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Jinhong Fashion Group (603518) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 2.9B CNY

JF Jinhong Fashion Group 603518 · SHG
Price¥8.19
Fair Value¥14.42
Upside+76.1%
Quality58/100
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Mixed Growth
Thin margins · 6.0% net margin
Low debt · generates free cash flow
Ranks above peers (12/13)
Moderate moat 46/100
Evidence: High Range ¥10.82 – ¥18.03 Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 30 days ago

Share price +4.9% over the past month.

A solid business, screening 76% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥10.82). The market is more pessimistic than our downside scenario.
  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥26.83 ¥4.20 Fair Value ¥14.42 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 ¥4.20 – ¥26.83 · fair‑value band ¥10.82 – ¥18.03 · the ¥8.19 price screens below the ¥14.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Jinhong Fashion Group (603518) currently trades at ¥8.19, while our model-based Fair Value estimate is ¥14.42, implying the stock looks roughly 76.1% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical 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, Jinhong Fashion Group generated revenue of 4.2B CNY at a net margin of 6.0%. Revenue declined 3.3% year over year. It earns a return on equity of 6.6%. Net debt stands at 236M CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥10.82 (bear case) to ¥18.03 (bull case); at ¥8.19, the current price sits below 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 30% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 1% fair-value upside, at 76%, 603518 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ¥16.08 ¥31.41 ¥55.01 80
Residual Income ¥8.50 ¥8.81 ¥8.88 76
Rev-Margin DCF ¥12.15 ¥21.28 ¥34.19 74
All 26 models by family
DCF Models
FCF DCF ¥16.60 ¥29.03 ¥60.05 38
Owner Earnings ¥15.81 ¥31.46 ¥60.93 31
5Y Revenue Exit ¥12.15 ¥21.60 ¥34.98 39
5Y EBITDA Exit ¥16.49 ¥31.37 ¥51.22 41
5Y P/E Exit ¥12.68 ¥22.81 ¥35.09 38
10Y Revenue Exit ¥13.14 ¥22.95 ¥38.95 36
10Y EBITDA Exit ¥16.40 ¥30.31 ¥53.81 37
10Y P/E Exit ¥13.84 ¥23.86 ¥39.44 35
Earnings-Based
Graham-Dodd ¥4.46 ¥27.06 ¥37.74 54
Lynch FV ¥7.74 ¥11.05 ¥14.37 50
PEG = 1.0 ¥7.74 ¥11.05 ¥14.37 46
EPV ¥7.42 ¥8.49 ¥9.41 59
Dividend Discount
Gordon GGM ¥4.41 ¥8.80 ¥13.32 70
DDM Multi-Stage ¥4.41 ¥7.60 ¥9.28 61
Multiples
P/E Multiple ¥10.82 ¥14.42 ¥18.03 63
P/S Multiple ¥8.36 ¥11.15 ¥13.93 58
P/B Multiple ¥8.36 ¥11.15 ¥13.93 55
EV/EBIT ¥14.48 ¥19.10 ¥23.72 53
EV/EBITDA ¥17.23 ¥22.77 ¥28.30 54
EV/Revenue ¥9.97 ¥13.97 ¥17.97 43
Asset-Based
NCAV (Graham) ¥5.40 ¥7.24 ¥10.81 50
Growth DCF
Growth DCF ¥16.08 ¥31.41 ¥55.01 80
Rev-Margin DCF ¥12.15 ¥21.28 ¥34.19 74
Economic Profit
Residual Income ¥8.50 ¥8.81 ¥8.88 76
ROIC Compounder ¥7.42 ¥8.49 ¥9.41 72
Growth Earnings
Growth-Adj P/E ¥11.44 ¥16.34 ¥21.24 68

Widest divergence: DCF Models (¥23.86) versus Asset-Based (¥7.24). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 4.2B CNY
Revenue growth (YoY) -3.3%
Net margin 6.0%
Return on equity 6.6%
Free cash flow 400M CNY FY2025
P/E ratio 11.6
More key figures
Operating margin 13.6%
EPS (TTM) ¥0.7200
EPS growth (YoY) +23.1%
Net debt 236M CNY FY2025

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

Quality Score breakdown

Overall quality 58/100

Of which business quality 58 · Market factors (momentum, volatility) 35

Profitability 49
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 57
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

Jinhong Fashion Group Co.,Ltd. engages in the design, development, manufacturing, and sale of apparels and accessories for women, men, and children in China.

