China Hongqiao Group (HKSE:01378) Margin of Safety % (DCF Earnings Based): 60.20% (As of Jul. 21, 2026)

Author: Vera Yuan Vera Yuan
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Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:01378 China Hongqiao Group Ltd HKSE:01378
90 GF Score
Price HK$22.66
GF Value HK$14.69
Valuation Significantly Overvalued
! 2 Warning Signs
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What is China Hongqiao Group Margin of Safety % (DCF Earnings Based)?

China Hongqiao Group HKSE:01378 90 Margin of Safety % (DCF Earnings Based) is 60.20% as of Jul. 21, 2026. GuruFocus rates HKSE:01378 with a GF Score™ of 90/100 and a GF Value™ of HK$14.69 (Significantly Overvalued). The stock has 2 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-07-21), China Hongqiao Group's Predictability Rank is 3-Stars. China Hongqiao Group's intrinsic value calculated from the Discounted Earnings model is HK$56.93 and current share price is HK$22.66. Consequently,

China Hongqiao Group's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is 60.20%.

HKSE:01378 vs AA, CENX, CSTM: Margin of Safety % (DCF Earnings Based) Comparison

For the Aluminum subindustry, China Hongqiao Group's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

China Hongqiao Group Margin of Safety % (DCF Earnings Based) vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, China Hongqiao Group's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where China Hongqiao Group's Margin of Safety % (DCF Earnings Based) falls into.


HKSE:01378
90GF Score
China Hongqiao Group Ltd HKSE:01378
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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China Hongqiao Group Margin of Safety % (DCF Earnings Based) Calculation

China Hongqiao Group's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(56.93-22.66)/56.93
=60.20 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of 60.20% mean?
China Hongqiao Group (HKSE:01378) has a Margin of Safety % (DCF Earnings Based) of 60.20% as of Jul. 21, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on China Hongqiao Group.
Is China Hongqiao Group's Margin of Safety % (DCF Earnings Based) too high?
China Hongqiao Group's current Margin of Safety % (DCF Earnings Based) is 60.20%. Overall, China Hongqiao Group has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Hongqiao Group's Margin of Safety % (DCF Earnings Based) compare to AA and CENX?
China Hongqiao Group's Margin of Safety % (DCF Earnings Based) of 60.20% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Metals & Mining company?
A good Margin of Safety % (DCF Earnings Based) depends on the Metals & Mining industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on China Hongqiao Group. China Hongqiao Group's current Margin of Safety % (DCF Earnings Based) is 60.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Hongqiao Group stock overvalued right now?
Based on GuruFocus' analysis, China Hongqiao Group (HKSE:01378) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$14.69, compared to a current price of HK$22.66 — trading 54.3% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is 60.20%. China Hongqiao Group's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For China Hongqiao Group (HKSE:01378), the current Margin of Safety % (DCF Earnings Based) is 60.20% as of Jul. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is China Hongqiao Group (HKSE:01378) Overvalued in 2026?

Based on GuruFocus' analysis, China Hongqiao Group stock appears to be overvalued. The current stock price of HK$22.66 is trading 54.3% above its estimated GF Value™ of HK$14.69. GuruFocus considers China Hongqiao Group to be Significantly Overvalued.

Key valuation signals for HKSE:01378:

  • Margin of Safety % (DCF Earnings Based): 60.20%
  • GF Value™: HK$14.69 vs. price of HK$22.66 (54.3% above fair value)
  • GF Score™: 90/100 with 2 warning signs

No single metric tells the full story. See the HKSE:01378 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Hongqiao Group Business Description

Address Huixian One Road, Zouping Economic Development District, Shandong Province, Zouping, CHN, 256200
China Hongqiao Group Ltd manufactures and sells aluminum products. Its products include molten aluminum alloy, aluminum alloy ingots, aluminum busbars, aluminum alloy processing products, and alumina products. The company has the manufacturing and sale of aluminum products segment. The company's geographical segments are China and Indonesia out of which China accounts for the majority of the revenue.
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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$22.66
Price
HK$14.69
GF Value