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Shenzhen Inovance TechnologyLtd XSEC:300124 Stock Report

Last Price

CN¥64.85

Market Cap

CN¥170.8b

7D

-7.1%

1Y

-15.2%

Updated

03 Jul, 2022

Data

Company Financials +
300124 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance4/6
Financial Health5/6
Dividends2/6

300124 Stock Overview

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

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 PriceCN¥64.85
52 Week HighCN¥89.05
52 Week LowCN¥47.50
Beta1.12
1 Month Change1.17%
3 Month Change14.27%
1 Year Change-15.22%
3 Year Change308.38%
5 Year Change296.88%
Change since IPO362.11%

Recent News & Updates

Shareholder Returns

300124CN MachineryCN Market
7D-7.1%1.3%1.3%
1Y-15.2%0.06%-6.8%

Return vs Industry: 300124 underperformed the CN Machinery industry which returned 0% over the past year.

Return vs Market: 300124 underperformed the CN Market which returned -6.8% over the past year.

Price Volatility

Is 300124's price volatile compared to industry and market?
300124 volatility
300124 Average Weekly Movement6.3%
Machinery Industry Average Movement7.2%
Market Average Movement7.2%
10% most volatile stocks in CN Market10.2%
10% least volatile stocks in CN Market5.0%

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

FoundedEmployeesCEOWebsite
200316,938Xingming Zhuhttps://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 CapCN¥170.79b
Earnings (TTM)CN¥3.64b
Revenue (TTM)CN¥19.31b

46.9x

P/E Ratio

8.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
300124 income statement (TTM)
RevenueCN¥19.31b
Cost of RevenueCN¥12.60b
Gross ProfitCN¥6.71b
Other ExpensesCN¥3.07b
EarningsCN¥3.64b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.38
Gross Margin34.76%
Net Profit Margin18.88%
Debt/Equity Ratio13.2%

How did 300124 perform over the long term?

See historical performance and comparison

Dividends

0.5%

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.

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/Revenue8.7x
Enterprise Value/EBITDA50.8x
PEG Ratio2.2x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.2x
300450 Wuxi Lead Intelligent EquipmentLTD
57.3x35.0%CN¥99.1b
601100 Jiangsu Hengli HydraulicLtd
33.6x15.9%CN¥82.1b
002050 Zhejiang Sanhua Intelligent ControlsLtd
54.6x22.4%CN¥97.1b
000039 China International Marine Containers (Group)
7.4x-0.04%CN¥43.6b
300124 Shenzhen Inovance TechnologyLtd
46.9x21.0%CN¥170.8b

Price-To-Earnings vs Peers: 300124 is expensive based on its Price-To-Earnings Ratio (46.9x) compared to the peer average (38.2x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: 300124 is expensive based on its Price-To-Earnings Ratio (46.9x) compared to the CN Machinery industry average (33.7x)


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 Ratio46.9x
Fair PE Ratio32.2x

Price-To-Earnings vs Fair Ratio: 300124 is expensive based on its Price-To-Earnings Ratio (46.9x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).


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¥64.85) is trading above our estimate of fair value (CN¥58.18)

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 (2.2x)


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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


21.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 300124's forecast earnings growth (21% per year) is above the savings rate (3.2%).

Earnings vs Market: 300124's earnings (21% per year) are forecast to grow slower than the CN market (23.9% 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 (17.5% 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 (24.6%)


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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


0.46%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 300124's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 300124's dividend (0.46%) is low compared to the top 25% of dividend payers in the CN market (1.92%).


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.


Discover strong dividend paying companies

Management

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

1.2yrs

Average board tenure


CEO

Xingming Zhu (55 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 ( 1.2 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%.


Top Shareholders

Company Information

Shenzhen Inovance Technology Co.,Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Shenzhen Inovance Technology Co.,Ltd
  • Ticker: 300124
  • Exchange: XSEC
  • Founded: 2003
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: CN¥170.790b
  • Shares outstanding: 2.63b
  • Website: https://www.inovance.cn

Number of Employees


Location

  • Shenzhen Inovance Technology Co.,Ltd
  • Building E, Hongwei Industrial Park
  • Floor 1, 2, 3, 4, 5
  • Shenzhen
  • Guangdong Province
  • 518101
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.