Hengong Precision Equipment Co (301261) Fair Value & Analysis
Industrials · CN · Market cap 7.4B CNY
Fair value as of: Jul 9, 2026
From 14 valuation models · updated 32 days ago
Fair value updated Jul 9, 2026, revised from ¥19.41 to ¥17.96 (−7.5%) since Jun 24, 2026. Share price −27.8% over the past month.
Below-average quality, and screening another 69% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (¥22.84). The favourable scenario is already priced in.
- Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (3 years)
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
37‑month range ¥30.55 – ¥130.88 · fair‑value band ¥13.08 – ¥22.84 · the ¥58.23 price screens above the ¥17.96 fair value. Dashed = 300-day average. As of Jul 9, 2026.
Analysis
Hengong Precision Equipment Co (301261) currently trades at ¥58.23, while our model-based Fair Value estimate is ¥17.96, implying the stock looks roughly 69.2% overvalued today. The Quality Score stands at 33/100 (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, Hengong Precision Equipment Co generated revenue of 1.2B CNY at a net margin of 11.1%. Revenue grew 34.1% year over year. It earns a return on equity of 8.3%. Net debt stands at 138M CNY. Fundamentals as of Jul 9, 2026
Our scenario range runs from ¥13.08 (bear case) to ¥22.84 (bull case); at ¥58.23, 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 49% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -72% fair-value upside, at -69%, 301261 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.
All 14 models by family
Widest divergence: Growth Earnings (¥19.41) versus Earnings-Based (¥7.57). Highest evidence: Residual Income (76).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 9, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 36 · Market factors (momentum, volatility) 27
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
Hengong Precision Equipment Co., Ltd. engages in the research and development, production and processing, and sales services of new fluid technology materials in China and internationally.
Full company description
Hengong Precision Equipment Co., Ltd. engages in the research and development, production and processing, and sales services of new fluid technology materials in China and internationally. The company manufactures and sells continuous cast iron products, precision machine parts, hydraulic and pneumatic fluid machinery, plastic machinery, vacuum pumps, pumps, expansion engines, screw air compressors, and precision mechanical equipment and their accessories. Its products are used in hydraulic power machinery, air pressure field, injection molding machine and parts field, reducer field, new energy vehicle parts manufacturing, and other fields. The company was founded in 2012 and is headquartered in Handan, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Hengong Precision Equipment Co reported revenue of ¥1.1B in FY2025 versus ¥878M in FY2021, a compound +5.8%/yr. Reported net income was ¥89.1M in FY2025, compounding −3.3%/yr from FY2021.
301261 screens 69% overvalued. Compare with Carpenter Technology Corporation →
Peer Group
Metal Fabrication · 243 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.
Valuation Multiples vs Metal Fabrication median · lower = cheaper
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: 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.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Metal Fabrication stocks, each showing price versus our Fair Value estimate (as of Jul 9, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Carpenter Technology Corporation CRS | $577.10 | $103.31 | -82% |
| ATI Inc ATI | $186.17 | $36.51 | -80% |
| Mueller Industries, Inc MLI | $59.13 | $60.24 | +2% |
| China International Marine Containers (Group) Co 000039 | ¥7.45 | ¥1.15 | -85% |
| JL Mag Rare-Earth Co 300748 | ¥31.69 | ¥8.74 | -72% |
| Western Superconducting Technologies Co 688122 | ¥56.73 | ¥24.43 | -57% |
| Ningbo Zhenyu Technology Co 300953 | ¥131.65 | ¥44.23 | -66% |
| Anhui Yingliu Electromechanical Co 603308 | ¥48.52 | ¥8.07 | -83% |
| Baoding Technology Co 002552 | ¥43.95 | ¥5.44 | -88% |
| Xiamen Voke Mold & Plastic Engineering Co 301196 | ¥110.08 | ¥42.71 | -61% |
Compare Hengong Precision Equipment Co with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Industrials stocks →
Frequently asked questions
Is Hengong Precision Equipment Co (301261) overvalued or undervalued?
What is the fair value of 301261?
What is the quality score of 301261?
What is the revenue of Hengong Precision Equipment Co (301261)?
What is the net profit margin of 301261?
Does Hengong Precision Equipment Co pay a dividend?
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.
Track Hengong Precision Equipment Co and try Pro for 14 days
One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.
Zero risk: nothing is ever charged. After 14 days you decide whether to stay.