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Shandong Hiking International Co (600735) Fair Value & Analysis

Industrials · CN · Market cap 2.8B CNY

SH Shandong Hiking International Co 600735 · SHG
Price¥6.57
Fair Value¥5.58
Upside-15.1%
Quality59/100
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Weak Growth
Loss-making · -9.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/12)
Narrow moat 20/100
Evidence: Medium Range ¥4.46 – ¥6.70 Share as image

Fair value as of: Aug 9, 2026

From 15 valuation models · updated yesterday

Share price +4.3% over the past month.

A solid business, but screening 15% overvalued on our models.

What matters now

  • Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from ¥4.46 (bear) to ¥6.70 (bull), base ¥5.58. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 59/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥10.17 ¥3.49 Fair Value ¥5.58 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 ¥3.49 – ¥10.17 · fair‑value band ¥4.46 – ¥6.70 · the ¥6.57 price screens above the ¥5.58 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Shandong Hiking International Co (600735) currently trades at ¥6.57, while our model-based Fair Value estimate is ¥5.58, implying the stock looks roughly 15.1% overvalued today. The Quality Score stands at 59/100 (solid 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, Shandong Hiking International Co generated revenue of 1.3B CNY at a net margin of -9.9%. Revenue declined 4.5% year over year. It earns a return on equity of -7.0%. The balance sheet holds a net cash position of 472M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥4.46 (bear case) to ¥6.70 (bull case); at ¥6.57, the current price sits within 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 30% below its 52-week high and 54% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -15%, 600735 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 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. Evidence
Highest evidence
Growth DCF ¥6.87 ¥12.27 ¥22.48 80
Rev-Margin DCF ¥4.46 ¥7.80 ¥12.86 74
ROIC Compounder ¥2.21 ¥2.48 ¥3.05 72
All 15 models by family
DCF Models
FCF DCF ¥7.23 ¥11.23 ¥22.95 38
5Y Revenue Exit ¥4.46 ¥7.15 ¥12.40 39
5Y EBITDA Exit ¥4.80 ¥7.87 ¥13.51 41
10Y Revenue Exit ¥5.17 ¥9.11 ¥12.84 36
10Y EBITDA Exit ¥5.51 ¥9.75 ¥17.25 37
Earnings-Based
EPV ¥2.21 ¥2.48 ¥2.71 59
Dividend Discount
Gordon GGM ¥0.1300 ¥0.2600 ¥0.4000 70
DDM Multi-Stage ¥0.1300 ¥0.2300 ¥0.2800 61
Multiples
EV/EBIT ¥4.28 ¥5.53 ¥6.79 53
EV/EBITDA ¥3.87 ¥4.99 ¥6.11 54
EV/Revenue ¥3.20 ¥4.35 ¥5.50 43
Asset-Based
NCAV (Graham) ¥1.24 ¥1.67 ¥2.49 50
Growth DCF
Growth DCF ¥6.87 ¥12.27 ¥22.48 80
Rev-Margin DCF ¥4.46 ¥7.80 ¥12.86 74
Economic Profit
ROIC Compounder ¥2.21 ¥2.48 ¥3.05 72

Widest divergence: DCF Models (¥9.11) versus Dividend Discount (¥0.2300). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.3B CNY
Revenue growth (YoY) -4.5%
Net margin -9.9%
Return on equity -7.0%
Free cash flow 188M CNY FY2025
Operating margin 7.0%
More key figures
EPS (TTM) ¥-0.3000
EPS growth (YoY) -40.8%
Net cash 472M CNY FY2024

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

Quality Score breakdown

Overall quality 59/100

Of which business quality 60 · Market factors (momentum, volatility) 36

Profitability 20
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 76
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

Shandong Hiking International Co.,Ltd operates in trading business in China and internationally. The company offers textiles, clothing, and garment products. It also provides hair products, including men's hairpieces, women's wigs, hair extensions, wigs, human hair springs, and wig accessories, etc.; and human hair and chemical fiber mixed hair products.

