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Hefei Gocom Information Technology Co (688367) Fair Value & Analysis

Industrials · CN · Market cap 2.7B CNY

HG Hefei Gocom Information Technology Co 688367 · SHG
Price¥30.46
Fair Value¥16.32
Upside-46.4%
Quality50/100
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Weak Growth
Thin margins · 4.5% net margin
negative free cash flow
0.35% dividend yield
Trails peers (0/11)
Narrow moat 14/100
Evidence: High Range ¥12.21 – ¥20.37 Share as image

Fair value as of: Aug 12, 2026

From 16 valuation models · updated today

Fair value updated Aug 12, 2026, revised from ¥2.42 to ¥16.32 (+574.4%) since Jul 12, 2026. Share price +2.7% over the past month.

A solid business, but screening 46% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥20.37). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥47.48 ¥9.51 Fair Value ¥16.32 Jun 2021 Aug 2026

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

How to read this chart

60‑month range ¥9.51 – ¥47.48 · fair‑value band ¥12.21 – ¥20.37 · the ¥30.46 price screens above the ¥16.32 fair value. Dashed = 300-day average. As of Aug 12, 2026.

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Analysis

Hefei Gocom Information Technology Co (688367) currently trades at ¥30.46, while our model-based Fair Value estimate is ¥16.32, implying the stock looks roughly 46.4% overvalued today. The Quality Score stands at 50/100 (solid 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, Hefei Gocom Information Technology Co generated revenue of 182M CNY at a net margin of 4.5%. Revenue declined 37.5% year over year. It earns a return on equity of 1.4%. The balance sheet holds a net cash position of 167M CNY. Fundamentals as of Aug 12, 2026

Our scenario range runs from ¥12.21 (bear case) to ¥20.37 (bull case); at ¥30.46, 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 30% below its 52-week high and 87% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -44% fair-value upside, at -46%, 688367 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 ¥4.70 ¥4.48 ¥3.41 76
Gordon GGM ¥0.9800 ¥1.95 ¥2.95 70
Growth-Adj P/E ¥1.51 ¥2.16 ¥2.81 68
All 16 models by family
Earnings-Based
Graham-Dodd ¥0.7800 ¥3.58 ¥4.91 54
Lynch FV ¥0.9400 ¥1.34 ¥1.74 50
PEG = 1.0 ¥0.9400 ¥1.34 ¥1.74 46
EPV ¥2.32 ¥2.45 ¥2.56 59
Dividend Discount
Gordon GGM ¥0.9800 ¥1.95 ¥2.95 70
DDM Multi-Stage ¥0.9800 ¥1.68 ¥2.06 61
Multiples
P/E Multiple ¥1.81 ¥2.42 ¥3.02 63
P/S Multiple ¥1.47 ¥1.96 ¥2.45 58
P/B Multiple ¥1.47 ¥1.96 ¥2.45 55
EV/EBIT ¥2.79 ¥3.22 ¥3.66 53
EV/EBITDA ¥3.56 ¥4.26 ¥4.96 54
EV/Revenue ¥2.41 ¥2.81 ¥3.21 43
Asset-Based
NCAV (Graham) ¥3.39 ¥4.55 ¥6.79 50
Economic Profit
Residual Income ¥4.70 ¥4.48 ¥3.41 76
ROIC Compounder ¥2.32 ¥2.45 ¥2.56 67
Growth Earnings
Growth-Adj P/E ¥1.51 ¥2.16 ¥2.81 68

Widest divergence: Asset-Based (¥4.55) versus Earnings-Based (¥1.34). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 182M CNY
Revenue growth (YoY) -37.5%
Net margin 4.5%
Return on equity 1.4%
Free cash flow −7.1M CNY FY2025
P/E ratio 393.1
More key figures
Operating margin -6.0%
EPS (TTM) ¥0.0900
Dividend yield 0.3%
EPS growth (YoY) -86.4%
Net cash 167M CNY FY2024

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 53 · Market factors (momentum, volatility) 50

Profitability 18
Margins and returns on capital today
Quality Growth 10
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 97
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

Hefei Gocom Information Technology Co.,Ltd. engages in the research and development, production, and sale of industrial railway signal control and intelligent dispatching products in China. The company offers ground industrial railway, underground narrow gauge, and digital intelligence application solutions.

Full company description

Hefei Gocom Information Technology Co.,Ltd. engages in the research and development, production, and sale of industrial railway signal control and intelligent dispatching products in China. The company offers ground industrial railway, underground narrow gauge, and digital intelligence application solutions. It also provides core technology, security system, and innovation platform services. Its products are used in metallurgy, mining, petrochemicals, ports, power, railways, and other pillar industries. Hefei Gocom Information Technology Co.,Ltd. was founded in 2001 and is based in Hefei, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hefei Gocom Information Technology Co reported revenue of ¥198M in FY2025 versus ¥250M in FY2021, a compound −5.8%/yr. Reported net income was ¥10.1M in FY2025, compounding −35.2%/yr from FY2021.

Growth Quality 2/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
198M CNY
Latest YoY
−33.4%
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.
−13.1%
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.
−1.3%
Avg. growth/yr (13Y) 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.
+6.7%
Revenue −5.8%/yr
FY21 ¥250M
FY22 ¥302M
FY23 ¥230M
FY24 ¥297M
FY25 ¥198M
Net income −35.2%/yr
FY21 ¥57.3M
FY22 ¥51.0M
FY23 ¥20.0M
FY24 ¥26.3M
FY25 ¥10.1M

688367 screens 46% overvalued. Compare with Union Pacific Corporation →

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Cite: Fair Value Calculator (2026). "Hefei Gocom Information Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/688367

Peer Group

Railroads · 113 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 50 · Below median
Fair Value upside −46% · Bottom 25%
Return on equity (TTM) 1% · Bottom 25%
Return on assets -0% · Bottom 25%
Net margin (TTM) 4% · Below median
Operating margin (TTM) -6% · Bottom 25%
Revenue growth -38% · Bottom 25%
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 338.4× · Pricier than 75% of peers
P/B 4.49× · Pricier than 75% of peers
P/S (TTM) 14.63× · 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 26
FUTURE 0 · sector 19
PAST 5 · sector 30
HEALTH 0 · sector 88
DIVIDEND 7 · sector 42

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 Railroads stocks, each showing price versus our Fair Value estimate (as of Aug 12, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNR C$180.94 C$92.68 -49%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is Hefei Gocom Information Technology Co (688367) overvalued or undervalued?
As of Aug 12, 2026, our model estimates a fair value of ¥16.32 versus a price of ¥30.46, about −46% (overvalued).
What is the fair value of 688367?
Our model-based fair value for Hefei Gocom Information Technology Co is ¥16.32 (as of Aug 12, 2026), built from audited fundamentals. The current price is ¥30.46.
What is the quality score of 688367?
Hefei Gocom Information Technology Co has a Quality Score of 50/100. 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 Hefei Gocom Information Technology Co (688367)?
Hefei Gocom Information Technology Co reported trailing-twelve-month revenue of about 182M CNY (latest available figure, as of Aug 12, 2026).
What is the net profit margin of 688367?
The net profit margin of Hefei Gocom Information Technology Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Hefei Gocom Information Technology Co pay a dividend?
Hefei Gocom Information Technology Co currently shows a dividend yield of about 0.32% relative to its recent price (as of Aug 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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