Hangzhou Electronic Soul Network Technology Co (603258) Fair Value & Analysis
Communication Services · CN · Market cap 3.2B CNY
Fair value as of: Aug 10, 2026
From 3 valuation models · updated today
Fair value updated Aug 10, 2026, revised from ¥4.73 to ¥4.36 (−7.8%) since Jul 24, 2026. Share price +12.5% over the past month.
Below-average quality, and screening another 67% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (¥4.93). The favourable scenario is already priced in.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
- Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
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 ¥10.82 – ¥53.85 · fair‑value band ¥3.99 – ¥4.93 · the ¥13.09 price screens above the ¥4.36 fair value. Dashed = 300-day average. As of Aug 10, 2026.
Analysis
Hangzhou Electronic Soul Network Technology Co (603258) currently trades at ¥13.09, while our model-based Fair Value estimate is ¥4.36, implying the stock looks roughly 66.7% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Communication Services 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: low).
Over the trailing twelve months, Hangzhou Electronic Soul Network Technology Co generated revenue of 373M CNY at a net margin of -63.9%. Revenue declined 11.7% year over year. It earns a return on equity of -11.7%. The balance sheet holds a net cash position of 1.3B CNY. Fundamentals as of Aug 10, 2026
Our scenario range runs from ¥3.99 (bear case) to ¥4.93 (bull case); at ¥13.09, 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 50% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -19% fair-value upside, at -67%, 603258 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.
All 3 models by family
Widest divergence: Asset-Based (¥5.46) versus Dividend Discount (¥4.20). Highest evidence: Gordon GGM (70).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 10, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 47 · Market factors (momentum, volatility) 29
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
Hangzhou Electronic Soul Network Technology Co., Ltd., researches, develops and publishes online and mobile games in China and internationally. It offers H5 games, VR games, consoles, stand-alone games, and apps platforms, as well as comics and e-sports events, and other fields. The company was incorporated in 2008 and is based in Hangzhou, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Hangzhou Electronic Soul Network Technology Co reported revenue of ¥385M in FY2025 versus ¥996M in FY2021, a compound −21.2%/yr. Reported net income was −¥214M in FY2025.
603258 screens 67% overvalued. Compare with NetEase, Inc →
Peer Group
Electronic Gaming & Multimedia · 152 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.
Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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 Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Aug 10, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NetEase, Inc 9999 | HK$202.60 | HK$192.74 | -5% |
| Electronic Arts Inc EA | $207.27 | $76.57 | -63% |
| Take-Two Interactive Software, Inc TTWO | $237.04 | $60.45 | -74% |
| Roblox Corporation RBLX | $57.07 | $21.20 | -63% |
| Zhejiang Century Huatong Group 002602 | ¥14.04 | ¥14.68 | +5% |
| KRAFTON, Inc 259960 | 240,500 KRW | 395,557 KRW | +64% |
| Kunlun Tech Co 300418 | ¥44.61 | ¥6.87 | -85% |
| Giant Network Group 002558 | ¥29.98 | ¥15.69 | -48% |
| International Games System Co 3293 | 704.00 TWD | 568.16 TWD | -19% |
| 37 Interactive Entertainment Network Technology Group 002555 | ¥19.02 | ¥22.29 | +17% |
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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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