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Hengdian Group DMEGC Magnetics Co Ltd (002056) Fair Value & Analysis

Technology · CN · Market cap 36.4B CNY (≈ $5.4B) · ISIN CNE000001N70

What is Hengdian Group DMEGC Magnetics Co Ltd really worth?

HG Hengdian Group DMEGC Magnetics Co Ltd 002056 · SHE
Price¥19.72
Fair Value¥31.86
Upside+61.6%
Quality62/100

A solid business, trading 38% below our fair value of ¥31.86.

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Strengths

Healthy Growth (revenue 5y +22.6 %/yr)
Low debt · generates free cash flow
Ranks above peers (12/15)

Risks

!Thin margins · 7.8% net margin
!Moderate moat 51/100
!Weak on future: 25 out of 100

For context

·3.04% dividend yield
Evidence: High Range ¥21.93 – ¥39.83

Fair value as of: Aug 22, 2026

From 26 valuation models · updated 14 days ago

Share price −10.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (¥21.93). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥21.93 to ¥39.83) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

¥32.82 ¥10.34 Fair Value ¥31.86 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ¥10.34 – ¥32.82 · fair‑value band ¥21.93 – ¥39.83 · the ¥19.72 price screens below the ¥31.86 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Hengdian Group DMEGC Magnetics Co Ltd (002056) currently trades at ¥19.72, while our model-based Fair Value estimate is ¥31.86, implying the stock looks roughly 38.1% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of ¥33.44 per share, and 17 of the 26 models we run sit above the ¥19.72 price. Bear case: the Asset-Based group reads lowest at ¥4.38, and 9 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Hengdian Group DMEGC Magnetics Co Ltd generated revenue of 22.8B CNY at a net margin of 7.8%. Revenue grew 4.9% year over year. It earns a return on equity of 17.5%. Net debt stands at 2.0B CNY. Fundamentals as of Aug 22, 2026

Our scenario range runs from ¥21.93 (bear case) to ¥39.83 (bull case); at ¥19.72, the current price sits below 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 35% below its 52-week high and 50% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −33% fair-value upside, at 62%, 002056 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.3465 per share, which is 1.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF ¥19.73 ¥33.44 ¥68.16 76
Growth DCF ¥19.27 ¥35.61 ¥61.54 76
EPV ¥14.90 ¥16.80 ¥18.46 74
All 26 models by family
DCF Models
FCF DCF ¥19.73 ¥33.44 ¥68.16 76
Owner Earnings ¥14.36 ¥25.73 ¥47.66 73
5Y Revenue Exit ¥17.95 ¥30.89 ¥49.35 71
5Y EBITDA Exit ¥26.11 ¥49.03 ¥79.75 73
5Y P/E Exit ¥24.33 ¥45.07 ¥70.52 69
10Y Revenue Exit ¥17.92 ¥30.86 ¥52.76 65
10Y EBITDA Exit ¥24.00 ¥44.76 ¥80.21 65
10Y P/E Exit ¥22.79 ¥41.73 ¥71.88 61
Earnings-Based
Graham-Dodd ¥7.74 ¥45.67 ¥63.59 63
Lynch FV ¥12.96 ¥18.52 ¥24.07 61
PEG = 1.0 ¥12.96 ¥18.52 ¥24.07 57
EPV ¥14.90 ¥16.80 ¥18.46 74
Dividend Discount
Gordon GGM ¥7.52 ¥15.64 ¥24.81 66
DDM Multi-Stage ¥7.52 ¥13.19 ¥16.41 66
Multiples
P/E Multiple ¥23.90 ¥31.86 ¥39.83 63
P/S Multiple ¥14.51 ¥19.35 ¥24.18 58
P/B Multiple ¥14.51 ¥19.35 ¥24.18 55
EV/EBIT ¥30.02 ¥38.85 ¥47.68 66
EV/EBITDA ¥30.09 ¥38.94 ¥47.80 67
EV/Revenue ¥16.93 ¥22.67 ¥28.41 54
Asset-Based
NCAV (Graham) ¥3.27 ¥4.38 ¥6.53 54
Growth DCF
Growth DCF ¥19.27 ¥35.61 ¥61.54 76
Rev-Margin DCF ¥17.95 ¥30.34 ¥47.70 71
Economic Profit
Residual Income ¥7.35 ¥9.07 ¥21.25 70
ROIC Compounder ¥16.70 ¥21.26 ¥27.12 72
Growth Earnings
Growth-Adj P/E ¥21.93 ¥31.33 ¥40.73 67

Widest divergence: DCF Models (¥33.44) versus Asset-Based (¥4.38). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 17.6
P/S ratio 1.45 P/E × margin
EPS (TTM) ¥1.11 price ÷ EPS = P/E 17.6
Dividend yield 3.0% payout 54.1%
Net margin 8.2% FY2025
Return on equity 17.5% TTM
More key figures
Profitability
Return on assets (EBIT) 9.4% avg 5y
Operating margin 9.7% TTM
Growth
Revenue (TTM) 22.8B CNY TTM
Revenue growth (YoY) +4.9% 3y avg +4.9%
EPS growth (YoY) −15.6%
Balance sheet & cash flow
Free cash flow 1.8B CNY FY2025
Net debt 2.0B CNY FY2025 · ≈ 1.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 39

Profitability 48
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 46
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 87
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hengdian Group DMEGC Magnetics Co., Ltd., together with its subsidiaries, provides magnetic materials, photovoltaic products, lithium batteries, and devices in China and internationally.

