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Hangzhou Zongheng Commun (603602) fair value: what the stock is really worth

We calculate from audited financials what Hangzhou Zongheng Commun is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? No
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Communication Services · CN · ISIN CNE100002WC1

HZ Thin data Sep 13, 2026

Hangzhou Zongheng Commun

603602 · SHG

Weakest SetupStrongly overvalued and low quality.

!Fair value ¥2.27 · Strongly overvalued (−80%)
!Quality 26/100
!Expensive Growth (revenue 5y +18.8 %/yr)
!Loss-making · -8.3% net margin (TTM)
!Low debt · negative free cash flow
·0.17% dividend yield
!Trails peers (3/11)
!Narrow moat 13/100
!Evidence only low, so the estimate is less certain
!Weak on dividend: 3 out of 100
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

¥21.05 ¥8.61 Fair Value ¥2.27 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 13, 2026.

How to read this chart

60‑month range ¥8.61 – ¥21.05 · fair‑value band ¥2.01 – ¥2.50 · the ¥11.46 price screens above the ¥2.27 fair value. Dashed = 300-day average. As of Sep 13, 2026.

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Company profile

Hangzhou Freely Communication Co., Ltd., together with its subsidiaries, provides communication network technology services in China. The company offers communication network construction and maintenance services; indoor distribution system, base installation, and antenna engineering services; and integrated access services.

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Hangzhou Freely Communication Co., Ltd., together with its subsidiaries, provides communication network technology services in China. The company offers communication network construction and maintenance services; indoor distribution system, base installation, and antenna engineering services; and integrated access services. It also provides digital services for government and enterprise industries, including the sale and operation of communication products; and digital marketing services. In addition, the company offers information and communication technology; communications; business; Internet related; information technology consulting; application software development; technology promotion and application; professional technical; software; scientific research; and retail services. It serves telecom operators. Hangzhou Freely Communication Co., Ltd. was incorporated in 2006 and is headquartered in Hangzhou, China.

Stock analysis

Hangzhou Zongheng Commun (603602) currently trades at ¥11.46, while our model-based Fair Value estimate is ¥2.27, implying the stock looks roughly 404.8% overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of ¥4.28 per share, and 0 of the 8 models we run sit above the ¥11.46 price.

Bear case: the Dividend Discount group reads lowest at ¥2.30, and 8 of the 8 models stay below the price. Evidence for this calculation is low.

Scenario range: ¥2.01 (bear) to ¥2.50 (bull), the price of ¥11.46 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 26/100 (below-average quality), in the Communication Services sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

Hangzhou Zongheng Commun reported revenue of 1.8B CNY in FY2025 versus 884M CNY in FY2021, a compound +20.1%/yr. Reported net income was −163M CNY in FY2025.

Key figures

Market cap 2.6B CNY (≈ $395M) · P/S ratio 1.51 · EPS (TTM) ¥−0.7300 · Dividend yield 0.2% · Net margin −8.9% · Return on equity −15.2% · Return on assets (EBIT) 1.6% · Operating margin 2.9%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 28 out of 100 (medium confidence).

What moves the price

The share trades about 35% below its 52-week high, currently below its 200-day average.

For context, the median of 10 Communication Services peers we cover trades at 27% fair-value upside, at −80%, 603602 screens richer than that median.

Fair Value models

Bear ¥2.01 Fair Value ¥2.27 Bull ¥2.50
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
EPV ¥2.30 ¥2.58 ¥2.83 74
ROIC Compounder ¥2.30 ¥2.58 ¥2.83 72
Gordon GGM ¥1.34 ¥2.67 ¥4.04 67
All 8 models by family
Earnings-Based
EPV ¥2.30 ¥2.58 ¥2.83 74
Dividend Discount
Gordon GGM ¥1.34 ¥2.67 ¥4.04 67
DDM Multi-Stage ¥1.34 ¥2.30 ¥2.81 67
Multiples
EV/EBIT ¥3.42 ¥4.40 ¥5.38 66
EV/EBITDA ¥3.33 ¥4.28 ¥5.23 67
EV/Revenue ¥2.58 ¥3.48 ¥4.38 54
Asset-Based
NCAV (Graham) ¥1.92 ¥2.57 ¥3.83 54
Economic Profit
ROIC Compounder ¥2.30 ¥2.58 ¥2.83 72

