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Dongguan Golden Sun Abrasives Co Ltd (300606) Fair Value & Analysis

Industrials · CN · Market cap 6.2B CNY

DG Dongguan Golden Sun Abrasives Co Ltd 300606 · SHE
Price¥36.20
Fair Value¥20.33
Upside-43.8%
Quality61/100
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Strengths

Healthy Growth
Low debt · generates free cash flow

Risks

!Trades 44% ABOVE our fair value of ¥20.33
!Thin margins · 3.7% net margin
!Trails peers (2/14)
!Narrow moat 30/100
Healthy Growth
Thin margins · 3.7% net margin
Low debt · generates free cash flow
0.46% dividend yield
Trails peers (2/14)
Narrow moat 30/100
Evidence: High Range ¥15.28 – ¥25.45 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 9 days ago

Fair value updated Aug 13, 2026, revised from ¥20.53 to ¥20.33 (−1.0%) since Jul 9, 2026. Share price +21.9% over the past month.

A solid business, but screening 44% overvalued on our models.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (¥25.45). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥51.59 ¥9.55 Fair Value ¥20.33 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 ¥9.55 – ¥51.59 · fair‑value band ¥15.28 – ¥25.45 · the ¥36.20 price screens above the ¥20.33 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Dongguan Golden Sun Abrasives Co Ltd (300606) currently trades at ¥36.20, while our model-based Fair Value estimate is ¥20.33, implying the stock looks roughly 43.8% overvalued today. The Quality Score stands at 61/100 (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, Dongguan Golden Sun Abrasives Co Ltd generated revenue of 544M CNY at a net margin of 3.7%. Revenue declined 0.4% year over year. It earns a return on equity of 3.1%. Net debt stands at 108M CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥15.28 (bear case) to ¥25.45 (bull case); at ¥36.20, 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 20% below its 52-week high and 97% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -57% fair-value upside, at -44%, 300606 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥1.24 to ¥11.12). Read the values as a conservative anchor, not as a price target.
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 ¥6.84 ¥10.98 ¥17.25 80
Residual Income ¥3.48 ¥3.35 ¥2.76 76
Rev-Margin DCF ¥3.82 ¥5.74 ¥8.09 74
All 23 models by family
DCF Models
FCF DCF ¥6.80 ¥11.12 ¥17.77 38
5Y Revenue Exit ¥3.82 ¥5.67 ¥7.99 39
5Y EBITDA Exit ¥5.42 ¥8.78 ¥12.76 41
5Y P/E Exit ¥3.55 ¥5.15 ¥6.82 38
10Y Revenue Exit ¥4.76 ¥6.76 ¥9.39 36
10Y EBITDA Exit ¥5.86 ¥8.91 ¥13.08 37
10Y P/E Exit ¥4.67 ¥6.39 ¥8.49 35
Earnings-Based
Graham-Dodd ¥0.9800 ¥3.61 ¥4.88 54
Lynch FV ¥0.8600 ¥1.24 ¥1.61 50
PEG = 1.0 ¥0.8600 ¥1.24 ¥1.61 46
EPV ¥2.04 ¥2.40 ¥2.71 59
Multiples
P/E Multiple ¥2.27 ¥3.02 ¥3.78 63
P/S Multiple ¥1.84 ¥2.45 ¥3.06 58
P/B Multiple ¥1.84 ¥2.45 ¥3.06 55
EV/EBIT ¥3.32 ¥4.51 ¥5.70 53
EV/EBITDA ¥5.22 ¥7.04 ¥8.87 54
EV/Revenue ¥2.30 ¥3.39 ¥4.48 43
Asset-Based
NCAV (Graham) ¥2.45 ¥3.28 ¥4.89 50
Growth DCF
Growth DCF ¥6.84 ¥10.98 ¥17.25 80
Rev-Margin DCF ¥3.82 ¥5.74 ¥8.09 74
Economic Profit
Residual Income ¥3.48 ¥3.35 ¥2.76 76
ROIC Compounder ¥2.04 ¥2.40 ¥2.71 72
Growth Earnings
Growth-Adj P/E ¥1.61 ¥2.31 ¥3.00 68

Widest divergence: DCF Models (¥6.76) versus Earnings-Based (¥1.24). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 544M CNY
Revenue growth (YoY) -0.4%
Net margin 3.7%
Return on equity 3.1%
Free cash flow 86.3M CNY FY2025
P/E ratio 258.6
More key figures
Operating margin 11.1%
EPS (TTM) ¥0.1400
Dividend yield 0.5%
Net debt 108M CNY FY2025

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

Quality Score breakdown

Overall quality 61/100

Of which business quality 62 · Market factors (momentum, volatility) 62

Profitability 24
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 75
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 83
Distance to the 52-week high (market factor)
Net Issuance 94
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

Dongguan Golden Sun Abrasives Co.,Ltd., together with its subsidiaries, engages in the research, development, production, and sales of polishing materials and intelligent equipment in China and internationally.

