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Hengtong Optic-Electric Co (600487) Fair Value & Analysis

Technology · CN · Market cap 144B CNY

HO Hengtong Optic-Electric Co 600487 · SHG
Price¥56.15
Fair Value¥21.73
Upside-61.3%
Quality55/100
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Expensive Growth
Thin margins · 4.5% net margin
Low debt · negative free cash flow
0.42% dividend yield
Mixed vs. peers (6/13)
Narrow moat 41/100
Evidence: Medium Range ¥16.30 – ¥27.17 Share as image

Fair value as of: Jul 17, 2026

From 17 valuation models · updated 21 days ago

Share price −30.6% over the past month.

A solid business, but screening 61% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥27.17). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥122.69 ¥9.49 Fair Value ¥21.73 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range ¥9.49 – ¥122.69 · fair‑value band ¥16.30 – ¥27.17 · the ¥56.15 price screens above the ¥21.73 fair value. Dashed = 300-day average. As of Jul 17, 2026.

Full chart & analysis →

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Analysis

Hengtong Optic-Electric Co (600487) currently trades at ¥56.15, while our model-based Fair Value estimate is ¥21.73, implying the stock looks roughly 61.3% overvalued today. We read business quality at 55/100 (solid 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, Hengtong Optic-Electric Co generated revenue of 71.4B CNY at a net margin of 4.5%. Revenue grew 34.1% year over year. It earns a return on equity of 10.2%. Net debt stands at 34.1M CNY. Fundamentals as of Jul 17, 2026

Our scenario range runs from ¥16.30 (bear case) to ¥27.17 (bull case); at ¥56.15, 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 and 284% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at -61%, 600487 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 ¥10.88 ¥11.76 ¥14.53 76
ROIC Compounder ¥19.93 ¥28.08 ¥33.88 72
Gordon GGM ¥3.69 ¥7.68 ¥12.18 70
All 17 models by family
DCF Models
Owner Earnings ¥13.68 ¥25.61 ¥50.66 31
Earnings-Based
Graham-Dodd ¥7.39 ¥51.53 ¥72.32 54
Lynch FV ¥16.02 ¥22.89 ¥29.75 50
PEG = 1.0 ¥16.02 ¥22.89 ¥29.75 46
EPV ¥17.00 ¥19.11 ¥20.96 59
Dividend Discount
Gordon GGM ¥3.69 ¥7.68 ¥12.18 70
DDM Multi-Stage ¥3.69 ¥6.47 ¥8.06 61
Multiples
P/E Multiple ¥16.30 ¥21.73 ¥27.17 63
P/S Multiple ¥13.86 ¥18.47 ¥23.09 58
P/B Multiple ¥13.86 ¥18.47 ¥23.09 55
EV/EBIT ¥24.29 ¥30.94 ¥37.60 53
EV/EBITDA ¥25.18 ¥32.13 ¥39.08 54
EV/Revenue ¥17.78 ¥23.55 ¥29.32 43
Asset-Based
NCAV (Graham) ¥6.44 ¥8.63 ¥12.89 50
Economic Profit
Residual Income ¥10.88 ¥11.76 ¥14.53 76
ROIC Compounder ¥19.93 ¥28.08 ¥33.88 72
Growth Earnings
Growth-Adj P/E ¥21.14 ¥30.21 ¥39.27 68

Widest divergence: Growth Earnings (¥30.21) versus Dividend Discount (¥6.47). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 71.4B CNY
Revenue growth (YoY) +34.1%
Net margin 4.5%
Return on equity 10.2%
Free cash flow −30.4M CNY FY2025
P/E ratio 72.3
More key figures
Operating margin 8.8%
EPS (TTM) ¥1.33
Dividend yield 0.3%
EPS growth (YoY) +98.6%
Net debt 34.1M CNY FY2024

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 49 · Market factors (momentum, volatility) 67

Profitability 38
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 20
Earnings quality: real cash, not paper profit
Fin. Strength 69
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 76
Price trend over the last 3–12 months (market factor)
52W Momentum 69
Distance to the 52-week high (market factor)
Net Issuance 67
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

Hengtong Optic-Electric Co., Ltd. engages in communication network and energy interconnection businesses in China and internationally.

Full company description

Hengtong Optic-Electric Co., Ltd. engages in communication network and energy interconnection businesses in China and internationally. The company offers bare overhead conductor, railway contact line, OPGW, HV and EHV cables systems, medium and low voltage cables, and aluminium and alloy rods and extended products; and railway, elevator, telecom copper, and optical fiber cables, as well as ODN, preform, and optical transceiver products. It also provides special underwater and submarine power cables; new energy automotive, wind, and photovoltaic cables; precision and new energy copper foil, cathode material, and copper strips. In addition, it offers various solutions, including EPC, power system, telecom system, submarine system, and new energy solutions. Hengtong Optic-Electric Co., Ltd. was founded in 1993 and is based in Suzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengtong Optic-Electric Co reported revenue of ¥66.9B in FY2025 versus ¥41.3B in FY2021, a compound +12.8%/yr. Reported net income was ¥2.7B in FY2025, compounding +16.9%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
66.9B CNY
Latest YoY
+11.5%
Avg. growth/yr (3Y)
+12.9%
Avg. growth/yr (5Y)
+15.6%
Avg. growth/yr (25Y)
+22.7%
Revenue +12.8%/yr
FY21 ¥41.3B
FY22 ¥46.5B
FY23 ¥47.6B
FY24 ¥60.0B
FY25 ¥66.9B
Net income +16.9%/yr
FY21 ¥1.4B
FY22 ¥1.6B
FY23 ¥2.2B
FY24 ¥2.8B
FY25 ¥2.7B

600487 screens 61% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "Hengtong Optic-Electric Co Fair Value". https://www.fairvalue-calculator.com/stock/600487

Peer Group

Communication Equipment · 284 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 55 · Above median
Fair Value upside −61% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 4% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 34% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.09× · Higher than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 43.9× · Pricier than median
P/B 4.53× · Pricier than 75% of peers
P/S (TTM) 2.02× · Pricier than median
EV/EBITDA 23.1× · 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 0 · sector 0
FUTURE 100 · sector 30
PAST 41 · sector 15
HEALTH 96 · sector 98
DIVIDEND 8 · sector 27

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 Jul 17, 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 Hengtong Optic-Electric Co (600487) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of ¥21.73 versus a price of ¥56.15, about −61% (overvalued).
What is the fair value of 600487?
Our model-based fair value for Hengtong Optic-Electric Co is ¥21.73 (as of Jul 17, 2026), built from audited fundamentals. The current price is ¥56.15.
What is the quality score of 600487?
Hengtong Optic-Electric Co has a Quality Score of 55/100. 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 Hengtong Optic-Electric Co (600487)?
Hengtong Optic-Electric Co reported trailing-twelve-month revenue of about 71.4B CNY (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 600487?
The net profit margin of Hengtong Optic-Electric Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Hengtong Optic-Electric Co pay a dividend?
Hengtong Optic-Electric Co currently shows a dividend yield of about 0.28% relative to its recent price (as of Jul 17, 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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