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Tongwei Co Ltd (600438) Fair Value & Analysis

Technology · CN · Market cap 58.9B CNY (≈ $8.8B) · ISIN CNE000001GS3

What is Tongwei Co Ltd really worth?

TC Tongwei Co Ltd 600438 · SHG
Price¥11.39
Fair Value¥12.13
Upside+6.5%
Quality28/100

Below-average quality, currently priced close to our fair value of ¥12.13.

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Risks

!Weak Growth (revenue 5y +13.7 %/yr)
!Loss-making · -11.7% net margin
!High debt · negative free cash flow
!Trails peers (4/13)
!Narrow moat 10/100
!Evidence only low, so the estimate is less certain
!Weak on balance sheet: 13 out of 100
Evidence: Low Range ¥5.88 – ¥18.38

Fair value as of: Aug 13, 2026

From 2 valuation models · updated 22 days ago

Share price −10.9% over the past month.

What runs behind every stock

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

What matters now

  • The model range is unusually wide (¥5.88 to ¥18.38). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Price vs Fair Value (5 years)

¥62.55 ¥10.48 Fair Value ¥12.13 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥10.48 – ¥62.55 · fair‑value band ¥5.88 – ¥18.38 · the ¥11.39 price screens below the ¥12.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Tongwei Co Ltd (600438) currently trades at ¥11.39, while our model-based Fair Value estimate is ¥12.13, implying the stock looks roughly 6.1% fairly valued today. The Quality Score stands at 28/100 (below-average quality), in the Technology sector. How firm this estimate is: it rests on 2 models at a data quality of 85/100, which puts the evidence level at low.

Over the trailing twelve months, Tongwei Co Ltd generated revenue of 80.3B CNY at a net margin of −11.7%. Revenue declined 23.9% year over year. It earns a return on equity of −20.9%. Net debt stands at 57.9B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥5.88 (bear case) to ¥18.38 (bull case); at ¥11.39, 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 59% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −33% fair-value upside, at 7%, 600438 screens cheaper 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.

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
EV/EBITDA best evidence ¥7.59 ¥13.84 ¥20.09 65
NCAV (Graham) ¥4.32 ¥5.79 ¥8.64 54
All 2 models by family
Multiples
EV/EBITDA best evidence ¥7.59 ¥13.84 ¥20.09 65
Asset-Based
NCAV (Graham) ¥4.32 ¥5.79 ¥8.64 54

Widest divergence: Multiples (¥13.84) versus Asset-Based (¥5.79). Highest evidence: EV/EBITDA (65).

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Key figures & financial health

P/S ratio 0.73 TTM
EPS (TTM) ¥−2.09
Dividend yield 3.5%
Net margin −11.4% FY2025
Return on equity −20.9% TTM
Return on assets (EBIT) 9.3% avg 5y
More key figures
Profitability
Operating margin −16.7% TTM
Growth
Revenue (TTM) 80.3B CNY TTM
Revenue growth (YoY) −23.9% 3y avg −16.1%
EPS growth (YoY) −68.5%
Balance sheet & cash flow
Free cash flow −11.7B CNY FY2025
Net debt 57.9B CNY FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 28/100

Of which business quality 27 · Market factors (momentum, volatility) 26

Profitability 6
Margins and returns on capital today
Quality Growth 27
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 13
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 83
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

Tongwei Co.,Ltd engages in the production and sales of industrial silicon and high-purity crystalline silicon for solar energy, chemical products, silicon rods, silicon wafers, solar cells, and modules in China and internationally.

Full company description

Tongwei Co.,Ltd engages in the production and sales of industrial silicon and high-purity crystalline silicon for solar energy, chemical products, silicon rods, silicon wafers, solar cells, and modules in China and internationally. It is involved in the generation of electricity and related businesses; production and sale of feed, etc.; and aquaculture, seedling cultivation, food processing, etc. The company also engages in technical services; power supply; photovoltaic new energy; farming; sale of battery cell and components; and photovoltaic power operation. Tongwei Co., Ltd was founded in 1995 and is headquartered in Chengdu, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tongwei Co Ltd reported revenue of 84.1B CNY in FY2025 versus 64.8B CNY in FY2021, a compound +6.7%/yr. Reported net income was −9.6B CNY in FY2025.

Growth Quality 38/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
84.1B CNY
Latest YoY
−8.6%
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.
−16.1%
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.
+13.7%
Avg. revenue growth/yr (25Y) 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.
+24.5%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +6.7%/yr
FY21 64.8B CNY
FY22 142B CNY
FY23 139B CNY
FY24 92.0B CNY
FY25 84.1B CNY
Net income
FY21 8.1B CNY
FY22 25.7B CNY
FY23 13.6B CNY
FY24 −7.0B CNY
FY25 −9.6B CNY
Character of growth · EPS growth decomposed (2013-2024) +40.3 % p.a.
Revenue per share +16.0 %

of which total revenue +28.7 % · buybacks/dilution −9.8 %

EBIT margin +26.7 %
Tax rate −0.1 %
Residual (interest, one-offs) −4.5 %

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). "Tongwei Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600438

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 27 · Bottom 25%
Fair Value upside +7% · Above median
Return on assets −2% · Below median
Net margin (TTM) −12% · Below median
Operating margin (TTM) −17% · Bottom 25%
Revenue growth −24% · Bottom 25%
Dividend yield (TTM) 3.5% · Top 25%
Debt / equity 1.74× · Higher than 75% of peers

Valuation Multiples vs Solar median · lower = cheaper

P/B 0.23× · Cheaper than median
P/S (TTM) 0.11× · Cheaper than 75% of peers
EV/EBITDA 11.8× · Pricier than median
PEG 2.38× · 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
VALUE42 · sector 15
FUTURE0 · sector 0
PAST0 · sector 0
HEALTH13 · sector 85
DIVIDEND71 · 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

Similar stocks

10 more Solar stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
First Solar, Inc FSLR $210.10 $392.12 +87%
Nextpower Inc NXT $103.67 $69.61 −33%
Waaree Energies Limited WAAREEENER ₹2,624 ₹2,709 +3%
Jinko Solar Co 688223 ¥4.16 ¥6.47 +56%
Enphase Energy, Inc ENPH $39.25 $24.15 −38%
CSI Solar Co 688472 ¥10.28 ¥6.76 −34%
Hengdian Group 002056 ¥21.53 ¥31.86 +48%
Premier Energies Limited PREMIERENE ₹1,017 ₹648.94 −36%
Trina Solar Co 688599 ¥12.77 ¥7.97 −38%
JA Solar Technology Co 002459 ¥6.81 ¥3.32 −51%

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Frequently asked questions

Is Tongwei Co Ltd (600438) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥12.13 versus a price of ¥11.39, about +7% upside (fairly valued).
What is the fair value of 600438?
Our model-based fair value for Tongwei Co Ltd is ¥12.13 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥11.39.
What is the quality score of 600438?
Tongwei Co Ltd has a Quality Score of 28/100. 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 Tongwei Co Ltd (600438)?
Tongwei Co Ltd reported trailing-twelve-month revenue of about 80.3B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 600438?
The net profit margin of Tongwei Co Ltd is about −11.7%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Tongwei Co Ltd pay a dividend?
Tongwei Co Ltd currently shows a dividend yield of about 3.54% relative to its recent price (as of Aug 13, 2026).
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