| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.62 | 73 |
| Intrinsic value (DCF) | 9.44 | -45 |
| Graham-Dodd Method | 0.28 | -98 |
| Graham Formula | n/a |
Shenzhen Increase Technology Co., Ltd. is a specialized Chinese manufacturer at the forefront of power electronics innovation, serving critical infrastructure sectors since its founding in 2002. Headquartered in Shenzhen, the company develops, produces, and sells advanced power conversion solutions including AC/DC charging stations, DC charging power modules, inverters, and bi-directional converters. These products are essential components for automotive electrification, electric power systems, railway networks, urban transport, metallurgy, energy management, and communication infrastructure. As China accelerates its transition to clean energy and smart grid technologies, Increase Technology's expertise in power electronics positions it strategically within the growing industrial equipment sector. The company's diversified industrial applications provide resilience across multiple end-markets while benefiting from China's massive investments in electric vehicle infrastructure and industrial modernization. With nearly two decades of technical experience, Increase Technology represents a specialized play on China's industrial electrification and renewable energy transformation, offering investors exposure to the backbone technologies enabling smarter, more efficient power management across transportation and industrial systems.
Shenzhen Increase Technology presents a high-risk investment proposition characterized by significant financial challenges despite operating in growth markets. The company reported a substantial net loss of -CNY 89.7 million on revenue of CNY 253.7 million for the period, with negative EPS of -0.56 CNY. While the company maintains a modest cash position of CNY 62.8 million, it carries considerable debt of CNY 127.7 million, creating financial strain. The near-zero operating cash flow of CNY 787,791 combined with substantial capital expenditures of -CNY 75.6 million indicates potential liquidity pressures. The company's low beta of 0.123 suggests limited correlation with broader market movements, which may appeal to investors seeking sector-specific exposure. However, the absence of dividends and persistent losses require careful evaluation of the company's path to profitability amid China's competitive power electronics landscape. Investment attractiveness hinges on the company's ability to leverage China's EV infrastructure boom while managing its financial structure.
Shenzhen Increase Technology operates in the highly competitive Chinese power electronics market, where it faces pressure from both large integrated industrial conglomerates and specialized technology players. The company's competitive positioning is challenged by its relatively small market capitalization of approximately CNY 2.89 billion, which limits its scale advantages compared to larger competitors. Increase Technology's specialization in power conversion products for automotive and industrial applications provides niche expertise, but its financial performance indicates difficulties in translating technical capabilities into sustainable profitability. The company's product portfolio spanning charging infrastructure, inverters, and bi-directional converters aligns with China's strategic priorities in electrification and renewable energy, yet intense price competition and rapid technological evolution in these segments create margin pressures. Increase Technology's founding in 2002 provides established industry relationships and technical experience, but its current financial condition suggests potential challenges in funding the R&D investments necessary to keep pace with innovation leaders. The company's diversified industrial customer base across automotive, rail, energy, and communications provides some revenue stability but may also dilute focus in high-growth segments like EV charging where specialized competitors are emerging. Success will depend on the company's ability to leverage its technical expertise while improving operational efficiency and financial management in a capital-intensive industry dominated by well-funded competitors.