Full company description

Hengdian Group DMEGC Magnetics Co., Ltd., together with its subsidiaries, provides magnetic materials, photovoltaic products, lithium batteries, and devices in China and internationally. The company offers tile-shaped, ring, microwave oven, square, dry pressing and irregularly shaped, and bonded composite permanent magnets; manganese-zinc power and high-conductivity ferrite, nickel-zinc ferrite, magnetic powder core, nanocrystals, magnetic sheet, and magnetic design tool; rubber magnetic sheet, extruded magnetic strip, motor magnetic strip and sensor magnetic ring, water pump rotor, glue-coated parts, and magnetic ring and rotor assembly; and permanent magnet ferrite sintering and binder powder. It also provides solar modules and cells; lithium battery cells and energy storage and pack modules; cemented carbide, including carbide top hammer, composite substrate, non-standard cemented carbide for molds, non-standard oil hard alloy, and high-density tungsten products; in-vehicle and consumer goods inductance; flat, linear, and brushless vibration motors, as well as acoustic and cylindrical motors; and RF devices, such as power circulators and isolators. In addition, the company offers electromagnetic exciters, lithium battery caps; wireless charging modules; and motor housing and components. Further, it is involved in trade brokerage; investment and agency; piped gas activities; scientific research and technical services; and power engineering. The company was founded in 1980 and is headquartered in Dongyang, China. Hengdian Group DMEGC Magnetics Co., Ltd. operates as a subsidiary of Hengdian Group Holding Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengdian Group DMEGC Magnetics Co Ltd reported revenue of 22.5B CNY in FY2025 versus 12.6B CNY in FY2021, a compound +15.6%/yr. Reported net income was 1.9B CNY in FY2025, compounding +13.4%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
22.5B CNY
Latest YoY
+21.1%
Avg. revenue 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.
+4.9%
Avg. revenue 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.
+22.6%
Avg. revenue growth/yr (22Y) 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.
+17.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+16.1% (13.1 + 3.0)
Revenue +15.6%/yr
FY21 12.6B CNY
FY22 19.5B CNY
FY23 19.7B CNY
FY24 18.6B CNY
FY25 22.5B CNY
Net income +13.4%/yr
FY21 1.1B CNY
FY22 1.7B CNY
FY23 1.8B CNY
FY24 1.8B CNY
FY25 1.9B CNY
Character of growth · EPS growth decomposed (2014-2025) +19.3 % p.a.
Revenue per share +19.6 %

of which total revenue +19.4 % · buybacks/dilution +0.2 %

EBIT margin +1.1 %
Tax rate −0.3 %
Residual (interest, one-offs) −1.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Hengdian Group DMEGC Magnetics Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002056

Peer Group

Solar · 109 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 62 · Top 25%
Fair Value upside +62% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 3.0% · Top 25%

Valuation Multiples vs Solar median · lower = cheaper

P/E (TTM) 17.6× · Cheaper than median
P/B 3.42× · Pricier than median
P/S (TTM) 1.59× · Pricier than median
P/FCF 3.0× · Cheaper than median
EV/EBITDA 9.8× · Cheaper than median
PEG 1.48× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 15
FUTURE25 · sector 0
PAST70 · sector 0
HEALTH100 · sector 85
DIVIDEND61 · sector 29

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

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JA Solar Technology Co 002459 ¥6.81 ¥3.32 −51%

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Frequently asked questions

Is Hengdian Group DMEGC Magnetics Co Ltd (002056) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ¥31.86 versus a price of ¥19.72, about +62% upside (undervalued).
What is the fair value of 002056?
Our model-based fair value for Hengdian Group DMEGC Magnetics Co Ltd is ¥31.86 (as of Aug 22, 2026), built from audited fundamentals. The current price: ¥19.72.
What is the quality score of 002056?
Hengdian Group DMEGC Magnetics Co Ltd has a Quality Score of 62/100. 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 Hengdian Group DMEGC Magnetics Co Ltd (002056)?
Hengdian Group DMEGC Magnetics Co Ltd reported trailing-twelve-month revenue of about 22.8B CNY (latest available figure, as of Aug 22, 2026).
What is the net profit margin of 002056?
The net profit margin of Hengdian Group DMEGC Magnetics Co Ltd is about 7.8%, meaning it keeps roughly 7.8% of revenue as net income. Based on the latest reported figures.
Does Hengdian Group DMEGC Magnetics Co Ltd pay a dividend?
Hengdian Group DMEGC Magnetics Co Ltd currently shows a dividend yield of about 3.04% relative to its recent price (as of Aug 22, 2026).
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