Xiamen Leading Optics Co (605118) Fair Value & Analysis

Technology · CN · Market cap 13.5B CNY

A strong business, but screening 60% overvalued on our models.

What matters now

• A high-quality business (quality 75/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
• The price sits above even our optimistic bull case (¥14.55). The favourable scenario is already priced in.
• A fairly wide model range (¥7.95 to ¥14.55) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

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 ¥9.73 – ¥49.28 · fair‑value band ¥7.95 – ¥14.55 · the ¥29.90 price screens above the ¥11.87 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Xiamen Leading Optics Co (605118) currently trades at ¥29.90, while our model-based Fair Value estimate is ¥11.87, implying the stock looks roughly 60.3% overvalued today. The Quality Score stands at 75/100 (high quality), in the Technology 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, Xiamen Leading Optics Co generated revenue of 904M CNY at a net margin of 30.3%. Revenue grew 44.7% year over year. It earns a return on equity of 17.2%. The balance sheet holds a net cash position of 464M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥7.95 (bear case) to ¥14.55 (bull case); at ¥29.90, 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 40% below its 52-week high and 30% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at -60%, 605118 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.

Widest divergence: DCF Models (¥13.19) versus Asset-Based (¥2.50). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Xiamen Leading Optics Co., Ltd. engages in the research, development, design, production and sales of optics in China. The company offers thermal imaging, drone, automotive, security surveillance, night vision, action camera, and TOF lens, as well as video conference, computer vision, and sight optics.

Full company description

Xiamen Leading Optics Co., Ltd. engages in the research, development, design, production and sales of optics in China. The company offers thermal imaging, drone, automotive, security surveillance, night vision, action camera, and TOF lens, as well as video conference, computer vision, and sight optics. It also provides virtual and portable desktop; semiconductor and VR detection; laser projection lens and automotive logo projection; and VSCEL Lidar, EEL Lidar, Coherent LiDAR, 3D laser scan, laser illumination, laser coupling, and laser measurement and detection, as well as VCSEL, ELL, and fiber laser beam shapers. The company also exports its products to Hong Kong, Taiwan, Japan, South Korea, the European Union, the United States, Canada, Thailand, and internationally. The company was founded in 2002 and is based in Xiamen, China. Xiamen Leading Optics Co., Ltd. operates as a subsidiary of Xiamen Yiweida Investment Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Xiamen Leading Optics Co reported revenue of ¥831M in FY2025 versus ¥501M in FY2021, a compound +13.5%/yr. Reported net income was ¥260M in FY2025, compounding +15.6%/yr from FY2021.

605118 screens 60% overvalued. Compare with Delta Electronics, Inc →

Peer Group

Electronic Components · 626 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.

Valuation Multiples vs Electronic Components median · lower = cheaper

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: 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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.