| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 34.80 | 103 |
| Intrinsic value (DCF) | 13.42 | -22 |
| Graham-Dodd Method | 3.46 | -80 |
| Graham Formula | 28.59 | 66 |
Hangzhou Sunrise Technology Co., Ltd. is a prominent Chinese technology company specializing in the design, development, manufacturing, and sale of smart energy management solutions. Founded in 2001 and headquartered in Hangzhou, the company operates at the intersection of the hardware, equipment, and parts industry within the broader technology sector. Its core product portfolio includes smart electricity energy meters, water meters, concentrators, specialized terminals, distribution terminals, and electric vehicle charging piles. These products form critical components of modern power information collection systems, essential for China's ongoing smart grid modernization and energy efficiency initiatives. As a key domestic player, Hangzhou Sunrise Technology supports the national infrastructure's transition towards intelligent energy monitoring and management, catering to utilities, industrial users, and the growing EV ecosystem. The company's focus on metering technology and data collection systems positions it as a vital contributor to China's sustainable development goals and the digitalization of its energy infrastructure.
Hangzhou Sunrise Technology presents a compelling investment case characterized by strong profitability and a robust financial position. For the fiscal year ending December 31, 2024, the company reported a net income of CNY 664.7 million on revenue of CNY 2.03 billion, translating to a high net profit margin of approximately 32.8% and a diluted EPS of CNY 1.29. The balance sheet is exceptionally strong, with substantial cash and equivalents of CNY 2.60 billion against minimal total debt of just CNY 2.03 million, indicating a debt-free operation with significant financial flexibility. The company generated healthy operating cash flow of CNY 667.2 million and pays a dividend of CNY 0.60 per share. A notable risk factor is the negative beta of -0.178, suggesting the stock's price movement is inversely correlated with the broader market, which could be a source of volatility. The investment appeal lies in its exposure to China's essential and government-supported smart grid and energy infrastructure sectors, coupled with its high profitability and pristine balance sheet.
Hangzhou Sunrise Technology competes in the specialized niche of smart energy meters and power information collection systems within China. Its competitive advantage is rooted in its long-standing presence since 2001, deep domain expertise, and a comprehensive product portfolio that covers the entire data collection chain—from end-point meters (electricity, water) to concentrators and distribution terminals. This integrated offering allows it to provide holistic solutions to utility companies, potentially creating vendor lock-in and recurring revenue streams. The company's financial metrics, particularly its high net profit margin exceeding 30%, suggest strong operational efficiency and pricing power, likely derived from proprietary technology and cost-effective manufacturing. Its strategic positioning within China is crucial, as the market is driven by national policy directives for smart grid upgrades and energy conservation, insulating it from immediate international competition. However, the competitive landscape is fragmented with numerous domestic players, and the company's growth is inherently tied to the capital expenditure cycles of state-owned grid operators like State Grid Corporation of China and China Southern Power Grid. While its focus on the domestic market provides stability, it also limits geographic diversification. The foray into EV charging piles represents a strategic move to capitalize on adjacent high-growth markets, leveraging its existing expertise in energy measurement and management.