Gansu Guofang Industry & Trade (Group) Co (601086) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 5.3B CNY

A solid business, but screening 71% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥2.90). The favourable scenario is already priced in.
• Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ¥2.95 – ¥15.77 · fair‑value band ¥1.74 – ¥2.90 · the ¥7.90 price screens above the ¥2.32 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Gansu Guofang Industry & Trade (Group) Co (601086) currently trades at ¥7.90, while our model-based Fair Value estimate is ¥2.32, implying the stock looks roughly 70.6% 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: high).

Over the trailing twelve months, Gansu Guofang Industry & Trade (Group) Co generated revenue of 830M CNY at a net margin of 11.7%. Revenue grew 14.7% year over year. It earns a return on equity of 6.0%. The balance sheet holds a net cash position of 574M CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥1.74 (bear case) to ¥2.90 (bull case); at ¥7.90, 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 43% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 50% fair-value upside, at -71%, 601086 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.

Widest divergence: DCF Models (¥2.37) versus Earnings-Based (¥0.8800). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Gansu Guofang Industry & Trade (Group) Co., Ltd. engages in the chain retail business in China. The company operates department stores under the Dongfanghong Plaza Store, Baiyin World Trade Center Store, Ningxia Shopping Plaza Store, Zhangye Shopping Plaza Store, Xining Guofang Department Store, Guofang G99 Shopping Center, and Jinchang Guofang Department …

Full company description

Gansu Guofang Industry & Trade (Group) Co., Ltd. engages in the chain retail business in China. The company operates department stores under the Dongfanghong Plaza Store, Baiyin World Trade Center Store, Ningxia Shopping Plaza Store, Zhangye Shopping Plaza Store, Xining Guofang Department Store, Guofang G99 Shopping Center, and Jinchang Guofang Department Store; supermarkets under the Zongchao Plaza Store, Zongchao Xihuayuan Store, Zongchao Qilihe Store, and Zongchao Store Gaolan store names; and electrical appliance stores under the Guofang Electric Appliances brand. It also provides property leasing services. The company was founded in 1996 and is headquartered in Lanzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Gansu Guofang Industry & Trade (Group) Co reported revenue of ¥800M in FY2025 versus ¥968M in FY2021, a compound −4.6%/yr. Reported net income was ¥70.3M in FY2025, compounding −5.1%/yr from FY2021.

601086 screens 71% overvalued. Compare with Falabella S.A →

Peer Group

Department Stores · 127 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.

Valuation Multiples vs Department Stores median · lower = cheaper

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: 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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.