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Henan ZhongGong Design & Research Group (300732) Fair Value & Analysis

Industrials · CN · Market cap 2.3B CNY

HZ Henan ZhongGong Design & Research Group 300732 · SHE
Price¥6.19
Fair Value¥5.90
Upside-4.7%
Quality41/100
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Weak Growth
Loss-making · -9.2% net margin
Low debt · generates free cash flow
Trails peers (4/11)
Narrow moat 12/100
Evidence: Medium Range ¥3.37 – ¥8.51 Share as image

Fair value as of: Jul 9, 2026

From 13 valuation models · updated 33 days ago

Share price +5.5% over the past month.

Below-average quality, 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 (¥3.37 to ¥8.51) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥15.26 ¥5.35 Fair Value ¥5.90 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 9, 2026.

How to read this chart

60‑month range ¥5.35 – ¥15.26 · fair‑value band ¥3.37 – ¥8.51 · the ¥6.19 price screens above the ¥5.90 fair value. Dashed = 300-day average. As of Jul 9, 2026.

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Analysis

Henan ZhongGong Design & Research Group (300732) currently trades at ¥6.19, while our model-based Fair Value estimate is ¥5.90, implying the stock looks roughly 4.7% fairly valued today. The Quality Score stands at 41/100 (below-average 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, Henan ZhongGong Design & Research Group generated revenue of 1.7B CNY at a net margin of -9.2%. Revenue grew 11.5% year over year. It earns a return on equity of -6.4%. Net debt stands at 191M CNY. Fundamentals as of Jul 9, 2026

Our scenario range runs from ¥3.37 (bear case) to ¥8.51 (bull case); at ¥6.19, 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 52% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -5%, 300732 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 ¥2.97 ¥5.16 ¥8.56 80
Rev-Margin DCF ¥3.59 ¥6.58 ¥10.29 74
ROIC Compounder ¥3.58 ¥4.22 ¥4.78 72
All 13 models by family
DCF Models
FCF DCF ¥2.97 ¥5.31 ¥9.06 38
5Y Revenue Exit ¥3.59 ¥6.65 ¥10.74 39
5Y EBITDA Exit ¥4.73 ¥8.92 ¥14.08 41
10Y Revenue Exit ¥3.19 ¥5.95 ¥10.04 36
10Y EBITDA Exit ¥4.06 ¥7.55 ¥12.69 37
Earnings-Based
EPV ¥3.58 ¥4.22 ¥4.78 59
Multiples
EV/EBIT ¥5.85 ¥7.95 ¥10.06 53
EV/EBITDA ¥6.27 ¥8.51 ¥10.76 54
EV/Revenue ¥4.04 ¥5.97 ¥7.90 43
Asset-Based
NCAV (Graham) ¥3.79 ¥5.07 ¥7.57 50
Growth DCF
Growth DCF ¥2.97 ¥5.16 ¥8.56 80
Rev-Margin DCF ¥3.59 ¥6.58 ¥10.29 74
Economic Profit
ROIC Compounder ¥3.58 ¥4.22 ¥4.78 72

Widest divergence: Multiples (¥7.95) versus Earnings-Based (¥4.22). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.7B CNY
Revenue growth (YoY) +11.5%
Net margin -9.2%
Return on equity -6.4%
Free cash flow 109M CNY FY2025
Operating margin 0.6%
More key figures
EPS (TTM) ¥-0.4800
EPS growth (YoY) -62.2%
Net debt 191M CNY FY2025

Figures from reported company fundamentals · as of Jul 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 41 · Market factors (momentum, volatility) 28

Profitability 7
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 29
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

Henan ZhongGong Design & Research Group Co., Ltd., together with its subsidiaries, provides engineering design consulting and survey and design services for infrastructure construction in China and internationally.

Full company description

Henan ZhongGong Design & Research Group Co., Ltd., together with its subsidiaries, provides engineering design consulting and survey and design services for infrastructure construction in China and internationally. The company offers comprehensive planning; engineering consulting, investigation, mapping, design, and supervision and construction management; and experimental testing and metrology, as well as certification and other technical services. It also provides transportation and urban planning; road, municipal, construction, energy, traffic, logistics, urban transportation, tunnel and underground, and bridge engineering services; and landscape and garden architecture, water transport, waterway and water conservancy projects, highway maintenance, international engineering, and engineering survey services; and aerial photogrammetry and remote sensing, engineering topography and geographic information research, testing and inspection, test detection, engineering supervision and project management, engineering BIM, and digital image services. The company was formerly known as Henan Communications Planning & Design Institute Co., Ltd and changed its name to Henan ZhongGong Design & Research Group Co., Ltd. in June 2024. Henan ZhongGong Design & Research Group Co., Ltd. was founded in 1964 and is headquartered in Zhengzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Henan ZhongGong Design & Research Group reported revenue of ¥1.7B in FY2025 versus ¥2.1B in FY2021, a compound −4.8%/yr. Reported net income was −¥163M in FY2025.

Growth Quality 24/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.7B CNY
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.
−12.4%
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.
−2.2%
Avg. growth/yr (12Y) 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.
+12.1%
Revenue −4.8%/yr
FY21 ¥2.1B
FY22 ¥2.5B
FY23 ¥2.3B
FY24 ¥1.5B
FY25 ¥1.7B
Net income
FY21 ¥321M
FY22 ¥248M
FY23 ¥120M
FY24 −¥222M
FY25 −¥163M
Character of growth · EPS growth decomposed (2013-2024) +5.7 % p.a.
Revenue per share +15.9 pp

of which total revenue +23.4 pp · buybacks/dilution −7.5 pp

EBIT margin −6.8 pp
Tax rate +0.1 pp
Residual (interest, one-offs) −3.4 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). "Henan ZhongGong Design & Research Group Fair Value". https://www.fairvalue-calculator.com/stock/300732

Peer Group

Engineering & Construction · 839 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 41 · Below median
Fair Value upside −5% · Above median
Return on assets -1% · Bottom 25%
Net margin (TTM) -9% · Bottom 25%
Operating margin (TTM) 1% · Below median
Revenue growth 12% · Above median
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/B 0.12× · Cheaper than 75% of peers
P/S (TTM) 0.20× · Cheaper than 75% of peers
P/FCF 3.2× · Pricier 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 27 · sector 16
FUTURE 58 · sector 17
PAST 0 · sector 26
HEALTH 88 · sector 94
DIVIDEND 0 · sector 33

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 9, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Henan ZhongGong Design & Research Group (300732) overvalued or undervalued?
As of Jul 9, 2026, our model estimates a fair value of ¥5.90 versus a price of ¥6.19, about −5% (fairly valued).
What is the fair value of 300732?
Our model-based fair value for Henan ZhongGong Design & Research Group is ¥5.90 (as of Jul 9, 2026), built from audited fundamentals. The current price is ¥6.19.
What is the quality score of 300732?
Henan ZhongGong Design & Research Group has a Quality Score of 41/100. 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 Henan ZhongGong Design & Research Group (300732)?
Henan ZhongGong Design & Research Group reported trailing-twelve-month revenue of about 1.7B CNY (latest available figure, as of Jul 9, 2026).
What is the net profit margin of 300732?
The net profit margin of Henan ZhongGong Design & Research Group is about -9.2%, 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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