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Hangzhou Honghua Digital Technology Stock Company (688789) Fair Value & Analysis

Industrials · CN · Market cap 9.1B CNY

HH Hangzhou Honghua Digital Technology Stock Company 688789 · SHG
Price¥45.09
Fair Value¥53.53
Upside+18.7%
Quality55/100
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Mixed Growth
Highly profitable · 21.1% net margin
Low debt · negative free cash flow
1.90% dividend yield
Ranks above peers (10/13)
Moderate moat 63/100
Evidence: High Range ¥41.15 – ¥72.02 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥61.62 to ¥53.53 (−13.1%) since Jun 24, 2026. Share price −8.6% over the past month.

A solid business, screening 19% undervalued on our models.

What matters now

  • Our model range runs from ¥41.15 (bear) to ¥72.02 (bull), base ¥53.53. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 55/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥145.07 ¥43.69 Fair Value ¥53.53 Jul 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 ¥43.69 – ¥145.07 · fair‑value band ¥41.15 – ¥72.02 · the ¥45.09 price screens below the ¥53.53 fair value. Dashed = 300-day average. As of Jul 12, 2026.

Full chart & analysis →

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Analysis

Hangzhou Honghua Digital Technology Stock Company (688789) currently trades at ¥45.09, while our model-based Fair Value estimate is ¥53.53, implying the stock looks roughly 18.7% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hangzhou Honghua Digital Technology Stock Company generated revenue of 2.2B CNY at a net margin of 21.1%. Revenue declined 23.0% year over year. It earns a return on equity of 13.6%. The balance sheet holds a net cash position of 726M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥41.15 (bear case) to ¥72.02 (bull case); at ¥45.09, the current price sits within 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 50% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 19%, 688789 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
Residual Income ¥19.42 ¥24.94 ¥63.94 76
ROIC Compounder ¥38.82 ¥55.52 ¥66.11 72
Gordon GGM ¥8.09 ¥16.11 ¥24.40 70
All 17 models by family
DCF Models
Owner Earnings ¥22.21 ¥44.16 ¥88.54 31
Earnings-Based
Graham-Dodd ¥19.95 ¥139.14 ¥195.27 54
Lynch FV ¥59.42 ¥84.89 ¥110.35 50
PEG = 1.0 ¥59.42 ¥84.89 ¥110.35 46
EPV ¥30.40 ¥34.54 ¥38.12 59
Dividend Discount
Gordon GGM ¥8.09 ¥16.11 ¥24.40 70
DDM Multi-Stage ¥8.09 ¥13.93 ¥17.01 61
Multiples
P/E Multiple ¥46.21 ¥61.62 ¥77.02 63
P/S Multiple ¥19.20 ¥25.61 ¥32.01 58
P/B Multiple ¥37.41 ¥49.88 ¥62.35 55
EV/EBIT ¥48.57 ¥63.37 ¥78.18 53
EV/EBITDA ¥41.28 ¥53.66 ¥66.03 54
EV/Revenue ¥20.29 ¥27.20 ¥34.12 43
Asset-Based
NCAV (Graham) ¥9.91 ¥13.28 ¥19.83 50
Economic Profit
Residual Income ¥19.42 ¥24.94 ¥63.94 76
ROIC Compounder ¥38.82 ¥55.52 ¥66.11 72
Growth Earnings
Growth-Adj P/E ¥73.58 ¥105.12 ¥136.65 68

Widest divergence: Growth Earnings (¥105.12) versus Asset-Based (¥13.28). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.2B CNY
Revenue growth (YoY) -23.0%
Net margin 21.1%
Return on equity 13.6%
Free cash flow −88.7M CNY FY2025
P/E ratio 19.5
More key figures
Operating margin 17.4%
EPS (TTM) ¥2.58
Dividend yield 1.9%
EPS growth (YoY) -61.7%
Net cash 726M CNY FY2024

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

Quality Score breakdown

Overall quality 55/100

Of which business quality 56 · Market factors (momentum, volatility) 22

Profitability 66
Margins and returns on capital today
Quality Growth 76
Are margins and returns improving?
Cashflow 14
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 8
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 6
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 66
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

Hangzhou Honghua Digital Technology Stock Company LTD. engages in the research and development, production, and sale of digital printing equipment and consumables in China.

Full company description

Hangzhou Honghua Digital Technology Stock Company LTD. engages in the research and development, production, and sale of digital printing equipment and consumables in China. It provides solutions for industrial digital printing, digital printing equipment for the textile and printing industries, consumables and software for inkjet printing, and automated sewing equipment. It also exports its products. Hangzhou Honghua Digital Technology Stock Company LTD. was founded in 1992 and is headquartered in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hangzhou Honghua Digital Technology Stock Company reported revenue of ¥2.3B in FY2025 versus ¥943M in FY2021, a compound +25.1%/yr. Reported net income was ¥529M in FY2025, compounding +23.6%/yr from FY2021.

Growth Quality 60/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
2.3B CNY
Latest YoY
+28.9%
Avg. growth/yr (3Y)
+37.2%
Avg. growth/yr (5Y)
+26.4%
Avg. growth/yr (16Y)
+19.2%
Revenue +25.1%/yr
FY21 ¥943M
FY22 ¥895M
FY23 ¥1.3B
FY24 ¥1.8B
FY25 ¥2.3B
Net income +23.6%/yr
FY21 ¥227M
FY22 ¥243M
FY23 ¥325M
FY24 ¥414M
FY25 ¥529M

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Cite: Fair Value Calculator (2026). "Hangzhou Honghua Digital Technology Stock Company Fair Value". https://www.fairvalue-calculator.com/stock/688789

Peer Group

Specialty Industrial Machinery · 809 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 55 · Above median
Fair Value upside +19% · Top 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth -23% · Bottom 25%
Dividend yield (TTM) 1.9% · Above median
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 19.5× · Cheaper than median
P/B 2.54× · Pricier than median
P/S (TTM) 4.15× · Pricier than median
EV/EBITDA 14.3× · Cheaper 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 58 · sector 0
FUTURE 0 · sector 23
PAST 55 · sector 28
HEALTH 97 · sector 96
DIVIDEND 38 · sector 24

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

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Hangzhou Honghua Digital Technology Stock Company (688789) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥53.53 versus a price of ¥45.09, about +19% (undervalued).
What is the fair value of 688789?
Our model-based fair value for Hangzhou Honghua Digital Technology Stock Company is ¥53.53 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥45.09.
What is the quality score of 688789?
Hangzhou Honghua Digital Technology Stock Company has a Quality Score of 55/100. 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 Hangzhou Honghua Digital Technology Stock Company (688789)?
Hangzhou Honghua Digital Technology Stock Company reported trailing-twelve-month revenue of about 2.2B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688789?
The net profit margin of Hangzhou Honghua Digital Technology Stock Company is about 21.1%, meaning it keeps roughly 21.1% of revenue as net income. Based on the latest reported figures.
Does Hangzhou Honghua Digital Technology Stock Company pay a dividend?
Hangzhou Honghua Digital Technology Stock Company currently shows a dividend yield of about 1.90% 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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