Hengtong Optic Electric Co Ltd (600487) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Hengtong Optic Electric Co Ltd stock ¥30.43, price ¥43.71, that is 30.4% below the price, quality 51 out of 100. Rating: overvalued. Calculated from audited financials with 16 of our 26 valuation models and 37 quality factors, updated daily.
Keep an eye on it?Free in your watchlist: 5 stocks without an account, 10 with oneYes, for free
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Oct 31, 2026.
How to read this chart
60‑month range ¥9.49 – ¥122.69 · fair‑value band ¥22.82 – ¥38.04 · the ¥43.71 price screens above the ¥30.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Oct 31, 2026.
Follow Hengtong Optic Electric Co in your weekly email
Every Wednesday you see whether Hengtong Optic Electric Co is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Hengtong Optic-Electric Co., Ltd. engages in communication network and energy interconnection businesses in China and internationally.
Show moreShow less
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.
Stock analysis
Hengtong Optic Electric Co Ltd (600487) currently trades at ¥43.71, while our model-based Fair Value estimate is ¥30.43, 30% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the Growth Earnings group reads highest at a median of ¥35.15 per share, and 1 of the 16 models we run sit above the ¥43.71 price.
Bear case: the Asset-Based group reads lowest at ¥4.71, and 15 of the 16 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ¥22.82 (bear) to ¥38.04 (bull), the price of ¥43.71 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 51/100 (solid quality), in the Technology sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Hengtong Optic Electric Co Ltd reported revenue of 66.9B CNY in FY2025 versus 41.3B CNY in FY2021, a compound +12.8%/yr. Reported net income was 2.7B CNY in FY2025, compounding +16.9%/yr from FY2021.
Key figures
Market cap 108B CNY (≈ $16.2B) Large · P/E ratio 25.3 · P/S ratio 1.01 · EPS (TTM) ¥1.73 · Dividend yield 0.6% · Net margin 4.0% · Return on equity 18.2% · Return on assets (EBIT) 4.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 53 out of 100 (low confidence).
What moves the price
The share trades about 64% below its 52-week high and 130% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −43% fair-value upside, at −30%, 600487 screens cheaper than that median.
Fair Value models
Bear¥22.82Fair Value ¥30.43Bull¥38.04
Price ¥43.71 · Downside -30.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (¥1.24 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+11.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.6%
Start year 2020 (pandemic). Over 10 years: +17.3% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+22.7%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+12.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.9%
Dividend (yield on the price)0.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.9% vs 12.7%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → 6%
AI conclusion: Strong profit growth from surging AI demand in optical communications is offset by negative free cash flow and equity raises for capacity expansion.
Main risk: Aggressive pricing and capacity expansion by named Chinese rivals such as YOFC and ZTT in optical fiber and submarine cables could erode Hengtong's margins and market share in core segments.
Bull case: By accelerating commercialization of hollow-core and multicore fibers plus vertical integration into AI data-center solutions Hengtong could differentiate from domestic price competitors and secure premium contracts.
Bear case: If price competition intensifies and geopolitical restrictions close key export markets while state tenders shrink Hengtong could face prolonged margin pressure and slower growth in its optical and subsea businesses.
Strong profit growth at Hengtong stems from surging demand and higher prices in optical communications driven by AI data center buildouts. Yet the company is simultaneously raising substantial new equity to expand capacity in next-generation fiber and interconnect technologies. Our models see the shares as overvalued. Will the AI tailwinds deliver enough operating leverage to offset the expansion costs or will the capital raise dilute the benefits?
Compare Hengtong Optic Electric Co Ltd with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer Groupⓘ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.Communication Equipment · 300 stocks
Beats the industry median on 9/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score51 · Below median
Fair Value upside−30.4% · Above median
Profitability
Return on equity (12 months)18.2% · Top 25%
Return on assets3.7% · Above median
Net margin (12 months)7.9% · Above median
Operating margin (12 months)16.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)27.1% · Above median
Dividend yield (12 months)0.6% · Below median
Balance sheet
Debt / equity0.09× · Above median
Valuation Multiplesvs Communication Equipment median · lower = cheaper
P/E (12 months)25.3× · Cheaper than median
P/B3.39× · Pricier than median
P/S (12 months)1.32× · Cheaper than median
EV/EBITDA10.3× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 57
PAST (return on equity)73· sector 21
HEALTH (low debt)96· sector 98
DIVIDEND (yield)13· sector 24
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Hengtong Optic Electric Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600487
Frequently asked questions
Is Hengtong Optic Electric Co Ltd (600487) overvalued or undervalued?
As of Oct 31, 2026, our model estimates a fair value of ¥30.43 versus a price of ¥43.71, about 30% lower (overvalued).
What is the fair value of 600487?
Our model-based fair value for Hengtong Optic Electric Co Ltd is ¥30.43 (as of Oct 31, 2026), built from audited fundamentals. The current price: ¥43.71.
What is the quality score of 600487?
Hengtong Optic Electric Co Ltd has a Quality Score of 51/100. 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 price target for Hengtong Optic Electric Co Ltd (600487)?
Our model-based price target is the fair value of ¥30.43 (as of Oct 31, 2026) from 16 valuation models. Cautious scenario ¥22.82, optimistic scenario ¥38.04. It is a calculation from audited fundamentals, not an analyst target.
What is the Hengtong Optic Electric Co Ltd stock forecast for 2026?
Our models put fair value at ¥30.43, about 30% lower versus a price of ¥43.71 (overvalued). Cautious scenario ¥22.82, optimistic scenario ¥38.04. The calculation is refreshed regularly with new filings.
What is the revenue of Hengtong Optic Electric Co Ltd (600487)?
