| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 40.36 | 203 |
| Intrinsic value (DCF) | 7.06 | -47 |
| Graham-Dodd Method | 3.40 | -74 |
| Graham Formula | 12.34 | -8 |
Xi'an Peri Power Semiconductor Converting Technology Co., Ltd. is a specialized Chinese technology company at the forefront of the power semiconductor and power electronics industry. Founded in 2010 and headquartered in Xi'an, a major hub for technology in China, the company operates as a subsidiary of the Xi'an Power Electronics Technology Research Institute. Its core business encompasses the design, development, production, and servicing of a comprehensive portfolio of power semiconductor discrete devices, including high-power thyristors, rectifiers, and IGBT modules. Beyond components, Peri Power also manufactures sophisticated power electronic converters and specialized test equipment for power semiconductor devices. This integrated approach, from components to testing systems, positions the company uniquely within the semiconductor sector, catering to the growing demand for efficient power management and conversion solutions in industrial automation, renewable energy, and transportation. As a key player in China's strategic push for semiconductor self-sufficiency, Xi'an Peri Power leverages its technical expertise and research institute backing to serve critical infrastructure and manufacturing sectors.
Xi'an Peri Power presents a niche investment opportunity within the specialized power semiconductor segment, characterized by strong profitability metrics but modest scale. The company's net income of CNY 56.8 million on revenue of CNY 191.8 million for the period indicates a robust net margin of approximately 29.6%, suggesting efficient operations and potential pricing power in its niche. Key financial strengths include a healthy cash position of CNY 381.4 million against minimal total debt of CNY 16.5 million, providing financial stability and flexibility for R&D or strategic initiatives. However, significant risks are apparent. The company's operating cash flow was a thin CNY 1.1 million, and capital expenditures of CNY -11.2 million indicate substantial investment outflows, which could pressure liquidity if sustained. The company's small market capitalization of approximately CNY 4.65 billion and its low beta of 0.619 suggest it is a relatively small, less volatile player, potentially offering insulation from broad market swings but also limiting liquidity for large institutional investors. The investment thesis hinges on the company's ability to scale its operations while maintaining high profitability, leveraging its position in China's strategic semiconductor industry.
Xi'an Peri Power Semiconductor Converting Technology operates in a highly competitive and capital-intensive segment of the semiconductor industry. Its competitive positioning is defined by a highly specialized, vertically integrated model that combines the manufacturing of power semiconductor devices (thyristors, IGBT modules) with the production of the test and conversion equipment used for these components. This dual focus is a key differentiator, as it allows the company to create proprietary ecosystems and capture value along the chain, from component sales to aftermarket service and testing. Being a subsidiary of the Xi'an Power Electronics Technology Research Institute provides a significant competitive advantage in terms of access to advanced R&D, technical expertise, and potentially preferential relationships with state-owned enterprises or projects aligned with national priorities. This institutional backing is crucial for credibility in bidding for large industrial and infrastructure projects within China. However, the company's scale is a primary competitive weakness when compared to global giants and larger domestic players. It lacks the massive manufacturing capacity and global distribution networks of international leaders, limiting its market reach primarily to domestic customers. Its focus on high-power components and custom test equipment suggests it competes in a niche, project-based business rather than the high-volume, standardized component market. Its success is therefore dependent on securing large contracts and maintaining technological leadership in its specific domains, as it cannot compete on cost or volume with larger foundries and integrated device manufacturers.