| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.94 | -14 |
| Intrinsic value (DCF) | 10.85 | -61 |
| Graham-Dodd Method | 2.87 | -90 |
| Graham Formula | 1.66 | -94 |
Fujian Yongfu Power Engineering Co., Ltd. is a specialized engineering services provider focused exclusively on the power generation sector in China and internationally. Founded in 1994 and headquartered in Fuzhou, China, the company offers comprehensive solutions spanning the entire power project lifecycle, including power planning consulting, survey and design, EPC general contracting, power energy investment, smart energy solutions, and intelligent operation and maintenance services. Operating within the industrials sector's engineering and construction segment, Yongfu Power Engineering leverages its deep technical expertise to serve China's rapidly evolving energy infrastructure needs, particularly supporting the country's transition toward cleaner and smarter power generation. The company's integrated service model positions it as a key player in China's energy transformation, combining traditional power engineering with emerging technologies in smart grid and renewable energy integration. With China's continued emphasis on energy security and infrastructure modernization, Yongfu Power Engineering plays a vital role in developing sustainable power solutions while maintaining its established presence in conventional power generation projects.
Fujian Yongfu Power Engineering presents a mixed investment profile with several concerning financial indicators. While the company maintains a modest market capitalization of approximately CNY 5.08 billion and demonstrates profitability with net income of CNY 36.3 million, significant red flags include negative operating cash flow of CNY -118.8 million and high total debt of CNY 1 billion relative to cash reserves of CNY 459 million. The company's low beta of 0.144 suggests limited correlation with broader market movements, potentially offering defensive characteristics but also indicating limited growth momentum. The diluted EPS of CNY 0.19 and dividend yield based on CNY 0.05 per share provide some income appeal, but the negative cash flow generation raises sustainability concerns for both operations and dividend payments. Investors should carefully monitor the company's ability to improve cash conversion and manage its substantial debt load in China's competitive power engineering sector.
Fujian Yongfu Power Engineering operates in a highly competitive Chinese power engineering market where scale, technical expertise, and government relationships are critical success factors. The company's competitive positioning is challenged by its relatively small size compared to state-owned enterprises that dominate the sector. Yongfu's specialization in power generation engineering provides niche expertise, but this focus also limits diversification compared to broader engineering conglomerates. The company's integrated service model from planning to operation maintenance offers client convenience, though execution capabilities may be constrained by financial resources. China's power sector is undergoing significant transformation with emphasis on renewable energy and smart grid technologies, creating both opportunities and challenges for specialized engineering firms. Yongfu's international operations provide some geographic diversification, but the company remains heavily dependent on domestic Chinese market conditions. The competitive landscape is characterized by intense pricing pressure, particularly from larger SOEs with stronger balance sheets and preferential access to major projects. Yongfu's ability to compete effectively depends on maintaining technical differentiation while managing financial constraints that limit bidding capacity for large-scale projects.