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Hangzhou-based maker of precision mechanical components for industrial equipment manufacturers.
Hangzhou-based maker of precision mechanical components for industrial equipment manufacturers.
Moat: none
Headquarters: Hangzhou, China · Employees: 841
Size Hangzhou XZB Tech (603040.SS) is a China Industrials company (Industrial Machinery) with a market value of $1.06B, the 2184th largest of 4,839 China companies the cockpit tracks. Shares closed at CN¥36.10 on 6 Nov 2026.
Performance Over six months the shares fell 34.3%, against -23.4% for the median peer and -16.4% for the China market (cap-weighted) — 5th lowest of 20 in its peer set.
Growth Revenue grew 4.0% over the last twelve months (peer median +19.4%); the operating margin is 33.9% (peer median 5.9%).
Valuation It trades at 26.2× forward earnings against a peer median of 26.2× (8th cheapest of 16).
Price implies For today's price to make sense, revenue must grow about 18% a year for seven years (Req g). Recent delivered growth is +16%, so the hurdle is +2 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 5.4 points above its cost of capital (10.7% WACC).
Next results Next results expected around 23 Apr 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | CN¥808M | CN¥798M | CN¥675M | CN¥578M | CN¥522M |
| Revenue growth | — | +18% | +17% | +11% | — |
| Gross profit | CN¥451M | CN¥411M | CN¥335M | CN¥293M | CN¥269M |
| EBITDA | n/a | CN¥343M | CN¥276M | CN¥240M | CN¥221M |
| Net income | CN¥230M | CN¥267M | CN¥212M | CN¥184M | CN¥156M |
| Free cash flow | CN¥310M | CN¥334M | CN¥180M | CN¥243M | CN¥96.4M |
| Capital expenditure | CN¥18.7M | CN¥38.2M | CN¥61.6M | CN¥71.0M | CN¥40.3M |
| Total debt | CN¥136M | CN¥104M | CN¥73.9M | CN¥96.2M | CN¥34.4M |
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Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 603040.SS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -15.1% | -19.6% | 9th highest of 21 |
| 6-month return | -34.3% | -23.4% | 5th lowest of 20 |
| Distance from 52-week high | -58.0% | -50.7% | 6th lowest of 21 |
| Revenue growth (TTM) | +4.0% | +19.4% | 3rd lowest of 20 |
| Operating margin | 33.9% | 5.9% | 2nd highest of 20 |
| Forward P/E | 26.2× | 26.2× | 8th cheapest of 16 |
| Growth the price implies (Req g, 7 yrs) | 18.2% | 9.3% | 5th most demanding of 13 |
| Growth delivered (Del g) | +16.5% | +8.7% | 2nd highest of 13 |
| Hurdle (Req g minus delivered) | +1.7 pp | +1.6 pp | 6th most demanding of 13 |
| ROIC minus cost of capital | +5.4 pp | -2.5 pp | 5th highest of 20 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Hangzhou XZB Tech 603040.SS | China | $1.06B | -34% | +4% | 34% | 26.2× | 18.2% | +16.5% |
| Guangzhou Goaland Energy Conservation Tech 300499.SZ | China | $1.06B | -40% | +28% | 5% | 51.7× | n/a | n/a |
| Guangzhou KDT Machinery 002833.SZ | China | $1.05B | -20% | +19% | 20% | 13.4× | 1.5% | +7.6% |
| Nikkiso 6376.T | Japan | $1.05B | -5% | +11% | 8% | 10.0× | 6.3% | +6.3% |
| MACHVISION 3563.TW | Taiwan | $1.08B | -36% | +17% | 37% | 26.2× | 7.5% | +5.9% |
| Linco Technology 3644.TWO | Taiwan | $1.08B | n/a | n/a | n/a | n/a | n/a | n/a |
| Ningbo Cixing 300307.SZ | China | $1.05B | +24% | +31% | 9% | n/a | 11.0% | +9.5% |
| MayAir Technology (China) 688376.SS | China | $1.04B | -27% | +7% | 9% | 28.2× | n/a | n/a |
| Sunonwealth Electric Machine Industry 2421.TW | Taiwan | $1.08B | -16% | +21% | 16% | 9.6× | -2.5% | +7.9% |
| Lanzhou LS Heavy Equipment 603169.SS | China | $1.09B | -34% | -29% | -19% | 34.6× | n/a | n/a |
| Ningbo Kangqiang Electronics 002119.SZ | China | $1.04B | -12% | +49% | 5% | n/a | n/a | n/a |
| Suzhou SLAC Precision Equipment 300382.SZ | China | $1.04B | -31% | +11% | -4% | 67.4× | n/a | n/a |
| Tsugami 6101.T | Japan | $1.03B | -23% | +24% | 27% | n/a | -5.3% | +15.9% |
| Longhua Technology Group (Luoyang) Co 300263.SZ | China | $1.10B | -29% | +12% | 5% | 36.4× | 28.8% | +11.1% |
| Morimatsu International 2155.HK | Hong Kong | $1.03B | -16% | +14% | 3% | 14.2× | -2.4% | +17.6% |
| PNC Process Systems 603690.SS | China | $1.10B | -23% | -36% | -48% | 19.6× | 32.9% | +15.4% |
| Allied Machinery 605060.SS | China | $1.03B | -51% | +24% | 22% | 21.1× | 15.5% | +13.2% |
| Miracle Automation Engineering 002009.SZ | China | $1.03B | -27% | +6% | 1% | 28.8× | 34.6% | -5.1% |
| Guangzhou Risong Intelligent Technology 688090.SS | China | $1.10B | -19% | +61% | 4% | 132.3× | 43.8% | +3.4% |
| Tanac Automation 300461.SZ | China | $1.11B | -18% | +126% | 6% | n/a | n/a | n/a |
| Gudeng Precision Industrial 3680.TWO | Taiwan | $1.11B | -34% | +19% | 15% | 21.0× | n/a | n/a |