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Hengbao Co Ltd (002104) Fair Value & Analysis

Industrials · CN · Market cap 8.2B CNY (≈ $1.2B) · ISIN CNE000001Q69

What is Hengbao Co Ltd really worth?

HC Hengbao Co Ltd 002104 · SHE
Price¥14.05
Fair Value¥2.09
Upside−85.1%
Quality60/100

A solid business, but trading 572% above our fair value of ¥2.09.

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Strengths

Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y −3.8 %/yr)
!Thin margins · 1.9% net margin
!Trails peers (2/13)
!Narrow moat 22/100
!Evidence only low, so the estimate is less certain
!Weak on past: 3 out of 100
!Weak on dividend: 5 out of 100

For context

·0.23% dividend yield
Evidence: Low Range ¥1.74 – ¥2.40

Fair value as of: Aug 28, 2026

From 23 valuation models · updated 8 days ago

Share price +32.5% 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 sits above even our optimistic bull case (¥2.40). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

¥30.50 ¥4.77 Fair Value ¥2.09 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range ¥4.77 – ¥30.50 · fair‑value band ¥1.74 – ¥2.40 · the ¥14.05 price screens above the ¥2.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Hengbao Co Ltd (002104) currently trades at ¥14.05, while our model-based Fair Value estimate is ¥2.09, implying the stock looks roughly 572.0% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of ¥2.70 per share, and 0 of the 23 models we run sit above the ¥14.05 price. Bear case: the Earnings-Based group reads lowest at ¥1.01, and 23 of the 23 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Hengbao Co Ltd generated revenue of 745M CNY at a net margin of 1.9%. Revenue declined 49.0% year over year. It earns a return on equity of 0.7%. The balance sheet holds a net cash position of 617M CNY. Fundamentals as of Aug 28, 2026

Our scenario range runs from ¥1.74 (bear case) to ¥2.40 (bull case); at ¥14.05, 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 56% below its 52-week high and 28% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −33% fair-value upside, at −85%, 002104 screens richer than that median.

Fair Value models

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.

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 (¥0.3900 to ¥3.63). 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
FCF DCF ¥2.68 ¥3.63 ¥4.94 81
Growth DCF ¥2.73 ¥3.59 ¥4.72 80
Owner Earnings ¥1.27 ¥1.58 ¥2.02 78
All 23 models by family
DCF Models
FCF DCF ¥2.68 ¥3.63 ¥4.94 81
Owner Earnings ¥1.27 ¥1.58 ¥2.02 78
5Y Revenue Exit ¥1.63 ¥1.92 ¥2.26 74
5Y EBITDA Exit ¥2.06 ¥2.70 ¥3.41 77
5Y P/E Exit ¥2.32 ¥3.17 ¥4.02 72
10Y Revenue Exit ¥2.00 ¥2.34 ¥2.74 68
10Y EBITDA Exit ¥2.28 ¥2.86 ¥3.56 70
10Y P/E Exit ¥2.44 ¥3.17 ¥4.00 65
Earnings-Based
Graham-Dodd ¥0.5600 ¥1.45 ¥1.89 65
PEG = 1.0 ¥0.2700 ¥0.3900 ¥0.5100 57
EPV ¥0.9500 ¥1.01 ¥1.06 74
Multiples
P/E Multiple ¥1.74 ¥2.32 ¥2.90 63
P/S Multiple ¥1.06 ¥1.41 ¥1.76 58
P/B Multiple ¥1.06 ¥1.41 ¥1.76 55
EV/EBIT ¥1.48 ¥1.79 ¥2.09 66
EV/EBITDA ¥1.84 ¥2.27 ¥2.69 67
EV/Revenue ¥1.03 ¥1.23 ¥1.43 54
Asset-Based
NCAV (Graham) ¥1.52 ¥2.04 ¥3.05 54
Growth DCF
Growth DCF ¥2.73 ¥3.59 ¥4.72 80
Rev-Margin DCF ¥1.63 ¥1.96 ¥2.34 74
Economic Profit
Residual Income ¥2.16 ¥2.06 ¥1.67 76
ROIC Compounder ¥0.9500 ¥1.01 ¥1.06 72
Growth Earnings
Growth-Adj P/E ¥1.33 ¥1.90 ¥2.46 67

Widest divergence: DCF Models (¥2.70) versus Earnings-Based (¥1.01). Highest evidence: FCF DCF (81).

