| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.04 | 154 |
| Intrinsic value (DCF) | 20.73 | 64 |
| Graham-Dodd Method | 5.83 | -54 |
| Graham Formula | 6.76 | -46 |
Shandong Sacred Sun Power Sources Co., Ltd. is a prominent Chinese manufacturer of green energy solutions with over three decades of industry experience since its founding in 1991. Headquartered in Qufu, China, the company specializes in developing and producing a comprehensive portfolio of energy storage products including lithium-ion batteries, lead-acid batteries, and integrated power systems. Sacred Sun serves diverse industrial applications across three primary segments: network power for telecommunications and data centers, energy storage solutions for renewable energy integration, and motive power for electric vehicles and industrial equipment. As a key player in the electrical equipment sector within the industrials space, the company leverages its established manufacturing capabilities and technological expertise to address growing global demand for reliable energy storage solutions. Operating on the Shenzhen Stock Exchange, Sacred Sun has built a reputation for quality power products that support critical infrastructure worldwide while contributing to the transition toward sustainable energy systems through its green technology focus.
Shandong Sacred Sun presents a mixed investment profile with several positive fundamentals offset by concerning operational metrics. The company maintains a strong balance sheet with CNY 686 million in cash against CNY 367 million in total debt, providing financial stability. With a market capitalization of CNY 6.6 billion and a beta of 0.112, the stock demonstrates low volatility relative to the broader market. However, profitability metrics raise concerns - while the company generated CNY 205 million in net income on CNY 3 billion revenue, representing a modest 6.8% net margin, the operating cash flow of CNY 119 million appears weak relative to earnings. The dividend yield is minimal at CNY 0.04 per share. The primary investment thesis revolves around Sacred Sun's positioning in the growing energy storage market, but investors should monitor operational efficiency improvements and cash flow generation capabilities closely.
Shandong Sacred Sun operates in the highly competitive energy storage and battery manufacturing sector, where it faces pressure from both domestic Chinese giants and international technology leaders. The company's competitive positioning is defined by its diversified product portfolio spanning both traditional lead-acid and modern lithium-ion technologies, allowing it to serve multiple market segments. Sacred Sun's three-decade industry presence provides established customer relationships and manufacturing expertise, particularly in network power applications where reliability is critical. However, the company faces significant scale disadvantages compared to larger competitors who benefit from greater R&D budgets and production economies of scale. In the lithium-ion segment, Sacred Sun competes against technologically advanced players with superior energy density and lifecycle performance. The company's focus on the Chinese market provides domestic advantages but may limit global reach compared to multinational competitors. Competitive differentiation appears to rely on cost-competitive manufacturing and reliability in specific industrial applications rather than technological leadership. The energy storage market's rapid evolution toward higher efficiency systems presents both opportunity and threat - Sacred Sun must continuously invest in R&D to maintain relevance against innovators while leveraging its experience in industrial power applications where performance consistency outweighs cutting-edge technology.