Full company description

Dongguan Golden Sun Abrasives Co.,Ltd., together with its subsidiaries, engages in the research, development, production, and sales of polishing materials and intelligent equipment in China and internationally. The company offers polishing materials, including water-resistant and dry grinding coated sandpaper, elastic polishing sand film, microcrystalline structure sand, film, polishing wax, leaf wheel cloth, machine soft emery cloth, brown corundum emery cloth, calcined corundum emery cloth, zirconium, corundum emery cloth, ceramic emery cloth, stacked abrasive, abrasive cloth, fine polishing cotton, 3C polishing liquid and silicon wafer polishing liquid for stainless steel, ceramics, metals applications. It also provides grinding and polishing of products, such as glass, wood, and silicon wafer substrate for 3C consumer electronics, automobile, manufacturing and after-sales, integrated circuits, aerospace, home appliances, furniture, ships, machinery, construction, jewelry, musical instruments, medical beauty, and other industries. In addition, the company offers five-axis CNC polishing, five-axis force-controlled polishing, five-axis stack polishing, wet polishing, new energy tray grinding line, 3D glass hole polishing, polishing automatic reducer, five-in-one plastic testing, all-in-one machine, fully automatic spray disassembly/assembly, automatic loading and unloading, force-controlled automatic, lip burr machine, flat surface polishing machine, dispensing, wing clamp, wheel deburring, and multi-function deburring machines, as well as other automation and polishing products. Further, it provides folding screen titanium alloy shafts covers, folding screen high-precision door panels, titanium alloy battery covers, smartphone middle frames, notebook front and back cover, 5G RF devices, smart home metal, structural parts, and precision molds. Dongguan Golden Sun Abrasives Co.,Ltd. was founded in 2004 and is based in Dongguan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Dongguan Golden Sun Abrasives Co Ltd reported revenue of ¥545M in FY2025 versus ¥447M in FY2021, a compound +5.1%/yr. Reported net income was ¥19.9M in FY2025, compounding −26.3%/yr from FY2021.

Growth Quality 70/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
545M CNY
Latest YoY
+10.6%
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.
+11.3%
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.
+5.6%
Avg. growth/yr (14Y) 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.
+8.7%
Revenue +5.1%/yr
FY21 ¥447M
FY22 ¥395M
FY23 ¥565M
FY24 ¥493M
FY25 ¥545M
Net income −26.3%/yr
FY21 ¥67.5M
FY22 ¥25.8M
FY23 ¥52.3M
FY24 −¥16.4M
FY25 ¥19.9M
Character of growth · EPS growth decomposed (2013-2024) −1.3 % p.a.
Revenue per share +5.4 pp

of which total revenue +10.1 pp · buybacks/dilution −4.8 pp

EBIT margin −7.2 pp
Tax rate +1.1 pp
Residual (interest, one-offs) −0.7 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).

300606 screens 44% overvalued. Compare with Trane Technologies plc →

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Cite: Fair Value Calculator (2026). "Dongguan Golden Sun Abrasives Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/300606

Peer Group

Building Products & Equipment · 251 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 61 · Above median
Fair Value upside −44% · Below median
Return on equity (TTM) 3% · Below median
Return on assets 2% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 11% · Above median
Revenue growth -0% · Below median
Dividend yield (TTM) 0.6% · Bottom 25%
Debt / equity 0.31× · Higher than median

Valuation Multiples vs Building Products & Equipment median · lower = cheaper

P/E (TTM) 258.6× · Pricier than 75% of peers
P/B 9.12× · Pricier than 75% of peers
P/S (TTM) 11.34× · Pricier than 75% of peers
P/FCF 10.6× · Pricier than median
EV/EBITDA 85.6× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 10
PAST12 · sector 23
HEALTH84 · sector 94
DIVIDEND11 · sector 37

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

Similar stocks

10 more Building Products & Equipment stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Trane Technologies plc TT $480.20 $208.50 -57%
Johnson Controls International plc JCI $152.79 $44.75 -71%
Carrier Global Corporation CARR $63.08 $16.85 -73%
Compagnie de Saint-Gobain S.A SGO €81.20 €97.97 +21%
PT Impack Pratama Industri Tbk, IMPC 1,405 IDR 179.76 IDR -87%
NIBE Industrier AB NIBEB kr 38.59 kr 25.37 -34%
Rockwool A/S ROCKA kr 232.00 kr 232.55 +0%
Beijing New Building Materials Public Limited 000786 ¥18.73 ¥31.73 +69%
Moon Environment Technology Co 000811 ¥42.22 ¥11.94 -72%
The Supreme Industries Limited SUPREMEIND ₹3,460 ₹1,376 -60%

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Frequently asked questions

Is Dongguan Golden Sun Abrasives Co Ltd (300606) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥20.33 versus a price of ¥36.20, about −44% (overvalued).
What is the fair value of 300606?
Our model-based fair value for Dongguan Golden Sun Abrasives Co Ltd is ¥20.33 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥36.20.
What is the quality score of 300606?
Dongguan Golden Sun Abrasives Co Ltd has a Quality Score of 61/100. 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 Dongguan Golden Sun Abrasives Co Ltd (300606)?
Dongguan Golden Sun Abrasives Co Ltd reported trailing-twelve-month revenue of about 544M CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 300606?
The net profit margin of Dongguan Golden Sun Abrasives Co Ltd is about 3.7%, meaning it keeps roughly 3.7% of revenue as net income. Based on the latest reported figures.
Does Dongguan Golden Sun Abrasives Co Ltd pay a dividend?
Dongguan Golden Sun Abrasives Co Ltd currently shows a dividend yield of about 0.46% 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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