Rongxin Power Electronic Co., Ltd.: Leading performance but fundamentals not looking strong?

Rongxin Power Electronic Co., Ltd. relative valuation is OVERVALUED and it has a fundamental analysis score of 39.

Our analysis is based on comparing Rongxin Power Electronic Co., Ltd. with the following peers – Ningxia Yinxing Energy Co. Ltd. Class A, Wiscom System Co., Ltd. and Hiconics Drive Technology Co., Ltd. Class A (000862-CN, 002090-CN and 300048-CN).

Rongxin Power Electronic Co., Ltd. has shown good performance overall, both over the last one year (at 113.04%) as well as over the last month (at 77.22%). Share price performance over the last month, though has been lower than that over the last year. But Rongxin Power Electronic Co., Ltd.’s stock has done better than its overall peer group whose performance was 50.73% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • Rongxin Power Electronic Co., Ltd. Class A’s current Price/Book of 3.59 is about median in its peer group.
  • The market expects 002123-CN‘s earnings to grow at about the same rate as its chosen peers and also does not seem to expect much improvement in its below peer median returns.
  • 002123-CN has relatively low profit margins and median asset efficiency.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • Over the last five years, 002123-CN‘s return on assets has declined from about median to less than the median among its peers suggesting that the company’s historical competitiveness in operations is slipping away.
  • While 002123-CN‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • The company’s capital investment seems appropriate for a business with peer median returns.
  • 002123-CN‘s operating performance may not allow it to raise additional debt.
  • Our analysis rates Rongxin Power Electronic Co., Ltd. as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

002123-CN‘s share price performance of 113.04% over the last 12 months is above peer median of 90.95%. The 30-day trend in its share price performance of 77.22% is also above the peer median of 50.73% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Rongxin Power Electronic Co., Ltd.’s price of CNY 16.34 is greater than CapitalCube’s implied price of CNY 15.20. At this level, CapitalCube believes that Rongxin Power Electronic Co., Ltd. is overvalued. Over the last 52 week period, the stock has fluctuated between CNY 7.05 and CNY 16.34.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Rongxin Power Electronic Co., Ltd. engages in the design and manufacture of energy-saving high-power electronic equipment. The company operates through the following businesses: power quality and electrical safety segment includes products such as static var compensator, static var generator, fluid system components, fil-coil filters, and active power filters. The motor drives and energy saving segment includes products such as high voltage converter, variable frequency starter, smart gas emission device, new energy control device, and mine transmission and automation control equipment. The residual heat and pressure energy-saving power generation system business includes products such as top-gas-pressure recovery turbine, and waste heat power generation system. The company was founded by Qiang Zuo on November 19, 1998 and is headquartered in Anshan, China.

Disclaimer

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