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Zhejiang grandwall electric science&technology co.,ltd., (603897) Fair Value & Analysis

Industrials · CN · Market cap 7.7B CNY

ZG Zhejiang grandwall electric science&technology co.,ltd., 603897 · SHG
Price¥26.51
Fair Value¥32.09
Upside+21.1%
Quality64/100
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Mixed Growth
Thin margins · 2.3% net margin
Low debt · generates free cash flow
4.19% dividend yield
Ranks above peers (10/14)
Narrow moat 38/100
Evidence: High Range ¥24.07 – ¥40.11 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Share price −7.1% over the past month.

A solid business, screening 21% undervalued on our models.

What matters now

  • Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from ¥24.07 (bear) to ¥40.11 (bull), base ¥32.09. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 64/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥61.77 ¥13.86 Fair Value ¥32.09 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥13.86 – ¥61.77 · fair‑value band ¥24.07 – ¥40.11 · the ¥26.51 price screens below the ¥32.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Zhejiang grandwall electric science&technology co.,ltd., (603897) currently trades at ¥26.51, while our model-based Fair Value estimate is ¥32.09, implying the stock looks roughly 21.1% undervalued today. The Quality Score stands at 64/100 (solid quality), in the Industrials 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, Zhejiang grandwall electric science&technology co.,ltd., generated revenue of 13.1B CNY at a net margin of 2.3%. Revenue grew 15.9% year over year. It earns a return on equity of 11.9%. Net debt stands at 6.6M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥24.07 (bear case) to ¥40.11 (bull case); at ¥26.51, 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 56% below its 52-week high and 20% 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 21%, 603897 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 ¥40.35 ¥68.26 ¥114.05 80
Residual Income ¥11.30 ¥13.08 ¥21.02 76
Rev-Margin DCF ¥27.98 ¥44.28 ¥65.82 74
All 26 models by family
DCF Models
FCF DCF ¥40.93 ¥72.32 ¥126.29 38
Owner Earnings ¥22.68 ¥39.03 ¥67.14 31
5Y Revenue Exit ¥27.98 ¥44.45 ¥66.49 39
5Y EBITDA Exit ¥30.85 ¥50.48 ¥74.99 41
5Y P/E Exit ¥30.31 ¥49.34 ¥71.11 38
10Y Revenue Exit ¥31.47 ¥48.60 ¥74.47 36
10Y EBITDA Exit ¥33.98 ¥52.97 ¥81.56 37
10Y P/E Exit ¥33.62 ¥52.14 ¥78.32 35
Earnings-Based
Graham-Dodd ¥10.39 ¥51.55 ¥71.11 54
Lynch FV ¥13.91 ¥19.87 ¥25.83 50
PEG = 1.0 ¥13.91 ¥19.87 ¥25.83 46
EPV ¥18.76 ¥21.28 ¥23.45 59
Dividend Discount
Gordon GGM ¥15.83 ¥31.54 ¥47.76 70
DDM Multi-Stage ¥15.83 ¥27.26 ¥33.29 61
Multiples
P/E Multiple ¥24.07 ¥32.09 ¥40.11 63
P/S Multiple ¥19.48 ¥25.98 ¥32.47 58
P/B Multiple ¥19.48 ¥25.98 ¥32.47 55
EV/EBIT ¥29.42 ¥38.28 ¥47.14 53
EV/EBITDA ¥27.77 ¥36.08 ¥44.40 54
EV/Revenue ¥21.81 ¥29.94 ¥38.07 43
Asset-Based
NCAV (Graham) ¥6.06 ¥8.12 ¥12.12 50
Growth DCF
Growth DCF ¥40.35 ¥68.26 ¥114.05 80
Rev-Margin DCF ¥27.98 ¥44.28 ¥65.82 74
Economic Profit
Residual Income ¥11.30 ¥13.08 ¥21.02 76
ROIC Compounder ¥20.96 ¥27.27 ¥35.51 72
Growth Earnings
Growth-Adj P/E ¥21.33 ¥30.48 ¥39.62 68

Widest divergence: DCF Models (¥49.34) versus Asset-Based (¥8.12). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 13.1B CNY
Revenue growth (YoY) +15.9%
Net margin 2.3%
Return on equity 11.9%
Free cash flow 626M CNY FY2025
P/E ratio 25.2
More key figures
Operating margin 3.4%
EPS (TTM) ¥1.48
Dividend yield 4.2%
EPS growth (YoY) -18.5%
Net debt 6.6M CNY FY2024

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 64 · Market factors (momentum, volatility) 39

Profitability 46
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 63
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 47
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 30
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

Zhejiang grandwall electric science&technology co.,ltd., together with its subsidiaries, researches, develops, produces, and sells electromagnetic wire products in China and internationally. The company offers round and rectangular wire products.

Full company description

Zhejiang grandwall electric science&technology co.,ltd., together with its subsidiaries, researches, develops, produces, and sells electromagnetic wire products in China and internationally. The company offers round and rectangular wire products. It serves industrial electrical machinery, new energy resources, power tools, automotive, household appliances, instrumentation applications. Zhejiang grandwall electric science&technology co.,ltd. was founded in 2007 and is based in Lianzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang grandwall electric science&technology co.,ltd., reported revenue of ¥12.6B in FY2025 versus ¥10.7B in FY2021, a compound +4.1%/yr. Reported net income was ¥315M in FY2025, compounding −1.9%/yr from FY2021.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
12.6B CNY
Latest YoY
−3.1%
Avg. growth/yr (3Y)
+7.9%
Avg. growth/yr (5Y)
+14.9%
Avg. growth/yr (11Y)
+13.0%
Revenue +4.1%/yr
FY21 ¥10.7B
FY22 ¥10.0B
FY23 ¥11.1B
FY24 ¥13.0B
FY25 ¥12.6B
Net income −1.9%/yr
FY21 ¥341M
FY22 ¥136M
FY23 ¥217M
FY24 ¥236M
FY25 ¥315M

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Cite: Fair Value Calculator (2026). "Zhejiang grandwall electric science&technology co.,ltd., Fair Value". https://www.fairvalue-calculator.com/stock/603897

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 64 · Top 25%
Fair Value upside +21% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 16% · Above median
Dividend yield (TTM) 4.2% · Top 25%
Debt / equity 0.22× · Higher than median

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

P/E (TTM) 25.2× · Cheaper than median
P/B 3.08× · Pricier than median
P/S (TTM) 0.59× · Cheaper than 75% of peers
P/FCF 1.8× · Cheaper than median
EV/EBITDA 12.5× · 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 61 · sector 0
FUTURE 80 · sector 57
PAST 47 · sector 26
HEALTH 89 · sector 97
DIVIDEND 84 · sector 18

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 12, 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 Zhejiang grandwall electric science&technology co.,ltd., (603897) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥32.09 versus a price of ¥26.51, about +21% (undervalued).
What is the fair value of 603897?
Our model-based fair value for Zhejiang grandwall electric science&technology co.,ltd., is ¥32.09 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥26.51.
What is the quality score of 603897?
Zhejiang grandwall electric science&technology co.,ltd., has a Quality Score of 64/100. 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 Zhejiang grandwall electric science&technology co.,ltd., (603897)?
Zhejiang grandwall electric science&technology co.,ltd., reported trailing-twelve-month revenue of about 13.1B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 603897?
The net profit margin of Zhejiang grandwall electric science&technology co.,ltd., is about 2.3%, meaning it keeps roughly 2.3% of revenue as net income. Based on the latest reported figures.
Does Zhejiang grandwall electric science&technology co.,ltd., pay a dividend?
Zhejiang grandwall electric science&technology co.,ltd., currently shows a dividend yield of about 4.19% relative to its recent price (as of Jul 12, 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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