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Union Semiconductor (Hefei) Co (688403) Fair Value & Analysis

Technology · CN · Market cap 24.2B CNY

US Union Semiconductor (Hefei) Co 688403 · SHG
Price¥25.25
Fair Value¥18.68
Upside-26.0%
Quality49/100
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Expensive Growth
Thin margins · 8.7% net margin
Low debt · generates free cash flow
Trails peers (3/14)
Narrow moat 27/100
Evidence: High Range ¥15.16 – ¥24.83 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥3.12 to ¥18.68 (+498.7%) since Jun 24, 2026. Share price −27.1% over the past month.

Below-average quality, and screening another 26% overvalued on our models.

What matters now

  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from ¥15.16 (bear) to ¥24.83 (bull), base ¥18.68. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 49/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (4 years)

¥41.30 ¥6.37 Fair Value ¥18.68 Aug 2022 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

48‑month range ¥6.37 – ¥41.30 · fair‑value band ¥15.16 – ¥24.83 · the ¥25.25 price screens above the ¥18.68 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Union Semiconductor (Hefei) Co (688403) currently trades at ¥25.25, while our model-based Fair Value estimate is ¥18.68, implying the stock looks roughly 26.0% overvalued today. The Quality Score stands at 49/100 (below-average 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, Union Semiconductor (Hefei) Co generated revenue of 1.8B CNY at a net margin of 8.7%. Revenue grew 13.2% year over year. It earns a return on equity of 4.6%. Net debt stands at 875M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥15.16 (bear case) to ¥24.83 (bull case); at ¥25.25, 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 11% below its 52-week high and 172% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -67% fair-value upside, at -26%, 688403 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥2.86 ¥6.12 ¥12.58 80
Residual Income ¥2.71 ¥2.72 ¥2.53 76
Rev-Margin DCF ¥1.69 ¥3.99 ¥7.52 74
All 26 models by family
DCF Models
FCF DCF ¥3.08 ¥5.42 ¥12.64 38
Owner Earnings ¥1.01 ¥3.33 ¥8.18 31
5Y Revenue Exit ¥1.69 ¥3.49 ¥7.07 39
5Y EBITDA Exit ¥4.68 ¥9.80 ¥19.43 41
5Y P/E Exit ¥1.96 ¥4.77 ¥8.42 38
10Y Revenue Exit ¥2.01 ¥4.71 ¥7.14 36
10Y EBITDA Exit ¥4.23 ¥10.68 ¥23.16 37
10Y P/E Exit ¥2.28 ¥5.24 ¥10.40 35
Earnings-Based
Graham-Dodd ¥1.06 ¥7.40 ¥10.39 54
Lynch FV ¥2.42 ¥3.45 ¥4.49 50
PEG = 1.0 ¥2.42 ¥3.45 ¥4.49 46
EPV ¥0.7300 ¥0.9800 ¥1.20 59
Dividend Discount
Gordon GGM ¥0.7600 ¥1.58 ¥2.50 70
DDM Multi-Stage ¥0.7600 ¥1.33 ¥1.66 61
Multiples
P/E Multiple ¥2.34 ¥3.12 ¥3.90 63
P/S Multiple ¥1.99 ¥2.65 ¥3.32 58
P/B Multiple ¥1.99 ¥2.65 ¥3.32 55
EV/EBIT ¥1.94 ¥2.85 ¥3.76 53
EV/EBITDA ¥5.30 ¥7.34 ¥9.37 54
EV/Revenue ¥1.05 ¥1.83 ¥2.62 43
Asset-Based
NCAV (Graham) ¥1.79 ¥2.40 ¥3.58 50
Growth DCF
Growth DCF ¥2.86 ¥6.12 ¥12.58 80
Rev-Margin DCF ¥1.69 ¥3.99 ¥7.52 74
Economic Profit
Residual Income ¥2.71 ¥2.72 ¥2.53 76
ROIC Compounder ¥0.7300 ¥0.9800 ¥1.20 72
Growth Earnings
Growth-Adj P/E ¥3.15 ¥4.49 ¥5.84 68

