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Hunan Zhongke Electric Co (300035) Fair Value & Analysis

Industrials · CN · Market cap 9.5B CNY

HZ Hunan Zhongke Electric Co 300035 · SHE
Price¥13.84
Fair Value¥14.40
Upside+4.1%
Quality50/100
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Expensive Growth
Thin margins · 4.4% net margin
Moderate debt · negative free cash flow
1.81% dividend yield
Ranks above peers (8/13)
Narrow moat 39/100
Evidence: Medium Range ¥8.94 – ¥18.00 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated today

Share price +9.7% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (¥8.94 to ¥18.00) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥36.77 ¥6.77 Fair Value ¥14.40 Mar 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 ¥6.77 – ¥36.77 · fair‑value band ¥8.94 – ¥18.00 · the ¥13.84 price screens below the ¥14.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hunan Zhongke Electric Co (300035) currently trades at ¥13.84, while our model-based Fair Value estimate is ¥14.40, implying the stock looks roughly 4.1% fairly valued today. The Quality Score stands at 50/100 (solid quality), in the Industrials 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: medium), always confirm before acting.

Over the trailing twelve months, Hunan Zhongke Electric Co generated revenue of 9.1B CNY at a net margin of 4.4%. Revenue grew 42.2% year over year. It earns a return on equity of 9.0%. Net debt stands at 4.7B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥8.94 (bear case) to ¥18.00 (bull case); at ¥13.84, 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 51% 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 4%, 300035 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
Residual Income ¥6.22 ¥6.80 ¥9.02 76
ROIC Compounder ¥10.15 ¥14.94 ¥19.41 72
Gordon GGM ¥3.29 ¥6.56 ¥9.93 70
All 17 models by family
DCF Models
Owner Earnings ¥11.14 ¥27.64 ¥61.01 31
Earnings-Based
Graham-Dodd ¥4.66 ¥32.52 ¥45.63 54
Lynch FV ¥15.06 ¥21.51 ¥27.96 50
PEG = 1.0 ¥15.06 ¥21.51 ¥27.96 46
EPV ¥8.53 ¥10.26 ¥11.76 59
Dividend Discount
Gordon GGM ¥3.29 ¥6.56 ¥9.93 70
DDM Multi-Stage ¥3.29 ¥5.67 ¥6.92 61
Multiples
P/E Multiple ¥10.80 ¥14.40 ¥18.00 63
P/S Multiple ¥8.74 ¥11.66 ¥14.57 58
P/B Multiple ¥8.74 ¥11.66 ¥14.57 55
EV/EBIT ¥14.65 ¥20.35 ¥26.04 53
EV/EBITDA ¥15.50 ¥21.47 ¥27.45 54
EV/Revenue ¥9.76 ¥14.99 ¥20.21 43
Asset-Based
NCAV (Graham) ¥3.63 ¥4.86 ¥7.25 50
Economic Profit
Residual Income ¥6.22 ¥6.80 ¥9.02 76
ROIC Compounder ¥10.15 ¥14.94 ¥19.41 72
Growth Earnings
Growth-Adj P/E ¥20.11 ¥28.73 ¥37.35 68

Widest divergence: Growth Earnings (¥28.73) versus Asset-Based (¥4.86). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 9.1B CNY
Revenue growth (YoY) +42.2%
Net margin 4.4%
Return on equity 9.0%
Free cash flow −1.5B CNY FY2025
P/E ratio 23.9
More key figures
Operating margin 5.4%
EPS (TTM) ¥0.5800
Dividend yield 1.8%
EPS growth (YoY) -51.9%
Net debt 4.7B CNY FY2025

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 45 · Market factors (momentum, volatility) 24

Profitability 32
Margins and returns on capital today
Quality Growth 72
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 35
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 6
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 89
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

Hunan Zhongke Electric Co., Ltd. manufactures electromagnetic metallurgy products in China. The company offers electromagnetic stirrers, tundish induction heating system, lifting electromagnet, cable drum, magnetic separator, and induction heating system.

Full company description

Hunan Zhongke Electric Co., Ltd. manufactures electromagnetic metallurgy products in China. The company offers electromagnetic stirrers, tundish induction heating system, lifting electromagnet, cable drum, magnetic separator, and induction heating system. The company's products are primarily used in steel, non-ferrous metallurgy, rail transportation, scientific research institutions, mines, ports and docks, and marine military industry. It also exports its products to Canada, Brazil, Turkey, Russia, India, Thailand, Indonesia, and Iran. The company was formerly known as Yueyang Zhongke Electric Co., Ltd. Hunan Zhongke Electric Co., Ltd. was incorporated in 2004 and is based in Yueyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hunan Zhongke Electric Co reported revenue of ¥8.5B in FY2025 versus ¥2.2B in FY2021, a compound +40.2%/yr. Reported net income was ¥470M in FY2025, compounding +6.5%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
8.5B CNY
Latest YoY
+51.7%
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.
+17.2%
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.
+54.1%
Avg. growth/yr (19Y) 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.
+30.8%
Revenue +40.2%/yr
FY21 ¥2.2B
FY22 ¥5.3B
FY23 ¥4.9B
FY24 ¥5.6B
FY25 ¥8.5B
Net income +6.5%/yr
FY21 ¥365M
FY22 ¥364M
FY23 ¥41.7M
FY24 ¥303M
FY25 ¥470M
Character of growth · EPS growth decomposed (2013-2024) +18.7 % p.a.
Revenue per share +36.9 pp

of which total revenue +43.5 pp · buybacks/dilution −6.6 pp

EBIT margin −6.6 pp
Tax rate +0.6 pp
Residual (interest, one-offs) −12.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Hunan Zhongke Electric Co Fair Value". https://www.fairvalue-calculator.com/stock/300035

Peer Group

Electrical Equipment & Parts · 534 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 50 · Below median
Fair Value upside +4% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 3% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth 42% · Top 25%
Dividend yield (TTM) 1.8% · Above median
Debt / equity 0.53× · Higher than 75% of peers

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

P/E (TTM) 23.9× · Cheaper than median
P/B 1.91× · Cheaper than median
P/S (TTM) 1.04× · Cheaper than median
EV/EBITDA 11.3× · 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 39 · sector 0
FUTURE 100 · sector 57
PAST 36 · sector 26
HEALTH 73 · sector 97
DIVIDEND 36 · sector 19

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$654.00 HK$394.19 -40%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 10.16 SGD 1.47 SGD -86%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Hyosung Heavy Industries Corporation 298040 2,789,000 KRW 1,065,378 KRW -62%

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Frequently asked questions

Is Hunan Zhongke Electric Co (300035) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥14.40 versus a price of ¥13.84, about +4% (fairly valued).
What is the fair value of 300035?
Our model-based fair value for Hunan Zhongke Electric Co is ¥14.40 (as of Aug 13, 2026), built from audited fundamentals. The current price is ¥13.84.
What is the quality score of 300035?
Hunan Zhongke Electric Co has a Quality Score of 50/100. 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 Hunan Zhongke Electric Co (300035)?
Hunan Zhongke Electric Co reported trailing-twelve-month revenue of about 9.1B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 300035?
The net profit margin of Hunan Zhongke Electric Co is about 4.4%, meaning it keeps roughly 4.4% of revenue as net income. Based on the latest reported figures.
Does Hunan Zhongke Electric Co pay a dividend?
Hunan Zhongke Electric Co currently shows a dividend yield of about 1.44% 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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