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Zhejiang TongLi Transmission Technology Co (301255) Fair Value & Analysis

Industrials · CN · Market cap 3.7B CNY

ZT Zhejiang TongLi Transmission Technology Co 301255 · SHE
Price¥20.56
Fair Value¥5.12
Upside-75.1%
Quality54/100
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Weak Growth
Thin margins · 8.6% net margin
Low debt · negative free cash flow
0.50% dividend yield
Trails peers (4/13)
Narrow moat 31/100
Evidence: Medium Range ¥4.01 – ¥5.92 Share as image

Fair value as of: Jul 9, 2026

From 12 valuation models · updated 32 days ago

Fair value updated Jul 9, 2026, revised from ¥5.33 to ¥5.12 (−3.9%) since Jun 24, 2026. Share price −5.6% over the past month.

A solid business, but screening 75% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥5.92). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (4 years)

¥47.14 ¥13.15 Fair Value ¥5.12 Dec 2022 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

43‑month range ¥13.15 – ¥47.14 · fair‑value band ¥4.01 – ¥5.92 · the ¥20.56 price screens above the ¥5.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 9, 2026.

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Analysis

Zhejiang TongLi Transmission Technology Co (301255) currently trades at ¥20.56, while our model-based Fair Value estimate is ¥5.12, implying the stock looks roughly 75.1% overvalued today. The Quality Score stands at 54/100 (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: medium).

Over the trailing twelve months, Zhejiang TongLi Transmission Technology Co generated revenue of 462M CNY at a net margin of 8.6%. Revenue grew 18.8% year over year. It earns a return on equity of 3.4%. The stock trades on a trailing P/E of 94.2. Fundamentals as of Jul 9, 2026

Our scenario range runs from ¥4.01 (bear case) to ¥5.92 (bull case); at ¥20.56, 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 45% 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 -75%, 301255 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 BearBaseBull Evidence
Highest evidence
Residual Income ¥5.13 ¥5.06 ¥4.50 76
ROIC Compounder ¥2.54 ¥2.84 ¥3.10 72
Growth-Adj P/E ¥3.19 ¥4.55 ¥5.92 68
All 12 models by family
Earnings-Based
Graham-Dodd ¥1.95 ¥2.38 ¥2.68 54
EPV ¥2.54 ¥2.84 ¥3.10 59
Multiples
P/E Multiple ¥4.51 ¥6.02 ¥7.52 63
P/S Multiple ¥3.65 ¥4.87 ¥6.09 58
P/B Multiple ¥3.65 ¥4.87 ¥6.09 55
EV/EBIT ¥4.01 ¥5.12 ¥6.24 53
EV/EBITDA ¥5.08 ¥6.56 ¥8.04 54
EV/Revenue ¥3.05 ¥4.07 ¥5.10 43
Asset-Based
NCAV (Graham) ¥3.48 ¥4.67 ¥6.97 50
Economic Profit
Residual Income ¥5.13 ¥5.06 ¥4.50 76
ROIC Compounder ¥2.54 ¥2.84 ¥3.10 72
Growth Earnings
Growth-Adj P/E ¥3.19 ¥4.55 ¥5.92 68

Widest divergence: Multiples (¥4.87) versus Earnings-Based (¥2.38). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 462M CNY
Revenue growth (YoY) +18.8%
Net margin 8.6%
Return on equity 3.4%
Free cash flow −19.1M CNY FY2025
P/E ratio 94.2
More key figures
Operating margin 1.8%
EPS (TTM) ¥0.2600
Dividend yield 0.5%
EPS growth (YoY) -42.9%

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

Quality Score breakdown

Overall quality 54/100

Of which business quality 56 · Market factors (momentum, volatility) 22

Profitability 27
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 82
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

Zhejiang TongLi Transmission Technology Co., Ltd. engages in the research and development, production, sale, and service of gearboxes in China. It offers gear reducers, industrial gearboxes, planetary and specialized gearboxes, screw elevators, plate feeder, special reducers, and other reducers, as well as hoist reducer, crane, and bucket elevator drives.

Full company description

Zhejiang TongLi Transmission Technology Co., Ltd. engages in the research and development, production, sale, and service of gearboxes in China. It offers gear reducers, industrial gearboxes, planetary and specialized gearboxes, screw elevators, plate feeder, special reducers, and other reducers, as well as hoist reducer, crane, and bucket elevator drives. Its products are used in metallurgy, chemical, environmental protection, energy, pharmaceutical, hoist, transportation, and other industries. The company exports its products to the Southeast Asia, South America, the Middle East, and internationally. Zhejiang TongLi Transmission Technology Co., Ltd. was founded in 2008 and is based in Ruian, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang TongLi Transmission Technology Co reported revenue of ¥445M in FY2025 versus ¥467M in FY2021, a compound −1.2%/yr. Reported net income was ¥43.7M in FY2025, compounding −16.7%/yr from FY2021.

Growth Quality 15/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
445M CNY
Latest YoY
+4.1%
Avg. growth/yr (3Y)
−1.6%
Revenue −1.2%/yr
FY21 ¥467M
FY22 ¥468M
FY23 ¥468M
FY24 ¥428M
FY25 ¥445M
Net income −16.7%/yr
FY21 ¥90.6M
FY22 ¥96.8M
FY23 ¥80.8M
FY24 ¥52.0M
FY25 ¥43.7M

301255 screens 75% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Zhejiang TongLi Transmission Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/301255

Peer Group

Electrical Equipment & Parts · 528 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 54 · Above median
Fair Value upside −75% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 2% · Below median
Revenue growth 19% · Above median
Dividend yield (TTM) 0.5% · Below median
Debt / equity 0.00× · Lower than 75% of peers

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

P/E (TTM) 94.2× · Pricier than 75% of peers
P/B 3.51× · Pricier than median
P/S (TTM) 8.08× · Pricier than 75% of peers
EV/EBITDA 67.7× · 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 94 · sector 57
PAST 14 · sector 26
HEALTH 100 · sector 97
DIVIDEND 10 · sector 18

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 Jul 9, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
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%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

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Frequently asked questions

Is Zhejiang TongLi Transmission Technology Co (301255) overvalued or undervalued?
As of Jul 9, 2026, our model estimates a fair value of ¥5.12 versus a price of ¥20.56, about −75% (overvalued).
What is the fair value of 301255?
Our model-based fair value for Zhejiang TongLi Transmission Technology Co is ¥5.12 (as of Jul 9, 2026), built from audited fundamentals. The current price is ¥20.56.
What is the quality score of 301255?
Zhejiang TongLi Transmission Technology Co has a Quality Score of 54/100. 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 Zhejiang TongLi Transmission Technology Co (301255)?
Zhejiang TongLi Transmission Technology Co reported trailing-twelve-month revenue of about 462M CNY (latest available figure, as of Jul 9, 2026).
What is the net profit margin of 301255?
The net profit margin of Zhejiang TongLi Transmission Technology Co is about 8.6%, meaning it keeps roughly 8.6% of revenue as net income. Based on the latest reported figures.
Does Zhejiang TongLi Transmission Technology Co pay a dividend?
Zhejiang TongLi Transmission Technology Co currently shows a dividend yield of about 0.50% relative to its recent price (as of Jul 9, 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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