| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.09 | 116 |
| Intrinsic value (DCF) | 4.75 | -57 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Tellhow Sci-Tech Co., Ltd. is a specialized Chinese technology company that operates at the intersection of defense technology and power infrastructure solutions. Founded in 1996 and headquartered in Nanchang, China, the company has established itself as a key provider of military electromechanical products, communication command systems, and intelligent power equipment. Tellhow's diverse product portfolio includes smart grid software, distribution automation products, power switching equipment, and various generator sets for land, marine, and specialized applications. Operating in the competitive consumer electronics sector within the broader technology industry, the company serves both defense and civilian power infrastructure markets. Tellhow Sci-Tech represents China's growing domestic capabilities in military technology and power infrastructure, positioning itself as a strategic supplier in critical national infrastructure sectors. The company's dual focus on military and power applications provides diversification across government and commercial customers, though this also exposes it to the cyclical nature of defense spending and infrastructure investment patterns.
Tellhow Sci-Tech presents a high-risk investment profile with significant challenges. The company reported substantial losses of -CNY 991 million on revenue of CNY 4.36 billion for the period, with negative EPS of -1.16 CNY. While the company maintains a moderate market capitalization of CNY 8.55 billion and a low beta of 0.525 suggesting lower volatility than the market, the financial performance raises serious concerns. Positive operating cash flow of CNY 31.5 million is overshadowed by negative capital expenditures and a debt load of CNY 3.24 billion against cash reserves of CNY 1.26 billion. The absence of dividends further reduces attractiveness for income-seeking investors. Investment appeal is primarily contingent on potential Chinese government defense contracts and infrastructure spending, but current financial metrics indicate substantial operational challenges that warrant caution.
Tellhow Sci-Tech operates in two distinct but related competitive landscapes: military technology and power infrastructure equipment. In the military segment, the company faces competition from large state-owned defense contractors and specialized technology firms with deeper government relationships and R&D capabilities. Their competitive positioning relies on niche expertise in electromechanical systems and communication command solutions, though scale disadvantages compared to larger defense conglomerates may limit their ability to compete for major contracts. In the power equipment segment, Tellhow competes with both domestic Chinese manufacturers and international technology companies offering smart grid solutions and power generation equipment. The company's potential competitive advantages include integrated solutions that bridge military and civilian applications, domestic manufacturing capabilities benefiting from Chinese infrastructure investment policies, and specialized expertise in certain power generation technologies. However, financial constraints evidenced by recent losses may hamper R&D investment and competitive positioning against better-capitalized rivals. The company's dual-market approach provides diversification but also spreads resources thin across different competitive environments requiring distinct capabilities and relationships.