| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.36 | 3 |
| Intrinsic value (DCF) | 145.95 | 432 |
| Graham-Dodd Method | 4.01 | -85 |
| Graham Formula | 3.79 | -86 |
Shijiazhuang Tonhe Electronics Technologies Co., Ltd. is a specialized Chinese manufacturer and developer of critical power supply solutions, serving various industrial and infrastructure sectors. Founded in 1998 and headquartered in Shijiazhuang, Hebei province, the company operates within the Electrical Equipment & Parts industry under the broader Industrials sector. Tonhe Electronics' comprehensive product portfolio includes power operating supplies, UPS/inverter power supplies, communication power systems, fire power solutions, power distribution network products, and AC UPS-related equipment. The company also offers specialized solutions such as DC power modules, multi-channel power systems, AC/DC power supplies, and surge protection devices. As China continues to invest in infrastructure modernization, telecommunications expansion, and industrial automation, Tonhe Electronics plays a vital role in providing reliable power management technologies that ensure operational continuity for critical systems. The company's expertise spans module solutions, package designs, machine applications, and vehicle-mounted power products, positioning it as a key domestic supplier in China's growing power electronics market. With nearly three decades of industry experience, Tonhe Electronics has established itself as a trusted provider of power supply technologies essential for modern industrial operations and telecommunications infrastructure.
Shijiazhuang Tonhe Electronics presents a mixed investment profile with several concerning financial metrics. The company's negative beta of -0.034 indicates unusual price movement patterns that diverge significantly from market trends, potentially reflecting limited market interest or unusual trading dynamics. While the company maintains profitability with net income of 23.9 million CNY and positive operating cash flow of 58.4 million CNY, its thin profit margins (approximately 2% net margin) and modest EPS of 0.14 CNY suggest limited operational efficiency. The dividend yield appears reasonable at 0.068 CNY per share, but investors should note the company's relatively small market capitalization of approximately 5.9 billion CNY and the challenging competitive landscape in China's power supply equipment sector. The capital expenditure of -57.8 million CNY may indicate divestment or reduced investment in growth initiatives, which could impact long-term competitiveness.
Shijiazhuang Tonhe Electronics operates in a highly competitive segment of China's power supply equipment market, where it faces significant pressure from both domestic giants and specialized international players. The company's competitive positioning is challenged by its relatively small scale and limited financial resources compared to market leaders. While Tonhe has developed specialized expertise in certain power supply applications, its narrow 2% net margin suggests intense price competition and potentially limited pricing power within its niche markets. The company's product portfolio, while comprehensive in scope, likely competes against more established players with stronger R&D capabilities and broader distribution networks. Tonhe's regional focus in Northern China may provide some local advantages, but this geographic concentration also limits its market reach compared to national competitors. The company's negative beta coefficient indicates it may not be closely tracked by institutional investors, potentially reflecting its minor market position. In the power supply equipment sector, scale advantages in manufacturing, component sourcing, and R&D are critical, and Tonhe's modest revenue base of approximately 1.2 billion CNY places it at a disadvantage against larger competitors. The company's ability to maintain positive cash flow despite thin margins suggests some operational efficiency, but its long-term competitiveness will depend on its ability to either specialize further in high-margin niches or achieve greater scale through market expansion or consolidation.