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Lung Hwa Electronics Co (2424) Fair Value & Analysis

Technology · TW · Market cap 509M TWD

LH Lung Hwa Electronics Co 2424 · TW
Price8.71 TWD
Fair Value3.57 TWD
Upside-59.0%
Quality55/100
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Mixed Growth
Loss-making · -60.8% net margin
Low debt · generates free cash flow
Mixed vs. peers (5/11)
Narrow moat 16/100
Evidence: Medium Range 2.53 TWD – 4.61 TWD Share as image

Fair value as of: Jul 23, 2026

From 8 valuation models · updated 18 days ago

Share price −13.8% over the past month.

A solid business, but screening 59% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (4.61 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (2.53 TWD to 4.61 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

106.00 TWD 7.65 TWD Fair Value 3.57 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 7.65 TWD – 106.00 TWD · fair‑value band 2.53 TWD – 4.61 TWD · the 8.71 TWD price screens above the 3.57 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Lung Hwa Electronics Co (2424) currently trades at 8.71 TWD, while our model-based Fair Value estimate is 3.57 TWD, implying the stock looks roughly 59.0% overvalued today. The Quality Score stands at 55/100 (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: medium).

Over the trailing twelve months, Lung Hwa Electronics Co generated revenue of 160M TWD at a net margin of -60.8%. Revenue declined 43.1% year over year. It earns a return on equity of -34.4%. The balance sheet holds a net cash position of 5.6M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 2.53 TWD (bear case) to 4.61 TWD (bull case); at 8.71 TWD, 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. For context, the median of 10 Technology peers we cover trades at -16% fair-value upside, at -59%, 2424 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 5.50 TWD 7.98 TWD 11.88 TWD 80
Rev-Margin DCF 5.36 TWD 7.82 TWD 12.97 TWD 74
NCAV (Graham) 2.61 TWD 3.50 TWD 5.22 TWD 50
All 8 models by family
DCF Models
FCF DCF 5.73 TWD 7.40 TWD 12.40 TWD 38
Owner Earnings 5.73 TWD 9.64 TWD 16.89 TWD 31
5Y Revenue Exit 5.06 TWD 7.10 TWD 11.36 TWD 39
10Y Revenue Exit 5.21 TWD 8.56 TWD 10.60 TWD 36
Multiples
EV/Revenue 4.52 TWD 5.56 TWD 6.61 TWD 43
Asset-Based
NCAV (Graham) 2.61 TWD 3.50 TWD 5.22 TWD 50
Growth DCF
Growth DCF 5.50 TWD 7.98 TWD 11.88 TWD 80
Rev-Margin DCF 5.36 TWD 7.82 TWD 12.97 TWD 74

Widest divergence: Growth DCF (7.82 TWD) versus Asset-Based (3.50 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 160M TWD
Revenue growth (YoY) -43.1%
Net margin -60.8%
Return on equity -34.4%
Free cash flow 15.9M TWD FY2025
Operating margin -114%
More key figures
EPS (TTM) -1.34 TWD
Net cash 5.6M TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 55 · Market factors (momentum, volatility) 15

Profitability 7
Margins and returns on capital today
Quality Growth 100
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 18
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

Lung Hwa Electronics Co., Ltd. provides maritime SAT communication network, CCTV IoT, and cyber security solutions in Taiwan and internationally.

Full company description

Lung Hwa Electronics Co., Ltd. provides maritime SAT communication network, CCTV IoT, and cyber security solutions in Taiwan and internationally. It offers maritime networking architect products; maritime antennas; and L-band iridium maritime antennas, as well as VHSAT flat portable terminals for emergency services, disaster recovery, military, security, government, and enterprise communication applications. The company also develops cloud base solutions and application platforms to provide platform-as-a services. It serves general cargo, oil carrier and cargo, fishery, and Ro-Ro passenger vessels and yachts, and oil and gas platforms. Lung Hwa Electronics Co., Ltd. was founded in 1962 and is based in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lung Hwa Electronics Co reported revenue of 188M TWD in FY2025 versus 13.1M TWD in FY2021, a compound +94.5%/yr. Reported net income was −78.1M TWD in FY2025.

Growth Quality 59/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
188M TWD
Latest YoY
+34.0%
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.
+33.2%
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.
+59.9%
Avg. growth/yr (23Y) 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.
−8.8%
Revenue +94.5%/yr
FY21 13.1M TWD
FY22 79.4M TWD
FY23 107M TWD
FY24 140M TWD
FY25 188M TWD
Net income
FY21 −232M TWD
FY22 −170M TWD
FY23 −195M TWD
FY24 −187M TWD
FY25 −78.1M TWD

2424 screens 59% overvalued. Compare with Apple Inc →

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Cite: Fair Value Calculator (2026). "Lung Hwa Electronics Co Fair Value". https://www.fairvalue-calculator.com/stock/2424

Peer Group

Consumer Electronics · 129 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 55 · Above median
Fair Value upside −59% · Bottom 25%
Return on assets -18% · Bottom 25%
Net margin (TTM) -61% · Bottom 25%
Operating margin (TTM) -114% · Bottom 25%
Revenue growth -43% · Bottom 25%
Debt / equity 0.04× · Lower than median

Valuation Multiples vs Consumer Electronics median · lower = cheaper

P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 0.10× · Cheaper than 75% of peers
P/FCF 1.0× · 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 0 · sector 8
FUTURE 0 · sector 13
PAST 0 · sector 10
HEALTH 98 · sector 97
DIVIDEND 0 · sector 29

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 Consumer Electronics stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Apple Inc AAPL $313.33 $122.91 -61%
Samsung Electronics Co 005930 255,000 KRW 138,019 KRW -46%
Sony Group SONYN 366.00 MXN 468.94 MXN +28%
Xiaomi Corporation 1810 HK$26.88 HK$39.84 +48%
LG Electronics Inc 066570 179,000 KRW 101,531 KRW -43%
Sharetronic Data Technology Co 300857 ¥277.96 ¥35.89 -87%
Huaqin Co 603296 ¥78.20 ¥65.69 -16%
Goertek Inc 002241 ¥22.25 ¥18.86 -15%
LG Corp 003550 102,400 KRW 93,881 KRW -8%
Anker Innovations Limited 300866 ¥105.92 ¥78.52 -26%

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Frequently asked questions

Is Lung Hwa Electronics Co (2424) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 3.57 TWD versus a price of 8.71 TWD, about −59% (overvalued).
What is the fair value of 2424?
Our model-based fair value for Lung Hwa Electronics Co is 3.57 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 8.71 TWD.
What is the quality score of 2424?
Lung Hwa Electronics Co has a Quality Score of 55/100. 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 Lung Hwa Electronics Co (2424)?
Lung Hwa Electronics Co reported trailing-twelve-month revenue of about 160M TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 2424?
The net profit margin of Lung Hwa Electronics Co is about -60.8%, 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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