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Henan Thinker Automatic Equipment Co (603508) Fair Value & Analysis

Technology · CN · Market cap 8.3B CNY

HT Henan Thinker Automatic Equipment Co 603508 · SHG
Price¥22.78
Fair Value¥27.44
Upside+20.5%
Quality84/100
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Healthy Growth
Highly profitable · 37.4% net margin
generates free cash flow
12.09% dividend yield
Ranks above peers (12/13)
Wide moat 78/100
Evidence: High Range ¥21.66 – ¥33.22 Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 30 days ago

Fair value updated Jul 11, 2026, revised from ¥30.63 to ¥27.44 (−10.4%) since Jun 24, 2026. Share price +2.9% over the past month.

A strong business, screening 20% undervalued on our models.

What matters now

  • Our model range runs from ¥21.66 (bear) to ¥33.22 (bull), base ¥27.44. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 84/100 (high quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥37.16 ¥10.96 Fair Value ¥27.44 Feb 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

60‑month range ¥10.96 – ¥37.16 · fair‑value band ¥21.66 – ¥33.22 · the ¥22.78 price screens below the ¥27.44 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Henan Thinker Automatic Equipment Co (603508) currently trades at ¥22.78, while our model-based Fair Value estimate is ¥27.44, implying the stock looks roughly 20.5% undervalued today. The Quality Score stands at 84/100 (high quality), in the Technology 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, Henan Thinker Automatic Equipment Co generated revenue of 1.6B CNY at a net margin of 37.4%. Revenue grew 18.7% year over year. It earns a return on equity of 13.2%. The balance sheet holds a net cash position of 1.6B CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥21.66 (bear case) to ¥33.22 (bull case); at ¥22.78, 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 39% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -45% fair-value upside, at 20%, 603508 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 ¥10.09 ¥12.00 ¥20.74 76
Growth DCF ¥23.44 ¥37.77 ¥60.70 72
Gordon GGM ¥28.88 ¥57.54 ¥87.14 70
All 26 models by family
DCF Models
FCF DCF ¥23.63 ¥39.39 ¥65.61 38
Owner Earnings ¥21.59 ¥35.80 ¥59.45 31
5Y Revenue Exit ¥13.05 ¥17.79 ¥23.72 39
5Y EBITDA Exit ¥20.36 ¥32.78 ¥48.14 41
5Y P/E Exit ¥23.80 ¥39.84 ¥58.08 38
10Y Revenue Exit ¥16.41 ¥22.06 ¥29.85 36
10Y EBITDA Exit ¥21.30 ¥32.77 ¥49.74 37
10Y P/E Exit ¥23.53 ¥37.82 ¥57.84 35
Earnings-Based
Graham-Dodd ¥9.92 ¥45.35 ¥62.24 54
Lynch FV ¥11.90 ¥16.99 ¥22.09 50
PEG = 1.0 ¥11.90 ¥16.99 ¥22.09 46
EPV ¥15.73 ¥17.78 ¥19.54 59
Dividend Discount
Gordon GGM ¥28.88 ¥57.54 ¥87.14 70
DDM Multi-Stage ¥28.88 ¥49.73 ¥60.74 61
Multiples
P/E Multiple ¥22.97 ¥30.63 ¥38.29 63
P/S Multiple ¥5.98 ¥7.97 ¥9.96 58
P/B Multiple ¥18.60 ¥24.80 ¥31.00 55
EV/EBIT ¥23.74 ¥30.72 ¥37.70 53
EV/EBITDA ¥20.13 ¥25.91 ¥31.69 54
EV/Revenue ¥7.82 ¥9.97 ¥12.12 43
Asset-Based
NCAV (Graham) ¥5.25 ¥7.04 ¥10.50 50
Growth DCF
Growth DCF ¥23.44 ¥37.77 ¥60.70 72
Rev-Margin DCF ¥13.05 ¥17.96 ¥24.32 67
Economic Profit
Residual Income ¥10.09 ¥12.00 ¥20.74 76
ROIC Compounder ¥17.32 ¥22.14 ¥28.35 67
Growth Earnings
Growth-Adj P/E ¥19.14 ¥27.34 ¥35.55 68

Widest divergence: Dividend Discount (¥49.73) versus Asset-Based (¥7.04). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 1.6B CNY
Revenue growth (YoY) +18.7%
Net margin 37.4%
Return on equity 13.2%
Free cash flow 653M CNY FY2025
P/E ratio 14.1
More key figures
Operating margin 51.2%
EPS (TTM) ¥1.55
Dividend yield 12.1%
EPS growth (YoY) +27.3%
Net cash 1.6B CNY FY2024

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

Quality Score breakdown

Overall quality 84/100

Of which business quality 80 · Market factors (momentum, volatility) 35

Profitability 57
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 87
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 81
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

Henan Thinker Automatic Equipment Co.,Ltd. engages in the production, research and development, and sale of train operation control systems in China. The company offers in-vehicle solutions, such as train operation control, locomotive onboard safety protection, locomotive remote monitoring and diagnosis, and train operation status information systems.

