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Eastern Communications Co Ltd A (600776) Fair Value & Analysis

Technology · CN · Market cap 16.4B CNY (≈ $2.4B) · ISIN CNE000000ND3

What is Eastern Communications Co Ltd A really worth?

EC Eastern Communications Co Ltd A 600776 · SHG
Price¥13.09
Fair Value¥2.91
Upside−77.8%
Quality61/100

A solid business, but trading 350% above our fair value of ¥2.91.

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Strengths

Solidly profitable · 17.8% net margin
Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y −3.5 %/yr)
!Trails peers (5/13)
!Narrow moat 43/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 8 out of 100

For context

·0.42% dividend yield
Evidence: Medium Range ¥2.63 – ¥4.54

Fair value as of: Aug 13, 2026

From 18 valuation models · updated 22 days ago

Share price +1.1% 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 sits above even our optimistic bull case (¥4.54). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

¥26.10 ¥7.69 Fair Value ¥2.91 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 ¥7.69 – ¥26.10 · fair‑value band ¥2.63 – ¥4.54 · the ¥13.09 price screens above the ¥2.91 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

Eastern Communications Co Ltd A (600776) currently trades at ¥13.09, while our model-based Fair Value estimate is ¥2.91, implying the stock looks roughly 349.8% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of ¥5.98 per share, and 0 of the 18 models we run sit above the ¥13.09 price. Bear case: the Dividend Discount group reads lowest at ¥0.6100, and 18 of the 18 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Eastern Communications Co Ltd A generated revenue of 2.6B CNY at a net margin of 17.8%. Revenue grew 21.2% year over year. It earns a return on equity of 12.4%. The balance sheet holds a net cash position of 809M CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥2.63 (bear case) to ¥4.54 (bull case); at ¥13.09, 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 52% below its 52-week high and 26% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −52% fair-value upside, at −78%, 600776 screens richer 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 ¥0.2072 per share, which is 7.1 % 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.

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 (¥0.6100 to ¥7.98). 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 best evidence ¥1.86 ¥2.14 ¥2.68 81
Growth DCF ¥1.89 ¥2.17 ¥2.65 79
Owner Earnings ¥4.31 ¥5.53 ¥7.84 76
All 18 models by family
DCF Models
FCF DCF best evidence ¥1.86 ¥2.14 ¥2.68 81
Owner Earnings ¥4.31 ¥5.53 ¥7.84 76
5Y Revenue Exit ¥1.79 ¥2.09 ¥2.54 73
5Y P/E Exit ¥4.56 ¥6.87 ¥9.63 70
10Y Revenue Exit ¥1.79 ¥2.03 ¥2.29 67
10Y P/E Exit ¥3.50 ¥5.03 ¥6.55 64
Earnings-Based
Graham-Dodd ¥1.94 ¥2.57 ¥2.96 65
Dividend Discount
Gordon GGM ¥0.5600 ¥0.6100 ¥0.6900 67
DDM Multi-Stage ¥0.5600 ¥0.7100 ¥0.9200 65
Multiples
P/E Multiple ¥5.99 ¥7.98 ¥9.98 61
P/S Multiple ¥3.63 ¥4.85 ¥6.06 56
P/B Multiple ¥3.63 ¥4.85 ¥6.06 53
EV/Revenue ¥1.80 ¥2.10 ¥2.40 53
Asset-Based
NCAV (Graham) ¥1.50 ¥2.01 ¥3.01 52
Growth DCF
Growth DCF ¥1.89 ¥2.17 ¥2.65 79
Rev-Margin DCF ¥1.79 ¥2.11 ¥2.51 73
Economic Profit
Residual Income ¥2.60 ¥2.87 ¥4.28 74
Growth Earnings
Growth-Adj P/E ¥4.19 ¥5.98 ¥7.78 66

Widest divergence: Growth Earnings (¥5.98) versus Dividend Discount (¥0.6100). Highest evidence: FCF DCF (81).

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Key figures & financial health

P/E ratio 41.9 as of Jun 15, 2026
P/S ratio 6.06 P/E × margin
EPS (TTM) ¥0.3600 price ÷ EPS = P/E 41.9
Dividend yield 0.4% payout 15.3%
Net margin 14.5% FY2025
Return on equity 12.4% TTM
More key figures
Profitability
Return on assets (EBIT) 2.3% avg 5y
Operating margin 1.7% TTM
Growth
Revenue (TTM) 2.6B CNY TTM
Revenue growth (YoY) +21.2% 3y avg −8.5%
EPS growth (YoY) +13.9%
Balance sheet & cash flow
Free cash flow 96.1M CNY FY2025
Net cash 809M CNY FY2024