Hengtong Optic Electric Co Ltd reported trailing-twelve-month revenue of about 81.6B CNY (latest available figure, as of Oct 31, 2026).
Does Hengtong Optic Electric Co Ltd pay a dividend?
Hengtong Optic Electric Co Ltd currently shows a dividend yield of 0.63% relative to its recent price (as of Oct 31, 2026).
What is the intrinsic value of Hengtong Optic Electric Co Ltd (600487)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hengtong Optic Electric Co Ltd it is ¥30.43 per share (as of Oct 31, 2026), against a price of ¥43.71. It is the blended result of 16 valuation models (cash flow, earnings, asset, dividend).
Is Hengtong Optic Electric Co Ltd stock overvalued or undervalued in 2026?
As of Oct 31, 2026, 600487 trades above its calculated fair value: price ¥43.71, fair value ¥30.43, a gap of about −30% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 600487?
No. The price is what the market pays today (¥43.71); the fair value is what the company's own numbers justify (¥30.43). For Hengtong Optic Electric Co Ltd the two are ¥13.28 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hengtong Optic Electric Co Ltd worth?
The market values Hengtong Optic Electric Co Ltd at about 108B CNY (market capitalisation, as of Oct 31, 2026). Per share that is ¥43.71; our models calculate a fair value of ¥30.43 per share.
What do the bullish and bearish scenarios say about 600487?
Our models span a range for Hengtong Optic Electric Co Ltd: cautious scenario ¥22.82, base ¥30.43, optimistic ¥38.04 per share (as of Oct 31, 2026, price ¥43.71). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 600487?
Hengtong Optic Electric Co Ltd trades at a price-to-earnings ratio of 25.3 (as of Oct 31, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ¥30.43 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2018 to 2025), reported earnings: 22.6. Other multiples: P/B 3.4, P/S 1.3, EV/EBITDA 10.3.
How solid is the balance sheet of Hengtong Optic Electric Co Ltd (600487)?
Balance-sheet figures for Hengtong Optic Electric Co Ltd (as of Oct 31, 2026): return on equity 18.2%, debt of 0.09 per unit of equity. They feed the Quality Score of 51/100, which measures business quality independently of the share price.
How far is 600487 from its 52-week high?
Hengtong Optic Electric Co Ltd trades at ¥43.71, about 64% below its 52-week high of ¥122.69 and 130% above the low of ¥18.98 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ¥30.43 is for.
Which stocks are comparable to Hengtong Optic Electric Co Ltd?
From the same area (Technology) we also value Cisco Systems, Inc, Foxconn Industrial Internet Co, Zhongji Innolight Co, Motorola Solutions, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Hengtong Optic Electric Co Ltd stock attractive at the current price?
The data as of Oct 31, 2026: price ¥43.71, calculated fair value ¥30.43 (−30%), Quality Score 51/100, from 16 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 600487 calculated?
We run Hengtong Optic Electric Co Ltd through 16 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ¥30.43, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.6% above its aggregate fair value. Hengtong Optic Electric Co Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Hengtong Optic Electric Co Ltd (600487)?
The closing price on Nov 5, 2026 was ¥43.71. Our model-based fair value is ¥30.43, about 30% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Hengtong Optic Electric Co Ltd right now?
The price sits above even our optimistic bull case (¥38.04). The favourable scenario is already priced in. Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Hengtong Optic Electric Co Ltd (600487) come from?
Earnings per share at Hengtong Optic Electric Co Ltd grew +14.9 % a year from 2013 to 2024. Broken into its drivers: revenue per share +13.2 %, EBIT margin +1.0 %, tax rate +1.3 %, residual (interest, one-offs) −0.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Hengtong Optic Electric Co Ltd
How large is the market capitalisation of Hengtong Optic Electric Co Ltd (600487)?
The market capitalisation of Hengtong Optic Electric Co Ltd is 108B CNY (≈ $16.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Hengtong Optic Electric Co Ltd (600487)?
The price-to-sales ratio of Hengtong Optic Electric Co Ltd is 1.01 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Hengtong Optic Electric Co Ltd (600487)?
Earnings per share at Hengtong Optic Electric Co Ltd are ¥1.73 (price ÷ EPS = P/E 25.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Hengtong Optic Electric Co Ltd (600487)?
The dividend yield of Hengtong Optic Electric Co Ltd is 0.6% (payout 15.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Hengtong Optic Electric Co Ltd (600487)?
The net margin of Hengtong Optic Electric Co Ltd is 4.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Hengtong Optic Electric Co Ltd (600487)?
The return on equity (ROE) of Hengtong Optic Electric Co Ltd is 18.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Hengtong Optic Electric Co Ltd (600487)?
On an EBIT basis the return on assets of Hengtong Optic Electric Co Ltd is 4.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Hengtong Optic Electric Co Ltd (600487)?
The operating margin of Hengtong Optic Electric Co Ltd is 16.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hengtong Optic Electric Co Ltd (600487)?
Revenue at Hengtong Optic Electric Co Ltd is growing +27.1% versus a year earlier (3y avg +12.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Hengtong Optic Electric Co Ltd (600487)?
Earnings per share at Hengtong Optic Electric Co Ltd are growing +290% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Hengtong Optic Electric Co Ltd (600487) generate?
The free cash flow of Hengtong Optic Electric Co Ltd is −30.4M CNY (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Hengtong Optic Electric Co Ltd (600487) carry?
The net debt of Hengtong Optic Electric Co Ltd is 34.1M CNY (fiscal year 2024). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Hengtong Optic Electric Co Ltd in the live analysis
One click puts Hengtong Optic Electric Co Ltd on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Some data
Oct 31, 2026