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Guangzhou Restaurant Group (603043) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 7.7B CNY

GR Guangzhou Restaurant Group 603043 · SHG
Price¥13.54
Fair Value¥18.93
Upside+39.8%
Quality66/100
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Healthy Growth
Thin margins · 9.0% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)
Moderate moat 47/100
Evidence: Medium Range ¥12.84 – ¥23.66 Share as image

Fair value as of: Aug 10, 2026

From 26 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥18.88 to ¥18.93 (+0.3%) since Jul 11, 2026. Share price +0.1% over the past month.

A solid business, screening 40% undervalued on our models.

What matters now

  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥12.84 to ¥23.66) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥30.27 ¥12.40 Fair Value ¥18.93 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 10, 2026.

How to read this chart

60‑month range ¥12.40 – ¥30.27 · fair‑value band ¥12.84 – ¥23.66 · the ¥13.54 price screens below the ¥18.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

Guangzhou Restaurant Group (603043) currently trades at ¥13.54, while our model-based Fair Value estimate is ¥18.93, implying the stock looks roughly 39.8% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Guangzhou Restaurant Group generated revenue of 5.5B CNY at a net margin of 9.0%. Revenue grew 8.9% year over year. It earns a return on equity of 12.3%. Net debt stands at 104M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥12.84 (bear case) to ¥23.66 (bull case); at ¥13.54, 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 28% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -47% fair-value upside, at 40%, 603043 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥11.12 ¥17.64 ¥28.01 80
Residual Income ¥6.74 ¥7.66 ¥12.25 76
Rev-Margin DCF ¥9.96 ¥15.81 ¥23.29 74
All 26 models by family
DCF Models
FCF DCF ¥11.19 ¥18.32 ¥30.08 38
Owner Earnings ¥11.73 ¥19.25 ¥31.67 31
5Y Revenue Exit ¥9.96 ¥15.92 ¥23.92 39
5Y EBITDA Exit ¥13.83 ¥23.80 ¥36.27 41
5Y P/E Exit ¥13.39 ¥22.91 ¥33.73 38
10Y Revenue Exit ¥10.04 ¥15.74 ¥24.28 36
10Y EBITDA Exit ¥12.79 ¥21.35 ¥34.28 37
10Y P/E Exit ¥12.51 ¥20.72 ¥32.22 35
Earnings-Based
Graham-Dodd ¥5.83 ¥26.09 ¥35.75 54
Lynch FV ¥6.79 ¥9.69 ¥12.60 50
PEG = 1.0 ¥6.79 ¥9.69 ¥12.60 46
EPV ¥9.32 ¥10.54 ¥11.60 59
Dividend Discount
Gordon GGM ¥4.59 ¥9.15 ¥13.85 70
DDM Multi-Stage ¥4.59 ¥7.90 ¥9.65 61
Multiples
P/E Multiple ¥14.16 ¥18.88 ¥23.59 63
P/S Multiple ¥8.52 ¥11.35 ¥14.19 58
P/B Multiple ¥10.94 ¥14.59 ¥18.23 55
EV/EBIT ¥17.14 ¥22.34 ¥27.53 53
EV/EBITDA ¥16.42 ¥21.37 ¥26.33 54
EV/Revenue ¥9.49 ¥12.90 ¥16.30 43
Asset-Based
NCAV (Graham) ¥3.73 ¥4.99 ¥7.45 50
Growth DCF
Growth DCF ¥11.12 ¥17.64 ¥28.01 80
Rev-Margin DCF ¥9.96 ¥15.81 ¥23.29 74
Economic Profit
Residual Income ¥6.74 ¥7.66 ¥12.25 76
ROIC Compounder ¥10.02 ¥12.84 ¥16.61 72
Growth Earnings
Growth-Adj P/E ¥11.37 ¥16.24 ¥21.11 68

Widest divergence: DCF Models (¥19.25) versus Asset-Based (¥4.99). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 5.5B CNY
Revenue growth (YoY) +8.9%
Net margin 9.0%
Return on equity 12.3%
Free cash flow 455M CNY FY2025
P/E ratio 15.7
More key figures
Operating margin 7.1%
EPS (TTM) ¥0.8600
EPS growth (YoY) +3.5%
Net debt 104M CNY FY2024

Figures from reported company fundamentals · as of Aug 10, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 66 · Market factors (momentum, volatility) 40

Profitability 59
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 81
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

Guangzhou Restaurant Group Company Limited engages in food manufacturing and catering business in China and internationally. The company also owns and operates restaurants.

Full company description

Guangzhou Restaurant Group Company Limited engages in food manufacturing and catering business in China and internationally. The company also owns and operates restaurants. It primarily offers moon cake, quick-frozen snacks, Cantonese cured meat, pre-lotus seed paste filling, rice dumplings, Western cake and bread, and snack foods; cold chain products of Cantonese dim sum, such as walnut, lava bun, barbecued pork bun, and shrimp dumplings; pre-prepared dish, pot dish, pigeon series, salt-baked chicken, and Cantonese soup; and Cantonese sausages, Chinese pastries, cakes, Dragon Boat Festival rice dumplings, etc. The company was founded in 1935 and is headquartered in Guangzhou, China. Guangzhou Restaurant Group Company Limited operates as a subsidiary of Guangzhou Urban Construction Investment Group Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guangzhou Restaurant Group reported revenue of ¥5.4B in FY2025 versus ¥3.9B in FY2021, a compound +8.5%/yr. Reported net income was ¥488M in FY2025, compounding −3.3%/yr from FY2021.

Growth Quality 87/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
5.4B CNY
Latest YoY
+5.0%
Avg. growth/yr (3Y)
+9.4%
Avg. growth/yr (5Y)
+10.4%
Avg. growth/yr (14Y)
+11.5%
Revenue +8.5%/yr
FY21 ¥3.9B
FY22 ¥4.1B
FY23 ¥4.9B
FY24 ¥5.1B
FY25 ¥5.4B
Net income −3.3%/yr
FY21 ¥558M
FY22 ¥523M
FY23 ¥550M
FY24 ¥494M
FY25 ¥488M

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Cite: Fair Value Calculator (2026). "Guangzhou Restaurant Group Fair Value". https://www.fairvalue-calculator.com/stock/603043

Peer Group

Restaurants · 226 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 66 · Top 25%
Fair Value upside +40% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 6% · Above median
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 7% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Restaurants median · lower = cheaper

P/E (TTM) 15.7× · Cheaper than median
P/B 1.81× · Pricier than median
P/S (TTM) 1.40× · Pricier than 75% of peers
P/FCF 2.5× · Pricier than median
EV/EBITDA 9.1× · 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 86 · sector 28
FUTURE 45 · sector 21
PAST 49 · sector 17
HEALTH 99 · sector 97
DIVIDEND 0 · sector 58

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 Restaurants stocks, each showing price versus our Fair Value estimate (as of Aug 10, 2026).

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCDS C$24.01 C$10.84 -55%
Starbucks Corporation SBUX $105.49 $35.83 -66%
Chipotle Mexican Grill, Inc CMG $34.63 $18.43 -47%
Yum! Brands, Inc YUM $163.54 $59.66 -64%
Restaurant Brands International Inc QSR C$104.19 C$36.37 -65%
Darden Restaurants, Inc DRI $195.74 $173.68 -11%
Yum China Holdings YUMC $43.90 $55.10 +26%
Texas Roadhouse, Inc TXRH $197.03 $104.89 -47%
Dutch Bros Inc BROS $68.36 $12.80 -81%
Domino's Pizza, Inc DPZ $322.18 $231.96 -28%

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Frequently asked questions

Is Guangzhou Restaurant Group (603043) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥18.93 versus a price of ¥13.54, about +40% (undervalued).
What is the fair value of 603043?
Our model-based fair value for Guangzhou Restaurant Group is ¥18.93 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥13.54.
What is the quality score of 603043?
Guangzhou Restaurant Group has a Quality Score of 66/100. 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 Guangzhou Restaurant Group (603043)?
Guangzhou Restaurant Group reported trailing-twelve-month revenue of about 5.5B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603043?
The net profit margin of Guangzhou Restaurant Group is about 9.0%, meaning it keeps roughly 9.0% of revenue as net income. Based on the latest reported figures.
Does Guangzhou Restaurant Group pay a dividend?
Guangzhou Restaurant Group currently shows a dividend yield of about 3.53% relative to its recent price (as of Aug 10, 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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