Widest divergence: DCF Models (¥4.77) versus Economic Profit (¥0.9800). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.8B CNY
Revenue growth (YoY) +13.2%
Net margin 8.7%
Return on equity 4.6%
Free cash flow 233M CNY FY2025
P/E ratio 203.7
More key figures
Operating margin 0.9%
EPS (TTM) ¥0.1200
EPS growth (YoY) -54.3%
Net debt 875M CNY FY2025

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 53 · Market factors (momentum, volatility) 74

Profitability 27
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 28
Calm price path (market factor)
Momentum 95
Price trend over the last 3–12 months (market factor)
52W Momentum 92
Distance to the 52-week high (market factor)
Net Issuance 56
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

Union Semiconductor (Hefei) Co., Ltd. provides packaging and testing services for integrated circuits to display driver chip design companies in China and internationally. The company provides bump manufacturing (bumping), wafer testing (CP), chip on glass (COG), and chip on film (COF) processing services.

Full company description

Union Semiconductor (Hefei) Co., Ltd. provides packaging and testing services for integrated circuits to display driver chip design companies in China and internationally. The company provides bump manufacturing (bumping), wafer testing (CP), chip on glass (COG), and chip on film (COF) processing services. Its products are used primarily in smartphones, HDTVs, laptops, tablets, automotive electronics, smart wearables, and electronic tags categories. The company was founded in 2015 and is headquartered in Hefei, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Union Semiconductor (Hefei) Co reported revenue of ¥1.8B in FY2025 versus ¥796M in FY2021, a compound +22.4%/yr. Reported net income was ¥155M in FY2025, compounding +2.5%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.8B CNY
Latest YoY
+18.8%
Avg. growth/yr (3Y)
+23.8%
Avg. growth/yr (5Y)
+23.6%
Revenue +22.4%/yr
FY21 ¥796M
FY22 ¥940M
FY23 ¥1.2B
FY24 ¥1.5B
FY25 ¥1.8B
Net income +2.5%/yr
FY21 ¥140M
FY22 ¥177M
FY23 ¥196M
FY24 ¥160M
FY25 ¥155M

688403 screens 26% overvalued. Compare with NVIDIA Corporation →

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Cite: Fair Value Calculator (2026). "Union Semiconductor (Hefei) Co Fair Value". https://www.fairvalue-calculator.com/stock/688403

Peer Group

Semiconductors · 319 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 −26% · Above median
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 1% · Below median
Revenue growth 13% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.26× · Higher than median

Valuation Multiples vs Semiconductors median · lower = cheaper

P/E (TTM) 203.7× · Pricier than 75% of peers
P/B 6.82× · Pricier than 75% of peers
P/S (TTM) 13.58× · Pricier than 75% of peers
P/FCF 15.4× · Pricier than 75% of peers
EV/EBITDA 43.8× · 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 0
FUTURE 66 · sector 60
PAST 18 · sector 24
HEALTH 87 · sector 97
DIVIDEND 0 · sector 22

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

Stock Price Fair Value vs Fair Value
NVIDIA Corporation NVDA $211.80 $96.91 -54%
Taiwan Semiconductor Manufacturing Company TSM $398.37 $207.49 -48%
Broadcom Inc 1AVGO €367.75 €121.25 -67%
Micron Technology, Inc 1MU €784.90 €185.67 -76%
SK hynix Inc 000660 2,082,000 KRW 1,109,311 KRW -47%
Advanced Micro Devices, Inc 1AMD €425.20 €56.33 -87%
Intel Corporation INTC C$68.40 C$9.82 -86%
Texas Instruments Incorporated TXN $311.46 $59.75 -81%
MediaTek Inc 2454 3,740 TWD 1,163 TWD -69%
SK Square Co 402340 1,212,000 KRW 868,000 KRW -28%

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Frequently asked questions

Is Union Semiconductor (Hefei) Co (688403) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥18.68 versus a price of ¥25.25, about −26% (overvalued).
What is the fair value of 688403?
Our model-based fair value for Union Semiconductor (Hefei) Co is ¥18.68 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥25.25.
What is the quality score of 688403?
Union Semiconductor (Hefei) 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 Union Semiconductor (Hefei) Co (688403)?
Union Semiconductor (Hefei) Co reported trailing-twelve-month revenue of about 1.8B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688403?
The net profit margin of Union Semiconductor (Hefei) Co is about 8.7%, meaning it keeps roughly 8.7% 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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