| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 22.66 | -16 |
| Intrinsic value (DCF) | 8.94 | -67 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 9.43 | -65 |
Sun Create Electronics Co., Ltd is a specialized Chinese technology company focused on radar systems and security solutions. Founded in 2000 and headquartered in Hefei, China, the company operates in the communication equipment sector with a diverse portfolio including weather radars, air traffic control systems, low-altitude warning radars, and comprehensive public safety products. Sun Create serves critical infrastructure needs through its safe city solutions, emergency command communication systems, intelligent transportation networks, and specialized equipment for power and grain storage applications. As a domestic provider of essential defense and security technology, the company plays a strategic role in China's national security and infrastructure modernization initiatives. Sun Create's integrated approach to radar technology and information systems positions it at the intersection of defense, transportation, and public safety markets, serving government and institutional clients across China.
Sun Create Electronics presents a high-risk investment profile with concerning financial metrics. The company reported a substantial net loss of -CNY 245.9 million despite CNY 1.6 billion in revenue, resulting in negative EPS of -1.19. While the company maintains moderate cash reserves of CNY 451 million and positive operating cash flow of CNY 245 million, its significant total debt of CNY 1.52 billion raises leverage concerns. The beta of 0.793 suggests lower volatility than the broader market, but the absence of dividends and negative profitability metrics indicate fundamental challenges. Investment attractiveness is limited to speculative investors betting on potential government contracts or strategic repositioning in China's defense and security sectors.
Sun Create Electronics operates in a highly specialized niche within China's defense and security technology sector, competing primarily with state-owned enterprises and larger defense contractors. The company's competitive positioning is defined by its focus on radar systems and integrated security solutions, particularly for domestic Chinese markets. Its product diversification across weather radars, air traffic control systems, and public safety solutions provides some cross-selling opportunities but may also dilute focus compared to more specialized competitors. The company's negative profitability suggests operational inefficiencies or pricing pressure in competitive bidding processes for government contracts. While Sun Create benefits from domestic market knowledge and potentially preferential treatment as a Chinese company in sensitive security sectors, it faces scale disadvantages compared to larger state-owned defense contractors. The company's technological capabilities in radar systems represent its primary potential competitive advantage, though financial constraints may limit R&D investment compared to better-capitalized competitors. Its positioning as a integrated solutions provider rather than a pure component manufacturer differentiates it from some smaller specialists but places it in direct competition with comprehensive defense technology firms.