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Tongqinglou Catering Co (605108) Fair Value & Analysis

Industrials · CN · Market cap 3.4B CNY

TC Tongqinglou Catering Co 605108 · SHG
Price¥12.65
Fair Value¥6.96
Upside-45.0%
Quality37/100
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Expensive Growth
Thin margins · 2.5% net margin
Low debt · negative free cash flow
0.96% dividend yield
Trails peers (2/13)
Narrow moat 33/100
Evidence: High Range ¥6.19 – ¥8.35 Share as image

Fair value as of: Jul 12, 2026

From 16 valuation models · updated 29 days ago

Share price +7.8% over the past month.

Below-average quality, and screening another 45% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥8.35). The favourable scenario is already priced in.
  • Weak quality (37/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥38.26 ¥11.10 Fair Value ¥6.96 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 ¥11.10 – ¥38.26 · fair‑value band ¥6.19 – ¥8.35 · the ¥12.65 price screens above the ¥6.96 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Tongqinglou Catering Co (605108) currently trades at ¥12.65, while our model-based Fair Value estimate is ¥6.96, implying the stock looks roughly 45.0% overvalued today. The Quality Score stands at 37/100 (below-average 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, Tongqinglou Catering Co generated revenue of 2.7B CNY at a net margin of 2.5%. Revenue grew 3.6% year over year. It earns a return on equity of 2.9%. Net debt stands at 1.3B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥6.19 (bear case) to ¥8.35 (bull case); at ¥12.65, 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 49% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -45%, 605108 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 BearBaseBull Evidence
Highest evidence
Residual Income ¥6.62 ¥6.63 ¥6.07 76
ROIC Compounder ¥4.28 ¥5.38 ¥6.32 72
Gordon GGM ¥1.85 ¥3.68 ¥5.57 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥2.67 ¥10.15 ¥13.74 54
Lynch FV ¥2.46 ¥3.52 ¥4.58 50
PEG = 1.0 ¥2.46 ¥3.52 ¥4.58 46
EPV ¥4.28 ¥5.38 ¥6.32 59
Dividend Discount
Gordon GGM ¥1.85 ¥3.68 ¥5.57 70
DDM Multi-Stage ¥1.85 ¥3.18 ¥3.88 61
Multiples
P/E Multiple ¥6.19 ¥8.25 ¥10.31 63
P/S Multiple ¥5.01 ¥6.68 ¥8.35 58
P/B Multiple ¥5.01 ¥6.68 ¥8.35 55
EV/EBIT ¥9.08 ¥12.99 ¥16.90 53
EV/EBITDA ¥18.47 ¥25.50 ¥32.54 54
EV/Revenue ¥5.73 ¥9.31 ¥12.90 43
Asset-Based
NCAV (Graham) ¥4.43 ¥5.94 ¥8.87 50
Economic Profit
Residual Income ¥6.62 ¥6.63 ¥6.07 76
ROIC Compounder ¥4.28 ¥5.38 ¥6.32 72
Growth Earnings
Growth-Adj P/E ¥4.50 ¥6.42 ¥8.35 68

Widest divergence: Multiples (¥8.25) versus Dividend Discount (¥3.18). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.7B CNY
Revenue growth (YoY) +3.6%
Net margin 2.5%
Return on equity 2.9%
Free cash flow −259M CNY FY2025
P/E ratio 51.7
More key figures
Operating margin 6.9%
EPS (TTM) ¥0.2500
Dividend yield 1.0%
EPS growth (YoY) -70.0%
Net debt 1.3B CNY FY2025

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

Quality Score breakdown

Overall quality 37/100

Of which business quality 38 · Market factors (momentum, volatility) 26

Profitability 25
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 25
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 6
Price trend over the last 3–12 months (market factor)
52W Momentum 1
Distance to the 52-week high (market factor)
Net Issuance 75
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

Tongqinglou Catering Co., Ltd. provides catering services in China. It is also involved in the banquet and wedding, hotel accommodation, and restaurant businesses. Tongqinglou Catering Co., Ltd. was founded in 2005 and is based in Hefei, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tongqinglou Catering Co reported revenue of ¥2.7B in FY2025 versus ¥1.6B in FY2021, a compound +13.6%/yr. Reported net income was ¥102M in FY2025, compounding −8.2%/yr from FY2021.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
2.7B CNY
Latest YoY
+6.2%
Avg. growth/yr (3Y)
+17.1%
Avg. growth/yr (5Y)
+15.6%
Avg. growth/yr (12Y)
+9.9%
Revenue +13.6%/yr
FY21 ¥1.6B
FY22 ¥1.7B
FY23 ¥2.4B
FY24 ¥2.5B
FY25 ¥2.7B
Net income −8.2%/yr
FY21 ¥144M
FY22 ¥93.6M
FY23 ¥304M
FY24 ¥100M
FY25 ¥102M

605108 screens 45% overvalued. Compare with Cintas Corporation →

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Cite: Fair Value Calculator (2026). "Tongqinglou Catering Co Fair Value". https://www.fairvalue-calculator.com/stock/605108

Peer Group

Specialty Business Services · 255 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 37 · Bottom 25%
Fair Value upside −45% · Below median
Return on equity (TTM) 3% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 7% · Above median
Revenue growth 4% · Below median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.36× · Higher than median

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 51.7× · Pricier than 75% of peers
P/B 1.46× · Cheaper than median
P/S (TTM) 1.24× · Pricier than median
EV/EBITDA 9.8× · Pricier 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 24
FUTURE 18 · sector 25
PAST 12 · sector 33
HEALTH 82 · sector 92
DIVIDEND 19 · sector 54

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 Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $206.25 $95.30 -54%
RELX PLC RELX $33.70 $32.49 -4%
Thomson Reuters Corporation TRI C$133.87 C$70.40 -47%
Copart, Inc CPRT $27.61 $28.59 +4%
Global Payments Inc GPN $80.49 $69.67 -13%
RB Global, Inc RBA C$156.43 C$49.14 -69%
Brambles Limited BXB A$18.79 A$12.28 -35%
UL Solutions Inc ULS $87.76 $33.62 -62%
Wolters Kluwer N.V WKL €62.56 €103.99 +66%
Aramark ARMK $56.74 $13.73 -76%

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Frequently asked questions

Is Tongqinglou Catering Co (605108) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥6.96 versus a price of ¥12.65, about −45% (overvalued).
What is the fair value of 605108?
Our model-based fair value for Tongqinglou Catering Co is ¥6.96 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥12.65.
What is the quality score of 605108?
Tongqinglou Catering Co has a Quality Score of 37/100. 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 Tongqinglou Catering Co (605108)?
Tongqinglou Catering Co reported trailing-twelve-month revenue of about 2.7B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605108?
The net profit margin of Tongqinglou Catering Co is about 2.5%, meaning it keeps roughly 2.5% of revenue as net income. Based on the latest reported figures.
Does Tongqinglou Catering Co pay a dividend?
Tongqinglou Catering Co currently shows a dividend yield of about 0.96% 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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