| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 41.58 | -33 |
| Intrinsic value (DCF) | 21.13 | -66 |
| Graham-Dodd Method | 9.41 | -85 |
| Graham Formula | 2.41 | -96 |
Kehua Data Co., Ltd. (002335.SZ) is a leading Chinese technology company specializing in renewable energy and data center infrastructure solutions. Founded in 1988 and headquartered in Xiamen, China, Kehua has evolved from its origins as Kehua Hengsheng Co., Ltd. to become a comprehensive provider of power conversion and management systems. The company's diverse product portfolio spans central inverters, energy storage systems, solar controllers, UPS systems, and customized data center solutions. Operating at the intersection of industrials and clean technology, Kehua serves global markets with innovative products that bridge renewable energy generation with critical power infrastructure. The company's strategic positioning in both the rapidly growing renewable energy sector and the expanding data center market creates significant growth opportunities. With over three decades of industry experience, Kehua has established itself as a trusted brand in power electronics, leveraging its technical expertise to develop integrated solutions for commercial, industrial, and telecommunications applications. The company's 2021 rebranding to Kehua Data reflects its focused strategy on digital infrastructure while maintaining its strong foundation in energy conversion technologies.
Kehua Data presents a compelling investment case with its dual exposure to high-growth renewable energy and data center markets. The company demonstrates solid financial fundamentals with CNY 7.76 billion in revenue and positive net income of CNY 315 million. With a market capitalization of CNY 36.07 billion and a low beta of 0.332, the stock offers relative stability compared to broader market volatility. However, investors should note the modest diluted EPS of 0.68 and the significant total debt of CNY 2.60 billion against cash equivalents of CNY 998 million. The company's strong operating cash flow of CNY 1.51 billion supports ongoing operations and strategic investments. The dividend yield, while modest at CNY 0.10 per share, provides income component to total returns. Key risks include intense competition in both renewable energy and data center equipment markets, potential margin pressure from pricing competition, and exposure to regulatory changes in China's renewable energy policies.
Kehua Data operates in a highly competitive landscape spanning both renewable energy conversion equipment and data center power infrastructure. The company's competitive advantage stems from its integrated product portfolio that bridges these two adjacent markets, allowing for cross-selling opportunities and comprehensive solution offerings. With over 35 years of industry experience, Kehua has developed deep technical expertise in power electronics, particularly in UPS systems and inverters, which form the core of both its renewable energy and data center businesses. The company's manufacturing scale and established supply chain relationships in China provide cost advantages in production. However, Kehua faces intense competition from larger global players with broader geographic reach and greater R&D budgets. The company's focus on the Chinese market, while providing home-field advantage, also creates concentration risk and limits international growth opportunities compared to multinational competitors. Kehua's rebranding to 'Data' in 2021 signals a strategic emphasis on the high-growth data center segment, where it can leverage its power management expertise. The company's challenge lies in maintaining technological parity with rapidly evolving industry standards while competing on both price and performance across its diverse product lines. Its ability to innovate in energy storage integration and develop proprietary technologies will be critical for sustaining competitive differentiation.