Shenzhen Inovance TechnologyLtd (SZSE:300124) - Share price, News & Analysis

300124 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	4/6
Financial Health	5/6
Dividends	2/6

300124 Stock Overview

Shenzhen Inovance Technology Co., Ltd. engages in the manufacture and sale of industrial automation control products in China.

Rewards

Earnings are forecast to grow 20.68% per year

Earnings grew by 41.6% over the past year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Shenzhen Inovance TechnologyLtd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shenzhen Inovance TechnologyLtd
Historical stock prices
Current Share Price	CN¥69.80
52 Week High	CN¥89.05
52 Week Low	CN¥47.50
Beta	1.12
1 Month Change	18.13%
3 Month Change	27.30%
1 Year Change	5.65%
3 Year Change	357.01%
5 Year Change	309.95%
Change since IPO	1,533.73%

Shareholder Returns

	300124	CN Machinery	CN Market
7D	7.5%	4.3%	2.1%
1Y	5.6%	-2.2%	-10.1%

Return vs Industry: 300124 exceeded the CN Machinery industry which returned -2.2% over the past year.

Return vs Market: 300124 exceeded the CN Market which returned -10.1% over the past year.

Price Volatility

Is 300124's price volatile compared to industry and market?
300124 volatility
300124 Average Weekly Movement	6.0%
Machinery Industry Average Movement	7.0%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.1%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 300124 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 300124's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	16,938	Xingming Zhu	https://www.inovance.cn

Shenzhen Inovance Technology Co., Ltd. engages in the manufacture and sale of industrial automation control products in China. The company offers industrial automation products, including AC drives, PLC, HMI, power automation CNC, sensors, industrial internet, and industry-specific drive and control systems; motion controls comprising servo drives, servo motors, and robot motion controller; passenger and commercial car powertrain; industrial robots and industrial robot components; mechanical modules; and railway traction and control systems. It also offers OEM industry solutions comprising elevators and escalators, manufacturing automation, cranes, textile printing and dyeing, rubber and plastics machinery, metal products and cables, industrial machinery, air compressors, printing and packaging, construction materials, industrial robotics, machine tool solutions; and rubber, construction materials, petroleum and petrochemical, electric power, iron/steel and metallurgy, chemical, municipal utilities, and electric vehicles industries.

Shenzhen Inovance TechnologyLtd Fundamentals Summary

How do Shenzhen Inovance TechnologyLtd's earnings and revenue compare to its market cap?
300124 fundamental statistics
Market Cap	CN¥183.83b
Earnings (TTM)	CN¥3.64b
Revenue (TTM)	CN¥19.31b

50.4x

P/E Ratio

9.5x

P/S Ratio

Is 300124 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300124 income statement (TTM)
Revenue	CN¥19.31b
Cost of Revenue	CN¥12.60b
Gross Profit	CN¥6.71b
Other Expenses	CN¥3.07b
Earnings	CN¥3.64b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.38
Gross Margin	34.76%
Net Profit Margin	18.88%
Debt/Equity Ratio	13.2%

How did 300124 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

22%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 300124 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300124?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 300124. This is calculated by dividing 300124's market cap by their current preferred multiple.
What is 300124's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥183.83b

300124 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	9.4x
Enterprise Value/EBITDA	54.7x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does 300124's PE Ratio compare to its peers?

300124 PE Ratio vs Peers

The above table shows the PE ratio for 300124 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	37.6x

Forward PE

Price-To-Earnings vs Peers: 300124 is expensive based on its Price-To-Earnings Ratio (50.4x) compared to the peer average (37.6x).

Price to Earnings Ratio vs Industry

How does 300124's PE Ratio compare vs other companies in the Chinese Machinery Industry?

Price-To-Earnings vs Industry: 300124 is expensive based on its Price-To-Earnings Ratio (50.4x) compared to the CN Machinery industry average (34.1x)

Price to Earnings Ratio vs Fair Ratio

What is 300124's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

300124 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	50.4x
Fair PE Ratio	32.6x

Price-To-Earnings vs Fair Ratio: 300124 is expensive based on its Price-To-Earnings Ratio (50.4x) compared to the estimated Fair Price-To-Earnings Ratio (32.6x).

Share Price vs Fair Value

What is the Fair Price of 300124 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300124 (CN¥69.8) is trading above our estimate of fair value (CN¥54.15)

Significantly Below Fair Value: 300124 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: 300124 is poor value based on its PEG Ratio (2.4x)

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Future Growth

How is Shenzhen Inovance TechnologyLtd forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 300124's forecast earnings growth (20.7% per year) is above the savings rate (3.3%).

Earnings vs Market: 300124's earnings (20.7% per year) are forecast to grow slower than the CN market (24.1% per year).

High Growth Earnings: 300124's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 300124's revenue (21% per year) is forecast to grow faster than the CN market (17.6% per year).

High Growth Revenue: 300124's revenue (21% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 300124's Return on Equity is forecast to be high in 3 years time (24.4%)

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Past Performance

How has Shenzhen Inovance TechnologyLtd performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

30.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300124 has a high level of non-cash earnings.

Growing Profit Margin: 300124's current net profit margins (18.9%) are lower than last year (19.2%).

Past Earnings Growth Analysis

Earnings Trend: 300124's earnings have grown significantly by 30.5% per year over the past 5 years.

Accelerating Growth: 300124's earnings growth over the past year (41.6%) exceeds its 5-year average (30.5% per year).

Earnings vs Industry: 300124 earnings growth over the past year (41.6%) exceeded the Machinery industry 2.5%.

Return on Equity

High ROE: 300124's Return on Equity (21.9%) is considered high.

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Financial Health

How is Shenzhen Inovance TechnologyLtd's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 300124's short term assets (CN¥19.5B) exceed its short term liabilities (CN¥11.2B).

Long Term Liabilities: 300124's short term assets (CN¥19.5B) exceed its long term liabilities (CN¥483.4M).

Debt to Equity History and Analysis

Debt Level: 300124 has more cash than its total debt.

Reducing Debt: 300124's debt to equity ratio has increased from 11.2% to 13.2% over the past 5 years.

Debt Coverage: 300124's debt is well covered by operating cash flow (62.9%).

Interest Coverage: 300124 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Shenzhen Inovance TechnologyLtd current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 300124's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 300124's dividend (0.43%) is low compared to the top 25% of dividend payers in the CN market (1.93%).

Stability and Growth of Payments

Stable Dividend: 300124's dividend payments have been volatile in the past 10 years.

Growing Dividend: 300124's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.6%), 300124's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (146.2%), 300124's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average board tenure

CEO

Xingming Zhu (54 yo)

no data

Tenure

CN¥4,427,079

Compensation

Mr. Xingming Zhu serves as the Chairman and General Manager at Shenzhen Inovance Technology Co., Ltd.

Board Members

Experienced Board: 300124's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31