Full company description

Jinhong Fashion Group Co.,Ltd. engages in the design, development, manufacturing, and sale of apparels and accessories for women, men, and children in China. The company offers dresses, sweaters, and coats; leather and sample garments, furs, accessories, down jackets, cotton coats, trousers, suspenders, suits, overalls, and nikes; handicraft products; and gifts. It also sells its products under the TEENIEWEENIE, VGRASS, and Yuanxian brand names. The company was formerly known as V-Grass Fashion Co.,Ltd. and changed its name to Jinhong Fashion Group Co.,Ltd. in June 2019. Jinhong Fashion Group Co.,Ltd. was founded in 2003 and is based in Nanjing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jinhong Fashion Group reported revenue of ¥4.2B in FY2025 versus ¥4.3B in FY2021, a compound −0.7%/yr. Reported net income was ¥226M in FY2025, compounding +0.3%/yr from FY2021.

Growth Quality 62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
4.2B CNY
Latest YoY
−4.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.7%
Avg. growth/yr (17Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.1%
Revenue −0.7%/yr
FY21 ¥4.3B
FY22 ¥3.9B
FY23 ¥4.5B
FY24 ¥4.4B
FY25 ¥4.2B
Net income +0.3%/yr
FY21 ¥224M
FY22 ¥71.4M
FY23 ¥298M
FY24 ¥306M
FY25 ¥226M
Character of growth · EPS growth decomposed (2013-2024) −1.1 % p.a.
Revenue per share +11.9 pp

of which total revenue +20.4 pp · buybacks/dilution −8.4 pp

EBIT margin −12.1 pp
Tax rate +1.0 pp
Residual (interest, one-offs) −1.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Jinhong Fashion Group Fair Value". https://www.fairvalue-calculator.com/stock/603518

Peer Group

Apparel Manufacturing · 212 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 58 · Above median
Fair Value upside +76% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth -3% · Below median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Apparel Manufacturing median · lower = cheaper

P/E (TTM) 11.6× · Cheaper than median
P/B 0.77× · Cheaper than median
P/S (TTM) 0.69× · Cheaper than median
P/FCF 1.1× · Cheaper than median
EV/EBITDA 7.6× · Cheaper than median

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 100 · sector 32
FUTURE 0 · sector 4
PAST 26 · sector 21
HEALTH 99 · sector 98
DIVIDEND 0 · sector 49

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 Apparel Manufacturing stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
H & M Hennes & Mauritz AB HMB kr 163.45 kr 165.47 +1%
Ralph Lauren Corporation RL $374.08 $224.21 -40%
Moncler S.p.A MONC €52.08 €50.69 -3%
LPP SA LPP 19,380 PLN 17,754 PLN -8%
Bosideng International Holdings 3998 HK$4.88 HK$5.92 +21%
Youngor Fashion Co 600177 ¥7.57 ¥5.59 -26%
Page Industries Limited PAGEIND ₹39,900 ₹12,395 -69%
Hla Group 600398 ¥6.05 ¥9.92 +64%
Eclat Textile Co 1476 333.50 TWD 357.81 TWD +7%
Youngone Corporation 111770 87,600 KRW 196,629 KRW +124%

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Frequently asked questions

Is Jinhong Fashion Group (603518) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥14.42 versus a price of ¥8.19, about +76% (undervalued).
What is the fair value of 603518?
Our model-based fair value for Jinhong Fashion Group is ¥14.42 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥8.19.
What is the quality score of 603518?
Jinhong Fashion Group has a Quality Score of 58/100. 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 Jinhong Fashion Group (603518)?
Jinhong Fashion Group reported trailing-twelve-month revenue of about 4.2B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603518?
The net profit margin of Jinhong Fashion Group is about 6.0%, meaning it keeps roughly 6.0% 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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