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Wuxi Hongsheng Heat Exchanger Manufacturing Co (603090) Fair Value & Analysis

Industrials · CN · Market cap 4.0B CNY

WH Wuxi Hongsheng Heat Exchanger Manufacturing Co 603090 · SHG
Price¥40.03
Fair Value¥11.73
Upside-70.7%
Quality63/100
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Mixed Growth
Thin margins · 9.4% net margin
Low debt · generates free cash flow
0.76% dividend yield
Mixed vs. peers (7/14)
Moderate moat 49/100
Evidence: High Range ¥6.87 – ¥18.30 Share as image

Fair value as of: Aug 10, 2026

From 26 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥12.80 to ¥11.73 (−8.4%) since Jul 11, 2026. Share price −20.4% over the past month.

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

What matters now

  • The price sits above even our optimistic bull case (¥18.30). The favourable scenario is already priced in.
  • The model range is unusually wide (¥6.87 to ¥18.30). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥97.06 ¥11.45 Fair Value ¥11.73 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 ¥11.45 – ¥97.06 · fair‑value band ¥6.87 – ¥18.30 · the ¥40.03 price screens above the ¥11.73 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

Wuxi Hongsheng Heat Exchanger Manufacturing Co (603090) currently trades at ¥40.03, while our model-based Fair Value estimate is ¥11.73, implying the stock looks roughly 70.7% overvalued today. The Quality Score stands at 63/100 (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: high).

Over the trailing twelve months, Wuxi Hongsheng Heat Exchanger Manufacturing Co generated revenue of 807M CNY at a net margin of 9.4%. Revenue grew 27.6% year over year. It earns a return on equity of 11.8%. The balance sheet holds a net cash position of 65.5M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥6.87 (bear case) to ¥18.30 (bull case); at ¥40.03, 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 60% below its 52-week high and 82% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -71%, 603090 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥4.27 ¥6.29 ¥9.46 80
Residual Income ¥5.93 ¥7.11 ¥14.29 76
Rev-Margin DCF ¥7.09 ¥11.98 ¥18.10 74
All 26 models by family
DCF Models
FCF DCF ¥4.29 ¥6.46 ¥9.97 38
Owner Earnings ¥5.10 ¥7.85 ¥12.28 31
5Y Revenue Exit ¥7.09 ¥12.16 ¥19.07 39
5Y EBITDA Exit ¥8.63 ¥15.26 ¥23.53 41
5Y P/E Exit ¥10.01 ¥18.04 ¥27.12 38
10Y Revenue Exit ¥5.81 ¥10.21 ¥16.92 36
10Y EBITDA Exit ¥7.04 ¥12.39 ¥20.48 37
10Y P/E Exit ¥7.93 ¥14.36 ¥23.35 35
Earnings-Based
Graham-Dodd ¥5.60 ¥23.65 ¥32.28 54
Lynch FV ¥6.01 ¥8.59 ¥11.17 50
PEG = 1.0 ¥6.01 ¥8.59 ¥11.17 46
EPV ¥7.71 ¥8.75 ¥9.64 59
Dividend Discount
Gordon GGM ¥2.89 ¥5.75 ¥8.71 70
DDM Multi-Stage ¥2.89 ¥4.97 ¥6.07 61
Multiples
P/E Multiple ¥12.98 ¥17.30 ¥21.63 63
P/S Multiple ¥10.50 ¥14.01 ¥17.51 58
P/B Multiple ¥10.50 ¥14.01 ¥17.51 55
EV/EBIT ¥11.75 ¥15.28 ¥18.81 53
EV/EBITDA ¥11.83 ¥15.39 ¥18.94 54
EV/Revenue ¥8.72 ¥11.96 ¥15.20 43
Asset-Based
NCAV (Graham) ¥3.17 ¥4.24 ¥6.33 50
Growth DCF
Growth DCF ¥4.27 ¥6.29 ¥9.46 80
Rev-Margin DCF ¥7.09 ¥11.98 ¥18.10 74
Economic Profit
Residual Income ¥5.93 ¥7.11 ¥14.29 76
ROIC Compounder ¥8.21 ¥10.47 ¥13.46 72
Growth Earnings
Growth-Adj P/E ¥10.19 ¥14.55 ¥18.92 68