Full company description

Shandong Hiking International Co.,Ltd operates in trading business in China and internationally. The company offers textiles, clothing, and garment products. It also provides hair products, including men's hairpieces, women's wigs, hair extensions, wigs, human hair springs, and wig accessories, etc.; and human hair and chemical fiber mixed hair products. In addition, it engages in the cross-border import e-commerce business; graphite new materials business; and elderly care and healthcare business. The company was founded in 1993 and is headquartered in Qingdao, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shandong Hiking International Co reported revenue of ¥1.3B in FY2025 versus ¥1.6B in FY2021, a compound −4.0%/yr. Reported net income was −¥127M in FY2025.

Growth Quality 31/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.3B CNY
Latest YoY
−18.3%
Avg. growth/yr (3Y) 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.
−10.5%
Avg. growth/yr (5Y) 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.
+1.5%
Avg. growth/yr (30Y) 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.
+5.1%
Revenue −4.0%/yr
FY21 ¥1.6B
FY22 ¥1.9B
FY23 ¥2.4B
FY24 ¥1.6B
FY25 ¥1.3B
Net income
FY21 ¥66.0M
FY22 ¥51.7M
FY23 ¥52.5M
FY24 −¥134M
FY25 −¥127M
Character of growth · EPS growth decomposed (2013-2024) −0.1 % p.a.
Revenue per share +4.4 pp

of which total revenue +5.6 pp · buybacks/dilution −1.3 pp

EBIT margin +0.8 pp
Tax rate −1.9 pp
Residual (interest, one-offs) −3.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

600735 screens 15% overvalued. Compare with W.W. Grainger, Inc →

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Cite: Fair Value Calculator (2026). "Shandong Hiking International Co Fair Value". https://www.fairvalue-calculator.com/stock/600735

Peer Group

Industrial Distribution · 102 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 59 · Above median
Fair Value upside −15% · Below median
Return on assets 4% · Below median
Net margin (TTM) -10% · Bottom 25%
Operating margin (TTM) 6% · Above median
Revenue growth -5% · Bottom 25%

Valuation Multiples vs Industrial Distribution median · lower = cheaper

P/B 0.38× · Cheaper than 75% of peers
P/S (TTM) 0.31× · Cheaper than median
P/FCF 2.2× · Cheaper than median
EV/EBITDA 1.7× · Cheaper 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 13 · sector 19
FUTURE 0 · sector 19
PAST 0 · sector 37
HEALTH 100 · sector 90
DIVIDEND 0 · sector 31

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

Stock Price Fair Value vs Fair Value
W.W. Grainger, Inc GWW $1,376 $625.61 -55%
Fastenal Company FAST $45.49 $20.64 -55%
Ferguson Enterprises Inc FERG $232.02 $151.92 -35%
WESCO International, Inc WCC $326.71 $213.01 -35%
Watsco, Inc WSO $385.16 $268.10 -30%
Toromont Industries Ltd TIH C$232.22 C$127.90 -45%
Applied Industrial Technologies, Inc AIT $329.35 $191.65 -42%
Finning International Inc FTT C$102.50 C$76.38 -25%
Addtech AB ADDTB kr 329.20 kr 156.35 -53%
Core & Main, Inc CNM $44.66 $49.47 +11%

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Frequently asked questions

Is Shandong Hiking International Co (600735) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥5.58 versus a price of ¥6.57, about −15% (overvalued).
What is the fair value of 600735?
Our model-based fair value for Shandong Hiking International Co is ¥5.58 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥6.57.
What is the quality score of 600735?
Shandong Hiking International Co has a Quality Score of 59/100. 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 Shandong Hiking International Co (600735)?
Shandong Hiking International Co reported trailing-twelve-month revenue of about 1.3B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600735?
The net profit margin of Shandong Hiking International Co is about -9.9%, 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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