Zhejiang Century Huatong Group stock: fair value
002602.SZThe fair value of Zhejiang Century Huatong Group under our model is $5.11, the price is 67% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly undervaluedIn our model the price counts as cheap below $3.65 and expensive above $8.52 (uncertainty high, based on the price swings of the past year).
The two parts of the fair value come to $7.43 (cash-flow model) and $2.80 (industry comparison), and the gap between them shows how uncertain the estimate is. The price is below both.
Calculated with a cost of equity of 9.3%. At 10.3% the fair value would be $4.60, at 8.3% it would be $5.81.
Where the number comes from
Half from the cash-flow model, half from earnings times the industry P/E (18.1).
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 2.3%. Discounted at 9.3% (government bond yield 2.3% plus beta 1.35 times a risk premium of 5.2%); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $7.43 per share: free cash flow for the next ten years, each year discounted to today at 9.3%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 9.3%) |
|---|---|---|---|---|
| 2026 | $1.72B | extrapolated at 47.9% | 0.9152 | $1.58B |
| 2027 | $2.31B | extrapolated at 34.3% | 0.8376 | $1.94B |
| 2028 | $2.88B | extrapolated at 24.7% | 0.7665 | $2.21B |
| 2029 | $3.4B | extrapolated at 18.0% | 0.7015 | $2.38B |
| 2030 | $3.85B | extrapolated at 13.3% | 0.6420 | $2.47B |
| 2031 | $4.23B | extrapolated at 10.0% | 0.5876 | $2.49B |
| 2032 | $4.56B | extrapolated at 7.7% | 0.5377 | $2.45B |
| 2033 | $4.84B | extrapolated at 6.1% | 0.4921 | $2.38B |
| 2034 | $5.08B | extrapolated at 4.9% | 0.4504 | $2.29B |
| 2035 | $5.29B | extrapolated at 4.2% | 0.4122 | $2.18B |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $22.36B |
| Terminal value: cash flow 2035 × (1 + 2.3%) / (9.3% − 2.3%) | $77.74B |
| Present value of terminal value (× 0.4122) | $32.04B |
| Equity value (sum plus present value of terminal value) | $54.41B |
| Shares (diluted) | 7.33B |
| Value per share (equity value divided by shares) | $7.43 |
| Earnings per share, last twelve months | $0.16 |
| × 18.1 (industry P/E) | $2.80 |
| Fair value (average of both parts) | $5.11 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Currency
- Amounts in US dollars, converted at the ECB reference rate of 12 Nov 2026 ($1 = CN¥6.6683)
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Strong, published since 7 Nov 2026 (in the score history since 23 Oct 2026)
- Valuation signal Undervalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.