¥8.34 50
Growth DCF
Growth DCF ¥12.86 ¥20.22 ¥32.09 72
Rev-Margin DCF ¥11.22 ¥17.39 ¥25.38 67
Economic Profit
Residual Income ¥10.01 ¥13.20 ¥46.07 76
ROIC Compounder ¥13.59 ¥17.34 ¥22.20 67
Growth Earnings
Growth-Adj P/E ¥21.16 ¥30.23 ¥39.30 68

Widest divergence: Growth Earnings (¥30.23) versus Asset-Based (¥5.58). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 1.5B CNY
Revenue growth (YoY) -2.4%
Net margin 28.3%
Return on equity 22.0%
Free cash flow 197M CNY FY2025
P/E ratio 17.2
More key figures
Operating margin 17.3%
EPS (TTM) ¥1.81
Dividend yield 1.6%
EPS growth (YoY) +57.9%
Net cash 545M CNY FY2025

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

Quality Score breakdown

Overall quality 73/100

Of which business quality 71 · Market factors (momentum, volatility) 35

Profitability 67
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 88
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

Hangzhou Weiguang Electronic Co.,Ltd. engages in the research and development, production, and sales of motors, fans, micro motors, drives and controllers, robots and automation equipment, pumps, and new energy vehicle parts in China.

Full company description

Hangzhou Weiguang Electronic Co.,Ltd. engages in the research and development, production, and sales of motors, fans, micro motors, drives and controllers, robots and automation equipment, pumps, and new energy vehicle parts in China. The company offers axial fan, centrifugal fan, motors, YGF-Series cross fans, compact axial fan motor, and servo motors and drive technology. Its motors are used in refrigeration, air conditioning, ventilation, etc; energy storage, heat pumps, data centers and other fields; servo motors are mainly used in industrial automation, robots, textile machinery, CNC machine tools, and other fields. Hangzhou Weiguang Electronic Co.,Ltd. was founded in 1986 and is based in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hangzhou Weiguang Electronic Co reported revenue of ¥1.5B in FY2025 versus ¥1.1B in FY2021, a compound +7.2%/yr. Reported net income was ¥364M in FY2025, compounding +9.4%/yr from FY2021.

Growth Quality 89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.5B CNY
Latest YoY
+4.1%
Avg. growth/yr (3Y)
+6.8%
Avg. growth/yr (5Y)
+12.9%
Avg. growth/yr (14Y)
+12.1%
Revenue +7.2%/yr
FY21 ¥1.1B
FY22 ¥1.2B
FY23 ¥1.3B
FY24 ¥1.4B
FY25 ¥1.5B
Net income +9.4%/yr
FY21 ¥254M
FY22 ¥308M
FY23 ¥121M
FY24 ¥221M
FY25 ¥364M

002801 screens 10% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Hangzhou Weiguang Electronic Co Fair Value". https://www.fairvalue-calculator.com/stock/002801

Peer Group

Specialty Industrial Machinery · 809 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 73 · Top 25%
Fair Value upside −11% · Above median
Return on equity (TTM) 22% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 28% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth -2% · Below median
Dividend yield (TTM) 1.6% · Above median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 17.2× · Cheaper than 75% of peers
P/B 3.73× · Pricier than median
P/S (TTM) 4.87× · Pricier than 75% of peers
P/FCF 5.4× · Pricier than median
EV/EBITDA 21.4× · 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 19 · sector 0
FUTURE 0 · sector 23
PAST 88 · sector 28
HEALTH 0 · sector 96
DIVIDEND 32 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Hangzhou Weiguang Electronic Co (002801) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥25.05 versus a price of ¥27.98, about −10% (overvalued).
What is the fair value of 002801?
Our model-based fair value for Hangzhou Weiguang Electronic Co is ¥25.05 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥27.98.
What is the quality score of 002801?
Hangzhou Weiguang Electronic Co has a Quality Score of 73/100. 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 Hangzhou Weiguang Electronic Co (002801)?
Hangzhou Weiguang Electronic Co reported trailing-twelve-month revenue of about 1.5B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002801?
The net profit margin of Hangzhou Weiguang Electronic Co is about 28.3%, meaning it keeps roughly 28.3% of revenue as net income. Based on the latest reported figures.
Does Hangzhou Weiguang Electronic Co pay a dividend?
Hangzhou Weiguang Electronic Co currently shows a dividend yield of about 1.61% 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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