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Jiangsu Hongdou Industrial Co (600400) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 7.2B CNY

JH Jiangsu Hongdou Industrial Co 600400 · SHG
Price¥3.14
Fair Value¥1.17
Upside-62.7%
Quality56/100
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Weak Growth
Loss-making · -18.4% net margin
Low debt · generates free cash flow
Trails peers (4/11)
Narrow moat 21/100
Evidence: Low Range ¥0.8200 – ¥1.52 Share as image

Fair value as of: Aug 9, 2026

From 7 valuation models · updated yesterday

Share price +1.3% over the past month.

A solid business, but screening 63% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.52). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥0.8200 to ¥1.52) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥6.08 ¥2.00 Fair Value ¥1.17 Mar 2021 Aug 2026

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

How to read this chart

60‑month range ¥2.00 – ¥6.08 · fair‑value band ¥0.8200 – ¥1.52 · the ¥3.14 price screens above the ¥1.17 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Jiangsu Hongdou Industrial Co (600400) currently trades at ¥3.14, while our model-based Fair Value estimate is ¥1.17, implying the stock looks roughly 62.7% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Consumer Cyclical 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: low).

Over the trailing twelve months, Jiangsu Hongdou Industrial Co generated revenue of 2.2B CNY at a net margin of -18.4%. Revenue declined 8.8% year over year. It earns a return on equity of -19.8%. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥0.8200 (bear case) to ¥1.52 (bull case); at ¥3.14, 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 22% below its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 1% fair-value upside, at -63%, 600400 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
Growth DCF ¥1.21 ¥1.56 ¥2.04 80
Rev-Margin DCF ¥1.02 ¥1.41 ¥1.84 74
NCAV (Graham) ¥0.3000 ¥0.4100 ¥0.6100 50
All 7 models by family
DCF Models
FCF DCF ¥1.18 ¥1.55 ¥2.09 38
5Y Revenue Exit ¥1.02 ¥1.40 ¥1.86 39
10Y Revenue Exit ¥1.05 ¥1.39 ¥1.78 36
Multiples
EV/Revenue ¥0.9800 ¥1.33 ¥1.68 43
Asset-Based
NCAV (Graham) ¥0.3000 ¥0.4100 ¥0.6100 50
Growth DCF
Growth DCF ¥1.21 ¥1.56 ¥2.04 80
Rev-Margin DCF ¥1.02 ¥1.41 ¥1.84 74

Widest divergence: Growth DCF (¥1.41) versus Asset-Based (¥0.4100). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 2.2B CNY
Revenue growth (YoY) -8.8%
Net margin -18.4%
Return on equity -19.8%
Free cash flow 235M CNY FY2025
Operating margin 5.3%
More key figures
EPS (TTM) ¥-0.1700
EPS growth (YoY) -87.3%
Net debt 33.6K CNY FY2025

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

Quality Score breakdown

Overall quality 56/100

Of which business quality 57 · Market factors (momentum, volatility) 66

Profitability 20
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 71
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 50
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

Jiangsu Hongdou Industrial Co.,LTD manufactures and sells clothing products. Its clothing products include men's suits, shirts, trousers, jackets, t-shirts, sweaters, and professional wear. Jiangsu Hongdou Industrial Co.,LTD was founded in 1995 and is based in Wuxi, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangsu Hongdou Industrial Co reported revenue of ¥2.2B in FY2025 versus ¥2.3B in FY2021, a compound −1.2%/yr. Reported net income was −¥423M in FY2025.

Growth Quality 31/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
2.2B CNY
Latest YoY
+13.8%
Avg. growth/yr (3Y)
−1.6%
Avg. growth/yr (5Y)
−1.3%
Avg. growth/yr (28Y)
+10.6%
Revenue −1.2%/yr
FY21 ¥2.3B
FY22 ¥2.3B
FY23 ¥2.3B
FY24 ¥2.0B
FY25 ¥2.2B
Net income
FY21 ¥77.0M
FY22 ¥15.0M
FY23 ¥30.0M
FY24 −¥238M
FY25 −¥423M

600400 screens 63% overvalued. Compare with H & M Hennes & Mauritz AB →

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Cite: Fair Value Calculator (2026). "Jiangsu Hongdou Industrial Co Fair Value". https://www.fairvalue-calculator.com/stock/600400

Peer Group

Apparel Manufacturing · 212 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 56 · Above median
Fair Value upside −63% · Bottom 25%
Return on assets -4% · Bottom 25%
Net margin (TTM) -18% · Bottom 25%
Operating margin (TTM) 5% · Above median
Revenue growth -9% · Below median
Debt / equity 0.09× · Higher than median

Valuation Multiples vs Apparel Manufacturing median · lower = cheaper

P/B 0.77× · Cheaper than median
P/S (TTM) 0.49× · Cheaper than median
P/FCF 4.5× · 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 33
FUTURE 0 · sector 4
PAST 0 · sector 21
HEALTH 96 · sector 98
DIVIDEND 0 · sector 49

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 Apparel Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
H & M Hennes & Mauritz AB HMB kr 163.45 kr 165.47 +1%
Ralph Lauren Corporation RL $374.08 $224.21 -40%
Moncler S.p.A MONC €52.08 €50.69 -3%
LPP SA LPP 19,380 PLN 17,754 PLN -8%
Bosideng International Holdings 3998 HK$4.88 HK$5.92 +21%
Youngor Fashion Co 600177 ¥7.57 ¥5.59 -26%
Page Industries Limited PAGEIND ₹39,900 ₹12,395 -69%
Hla Group 600398 ¥6.05 ¥9.92 +64%
Eclat Textile Co 1476 333.50 TWD 357.81 TWD +7%
Youngone Corporation 111770 87,600 KRW 196,629 KRW +124%

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Frequently asked questions

Is Jiangsu Hongdou Industrial Co (600400) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥1.17 versus a price of ¥3.14, about −63% (overvalued).
What is the fair value of 600400?
Our model-based fair value for Jiangsu Hongdou Industrial Co is ¥1.17 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥3.14.
What is the quality score of 600400?
Jiangsu Hongdou Industrial Co has a Quality Score of 56/100. 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 Jiangsu Hongdou Industrial Co (600400)?
Jiangsu Hongdou Industrial Co reported trailing-twelve-month revenue of about 2.2B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600400?
The net profit margin of Jiangsu Hongdou Industrial Co is about -18.4%, 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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