Widest divergence: Growth Earnings (¥14.55) versus Asset-Based (¥4.24). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 807M CNY
Revenue growth (YoY) +27.6%
Net margin 9.4%
Return on equity 11.8%
Free cash flow 26.4M CNY FY2025
P/E ratio 76.6
More key figures
Operating margin 11.8%
EPS (TTM) ¥0.7600
Dividend yield 0.5%
EPS growth (YoY) -26.1%
Net cash 65.5M CNY FY2024

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

Quality Score breakdown

Overall quality 63/100

Of which business quality 62 · Market factors (momentum, volatility) 36

Profitability 51
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 32
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 87
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

Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd. engages in the research and development, design, production, and sales of heat exchangers and related products in China and internationally. It offers aluminum plate-fin heat exchangers and thermal management systems.

Full company description

Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd. engages in the research and development, design, production, and sales of heat exchangers and related products in China and internationally. It offers aluminum plate-fin heat exchangers and thermal management systems. The company also provides power lithium battery pack for energy storage systems for power, construction machinery, special trucks, and mining machinery markets. It exports its products to the United States, South Korea, the European Union, and India. The company's products are used in off-highway, hydraulic system, compressor, train, power generation, agriculture, automotive, and other fields. The company was founded in 2000 and is based in Wuxi, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Wuxi Hongsheng Heat Exchanger Manufacturing Co reported revenue of ¥764M in FY2025 versus ¥559M in FY2021, a compound +8.1%/yr. Reported net income was ¥82.4M in FY2025, compounding +54.0%/yr from FY2021.

Growth Quality 76/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
764M CNY
Latest YoY
+7.1%
Avg. growth/yr (3Y)
+2.3%
Avg. growth/yr (5Y)
+18.6%
Avg. growth/yr (14Y)
+8.9%
Revenue +8.1%/yr
FY21 ¥559M
FY22 ¥714M
FY23 ¥696M
FY24 ¥713M
FY25 ¥764M
Net income +54.0%/yr
FY21 ¥14.7M
FY22 ¥53.4M
FY23 ¥53.8M
FY24 ¥49.4M
FY25 ¥82.4M

603090 screens 71% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Wuxi Hongsheng Heat Exchanger Manufacturing Co Fair Value". https://www.fairvalue-calculator.com/stock/603090

Peer Group

Specialty Industrial Machinery · 809 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 63 · Top 25%
Fair Value upside −71% · Bottom 25%
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 12% · Above median
Revenue growth 28% · Top 25%
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 52.7× · Pricier than 75% of peers
P/B 6.32× · Pricier than 75% of peers
P/S (TTM) 4.96× · Pricier than 75% of peers
P/FCF 22.5× · Pricier than 75% of peers
EV/EBITDA 37.6× · Pricier 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 0 · sector 0
FUTURE 100 · sector 23
PAST 47 · sector 28
HEALTH 100 · sector 96
DIVIDEND 15 · sector 24

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.

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

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Wuxi Hongsheng Heat Exchanger Manufacturing Co (603090) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥11.73 versus a price of ¥40.03, about −71% (overvalued).
What is the fair value of 603090?
Our model-based fair value for Wuxi Hongsheng Heat Exchanger Manufacturing Co is ¥11.73 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥40.03.
What is the quality score of 603090?
Wuxi Hongsheng Heat Exchanger Manufacturing Co has a Quality Score of 63/100. 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 Wuxi Hongsheng Heat Exchanger Manufacturing Co (603090)?
Wuxi Hongsheng Heat Exchanger Manufacturing Co reported trailing-twelve-month revenue of about 807M CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603090?
The net profit margin of Wuxi Hongsheng Heat Exchanger Manufacturing Co is about 9.4%, meaning it keeps roughly 9.4% of revenue as net income. Based on the latest reported figures.
Does Wuxi Hongsheng Heat Exchanger Manufacturing Co pay a dividend?
Wuxi Hongsheng Heat Exchanger Manufacturing Co currently shows a dividend yield of about 0.53% 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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