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Ningbo Orient Wires & Cables Co (603606) Fair Value & Analysis

Industrials · CN · Market cap 34.3B CNY

NO Ningbo Orient Wires & Cables Co 603606 · SHG
Price¥38.70
Fair Value¥27.47
Upside-29.0%
Quality63/100
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Healthy Growth
Solidly profitable · 11.8% net margin
Low debt · generates free cash flow
1.16% dividend yield
Ranks above peers (12/14)
Moderate moat 61/100
Evidence: High Range ¥20.69 – ¥42.13 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 ¥31.15 to ¥27.47 (−11.8%) since Jun 24, 2026. Share price −2.9% over the past month.

A solid business, but screening 29% overvalued on our models.

What matters now

  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥20.69 to ¥42.13) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥86.37 ¥18.69 Fair Value ¥27.47 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 ¥18.69 – ¥86.37 · fair‑value band ¥20.69 – ¥42.13 · the ¥38.70 price screens above the ¥27.47 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

Ningbo Orient Wires & Cables Co (603606) currently trades at ¥38.70, while our model-based Fair Value estimate is ¥27.47, implying the stock looks roughly 29.0% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Industrials 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, Ningbo Orient Wires & Cables Co generated revenue of 11.6B CNY at a net margin of 11.8%. Revenue grew 34.3% year over year. It earns a return on equity of 17.2%. The balance sheet holds a net cash position of 268M CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥20.69 (bear case) to ¥42.13 (bull case); at ¥38.70, 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 48% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -29%, 603606 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
Growth DCF ¥24.17 ¥45.10 ¥84.32 80
Residual Income ¥10.26 ¥13.71 ¥42.13 76
Rev-Margin DCF ¥21.71 ¥39.08 ¥64.67 74
All 26 models by family
DCF Models
FCF DCF ¥25.10 ¥40.88 ¥84.69 38
Owner Earnings ¥16.35 ¥32.59 ¥66.11 31
5Y Revenue Exit ¥21.71 ¥37.87 ¥66.99 39
5Y EBITDA Exit ¥23.58 ¥41.97 ¥72.98 41
5Y P/E Exit ¥26.31 ¥50.77 ¥81.89 38
10Y Revenue Exit ¥22.00 ¥40.87 ¥65.53 36
10Y EBITDA Exit ¥23.97 ¥44.32 ¥80.49 37
10Y P/E Exit ¥25.88 ¥49.36 ¥88.96 35
Earnings-Based
Graham-Dodd ¥10.48 ¥70.84 ¥99.28 54
Lynch FV ¥20.77 ¥29.67 ¥38.58 50
PEG = 1.0 ¥20.77 ¥29.67 ¥38.58 46
EPV ¥17.45 ¥19.84 ¥21.92 59
Dividend Discount
Gordon GGM ¥3.43 ¥7.14 ¥11.33 70
DDM Multi-Stage ¥3.43 ¥6.02 ¥7.49 61
Multiples
P/E Multiple ¥24.28 ¥32.37 ¥40.46 63
P/S Multiple ¥19.65 ¥26.20 ¥32.76 58
P/B Multiple ¥19.65 ¥26.20 ¥32.76 55
EV/EBIT ¥26.25 ¥33.96 ¥41.67 53
EV/EBITDA ¥23.50 ¥30.28 ¥37.07 54
EV/Revenue ¥19.64 ¥26.71 ¥33.78 43
Asset-Based
NCAV (Graham) ¥5.02 ¥6.73 ¥10.04 50
Growth DCF
Growth DCF ¥24.17 ¥45.10 ¥84.32 80
Rev-Margin DCF ¥21.71 ¥39.08 ¥64.67 74
Economic Profit
Residual Income ¥10.26 ¥13.71 ¥42.13 76
ROIC Compounder ¥20.89 ¥29.05 ¥40.61 72
Growth Earnings
Growth-Adj P/E ¥28.75 ¥41.08 ¥53.40 68

