Hongfa Technology Co Ltd banner

Hongfa Technology Co Ltd
SSE:600885

Watchlist Manager
Hongfa Technology Co Ltd Logo
Hongfa Technology Co Ltd
SSE:600885
Watchlist
Price: 28.92 CNY -0.55% Market Closed
Market Cap: ¥44.8B

EV/EBITDA

15.2
Current
13%
Cheaper
vs 3-y average of 17.4

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
15.2
=
Enterprise Value
¥36.2B
/
EBITDA
¥2.8B

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
15.2
=
Enterprise Value
¥36.2B
/
EBITDA
¥2.8B

Valuation Scenarios

Hongfa Technology Co Ltd is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (17.4), the stock would be worth ¥33.16 (15% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+228%
Average Upside
94%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 15.2 ¥28.92
0%
3-Year Average 17.4 ¥33.16
+15%
5-Year Average 22 ¥41.84
+45%
Industry Average 49.8 ¥94.89
+228%
Country Average 28.8 ¥54.93
+90%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
¥36.2B
/
Jan 2026
¥2.8B
=
15.2
Current
¥36.2B
/
Dec 2026
¥4.2B
=
8.6
Forward
¥36.2B
/
Dec 2027
¥4.8B
=
7.5
Forward
¥36.2B
/
Dec 2028
¥5.6B
=
6.5
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
Market Cap EV/EBITDA P/E
CN
Hongfa Technology Co Ltd
SSE:600885
44.8B CNY 15.2 25.5
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
2T CNY 22 26.4
FR
Schneider Electric SE
PAR:SU
155.2B EUR 19.3 37.3
CH
Abb Ltd
SIX:ABBN
142B CHF 27 38.4
IE
Eaton Corporation PLC
NYSE:ETN
164.4B USD 27.9 40.2
US
Vertiv Holdings Co
NYSE:VRT
124.2B USD 52.2 79.7
US
Emerson Electric Co
NYSE:EMR
79.4B USD 16.4 34.4
KR
LG Energy Solution Ltd
KRX:373220
112.6T KRW 25.3 -104.9
JP
Fujikura Ltd
TSE:5803
10T JPY 50.8 69.4
US
AMETEK Inc
NYSE:AME
53.4B USD 22.9 36
FR
Legrand SA
PAR:LR
39.9B EUR 19.7 32.1
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
CN
Hongfa Technology Co Ltd
SSE:600885
Average EV/EBITDA: 27.2
15.2
26%
0.6
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
22
35%
0.6
FR
Schneider Electric SE
PAR:SU
19.3
12%
1.6
CH
Abb Ltd
SIX:ABBN
27
12%
2.3
IE
Eaton Corporation PLC
NYSE:ETN
27.9
15%
1.9
US
Vertiv Holdings Co
NYSE:VRT
52.2
33%
1.6
US
Emerson Electric Co
NYSE:EMR
16.4
8%
2.1
KR
LG Energy Solution Ltd
KRX:373220
25.3
30%
0.8
JP
Fujikura Ltd
TSE:5803
50.8
31%
1.6
US
AMETEK Inc
NYSE:AME
22.9
8%
2.9
FR
Legrand SA
PAR:LR
19.7
11%
1.8

Market Distribution

Lower than 73% of companies in China
Percentile
27th
Based on 5 409 companies
27th percentile
15.2
Low
0 — 16.3
Typical Range
16.3 — 53.1
High
53.1 —
Distribution Statistics
China
Min 0
30th Percentile 16.3
Median 28.8
70th Percentile 53.1
Max 49 021

Hongfa Technology Co Ltd
Glance View

Market Cap
44.8B CNY
Industry
Electrical Equipment

In the bustling corridors of Shenzhen, a silent force in the electrical components industry has been quietly steering the course of innovation and connectivity: Hongfa Technology Co. Ltd. Founded in 1984, this company emerged as a crucial player in the design and manufacturing of relays, a fundamental component in electrical circuit systems. Hongfa's journey began with a focus on quality and efficiency, which propelled it to gradually expand its offerings into areas like switching equipment, precision parts, automatic production lines, and even new fields such as intelligent power grids and new energy vehicles. Through relentless dedication to research and development, Hongfa established itself as a top manufacturer, supporting an array of industries worldwide, from telecommunications to automotive, seamlessly linking technologies that drive modern economies. Revenue rivers flow through Hongfa's business model by leveraging its wide-reaching manufacturing prowess and comprehensive product lines. The company's value proposition lies in its ability to deliver high-performance, reliable products that cater to a diverse array of sectors—each seeking solutions to enhance their operational efficiency. With a global distribution network, Hongfa earns its keep by selling components that serve as the backbone for high-stakes operations, such as those in industrial automation and smart appliances. Its sustained commitment to innovation and quality underpins its competitive edge, allowing it to maintain significant market shares both domestically within China and across international territories, while consistently returning value to its shareholders through strategic business expansions and technological advancements.

Intrinsic Value
37.96 CNY
Undervaluation 24%
Intrinsic Value
Price ¥28.92
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett