Chengdu Hongqi Chain Co (SZSE:002697) Margin of Safety % (DCF Earnings Based): 39.12% (As of Aug. 03, 2026)

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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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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.

SZSE:002697 Chengdu Hongqi Chain Co Ltd SZSE:002697
76 GF Score
Price ¥4.73
GF Value ¥5.01
Valuation Fairly Valued
! 2 Warning Signs
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What is Chengdu Hongqi Chain Co Margin of Safety % (DCF Earnings Based)?

Chengdu Hongqi Chain Co SZSE:002697 +0.64% 76 Margin of Safety % (DCF Earnings Based) is 39.12% as of Aug. 03, 2026. GuruFocus rates SZSE:002697 with a GF Score™ of 76/100 and a GF Value™ of ¥5.01 (Fairly Valued). 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 (2026-08-03), Chengdu Hongqi Chain Co's Predictability Rank is 2.5-Stars. Chengdu Hongqi Chain Co's intrinsic value calculated from the Discounted Earnings model is ¥7.77 and current share price is ¥4.73. Consequently,

Chengdu Hongqi Chain Co's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is 39.12%.

SZSE:002697 vs DDS: Margin of Safety % (DCF Earnings Based) Comparison

For the Department Stores subindustry, Chengdu Hongqi Chain Co'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.

Chengdu Hongqi Chain Co Margin of Safety % (DCF Earnings Based) vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Chengdu Hongqi Chain Co's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Chengdu Hongqi Chain Co's Margin of Safety % (DCF Earnings Based) falls into.


SZSE:002697
76GF Score
Chengdu Hongqi Chain Co Ltd SZSE:002697
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Chengdu Hongqi Chain Co Margin of Safety % (DCF Earnings Based) Calculation

Chengdu Hongqi Chain Co'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)
=(7.77-4.73)/7.77
=39.12 %

* 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 39.12% mean?
Chengdu Hongqi Chain Co (SZSE:002697) has a Margin of Safety % (DCF Earnings Based) of 39.12% as of Aug. 03, 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 Chengdu Hongqi Chain Co.
Is Chengdu Hongqi Chain Co's Margin of Safety % (DCF Earnings Based) too high?
Chengdu Hongqi Chain Co's current Margin of Safety % (DCF Earnings Based) is 39.12%. Overall, Chengdu Hongqi Chain Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chengdu Hongqi Chain Co's Margin of Safety % (DCF Earnings Based) compare to DDS?
Chengdu Hongqi Chain Co's Margin of Safety % (DCF Earnings Based) of 39.12% can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?
A good Margin of Safety % (DCF Earnings Based) depends on the Retail - Cyclical 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 Chengdu Hongqi Chain Co. Chengdu Hongqi Chain Co's current Margin of Safety % (DCF Earnings Based) is 39.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Hongqi Chain Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu Hongqi Chain Co (SZSE:002697) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.01, compared to a current price of ¥4.73 — trading 5.6% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is 39.12%. Chengdu Hongqi Chain Co's overall GF Score™ is 76/100 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 Chengdu Hongqi Chain Co (SZSE:002697), the current Margin of Safety % (DCF Earnings Based) is 39.12% as of Aug. 03, 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 Chengdu Hongqi Chain Co (SZSE:002697) Overvalued in 2026?

Based on GuruFocus' analysis, Chengdu Hongqi Chain Co stock appears to be undervalued. The current stock price of ¥4.73 is trading 5.6% below its estimated GF Value™ of ¥5.01. GuruFocus considers Chengdu Hongqi Chain Co to be Fairly Valued.

Key valuation signals for SZSE:002697:

  • Margin of Safety % (DCF Earnings Based): 39.12%
  • GF Value™: ¥5.01 vs. price of ¥4.73 (5.6% below fair value)
  • GF Score™: 76/100 with 2 warning signs

No single metric tells the full story. See the SZSE:002697 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Chengdu Hongqi Chain Co Business Description

Address No.7, Dikang Avenue, High-tech Zone, West District, Sichuan, Chengdu, CHN, 611731
Chengdu Hongqi Chain Co Ltd is engaged in operating supermarket chain.
76GF Score

Get the complete analysis for SZSE:002697

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥4.73
Price
¥5.01
GF Value