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Mengtian Home Group (603216) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 5.1B CNY

MH Mengtian Home Group 603216 · SHG
Price¥20.65
Fair Value¥6.40
Upside-69.0%
Quality68/100
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Weak Growth
Thin margins · 6.1% net margin
generates free cash flow
Trails peers (2/12)
Narrow moat 32/100
Evidence: High Range ¥4.80 – ¥8.00 Share as image

Fair value as of: Jul 11, 2026

From 24 valuation models · updated 30 days ago

Share price +3.2% over the past month.

A solid business, but screening 69% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥8.00). The favourable scenario is already priced in.
  • Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥57.60 ¥7.49 Fair Value ¥6.40 Dec 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

56‑month range ¥7.49 – ¥57.60 · fair‑value band ¥4.80 – ¥8.00 · the ¥20.65 price screens above the ¥6.40 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Mengtian Home Group (603216) currently trades at ¥20.65, while our model-based Fair Value estimate is ¥6.40, implying the stock looks roughly 69.0% overvalued today. The Quality Score stands at 68/100 (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, Mengtian Home Group generated revenue of 1.0B CNY at a net margin of 6.1%. Revenue declined 17.1% year over year. It earns a return on equity of 3.6%. The stock trades on a trailing P/E of 78.9. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥4.80 (bear case) to ¥8.00 (bull case); at ¥20.65, 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 65% below its 52-week high and 70% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 16% fair-value upside, at -69%, 603216 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
Residual Income ¥5.91 ¥5.85 ¥5.12 76
Growth DCF ¥6.16 ¥7.90 ¥10.79 72
Gordon GGM ¥1.76 ¥1.91 ¥2.15 70
All 24 models by family
DCF Models
FCF DCF ¥5.95 ¥7.76 ¥11.01 38
Owner Earnings ¥6.06 ¥7.91 ¥11.24 31
5Y Revenue Exit ¥4.90 ¥6.44 ¥8.67 39
5Y EBITDA Exit ¥6.37 ¥8.99 ¥12.46 41
5Y P/E Exit ¥5.45 ¥7.39 ¥9.71 38
10Y Revenue Exit ¥5.20 ¥6.37 ¥7.59 36
10Y EBITDA Exit ¥6.16 ¥7.91 ¥9.77 37
10Y P/E Exit ¥5.61 ¥6.94 ¥8.19 35
Earnings-Based
Graham-Dodd ¥1.98 ¥2.42 ¥2.72 54
EPV ¥3.75 ¥4.19 ¥4.56 59
Dividend Discount
Gordon GGM ¥1.76 ¥1.91 ¥2.15 70
DDM Multi-Stage ¥1.76 ¥2.17 ¥2.74 61
Multiples
P/E Multiple ¥4.80 ¥6.40 ¥8.00 63
P/S Multiple ¥3.71 ¥4.95 ¥6.18 58
P/B Multiple ¥3.71 ¥4.95 ¥6.18 55
EV/EBIT ¥6.18 ¥7.90 ¥9.63 53
EV/EBITDA ¥7.61 ¥9.81 ¥12.01 54
EV/Revenue ¥4.49 ¥5.98 ¥7.48 43
Asset-Based
NCAV (Graham) ¥4.04 ¥5.42 ¥8.08 50
Growth DCF
Growth DCF ¥6.16 ¥7.90 ¥10.79 72
Rev-Margin DCF ¥4.90 ¥6.56 ¥8.62 67
Economic Profit
Residual Income ¥5.91 ¥5.85 ¥5.12 76
ROIC Compounder ¥3.75 ¥4.19 ¥4.56 67
Growth Earnings
Growth-Adj P/E ¥3.39 ¥4.84 ¥6.29 68

Widest divergence: DCF Models (¥7.39) versus Dividend Discount (¥1.91). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 1.0B CNY
Revenue growth (YoY) -17.1%
Net margin 6.1%
Return on equity 3.6%
Free cash flow 119M CNY FY2025
P/E ratio 78.9
More key figures
Operating margin 4.2%
EPS (TTM) ¥0.2900

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 67 · Market factors (momentum, volatility) 46

Profitability 29
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 83
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

Mengtian Home Group Inc. designs, develops, produces, and sells customized wooden furniture in China. Its products include wooden doors, wall panels, and cabinets. The company offers home furnishing and furniture products. It offers its products under Mengtian brand name. The company was incorporated in 2003 and is based in Jiaxing, China.

Full company description

Mengtian Home Group Inc. designs, develops, produces, and sells customized wooden furniture in China. Its products include wooden doors, wall panels, and cabinets. The company offers home furnishing and furniture products. It offers its products under Mengtian brand name. The company was incorporated in 2003 and is based in Jiaxing, China. Mengtian Home Group Inc. operates as a subsidiary of Zhejiang Mengtian Holding Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Mengtian Home Group reported revenue of ¥1.1B in FY2025 versus ¥1.5B in FY2021, a compound −8.1%/yr. Reported net income was ¥64.8M in FY2025, compounding −22.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.1B CNY
Latest YoY
−2.9%
Avg. growth/yr (3Y)
−7.9%
Avg. growth/yr (5Y)
−2.4%
Avg. growth/yr (6Y)
−3.6%
Revenue −8.1%/yr
FY21 ¥1.5B
FY22 ¥1.4B
FY23 ¥1.3B
FY24 ¥1.1B
FY25 ¥1.1B
Net income −22.9%/yr
FY21 ¥183M
FY22 ¥220M
FY23 ¥95.7M
FY24 ¥61.3M
FY25 ¥64.8M

603216 screens 69% overvalued. Compare with Midea Group →

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Cite: Fair Value Calculator (2026). "Mengtian Home Group Fair Value". https://www.fairvalue-calculator.com/stock/603216

Peer Group

Furnishings, Fixtures & Appliances · 311 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 68 · Top 25%
Fair Value upside −69% · Bottom 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth -17% · Bottom 25%

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/E (TTM) 78.9× · Pricier than 75% of peers
P/B 2.83× · Pricier than 75% of peers
P/S (TTM) 4.86× · Pricier than 75% of peers
P/FCF 6.4× · Pricier than median
EV/EBITDA 34.9× · 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 26
FUTURE 0 · sector 0
PAST 14 · sector 19
HEALTH 0 · sector 98
DIVIDEND 0 · sector 55

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 Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥82.71 ¥107.22 +30%
Gree Electric Appliances, Inc 000651 ¥38.25 ¥88.02 +130%
Haier Smart Home Co 600690 ¥21.46 ¥36.04 +68%
King Slide Works Co 2059 8,655 TWD 1,917 TWD -78%
Guangdong Songfa Ceramics Co 603268 ¥155.59 ¥38.95 -75%
SharkNinja, Inc SN $154.53 $89.07 -42%
Hisense Home Appliances Group 000921 ¥26.33 ¥48.03 +82%
Zhejiang Supor Co 002032 ¥43.85 ¥44.84 +2%
COWAY Co 021240 96,700 KRW 112,530 KRW +16%
Ecovacs Robotics Co 603486 ¥50.13 ¥54.11 +8%

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Frequently asked questions

Is Mengtian Home Group (603216) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥6.40 versus a price of ¥20.65, about −69% (overvalued).
What is the fair value of 603216?
Our model-based fair value for Mengtian Home Group is ¥6.40 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥20.65.
What is the quality score of 603216?
Mengtian Home Group has a Quality Score of 68/100. 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 Mengtian Home Group (603216)?
Mengtian Home Group reported trailing-twelve-month revenue of about 1.0B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603216?
The net profit margin of Mengtian Home Group is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.

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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