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ZHAOWEI (2692) Fair Value & Analysis

Industrials · HK · Market cap HK$13.0B

Z ZHAOWEI 2692 · HK
PriceHK$46.94
Fair ValueHK$16.43
Upside-65.0%
Quality56/100
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Expensive Growth
Solidly profitable · 14.1% net margin
negative free cash flow
0.78% dividend yield
Trails peers (3/12)
Narrow moat 39/100
Evidence: High Range HK$13.94 – HK$21.35 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$16.31 to HK$16.43 (+0.7%) since Jul 7, 2026. Share price −4.9% over the past month.

A solid business, but screening 65% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$21.35). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 months)

HK$91.38 HK$40.12 Fair Value HK$16.43 Mar 2026 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 13, 2026.

How to read this chart

5‑month range HK$40.12 – HK$91.38 · fair‑value band HK$13.94 – HK$21.35 · the HK$46.94 price screens above the HK$16.43 fair value. As of Aug 13, 2026.

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Analysis

ZHAOWEI (2692) currently trades at HK$46.94, while our model-based Fair Value estimate is HK$16.43, implying the stock looks roughly 65.0% 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: high).

Over the trailing twelve months, ZHAOWEI generated revenue of HK$1.7B at a net margin of 14.1%. Revenue declined 2.7% year over year. It earns a return on equity of 5.7%. The stock trades on a trailing P/E of 41.9 (as of Jul 2, 2026). Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$13.94 (bear case) to HK$21.35 (bull case); at HK$46.94, 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 50% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -65% fair-value upside, at -65%, 2692 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
Residual Income HK$11.82 HK$12.50 HK$13.61 76
Gordon GGM HK$2.60 HK$5.41 HK$8.58 70
Growth-Adj P/E HK$14.99 HK$21.41 HK$27.84 68
All 17 models by family
DCF Models
Owner Earnings HK$11.02 HK$20.01 HK$36.22 31
Earnings-Based
Graham-Dodd HK$7.18 HK$36.40 HK$50.27 54
Lynch FV HK$9.89 HK$14.12 HK$18.36 50
PEG = 1.0 HK$9.89 HK$14.12 HK$18.36 46
EPV HK$8.14 HK$9.35 HK$10.40 59
Dividend Discount
Gordon GGM HK$2.60 HK$5.41 HK$8.58 70
DDM Multi-Stage HK$2.60 HK$4.56 HK$5.68 61
Multiples
P/E Multiple HK$16.64 HK$22.18 HK$27.73 63
P/S Multiple HK$10.69 HK$14.25 HK$17.82 58
P/B Multiple HK$13.47 HK$17.96 HK$22.45 55
EV/EBIT HK$13.17 HK$17.26 HK$21.35 53
EV/EBITDA HK$14.27 HK$18.73 HK$23.19 54
EV/Revenue HK$9.66 HK$13.41 HK$17.16 43
Asset-Based
NCAV (Graham) HK$7.23 HK$9.69 HK$14.47 50
Economic Profit
Residual Income HK$11.82 HK$12.50 HK$13.61 76
ROIC Compounder HK$8.14 HK$9.35 HK$10.40 67
Growth Earnings
Growth-Adj P/E HK$14.99 HK$21.41 HK$27.84 68

Widest divergence: Growth Earnings (HK$21.41) versus Dividend Discount (HK$4.56). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$1.7B
Revenue growth (YoY) -2.7%
Net margin 14.1%
Return on equity 5.7%
Free cash flow −HK$11.1M FY2025
P/E ratio 41.9 as of Jul 2, 2026
More key figures
Operating margin 8.1%
EPS (TTM) HK$0.1918
Dividend yield 0.8%

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) 24

Profitability 38
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 16
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 4
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

Shenzhen Zhaowei Machinery & Electronics Co., Ltd., together with its subsidiaries, engages in the research, design, development, manufacture, and sale of micro transmission and drive systems in China and internationally.

Full company description

Shenzhen Zhaowei Machinery & Electronics Co., Ltd., together with its subsidiaries, engages in the research, design, development, manufacture, and sale of micro transmission and drive systems in China and internationally. The company offers brushed, brushless, stepper, and coreless gear motors; slotless and brushless DC motors; planetary gearboxes; smart home, communication, automotive, robot, industrial equipment, medical equipment, and consumer electronics drives; and encoders and controls, as well as precision parts and molds. It also provides smart mobility, smart healthcare, industrial automation, and smart consumption solutions. In addition, the company engages in venture capital and asset management plan activities. It serves the customized, telecommunications, consumer electronics, automotive, robotics, industrial equipment, smart home, and medical and healthcare markets. Shenzhen Zhaowei Machinery & Electronics Co., Ltd. was founded in 2001 and is headquartered in Shenzhen, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ZHAOWEI reported revenue of HK$1.7B in FY2025 versus HK$1.1B in FY2021, a compound +10.8%/yr. Reported net income was HK$254M in FY2025, compounding +14.6%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$1.7B
Latest YoY
+12.5%
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.
+14.2%
Revenue +10.8%/yr
FY21 HK$1.1B
FY22 HK$1.2B
FY23 HK$1.2B
FY24 HK$1.5B
FY25 HK$1.7B
Net income +14.6%/yr
FY21 HK$148M
FY22 HK$150M
FY23 HK$180M
FY24 HK$225M
FY25 HK$254M

2692 screens 65% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "ZHAOWEI Fair Value". https://www.fairvalue-calculator.com/stock/2692

Peer Group

Electrical Equipment & Parts · 527 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 · Above median
Fair Value upside −65% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 2% · Below median
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 8% · Above median
Revenue growth -3% · Bottom 25%
Dividend yield (TTM) 0.8% · Below median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 41.9× · Pricier than median
P/B 3.74× · Pricier than median
P/S (TTM) 7.63× · Pricier than 75% of peers
EV/EBITDA 43.7× · 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 0 · sector 0
FUTURE 0 · sector 57
PAST 23 · sector 26
HEALTH 0 · sector 97
DIVIDEND 16 · sector 23

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 -40%
Delta Electronics (Thailand) Public Company DELTA 269.00 THB 40.28 THB -85%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW -45%
WEG S.A WEGE3 14,900 ARS 4,338 ARS -71%
Sungrow Power Supply Co 300274 ¥117.53 ¥123.83 +5%
HD Hyundai Electric Co 267260 782,000 KRW 371,133 KRW -53%
LS ELECTRIC Co 010120 208,500 KRW 29,594 KRW -86%
Hyosung Heavy Industries Corporation 298040 2,892,000 KRW 1,013,099 KRW -65%
Hitachi Energy India Limited POWERINDIA ₹35,800 ₹6,106 -83%
Polycab India Limited POLYCAB ₹9,289 ₹3,218 -65%

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Frequently asked questions

Is ZHAOWEI (2692) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$16.43 versus a price of HK$46.94, about −65% (overvalued).
What is the fair value of 2692?
Our model-based fair value for ZHAOWEI is HK$16.43 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$46.94.
What is the quality score of 2692?
ZHAOWEI 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 ZHAOWEI (2692)?
ZHAOWEI reported trailing-twelve-month revenue of about HK$1.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2692?
The net profit margin of ZHAOWEI is about 14.1%, meaning it keeps roughly 14.1% of revenue as net income. Based on the latest reported figures.
Does ZHAOWEI pay a dividend?
ZHAOWEI currently shows a dividend yield of about 0.78% relative to its recent price (as of Aug 13, 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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