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Quality Score breakdown

Overall quality 26/100

Of which business quality 27 · Market factors (momentum, volatility) 35

Profitability 15
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 1
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 14
Distance to the 52-week high (market factor)
Net Issuance 15
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 44/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+10.3%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+17.4%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+18.8%
Revenue growth 14 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+14.9%
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−0.1% (2020) → 2.9% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed

603602 screens 405% overvalued. Compare with China Mobile Limited →

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Peer Groupⓘ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.Telecom Services · 255 stocks

Beats the industry median on 3/10 measures
Overall it trails its industry peers.
Valuation
Quality Score 26 · Bottom 25%
Fair Value upside −85% · Bottom 25%
Profitability
Return on assets −3% · Bottom 25%
Net margin (TTM) −8% · Bottom 25%
Operating margin (TTM) 4% · Below median
Growth and dividend
Revenue growth 30% · Top 25%
Dividend yield (TTM) 0.2% · Bottom 25%
Balance sheet
Debt / equity 0.34× · Above median

Valuation Multiplesvs Telecom Services median · lower = cheaper

P/B 0.43× · Cheapest 25%
P/S (TTM) 0.20× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 36
FUTURE (revenue growth)100 · sector 15
PAST (return on equity)0 · sector 27
HEALTH (low debt)83 · sector 88
DIVIDEND (yield)3 · sector 79

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

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

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥97.72 ¥102.17 +5%
T-Mobile US, Inc TMUS $182.33 $270.48 +48%
Verizon Communications Inc VZ $50.61 $64.43 +27%
AT&T Inc T $26.06 $43.97 +69%
Bharti Airtel Limited BHARTIARTL ₹1,832 ₹1,883 +3%
China Telecom Corporation 601728 ¥6.29 ¥8.36 +33%
América Móvil, S.A. AMX $22.83 $39.58 +73%
Singapore Telecommunications Limited Z77 4.50 SGD 1.91 SGD −58%
Saudi Telecom Company 7010 43.86 SAR 42.39 SAR −3%
Swisscom AG SCMN CHF 651.50 CHF 463.92 −29%

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Hangzhou Zongheng Commun · Fair Value
¥2.27 −405%Fair Value
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Cite: Fair Value Calculator (2026). "Hangzhou Zongheng Commun Fair Value". https://www.fairvalue-calculator.com/stock/603602