Full company description

Henan Thinker Automatic Equipment Co.,Ltd. engages in the production, research and development, and sale of train operation control systems in China. The company offers in-vehicle solutions, such as train operation control, locomotive onboard safety protection, locomotive remote monitoring and diagnosis, and train operation status information systems. It also provides ground solutions, including locomotive wireless shunting monitoring, standardized maintenance operation, flight attendant training, flight attendant remote attendance and exit management, locomotive operation safety monitoring and early warning, and driving safety data closed-loop application systems. In addition, the company offers secure computer, operating system, power supply, wireless communications, simulation test, combined inertial navigation, and smart manufacturing technology solutions. The company was founded in 1992 and is headquartered in Zhengzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Henan Thinker Automatic Equipment Co reported revenue of ¥1.5B in FY2025 versus ¥1.1B in FY2021, a compound +9.3%/yr. Reported net income was ¥556M in FY2025, compounding +9.6%/yr from FY2021.

Growth Quality 97/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
1.5B CNY
Latest YoY
+0.3%
Avg. growth/yr (3Y)
+12.5%
Avg. growth/yr (5Y)
+12.5%
Avg. growth/yr (14Y)
+12.3%
Revenue +9.3%/yr
FY21 ¥1.1B
FY22 ¥1.1B
FY23 ¥1.2B
FY24 ¥1.5B
FY25 ¥1.5B
Net income +9.6%/yr
FY21 ¥385M
FY22 ¥346M
FY23 ¥412M
FY24 ¥548M
FY25 ¥556M

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Cite: Fair Value Calculator (2026). "Henan Thinker Automatic Equipment Co Fair Value". https://www.fairvalue-calculator.com/stock/603508

Peer Group

Scientific & Technical Instruments · 161 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 84 · Top 25%
Fair Value upside +21% · Top 25%
Return on equity (TTM) 13% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 37% · Top 25%
Operating margin (TTM) 51% · Top 25%
Revenue growth 19% · Above median
Dividend yield (TTM) 12.1% · Top 25%

Valuation Multiples vs Scientific & Technical Instruments median · lower = cheaper

P/E (TTM) 14.1× · Cheaper than 75% of peers
P/B 2.07× · Cheaper than median
P/S (TTM) 5.26× · Pricier than median
P/FCF 1.9× · Cheaper than 75% of peers
EV/EBITDA 9.8× · Cheaper 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 61 · sector 0
FUTURE 94 · sector 34
PAST 53 · sector 25
HEALTH 0 · sector 98
DIVIDEND 100 · sector 24

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 Scientific & Technical Instruments stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Keysight Technologies, Inc KEYS $315.90 $84.16 -73%
Garmin Ltd GRMN $241.76 $146.67 -39%
Teledyne Technologies Incorporated TDY $635.52 $367.58 -42%
Chroma ATE Inc 2360 1,905 TWD 286.15 TWD -85%
Hexagon AB HEXAB kr 80.10 kr 52.93 -34%
MKS Inc MKSI $324.69 $77.46 -76%
AVIC Chengdu Aircraft Company 302132 ¥52.91 ¥34.47 -35%
Fortive Corporation FTV $61.78 $33.84 -45%
Trimble Inc TRMB $52.72 $24.47 -54%
Cognex Corporation CGNX $64.07 $13.75 -79%

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Frequently asked questions

Is Henan Thinker Automatic Equipment Co (603508) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥27.44 versus a price of ¥22.78, about +20% (undervalued).
What is the fair value of 603508?
Our model-based fair value for Henan Thinker Automatic Equipment Co is ¥27.44 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥22.78.
What is the quality score of 603508?
Henan Thinker Automatic Equipment Co has a Quality Score of 84/100. 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 Henan Thinker Automatic Equipment Co (603508)?
Henan Thinker Automatic Equipment Co reported trailing-twelve-month revenue of about 1.6B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603508?
The net profit margin of Henan Thinker Automatic Equipment Co is about 37.4%, meaning it keeps roughly 37.4% of revenue as net income. Based on the latest reported figures.
Does Henan Thinker Automatic Equipment Co pay a dividend?
Henan Thinker Automatic Equipment Co currently shows a dividend yield of about 12.09% relative to its recent price (as of Jul 11, 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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