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Shenzhen SED Industry Co (000032) Fair Value & Analysis

Industrials · CN · Market cap 25.3B CNY

SS Shenzhen SED Industry Co 000032 · SHE
Price¥14.80
Fair Value¥22.66
Upside+53.1%
Quality40/100
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Expensive Growth
Loss-making · -0.4% net margin
Moderate debt · negative free cash flow
0.13% dividend yield
Trails peers (3/11)
Narrow moat 21/100
Evidence: Low Range ¥17.77 – ¥27.55 Share as image

Fair value as of: Jul 21, 2026

From 7 valuation models · updated 20 days ago

Share price −30.7% over the past month.

Below-average quality, screening 53% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥17.77). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

¥39.42 ¥11.87 Fair Value ