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Zhejiang Taihua New Material Group (603055) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 7.3B CNY

ZT Zhejiang Taihua New Material Group 603055 · SHG
Price¥8.20
Fair Value¥11.10
Upside+35.4%
Quality49/100
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Healthy Growth
Thin margins · 7.9% net margin
Low debt · generates free cash flow
2.16% dividend yield
Mixed vs. peers (7/14)
Moderate moat 46/100
Evidence: High Range ¥5.27 – ¥16.41 Share as image

Fair value as of: Aug 10, 2026

From 26 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥11.95 to ¥11.10 (−7.1%) since Jul 11, 2026. Share price −4.2% over the past month.

Below-average quality, screening 35% undervalued on our models.

What matters now

  • The model range is unusually wide (¥5.27 to ¥16.41). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥20.16 ¥5.55 Fair Value ¥11.10 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 ¥5.55 – ¥20.16 · fair‑value band ¥5.27 – ¥16.41 · the ¥8.20 price screens below the ¥11.10 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

Zhejiang Taihua New Material Group (603055) currently trades at ¥8.20, while our model-based Fair Value estimate is ¥11.10, implying the stock looks roughly 35.4% undervalued today. The Quality Score stands at 49/100 (below-average 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: high), always confirm before acting.

Over the trailing twelve months, Zhejiang Taihua New Material Group generated revenue of 6.4B CNY at a net margin of 7.9%. Revenue declined 2.9% year over year. It earns a return on equity of 9.5%. Net debt stands at 3.2B CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥5.27 (bear case) to ¥16.41 (bull case); at ¥8.20, 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 27% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at 35%, 603055 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 ¥3.28 ¥6.85 ¥12.61 80
Residual Income ¥5.21 ¥5.74 ¥7.82 76
Rev-Margin DCF ¥3.89 ¥8.30 ¥14.01 74
All 26 models by family
DCF Models
FCF DCF ¥3.33 ¥7.29 ¥13.92 38
Owner Earnings ¥0.7500 ¥2.71 ¥6.00 31
5Y Revenue Exit ¥3.89 ¥8.44 ¥14.67 39
5Y EBITDA Exit ¥8.63 ¥18.23 ¥30.45 41
5Y P/E Exit ¥5.96 ¥12.71 ¥20.49 38
10Y Revenue Exit ¥3.45 ¥7.65 ¥14.16 36
10Y EBITDA Exit ¥6.72 ¥14.67 ¥27.10 37
10Y P/E Exit ¥4.99 ¥10.71 ¥18.94 35
Earnings-Based
Graham-Dodd ¥4.06 ¥18.94 ¥26.03 54
Lynch FV ¥5.00 ¥7.15 ¥9.29 50
PEG = 1.0 ¥5.00 ¥7.15 ¥9.29 46
EPV ¥6.44 ¥7.74 ¥8.86 59
Dividend Discount
Gordon GGM ¥3.38 ¥6.73 ¥10.19 70
DDM Multi-Stage ¥3.38 ¥5.81 ¥7.10 61
Multiples
P/E Multiple ¥9.85 ¥13.13 ¥16.41 63
P/S Multiple ¥6.48 ¥8.64 ¥10.80 58
P/B Multiple ¥7.61 ¥10.14 ¥12.68 55
EV/EBIT ¥11.79 ¥16.32 ¥20.85 53
EV/EBITDA ¥12.42 ¥17.15 ¥21.89 54
EV/Revenue ¥4.26 ¥6.85 ¥9.44 43
Asset-Based
NCAV (Graham) ¥2.99 ¥4.01 ¥5.98 50
Growth DCF
Growth DCF ¥3.28 ¥6.85 ¥12.61 80
Rev-Margin DCF ¥3.89 ¥8.30 ¥14.01 74
Economic Profit
Residual Income ¥5.21 ¥5.74 ¥7.82 76
ROIC Compounder ¥6.67 ¥9.46 ¥12.87 72
Growth Earnings
Growth-Adj P/E ¥8.16 ¥11.66 ¥15.15 68

