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ZheJiang HuaSheng Technology Co (605180) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 2.3B CNY

ZH ZheJiang HuaSheng Technology Co 605180 · SHG
Price¥12.60
Fair Value¥3.41
Upside-72.9%
Quality53/100
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Weak Growth
Thin margins · 5.7% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/12)
Narrow moat 30/100
Evidence: High Range ¥2.56 – ¥3.87 Share as image

Fair value as of: Jul 12, 2026

From 15 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥4.57 to ¥3.41 (−25.4%) since Jun 24, 2026. Share price +9.2% over the past month.

A solid business, but screening 73% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥3.87). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥24.68 ¥7.22 Fair Value ¥3.41 Apr 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 ¥7.22 – ¥24.68 · fair‑value band ¥2.56 – ¥3.87 · the ¥12.60 price screens above the ¥3.41 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 HuaSheng Technology Co (605180) currently trades at ¥12.60, while our model-based Fair Value estimate is ¥3.41, implying the stock looks roughly 72.9% overvalued today. The Quality Score stands at 53/100 (solid 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, ZheJiang HuaSheng Technology Co generated revenue of 380M CNY at a net margin of 5.7%. Revenue grew 41.1% year over year. It earns a return on equity of 1.9%. The balance sheet holds a net cash position of 354M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥2.56 (bear case) to ¥3.87 (bull case); at ¥12.60, 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 28% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at -73%, 605180 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥0.6000 to ¥5.78). Read the values as a conservative anchor, not as a price target.
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 ¥4.78 ¥4.61 ¥3.69 76
ROIC Compounder ¥2.10 ¥2.37 ¥2.61 72
Gordon GGM ¥1.19 ¥1.97 ¥2.86 70
All 15 models by family
Earnings-Based
Graham-Dodd ¥1.05 ¥2.47 ¥3.17 54
PEG = 1.0 ¥0.4200 ¥0.6000 ¥0.7800 46
EPV ¥2.10 ¥2.37 ¥2.61 59
Dividend Discount
Gordon GGM ¥1.19 ¥1.97 ¥2.86 70
DDM Multi-Stage ¥1.19 ¥1.73 ¥2.30 61
Multiples
P/E Multiple ¥2.56 ¥3.41 ¥4.27 63
P/S Multiple ¥1.86 ¥2.48 ¥3.10 58
P/B Multiple ¥1.98 ¥2.64 ¥3.30 55
EV/EBIT ¥3.51 ¥4.56 ¥5.61 53
EV/EBITDA ¥4.42 ¥5.78 ¥7.13 54
EV/Revenue ¥2.10 ¥2.85 ¥3.59 43
Asset-Based
NCAV (Graham) ¥3.39 ¥4.54 ¥6.77 50
Economic Profit
Residual Income ¥4.78 ¥4.61 ¥3.69 76
ROIC Compounder ¥2.10 ¥2.37 ¥2.61 72
Growth Earnings
Growth-Adj P/E ¥1.93 ¥2.75 ¥3.58 68

Widest divergence: Asset-Based (¥4.54) versus Dividend Discount (¥1.73). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 380M CNY
Revenue growth (YoY) +41.1%
Net margin 5.7%
Return on equity 1.9%
Free cash flow −195M CNY FY2025
P/E ratio 106.8
More key figures
Operating margin 11.3%
EPS (TTM) ¥0.1300
EPS growth (YoY) -60.0%
Net cash 354M CNY FY2024

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

Quality Score breakdown

Overall quality 53/100

Of which business quality 54 · Market factors (momentum, volatility) 35

Profitability 22
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 85
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 HuaSheng Technology Co.,Ltd researches, produces, markets, and sells plastic composite materials in China. It offers airtight materials, including brushed air cushion materials, PVC inflatable boat materials, and drop stitch materials; and PVC flexible materials comprising canopy and light box advertising materials, PVC flex banner, and PVC …

Full company description

ZheJiang HuaSheng Technology Co.,Ltd researches, produces, markets, and sells plastic composite materials in China. It offers airtight materials, including brushed air cushion materials, PVC inflatable boat materials, and drop stitch materials; and PVC flexible materials comprising canopy and light box advertising materials, PVC flex banner, and PVC tarpaulin. Its products are used in sports and leisure fields, such as SUP boards, gymnastics mat, and inflatable boats, as well as transportation, logistics, outdoor advertising, and other fields. The company was founded in 1996 and is based in Jiaxing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ZheJiang HuaSheng Technology Co reported revenue of ¥349M in FY2025 versus ¥643M in FY2021, a compound −14.2%/yr. Reported net income was ¥26.2M in FY2025, compounding −38.3%/yr from FY2021.

Growth Quality 10/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
349M CNY
Latest YoY
−0.8%
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.
+8.0%
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.
−1.1%
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.
+6.0%
Revenue −14.2%/yr
FY21 ¥643M
FY22 ¥277M
FY23 ¥239M
FY24 ¥352M
FY25 ¥349M
Net income −38.3%/yr
FY21 ¥180M
FY22 ¥59.0M
FY23 ¥27.8M
FY24 ¥49.4M
FY25 ¥26.2M

605180 screens 73% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "ZheJiang HuaSheng Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/605180

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 53 · Above median
Fair Value upside −73% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 1% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 11% · Top 25%
Revenue growth 41% · Top 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 106.8× · Pricier than 75% of peers
P/B 2.05× · Pricier than 75% of peers
P/S (TTM) 6.17× · Pricier than 75% of peers
EV/EBITDA 32.6× · 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 100 · sector 0
PAST 8 · sector 15
HEALTH 100 · sector 95
DIVIDEND 0 · 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 ZheJiang HuaSheng Technology Co (605180) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥3.41 versus a price of ¥12.60, about −73% (overvalued).
What is the fair value of 605180?
Our model-based fair value for ZheJiang HuaSheng Technology Co is ¥3.41 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥12.60.
What is the quality score of 605180?
ZheJiang HuaSheng Technology Co has a Quality Score of 53/100. 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 HuaSheng Technology Co (605180)?
ZheJiang HuaSheng Technology Co reported trailing-twelve-month revenue of about 380M CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605180?
The net profit margin of ZheJiang HuaSheng Technology Co is about 5.7%, meaning it keeps roughly 5.7% of revenue as net income. Based on the latest reported figures.

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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