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Key figures & financial health

P/E ratio 702.5
P/S ratio 47.6 P/E × margin
EPS (TTM) ¥0.0200 price ÷ EPS = P/E 702.5
Dividend yield 0.2% payout 165%
Net margin 6.8% FY2025
Return on equity 0.7% TTM
More key figures
Profitability
Return on assets (EBIT) 3.9% avg 5y
Operating margin −19.0% TTM
Growth
Revenue (TTM) 745M CNY TTM
Revenue growth (YoY) −49.0% 3y avg −5.7%
EPS growth (YoY) +491%
Balance sheet & cash flow
Free cash flow 145M CNY FY2025
Net cash 617M CNY FY2024

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 63 · Market factors (momentum, volatility) 28

Profitability 25
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 76
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

Hengbao Co.,Ltd. engages in the financial technology, Internet of Things, digital security and digital services in China and internationally. The company offers card payment and security services; blockchain finance, digital asset wallet, and supply chain financial platform; mobile communications and the internet of things, including sim, esim, and M2M card.

Full company description

Hengbao Co.,Ltd. engages in the financial technology, Internet of Things, digital security and digital services in China and internationally. The company offers card payment and security services; blockchain finance, digital asset wallet, and supply chain financial platform; mobile communications and the internet of things, including sim, esim, and M2M card. It also provides smart password key, electronic token, Bluetooth USBKEY, mobile smart terminal mobile phone shield, and other products; and tax security products, such as tax control disk, transmission disks, tax control Ukey, and PSAM cards. In addition, the company offers bluetooth secure reading and writing terminal, mPOS, mobile POS, and face recognition payment terminal; and one card cloud and mobile payment platform services. Further, it serves its products to financial industry, communications industry, mobile payment cloud platform, automotive, and composite material solutions. Hengbao Co.,Ltd. was founded in 1996 and is headquartered in Danyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengbao Co Ltd reported revenue of 866M CNY in FY2025 versus 960M CNY in FY2021, a compound −2.5%/yr. Reported net income was 58.7M CNY in FY2025, compounding +2.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
866M CNY
Latest YoY
−4.0%
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.
−5.7%
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.
−3.8%
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.
+11.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+1.9% (1.7 + 0.2)
Revenue −2.5%/yr
FY21 960M CNY
FY22 1.0B CNY
FY23 1.3B CNY
FY24 903M CNY
FY25 866M CNY
Net income +2.6%/yr
FY21 53.1M CNY
FY22 81.9M CNY
FY23 158M CNY
FY24 95.0M CNY
FY25 58.7M CNY
Character of growth · EPS growth decomposed (2013-2024) −9.8 % p.a.
Revenue per share −3.8 %

of which total revenue −4.0 % · buybacks/dilution +0.2 %

EBIT margin −4.9 %
Tax rate +0.3 %
Residual (interest, one-offs) −1.7 %

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).

002104 screens 572% overvalued. Compare with GRG Banking Equipment Co →

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Cite: Fair Value Calculator (2026). "Hengbao Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002104

Peer Group

Business Equipment & Supplies · 74 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 60 · Above median
Fair Value upside −85% · Bottom 25%
Return on equity (TTM) 1% · Below median
Return on assets 0% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) −19% · Bottom 25%
Revenue growth −49% · Bottom 25%
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Business Equipment & Supplies median · lower = cheaper

P/E (TTM) 702.5× · Pricier than 75% of peers
P/B 3.80× · Pricier than 75% of peers
P/S (TTM) 11.01× · Pricier than 75% of peers
P/FCF 8.5× · 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
VALUE0 · sector 31
FUTURE0 · sector 19
PAST3 · sector 19
HEALTH99 · sector 98
DIVIDEND5 · sector 52

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

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Frequently asked questions

Is Hengbao Co Ltd (002104) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of ¥2.09 versus a price of ¥14.05, about −85% upside (overvalued).
What is the fair value of 002104?
Our model-based fair value for Hengbao Co Ltd is ¥2.09 (as of Aug 28, 2026), built from audited fundamentals. The current price: ¥14.05.
What is the quality score of 002104?
Hengbao Co Ltd has a Quality Score of 60/100. 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 Hengbao Co Ltd (002104)?
Hengbao Co Ltd reported trailing-twelve-month revenue of about 745M CNY (latest available figure, as of Aug 28, 2026).
What is the net profit margin of 002104?
The net profit margin of Hengbao Co Ltd is about 1.9%, meaning it keeps roughly 1.9% of revenue as net income. Based on the latest reported figures.
Does Hengbao Co Ltd pay a dividend?
Hengbao Co Ltd currently shows a dividend yield of about 0.23% relative to its recent price (as of Aug 28, 2026).
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