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Jiangsu Huachen Transformer Co (603097) Fair Value & Analysis

Technology · CN · Market cap 4.8B CNY

JH Jiangsu Huachen Transformer Co 603097 · SHG
Price¥21.07
Fair Value¥6.12
Upside-71.0%
Quality39/100
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Expensive Growth
Thin margins · 2.3% net margin
Low debt · negative free cash flow
0.51% dividend yield
Trails peers (1/13)
Narrow moat 30/100
Evidence: High Range ¥4.59 – ¥7.65 Share as image

Fair value as of: Aug 10, 2026

From 16 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥8.52 to ¥6.12 (−28.2%) since Jul 11, 2026. Share price +25.0% over the past month.

Below-average quality, and screening another 71% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥7.65). The favourable scenario is already priced in.
  • Weak quality (39/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (4 years)

¥29.44 ¥8.48 Fair Value ¥6.12 May 2022 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

51‑month range ¥8.48 – ¥29.44 · fair‑value band ¥4.59 – ¥7.65 · the ¥21.07 price screens above the ¥6.12 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

Jiangsu Huachen Transformer Co (603097) currently trades at ¥21.07, while our model-based Fair Value estimate is ¥6.12, implying the stock looks roughly 71.0% overvalued today. The Quality Score stands at 39/100 (below-average quality), in the Technology 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, Jiangsu Huachen Transformer Co generated revenue of 2.2B CNY at a net margin of 2.3%. Revenue declined 13.3% year over year. It earns a return on equity of 4.5%. Net debt stands at 388M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥4.59 (bear case) to ¥7.65 (bull case); at ¥21.07, 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 51% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at -71%, 603097 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
Residual Income ¥5.39 ¥5.59 ¥5.66 76
ROIC Compounder ¥5.42 ¥6.61 ¥8.83 72
Gordon GGM ¥2.23 ¥4.45 ¥6.73 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥2.90 ¥20.21 ¥28.36 54
Lynch FV ¥8.19 ¥11.71 ¥15.22 50
PEG = 1.0 ¥8.19 ¥11.71 ¥15.22 46
EPV ¥5.42 ¥6.61 ¥7.64 59
Dividend Discount
Gordon GGM ¥2.23 ¥4.45 ¥6.73 70
DDM Multi-Stage ¥2.23 ¥3.84 ¥4.69 61
Multiples
P/E Multiple ¥6.39 ¥8.52 ¥10.65 63
P/S Multiple ¥5.43 ¥7.24 ¥9.06 58
P/B Multiple ¥5.43 ¥7.24 ¥9.06 55
EV/EBIT ¥10.32 ¥14.46 ¥18.60 53
EV/EBITDA ¥9.09 ¥12.82 ¥16.55 54
EV/Revenue ¥6.27 ¥9.86 ¥13.45 43
Asset-Based
NCAV (Graham) ¥3.43 ¥4.60 ¥6.86 50
Economic Profit
Residual Income ¥5.39 ¥5.59 ¥5.66 76
ROIC Compounder ¥5.42 ¥6.61 ¥8.83 72
Growth Earnings
Growth-Adj P/E ¥10.09 ¥14.41 ¥18.74 68

Widest divergence: Growth Earnings (¥14.41) versus Dividend Discount (¥3.84). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.2B CNY
Revenue growth (YoY) -13.3%
Net margin 2.3%
Return on equity 4.5%
Free cash flow −154M CNY FY2025
P/E ratio 95.8
More key figures
Operating margin 6.1%
EPS (TTM) ¥0.2200
Dividend yield 0.5%
EPS growth (YoY) -99.3%
Net debt 388M CNY FY2025

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

Quality Score breakdown

Overall quality 39/100

Of which business quality 40 · Market factors (momentum, volatility) 50

Profitability 30
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 5
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 37
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 60
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

Jiangsu Huachen Transformer Co., Ltd. engages in the research, development, production, and sales of power transmission and distribution and control equipment in China and internationally.

Full company description

Jiangsu Huachen Transformer Co., Ltd. engages in the research, development, production, and sales of power transmission and distribution and control equipment in China and internationally. The company offers oil-immersed distribution transformer, dry type distribution transformer, coating coil distribution transformer, and transformer substation; and new energy box-type transformers, prefabricated substations, combined substations, and electrical complete sets of equipment. Its products are used in base mall, colleges, community, grid company, hydropower project, other projects, public construction, and traffic project applications. Jiangsu Huachen Transformer Co., Ltd. was incorporated in 2007 and is headquartered in Xuzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangsu Huachen Transformer Co reported revenue of ¥2.3B in FY2025 versus ¥871M in FY2021, a compound +26.9%/yr. Reported net income was ¥70.4M in FY2025, compounding −2.7%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
2.3B CNY
Latest YoY
+42.7%
Avg. growth/yr (3Y)
+30.1%
Avg. growth/yr (5Y)
+27.1%
Avg. growth/yr (6Y)
+23.6%
Revenue +26.9%/yr
FY21 ¥871M
FY22 ¥1.0B
FY23 ¥1.5B
FY24 ¥1.6B
FY25 ¥2.3B
Net income −2.7%/yr
FY21 ¥78.4M
FY22 ¥91.3M
FY23 ¥121M
FY24 ¥91.6M
FY25 ¥70.4M

603097 screens 71% overvalued. Compare with Delta Electronics, Inc →

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Cite: Fair Value Calculator (2026). "Jiangsu Huachen Transformer Co Fair Value". https://www.fairvalue-calculator.com/stock/603097

Peer Group

Electronic Components · 626 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 39 · Bottom 25%
Fair Value upside −71% · Bottom 25%
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth -13% · Bottom 25%
Dividend yield (TTM) 0.5% · Below median
Debt / equity 0.49× · Higher than 75% of peers

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 95.8× · Pricier than 75% of peers
P/B 4.28× · Pricier than median
P/S (TTM) 2.18× · Pricier than median
EV/EBITDA 50.0× · 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 0 · sector 32
PAST 18 · sector 24
HEALTH 76 · sector 95
DIVIDEND 10 · sector 25

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

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$297.00 HK$103.98 -65%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is Jiangsu Huachen Transformer Co (603097) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥6.12 versus a price of ¥21.07, about −71% (overvalued).
What is the fair value of 603097?
Our model-based fair value for Jiangsu Huachen Transformer Co is ¥6.12 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥21.07.
What is the quality score of 603097?
Jiangsu Huachen Transformer Co has a Quality Score of 39/100. 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 Jiangsu Huachen Transformer Co (603097)?
Jiangsu Huachen Transformer Co reported trailing-twelve-month revenue of about 2.2B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603097?
The net profit margin of Jiangsu Huachen Transformer Co is about 2.3%, meaning it keeps roughly 2.3% of revenue as net income. Based on the latest reported figures.
Does Jiangsu Huachen Transformer Co pay a dividend?
Jiangsu Huachen Transformer Co currently shows a dividend yield of about 0.51% 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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