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

Quality Score breakdown

Overall quality 61/100

Of which business quality 61 · Market factors (momentum, volatility) 36

Profitability 39
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 99
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 82
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

Eastern Communications Co.,Ltd. in the enterprise network and information security businesses. It offers network communication equipment and overall solutions in the field of emergency communication for government departments and enterprises and institutions; cash and non-cash smart self-service terminals; financial information software and related …

Full company description

Eastern Communications Co.,Ltd. in the enterprise network and information security businesses. It offers network communication equipment and overall solutions in the field of emergency communication for government departments and enterprises and institutions; cash and non-cash smart self-service terminals; financial information software and related maintenance services to banks, government agencies, and other service organizations; network optimization, software development, operation and maintenance services to telecom operators, and ICT equipment suppliers; system integration and other solutions; and electronic product manufacturing, and technology park leasing business. In addition, the company provides PDT/TETRA wireless trunking communication series products; mobile communication technology solutions; and Internet risk control product lines; and private network communication and information security. Eastern Communications Co.,Ltd. was founded in 1958 and is based in Hangzhou, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Eastern Communications Co Ltd A reported revenue of 2.5B CNY in FY2025 versus 3.0B CNY in FY2021, a compound −5.0%/yr. Reported net income was 358M CNY in FY2025, compounding +32.5%/yr from FY2021.

Growth Quality 36/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
2.5B CNY
Latest YoY
−14.4%
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.
−8.5%
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.
−3.5%
Avg. revenue growth/yr (32Y) 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.
+2.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+25.6% (25.2 + 0.4)
Revenue −5.0%/yr
FY21 3.0B CNY
FY22 3.2B CNY
FY23 2.9B CNY
FY24 2.9B CNY
FY25 2.5B CNY
Net income +32.5%/yr
FY21 116M CNY
FY22 135M CNY
FY23 153M CNY
FY24 151M CNY
FY25 358M CNY
Character of growth · EPS growth decomposed (2013-2024) −2.3 % p.a.
Revenue per share −1.8 %

of which total revenue −1.8 % · buybacks/dilution +0.0 %

EBIT margin +3.2 %
Tax rate +0.2 %
Residual (interest, one-offs) −3.8 %

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).

600776 screens 350% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "Eastern Communications Co Ltd A Fair Value". https://www.fairvalue-calculator.com/stock/600776

Peer Group

Communication Equipment · 302 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 61 · Above median
Fair Value upside −78% · Bottom 25%
Return on equity (TTM) 12% · Top 25%
Return on assets −2% · Below median
Net margin (TTM) 18% · Top 25%
Operating margin (TTM) 2% · Below median
Revenue growth 21% · Above median
Dividend yield (TTM) 0.4% · Below median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 41.9× · Pricier than median
P/B 4.34× · Pricier than median
P/S (TTM) 6.37× · Pricier than 75% of peers
P/FCF 25.4× · 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 0
FUTURE100 · sector 39
PAST50 · sector 15
HEALTH100 · sector 98
DIVIDEND8 · 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

Similar stocks

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

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $112.15 $61.53 −45%
Zhongji Innolight Co 300308 ¥866.12 ¥171.09 −80%
Foxconn Industrial Internet Co 601138 ¥61.83 ¥28.65 −54%
Eoptolink Technology Inc 300502 ¥429.90 ¥176.99 −59%
Nokia Oyj NOK $10.21 $3.78 −63%
Motorola Solutions, Inc MSI $491.24 $236.33 −52%
Yangtze Optical Fibre And Cable Joint Stock Limited 601869 ¥400.03 ¥201.38 −50%
Suzhou TFC Optical Communication Co 300394 ¥276.25 ¥43.67 −84%
Telefonaktiebolaget LM Ericsson (publ), ERIC $10.13 $19.85 +96%
Accton Technology Corporation 2345 2,270 TWD 1,135 TWD −50%

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Frequently asked questions

Is Eastern Communications Co Ltd A (600776) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥2.91 versus a price of ¥13.09, about −78% upside (overvalued).
What is the fair value of 600776?
Our model-based fair value for Eastern Communications Co Ltd A is ¥2.91 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥13.09.
What is the quality score of 600776?
Eastern Communications Co Ltd A has a Quality Score of 61/100. 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 Eastern Communications Co Ltd A (600776)?
Eastern Communications Co Ltd A reported trailing-twelve-month revenue of about 2.6B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 600776?
The net profit margin of Eastern Communications Co Ltd A is about 17.8%, meaning it keeps roughly 17.8% of revenue as net income. Based on the latest reported figures.
Does Eastern Communications Co Ltd A pay a dividend?
Eastern Communications Co Ltd A currently shows a dividend yield of about 0.42% relative to its recent price (as of Aug 13, 2026).
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