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Zhong Wang Fabric Co (605003) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 2.6B CNY

ZW Zhong Wang Fabric Co 605003 · SHG
Price¥21.00
Fair Value¥12.67
Upside-39.7%
Quality49/100
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Weak Growth
Solidly profitable · 11.7% net margin
Low debt · negative free cash flow
2.19% dividend yield
Mixed vs. peers (7/13)
Narrow moat 41/100
Evidence: High Range ¥10.45 – ¥16.47 Share as image

Fair value as of: Jul 12, 2026

From 16 valuation models · updated 29 days ago

Share price +1.7% over the past month.

Below-average quality, and screening another 40% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥16.47). The favourable scenario is already priced in.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥36.93 ¥12.62 Fair Value ¥12.67 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 ¥12.62 – ¥36.93 · fair‑value band ¥10.45 – ¥16.47 · the ¥21.00 price screens above the ¥12.67 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Zhong Wang Fabric Co (605003) currently trades at ¥21.00, while our model-based Fair Value estimate is ¥12.67, implying the stock looks roughly 39.7% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Consumer Cyclical 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, Zhong Wang Fabric Co generated revenue of 542M CNY at a net margin of 11.7%. Revenue grew 0.6% year over year. It earns a return on equity of 4.3%. The balance sheet holds a net cash position of 341M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥10.45 (bear case) to ¥16.47 (bull case); at ¥21.00, the current price sits above 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 44% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at -40%, 605003 screens richer 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
Residual Income ¥10.08 ¥10.22 ¥9.68 76
ROIC Compounder ¥7.56 ¥8.35 ¥9.04 72
Gordon GGM ¥3.60 ¥7.18 ¥10.87 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥4.48 ¥13.58 ¥18.02 54
Lynch FV ¥2.90 ¥4.15 ¥5.39 50
PEG = 1.0 ¥2.90 ¥4.15 ¥5.39 46
EPV ¥7.56 ¥8.35 ¥9.04 59
Dividend Discount
Gordon GGM ¥3.60 ¥7.18 ¥10.87 70
DDM Multi-Stage ¥3.60 ¥5.78 ¥7.57 61
Multiples
P/E Multiple ¥10.87 ¥14.50 ¥18.12 63
P/S Multiple ¥4.43 ¥5.90 ¥7.38 58
P/B Multiple ¥8.40 ¥11.20 ¥14.01 55
EV/EBIT ¥11.80 ¥14.89 ¥17.98 53
EV/EBITDA ¥13.00 ¥16.49 ¥19.98 54
EV/Revenue ¥6.65 ¥8.42 ¥10.19 43
Asset-Based
NCAV (Graham) ¥6.63 ¥8.89 ¥13.26 50
Economic Profit
Residual Income ¥10.08 ¥10.22 ¥9.68 76
ROIC Compounder ¥7.56 ¥8.35 ¥9.04 72
Growth Earnings
Growth-Adj P/E ¥8.87 ¥12.67 ¥16.47 68

Widest divergence: Growth Earnings (¥12.67) versus Earnings-Based (¥4.15). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 542M CNY
Revenue growth (YoY) +0.6%
Net margin 11.7%
Return on equity 4.3%
Free cash flow −27.4M CNY FY2025
P/E ratio 41.1
More key figures
Operating margin 12.3%
EPS (TTM) ¥0.5700
Dividend yield 2.2%
EPS growth (YoY) -42.9%
Net cash 341M CNY FY2024

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

Quality Score breakdown

Overall quality 49/100

Of which business quality 51 · Market factors (momentum, volatility) 31

Profitability 33
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 38
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 21
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

Zhong Wang Fabric Co.,Ltd. engages in the research, development, design, production, and sales of medium and high-end decorative fabrics and products in China. The company offers various decorative fabrics and sofa covers products. It provides its products under the Z-WOVENS, Sunbelievable, Neverfear, Z-free, and Z-cycle brands in the United States.

Full company description

Zhong Wang Fabric Co.,Ltd. engages in the research, development, design, production, and sales of medium and high-end decorative fabrics and products in China. The company offers various decorative fabrics and sofa covers products. It provides its products under the Z-WOVENS, Sunbelievable, Neverfear, Z-free, and Z-cycle brands in the United States. Zhong Wang Fabric Co.,Ltd. was founded in 1994 and is based in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhong Wang Fabric Co reported revenue of ¥541M in FY2025 versus ¥587M in FY2021, a compound −2.0%/yr. Reported net income was ¥72.5M in FY2025, compounding −16.2%/yr from FY2021.

Growth Quality 22/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
541M CNY
Latest YoY
−1.7%
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.
+9.1%
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.
+1.8%
Avg. growth/yr (9Y) 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.
+4.4%
Revenue −2.0%/yr
FY21 ¥587M
FY22 ¥417M
FY23 ¥462M
FY24 ¥551M
FY25 ¥541M
Net income −16.2%/yr
FY21 ¥147M
FY22 ¥90.8M
FY23 ¥314M
FY24 ¥80.4M
FY25 ¥72.5M

605003 screens 40% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "Zhong Wang Fabric Co Fair Value". https://www.fairvalue-calculator.com/stock/605003

Peer Group

Textile Manufacturing · 307 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 49 · Below median
Fair Value upside −40% · Below median
Return on equity (TTM) 4% · Above median
Return on assets 3% · Above median
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 12% · Top 25%
Revenue growth 1% · Above median
Dividend yield (TTM) 2.2% · Above median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 41.1× · Pricier than median
P/B 1.77× · Pricier than median
P/S (TTM) 4.76× · Pricier than 75% of peers
EV/EBITDA 20.6× · Pricier 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 0 · sector 8
FUTURE 3 · sector 0
PAST 17 · sector 15
HEALTH 100 · sector 95
DIVIDEND 44 · sector 34

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 Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
HMT (Xiamen) New Technical Materials Co 603306 ¥91.75 ¥12.85 -86%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Shandong Fiberglass Group 605006 ¥16.75 ¥6.42 -62%

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Frequently asked questions

Is Zhong Wang Fabric Co (605003) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥12.67 versus a price of ¥21.00, about −40% (overvalued).
What is the fair value of 605003?
Our model-based fair value for Zhong Wang Fabric Co is ¥12.67 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥21.00.
What is the quality score of 605003?
Zhong Wang Fabric Co has a Quality Score of 49/100. 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 Zhong Wang Fabric Co (605003)?
Zhong Wang Fabric Co reported trailing-twelve-month revenue of about 542M CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605003?
The net profit margin of Zhong Wang Fabric Co is about 11.7%, meaning it keeps roughly 11.7% of revenue as net income. Based on the latest reported figures.
Does Zhong Wang Fabric Co pay a dividend?
Zhong Wang Fabric Co currently shows a dividend yield of about 2.19% 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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