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Wafangdian Bearing Company (200706) Fair Value & Analysis

Industrials · CN · Market cap HK$1.1B

WB Wafangdian Bearing Company 200706 · SHE
PriceHK$2.80
Fair ValueHK$2.36
Upside-15.7%
Quality56/100
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Mixed Growth
Loss-making · -2.3% net margin
Low debt · generates free cash flow
Trails peers (4/12)
Narrow moat 12/100
Evidence: Medium Range HK$1.76 – HK$2.97 Share as image

Fair value as of: Aug 13, 2026

From 11 valuation models · updated today

Fair value updated Aug 13, 2026, revised from HK$2.35 to HK$2.36 (+0.4%) since Jul 7, 2026.

A solid business, but screening 16% overvalued on our models.

What matters now

  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from HK$1.76 (bear) to HK$2.97 (bull), base HK$2.36. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 56/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

HK$4.13 HK$1.35 Fair Value HK$2.36 Jan 2021 Aug 2026

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 HK$1.35 – HK$4.13 · fair‑value band HK$1.76 – HK$2.97 · the HK$2.80 price screens above the HK$2.36 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Wafangdian Bearing Company (200706) currently trades at HK$2.80, while our model-based Fair Value estimate is HK$2.36, implying the stock looks roughly 15.7% overvalued today. The Quality Score stands at 56/100 (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: medium).

Over the trailing twelve months, Wafangdian Bearing Company generated revenue of HK$2.3B at a net margin of -2.3%. Revenue declined 15.0% year over year. It earns a return on equity of -22.7%. Net debt stands at HK$16.8M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.76 (bear case) to HK$2.97 (bull case); at HK$2.80, 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 12% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -16%, 200706 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 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 HK$8.05 HK$10.12 HK$13.56 80
Rev-Margin DCF HK$7.19 HK$10.29 HK$14.24 74
EV/EBITDA HK$1.47 HK$1.98 HK$2.50 54
All 11 models by family
DCF Models
FCF DCF HK$7.82 HK$9.99 HK$13.92 38
Owner Earnings HK$0.1800 HK$0.2600 HK$0.3900 31
5Y Revenue Exit HK$7.19 HK$10.09 HK$14.43 39
5Y EBITDA Exit HK$4.09 HK$4.82 HK$5.85 41
10Y Revenue Exit HK$7.24 HK$9.55 HK$12.10 36
10Y EBITDA Exit HK$5.68 HK$6.44 HK$7.16 37
Multiples
EV/EBITDA HK$1.47 HK$1.98 HK$2.50 54
EV/Revenue HK$7.27 HK$10.43 HK$13.58 43
Asset-Based
NCAV (Graham) HK$0.2500 HK$0.3300 HK$0.4900 50
Growth DCF
Growth DCF HK$8.05 HK$10.12 HK$13.56 80
Rev-Margin DCF HK$7.19 HK$10.29 HK$14.24 74

Widest divergence: Growth DCF (HK$10.12) versus Asset-Based (HK$0.3300). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.3B
Revenue growth (YoY) -15.0%
Net margin -2.3%
Return on equity -22.7%
Free cash flow HK$383M FY2025
Operating margin -0.4%
More key figures
EPS (TTM) HK$-0.1500
Net debt HK$16.8M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 55 · Market factors (momentum, volatility) 59

Profitability 20
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 77
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 82
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

Wafangdian Bearing Company Limited is involved in manufacturing and selling of bearing, mechanical equipment, auto parts, abrasives, casting, tooling, and related products in China and internationally. It also exports its products. The company was founded in 1996 and is based in Wafangdian, China.

Full company description

Wafangdian Bearing Company Limited is involved in manufacturing and selling of bearing, mechanical equipment, auto parts, abrasives, casting, tooling, and related products in China and internationally. It also exports its products. The company was founded in 1996 and is based in Wafangdian, China. Wafangdian Bearing Company Limited is a subsidiary of Wafangdian Bearing Group Corporation.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Wafangdian Bearing Company reported revenue of HK$2.4B in FY2025 versus HK$2.3B in FY2021, a compound +0.3%/yr. Reported net income was −HK$58.1M in FY2025.

Growth Quality 45/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$2.4B
Latest YoY
+14.5%
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.
+0.0%
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.
+4.8%
Avg. growth/yr (28Y) 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.
+2.2%
Revenue +0.3%/yr
FY21 HK$2.3B
FY22 HK$2.3B
FY23 HK$2.2B
FY24 HK$2.1B
FY25 HK$2.4B
Net income
FY21 −HK$206M
FY22 −HK$140M
FY23 −HK$99.5M
FY24 −HK$110M
FY25 −HK$58.1M

200706 screens 16% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "Wafangdian Bearing Company Fair Value". https://www.fairvalue-calculator.com/stock/200706

Peer Group

Tools & Accessories · 122 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 56 · Below median
Fair Value upside −16% · Above median
Return on assets -1% · Bottom 25%
Net margin (TTM) -2% · Bottom 25%
Operating margin (TTM) -0% · Bottom 25%
Revenue growth -15% · Bottom 25%
Debt / equity 0.50× · Higher than 75% of peers

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/B 0.72× · Cheaper than 75% of peers
P/S (TTM) 0.06× · Cheaper than 75% of peers
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 43.9× · 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 12 · sector 4
FUTURE 0 · sector 14
PAST 0 · sector 29
HEALTH 75 · sector 97
DIVIDEND 0 · sector 35

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 Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Techtronic Industries Company 0669 HK$144.80 HK$78.62 -46%
Snap-on Incorporated SNA $408.44 $344.67 -16%
RBC Bearings Incorporated RBC $555.65 $179.94 -68%
Lincoln Electric Holdings LECO $286.97 $151.86 -47%
Stanley Black & Decker, Inc SWK $102.90 $52.80 -49%
AB SKF (publ) SKFB kr 259.50 kr 192.57 -26%
The Timken Company TKR $130.25 $64.85 -50%
The Toro Company TTC $97.92 $69.71 -29%
Hangzhou Greatstar Industrial Co 002444 ¥30.08 ¥30.38 +1%
Hiwin Technologies Corporation 2049 381.00 TWD 73.32 TWD -81%

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Frequently asked questions

Is Wafangdian Bearing Company (200706) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.36 versus a price of HK$2.80, about −16% (overvalued).
What is the fair value of 200706?
Our model-based fair value for Wafangdian Bearing Company is HK$2.36 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.80.
What is the quality score of 200706?
Wafangdian Bearing Company has a Quality Score of 56/100. 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 Wafangdian Bearing Company (200706)?
Wafangdian Bearing Company reported trailing-twelve-month revenue of about HK$2.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 200706?
The net profit margin of Wafangdian Bearing Company is about -2.3%, meaning it is currently running at a net loss. 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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