Widest divergence: Growth Earnings (¥11.66) versus Asset-Based (¥4.01). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 6.4B CNY
Revenue growth (YoY) -2.9%
Net margin 7.9%
Return on equity 9.5%
Free cash flow 372M CNY FY2025
P/E ratio 14.4
More key figures
Operating margin 15.3%
EPS (TTM) ¥0.5700
Dividend yield 2.2%
EPS growth (YoY) -16.7%
Net debt 3.2B CNY FY2025

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

Quality Score breakdown

Overall quality 49/100

Of which business quality 49 · Market factors (momentum, volatility) 41

Profitability 37
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 40
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 80
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

Zhejiang Taihua New Material Group Co., Ltd. engages in research, development, spinning, weaving, dyeing, finishing, and selling of environmental protection and health, outdoor sports, special protection, and other fabrics in the People's Republic of China.

Full company description

Zhejiang Taihua New Material Group Co., Ltd. engages in research, development, spinning, weaving, dyeing, finishing, and selling of environmental protection and health, outdoor sports, special protection, and other fabrics in the People's Republic of China. The company offers cool, antibacterial, hygroscopic and sweat releasing, recycled environment-friendly, nylon mechanical stretch, air textured, and dope dyed yarns; nylon filaments; grey fabrics; and functional finished fabrics. Zhejiang Taihua New Material Group Co., Ltd. serves military, aerospace, and other industrial fields. The company was founded in 2001 and is based in Jiaxing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Taihua New Material Group reported revenue of ¥6.4B in FY2025 versus ¥4.3B in FY2021, a compound +10.8%/yr. Reported net income was ¥531M in FY2025, compounding +3.5%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
6.4B CNY
Avg. growth/yr (3Y)
+18.7%
Avg. growth/yr (5Y)
+21.5%
Avg. growth/yr (12Y)
+12.7%
Revenue +10.8%/yr
FY21 ¥4.3B
FY22 ¥4.0B
FY23 ¥5.1B
FY24 ¥7.1B
FY25 ¥6.4B
Net income +3.5%/yr
FY21 ¥464M
FY22 ¥269M
FY23 ¥449M
FY24 ¥726M
FY25 ¥531M

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Cite: Fair Value Calculator (2026). "Zhejiang Taihua New Material Group Fair Value". https://www.fairvalue-calculator.com/stock/603055

Peer Group

Textile Manufacturing · 309 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 49 · Below median
Fair Value upside +35% · Top 25%
Return on equity (TTM) 9% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth -3% · Below median
Dividend yield (TTM) 2.2% · Above median
Debt / equity 0.44× · Higher than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 14.4× · Cheaper than median
P/B 1.37× · Pricier than median
P/S (TTM) 1.15× · Pricier than median
P/FCF 2.9× · Pricier than 75% of peers
EV/EBITDA 8.8× · 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 81 · sector 11
FUTURE 0 · sector 0
PAST 38 · sector 14
HEALTH 78 · sector 95
DIVIDEND 43 · sector 34

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

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
HMT (Xiamen) New Technical Materials Co 603306 ¥91.75 ¥12.85 -86%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Shandong Fiberglass Group 605006 ¥16.75 ¥6.42 -62%

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Frequently asked questions

Is Zhejiang Taihua New Material Group (603055) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥11.10 versus a price of ¥8.20, about +35% (undervalued).
What is the fair value of 603055?
Our model-based fair value for Zhejiang Taihua New Material Group is ¥11.10 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥8.20.
What is the quality score of 603055?
Zhejiang Taihua New Material Group has a Quality Score of 49/100. 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 Zhejiang Taihua New Material Group (603055)?
Zhejiang Taihua New Material Group reported trailing-twelve-month revenue of about 6.4B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603055?
The net profit margin of Zhejiang Taihua New Material Group is about 7.9%, meaning it keeps roughly 7.9% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Taihua New Material Group pay a dividend?
Zhejiang Taihua New Material Group currently shows a dividend yield of about 2.17% 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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