Widest divergence: Growth Earnings (¥41.08) versus Dividend Discount (¥6.02). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 11.6B CNY
Revenue growth (YoY) +34.3%
Net margin 11.8%
Return on equity 17.2%
Free cash flow 1.2B CNY FY2025
P/E ratio 25.2
More key figures
Operating margin 16.7%
EPS (TTM) ¥1.65
Dividend yield 1.2%
EPS growth (YoY) +31.7%
Net cash 268M CNY FY2025

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

Quality Score breakdown

Overall quality 63/100

Of which business quality 63 · Market factors (momentum, volatility) 24

Profitability 48
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 34
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 5
Price trend over the last 3–12 months (market factor)
52W Momentum 5
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

Ningbo Orient Wires & Cables Co.,Ltd. engages in the research, development, manufacturing, and sale of various submarine and terrestrial cable products in China and internationally.

Full company description

Ningbo Orient Wires & Cables Co.,Ltd. engages in the research, development, manufacturing, and sale of various submarine and terrestrial cable products in China and internationally. The company offers power engineering and equipment cables for smart power transmission and distribution network, smart buildings and homes, rail transit, equipment power consumption, and green petrochemicals; and submarine cables and high-voltage cables; and marine equipment, and engineering operation and maintenance services. It also provides submarine optical cables, smart grid cables, nuclear power cables, communication cables, control cables, wires, structured cabling, and overhead conductors for use in power, construction, communications, petrochemicals, rail transportation, wind power generation, nuclear energy, offshore oil and gas exploration and production, and marine military industries. Ningbo Orient Wires & Cables Co.,Ltd. was incorporated in 1998 and is headquartered in Ningbo, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ningbo Orient Wires & Cables Co reported revenue of ¥10.8B in FY2025 versus ¥7.9B in FY2021, a compound +8.1%/yr. Reported net income was ¥1.3B in FY2025, compounding +1.7%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
10.8B CNY
Latest YoY
+19.0%
Avg. growth/yr (3Y)
+15.6%
Avg. growth/yr (5Y)
+16.5%
Avg. growth/yr (14Y)
+16.9%
Revenue +8.1%/yr
FY21 ¥7.9B
FY22 ¥7.0B
FY23 ¥7.3B
FY24 ¥9.1B
FY25 ¥10.8B
Net income +1.7%/yr
FY21 ¥1.2B
FY22 ¥842M
FY23 ¥1.0B
FY24 ¥1.0B
FY25 ¥1.3B

603606 screens 29% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Ningbo Orient Wires & Cables Co Fair Value". https://www.fairvalue-calculator.com/stock/603606

Peer Group

Electrical Equipment & Parts · 528 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 63 · Top 25%
Fair Value upside −29% · Above median
Return on equity (TTM) 17% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 34% · Top 25%
Dividend yield (TTM) 1.2% · Above median
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 25.2× · Cheaper than median
P/B 4.14× · Pricier than median
P/S (TTM) 2.96× · Pricier than median
P/FCF 4.3× · Cheaper than median
EV/EBITDA 16.7× · 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 0 · sector 0
FUTURE 100 · sector 57
PAST 69 · sector 26
HEALTH 97 · sector 97
DIVIDEND 23 · sector 18

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 10.16 SGD 1.47 SGD -86%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

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Frequently asked questions

Is Ningbo Orient Wires & Cables Co (603606) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥27.47 versus a price of ¥38.70, about −29% (overvalued).
What is the fair value of 603606?
Our model-based fair value for Ningbo Orient Wires & Cables Co is ¥27.47 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥38.70.
What is the quality score of 603606?
Ningbo Orient Wires & Cables Co has a Quality Score of 63/100. 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 Ningbo Orient Wires & Cables Co (603606)?
Ningbo Orient Wires & Cables Co reported trailing-twelve-month revenue of about 11.6B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603606?
The net profit margin of Ningbo Orient Wires & Cables Co is about 11.8%, meaning it keeps roughly 11.8% of revenue as net income. Based on the latest reported figures.
Does Ningbo Orient Wires & Cables Co pay a dividend?
Ningbo Orient Wires & Cables Co currently shows a dividend yield of about 1.16% 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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