Frequently asked questions

Is Hangzhou Zongheng Commun (603602) overvalued or undervalued?
As of Sep 13, 2026, our model estimates a fair value of ¥2.27 versus a price of ¥11.46, about −80% upside (overvalued).
What is the fair value of 603602?
Our model-based fair value for Hangzhou Zongheng Commun is ¥2.27 (as of Sep 13, 2026), built from audited fundamentals. The current price: ¥11.46.
What is the quality score of 603602?
Hangzhou Zongheng Commun has a Quality Score of 26/100. 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 price target for Hangzhou Zongheng Commun (603602)?
Our model-based price target is the fair value of ¥2.27 (as of Sep 13, 2026) from 8 valuation models. Cautious scenario ¥2.01, optimistic scenario ¥2.50. It is a calculation from audited fundamentals, not an analyst target.
What is the Hangzhou Zongheng Commun stock forecast for 2026?
Our models put fair value at ¥2.27, about −80% upside versus a price of ¥11.46 (overvalued). Cautious scenario ¥2.01, optimistic scenario ¥2.50. The calculation is refreshed regularly with new filings.
What is the revenue of Hangzhou Zongheng Commun (603602)?
Hangzhou Zongheng Commun reported trailing-twelve-month revenue of about 1.9B CNY (latest available figure, as of Sep 13, 2026).
Does Hangzhou Zongheng Commun pay a dividend?
Hangzhou Zongheng Commun currently shows a dividend yield of about 0.17% relative to its recent price (as of Sep 13, 2026).
What is the intrinsic value of Hangzhou Zongheng Commun (603602)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hangzhou Zongheng Commun it is ¥2.27 per share (as of Sep 13, 2026), against a price of ¥11.46. It is the blended result of 8 valuation models (cash flow, earnings, asset, dividend).
Is Hangzhou Zongheng Commun stock overvalued or undervalued in 2026?
As of Sep 13, 2026, 603602 trades above its calculated fair value: price ¥11.46, fair value ¥2.27, a gap of about −80% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 603602?
No. The price is what the market pays today (¥11.46); the fair value is what the company's own numbers justify (¥2.27). For Hangzhou Zongheng Commun the two are ¥9.19 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hangzhou Zongheng Commun worth?
The market values Hangzhou Zongheng Commun at about 2.6B CNY (market capitalisation, as of Sep 13, 2026). Per share that is ¥11.46; our models calculate a fair value of ¥2.27 per share.
What do the bullish and bearish scenarios say about 603602?
Our models span a range for Hangzhou Zongheng Commun: cautious scenario ¥2.01, base ¥2.27, optimistic ¥2.50 per share (as of Sep 13, 2026, price ¥11.46). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Hangzhou Zongheng Commun (603602)?
Balance-sheet figures for Hangzhou Zongheng Commun (as of Sep 13, 2026): return on equity −15.2%, debt of 0.34 per unit of equity. They feed the Quality Score of 26/100, which measures business quality independently of the share price.
How far is 603602 from its 52-week high?
Hangzhou Zongheng Commun trades at ¥11.46, about 35% below its 52-week high of ¥17.75 (as of Sep 13, 2026). Distance from the high says nothing about value: that is what the fair value of ¥2.27 is for.
Which stocks are comparable to Hangzhou Zongheng Commun?
From the same area (Communication Services) we also value China Mobile Limited, T-Mobile US, Inc, Verizon Communications Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Hangzhou Zongheng Commun stock attractive at the current price?
The data as of Sep 13, 2026: price ¥11.46, calculated fair value ¥2.27 (−80%), Quality Score 26/100, from 8 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 603602 calculated?
We run Hangzhou Zongheng Commun through 8 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ¥2.27, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.8 % above its aggregate fair value. Hangzhou Zongheng Commun itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What should I pay attention to with Hangzhou Zongheng Commun right now?
The price sits above even our optimistic bull case (¥2.50). The favourable scenario is already priced in. Weak quality (26/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Where does the earnings growth of Hangzhou Zongheng Commun (603602) come from?
Earnings per share at Hangzhou Zongheng Commun grew −10.0 % a year from 2013 to 2024. Broken into its drivers: revenue per share +12.7 %, EBIT margin −19.3 %, tax rate +1.3 %, residual (interest, one-offs) −2.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Hangzhou Zongheng Commun

How large is the market capitalisation of Hangzhou Zongheng Commun (603602)?
The market capitalisation of Hangzhou Zongheng Commun is 2.6B CNY (≈ $395M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Hangzhou Zongheng Commun (603602)?
The price-to-sales ratio of Hangzhou Zongheng Commun is 1.51 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Hangzhou Zongheng Commun (603602)?
Earnings per share at Hangzhou Zongheng Commun are ¥−0.7300. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Hangzhou Zongheng Commun (603602)?
The dividend yield of Hangzhou Zongheng Commun is 0.2%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Hangzhou Zongheng Commun (603602)?
The net margin of Hangzhou Zongheng Commun is −8.9% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Hangzhou Zongheng Commun (603602)?
The return on equity (ROE) of Hangzhou Zongheng Commun is −15.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Hangzhou Zongheng Commun (603602)?
On an EBIT basis the return on assets of Hangzhou Zongheng Commun is 1.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Hangzhou Zongheng Commun (603602)?
The operating margin of Hangzhou Zongheng Commun is 2.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hangzhou Zongheng Commun (603602)?
Revenue at Hangzhou Zongheng Commun is growing +29.9% versus a year earlier (3y avg +17.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Hangzhou Zongheng Commun (603602)?
Earnings per share at Hangzhou Zongheng Commun are growing +10.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Hangzhou Zongheng Commun (603602) generate?
The free cash flow of Hangzhou Zongheng Commun is −122M CNY (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Hangzhou Zongheng Commun (603602) carry?
The net debt of Hangzhou Zongheng Commun is 459M CNY (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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