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Datang Telecom Technology Co (600198) Fair Value & Analysis

Technology · CN · Market cap 9.5B CNY

DT Datang Telecom Technology Co 600198 · SHG
Price¥7.20
Fair Value¥3.91
Upside-45.7%
Quality34/100
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Weak Growth
Loss-making · -4.7% net margin
Low debt · negative free cash flow
Trails peers (3/10)
Narrow moat 17/100
Evidence: Medium Range ¥3.10 – ¥4.32 Share as image

Fair value as of: Aug 7, 2026

From 8 valuation models · updated yesterday

Fair value updated Aug 7, 2026, revised from ¥0.5800 to ¥3.91 (+574.1%) since Jul 11, 2026. Share price −11.1% over the past month.

Below-average quality, and screening another 46% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥4.32). The favourable scenario is already priced in.
  • Weak quality (34/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥16.20 ¥4.66 Fair Value ¥3.91 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 7, 2026.

How to read this chart

60‑month range ¥4.66 – ¥16.20 · fair‑value band ¥3.10 – ¥4.32 · the ¥7.20 price screens above the ¥3.91 fair value. Dashed = 300-day average. As of Aug 7, 2026.

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Analysis

Datang Telecom Technology Co (600198) currently trades at ¥7.20, while our model-based Fair Value estimate is ¥3.91, implying the stock looks roughly 45.7% overvalued today. We read business quality at 34/100 (below-average quality), in the Technology 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, Datang Telecom Technology Co generated revenue of 1.0B CNY at a net margin of -4.7%. Revenue grew 52.3% year over year. It earns a return on equity of 4.4%. The balance sheet holds a net cash position of 161M CNY. Fundamentals as of Aug 7, 2026

Our scenario range runs from ¥3.10 (bear case) to ¥4.32 (bull case); at ¥7.20, 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 42% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at -46%, 600198 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 BearBaseBull Evidence
Highest evidence
ROIC Compounder ¥3.71 ¥3.91 ¥4.11 72
Gordon GGM ¥0.5213 ¥0.5865 ¥0.6517 70
DDM Multi-Stage ¥0.5213 ¥0.6517 ¥0.7820 61
All 8 models by family
Earnings-Based
EPV ¥3.71 ¥3.91 ¥4.11 59
Dividend Discount
Gordon GGM ¥0.5213 ¥0.5865 ¥0.6517 70
DDM Multi-Stage ¥0.5213 ¥0.6517 ¥0.7820 61
Multiples
EV/EBIT ¥4.63 ¥5.34 ¥6.13 53
EV/EBITDA ¥6.97 ¥8.54 ¥10.04 54
EV/Revenue ¥3.91 ¥4.56 ¥5.21 43
Asset-Based
NCAV (Graham) ¥0.6517 ¥0.8472 ¥1.30 50
Economic Profit
ROIC Compounder ¥3.71 ¥3.91 ¥4.11 72

Widest divergence: Multiples (¥5.34) versus Dividend Discount (¥0.5865). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Revenue (TTM) 1.0B CNY
Revenue growth (YoY) +52.3%
Net margin -4.7%
Return on equity 4.4%
Free cash flow −34.8M CNY FY2025
Operating margin -67.8%
More key figures
EPS (TTM) ¥-0.0400
EPS growth (YoY) +66.2%
Net cash 161M CNY FY2024

Figures from reported company fundamentals · as of Aug 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 34/100

Of which business quality 34 · Market factors (momentum, volatility) 30

Profitability 11
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 14
Distance to the 52-week high (market factor)
Net Issuance 92
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

Datang Telecom Technology Co., Ltd. operates in the security chip and special communication business in China. The company provides second-generation ID card chips and modules, social security card chips and modules, financial payment chips, fingerprint sensors and fingerprint algorithm chips, card reader chips, terminal security chips, and other products.

Full company description

Datang Telecom Technology Co., Ltd. operates in the security chip and special communication business in China. The company provides second-generation ID card chips and modules, social security card chips and modules, financial payment chips, fingerprint sensors and fingerprint algorithm chips, card reader chips, terminal security chips, and other products. It also manufactures and sales of electronic and communication equipment, mobile phones, instruments and meters, cultural office equipment; network hosting business in the telecommunications business; property management; manufacture and sales of electronic computer hardware, software, and peripheral equipment; technology development, technology transfer, technical consultation, and technical services; computer system integration; sales of optical cables, microelectronic devices, mechanical equipment, electrical equipment, air-conditioning equipment, energy-saving equipment for communication base station computer rooms, professional operating vehicles; installation of mechanical equipment, electrical equipment, and air-conditioning equipment; communication and information system engineering design; information services; technology import and export; goods import and export; and agency import and export. The company was incorporated in 1998 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Datang Telecom Technology Co reported revenue of ¥1.0B in FY2025 versus ¥1.3B in FY2021, a compound −6.4%/yr. Reported net income was −¥57.2M in FY2025.

Growth Quality 6/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.0B CNY
Latest YoY
+6.7%
Avg. growth/yr (3Y)
−2.2%
Avg. growth/yr (5Y)
−9.2%
Avg. growth/yr (30Y)
+8.2%
Revenue −6.4%/yr
FY21 ¥1.3B
FY22 ¥1.1B
FY23 ¥1.0B
FY24 ¥942M
FY25 ¥1.0B
Net income
FY21 −¥51.0M
FY22 ¥37.6M
FY23 ¥39.1M
FY24 ¥27.9M
FY25 −¥57.2M

600198 screens 46% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "Datang Telecom Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/600198

Peer Group

Communication Equipment · 289 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 34 · Bottom 25%
Fair Value upside −46% · Below median
Return on equity (TTM) 4% · Above median
Return on assets -1% · Below median
Net margin (TTM) -5% · Bottom 25%
Operating margin (TTM) -68% · Bottom 25%
Revenue growth 52% · Top 25%
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/B 5.46× · Pricier than 75% of peers
P/S (TTM) 1.36× · 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 0 · sector 0
FUTURE 100 · sector 31
PAST 17 · sector 15
HEALTH 94 · sector 98
DIVIDEND 0 · sector 25

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 Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Aug 7, 2026).

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $119.25 $43.05 -64%
Zhongji Innolight Co 300308 ¥1,094 ¥171.09 -84%
Foxconn Industrial Internet Co 601138 ¥56.50 ¥28.65 -49%
Eoptolink Technology Inc 300502 ¥482.88 ¥155.05 -68%
Nokia Oyj NOK $11.25 $2.67 -76%
Motorola Solutions, Inc MSI $413.31 $190.43 -54%
Suzhou TFC Optical Communication Co 300394 ¥244.13 ¥32.04 -87%
Telefonaktiebolaget LM Ericsson (publ), ERIC $11.72 $15.96 +36%
Accton Technology Corporation 2345 2,090 TWD 846.28 TWD -60%
ZTE Corporation 000063 ¥40.00 ¥15.75 -61%

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Frequently asked questions

Is Datang Telecom Technology Co (600198) overvalued or undervalued?
As of Aug 7, 2026, our model estimates a fair value of ¥3.91 versus a price of ¥7.20, about −46% (overvalued).
What is the fair value of 600198?
Our model-based fair value for Datang Telecom Technology Co is ¥3.91 (as of Aug 7, 2026), built from audited fundamentals. The current price is ¥7.20.
What is the quality score of 600198?
Datang Telecom Technology Co has a Quality Score of 34/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Datang Telecom Technology Co (600198)?
Datang Telecom Technology Co reported trailing-twelve-month revenue of about 1.0B CNY (latest available figure, as of Aug 7, 2026).
What is the net profit margin of 600198?
The net profit margin of Datang Telecom Technology Co is about -4.7%, 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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