Shenghong Co. Welcomes Stock Market Rebound: PE Ratio Meets New Industry Heights, Bright Future Ahead!
On March 12, Shenzhen Shenghong Electric Co., Ltd. (hereinafter referred to as “Shenghong Co.”) closed at 42.38 RMB, marking a 4.82% increase, which reflects market confidence in its recovery. Notably, the company’s rolling price-to-earnings (PE) ratio has reached 30.96 times, a low not seen in 402 days, with a current total market capitalization of 13.184 billion RMB.
In the power equipment industry, although Shenghong Co.’s PE ratio is relatively low, the industry average stands at a high 68.05 times. This suggests that Shenghong Co.’s valuation remains conservative within its sector. However, this situation may present a unique opportunity for long-term investors. Based on the median PE ratio of 48.35 times, Shenghong Co. ranks 15th in the industry, indicating its competitive position.
According to the latest Q3 2024 report, Shenghong Co. reported an operating revenue of 2.095 billion RMB, a slight year-on-year increase of 20.91%. Despite a 0.93% decline in net profit, the gross profit margin remains robust at 40.17%. It’s worth noting that as of Q3 2024, 10 institutions hold shares in Shenghong Co., with 9 of them being funds, collectively owning 2.4259 million shares, valued at 65 million RMB.
Shenghong Co. primarily engages in the research, development, production, and sales of power electronic equipment, including power quality devices such as active filters and static VAR generators, electric vehicle charging stations, and new energy power conversion equipment like photovoltaic inverters and energy storage converters. As a national high-tech enterprise, Shenghong Co. has secured 247 valid patents and software copyrights, demonstrating its ongoing commitment to technological innovation.
Recently, Shenghong’s Interstellar charging station was awarded the 2022 German IF Design Award, showcasing its design and technical prowess in the electric vehicle charging station sector. With the increasing market demand for electric vehicles, Shenghong Co. is well-positioned to seize this transformative trend through continuous technological innovation and high-quality customer service, promoting the company’s sustainable development.
Overall, while Shenghong Co. has faced some market fluctuations, its technological accumulation and market positioning in the power electronics and electric vehicle charging fields suggest a potential strong rebound in the future. Investors may want to keep a close eye on this “small giant” in the power equipment industry, as it could emerge as a significant player in the future electric vehicle market with the ongoing expansion of the new energy vehicle supply chain.
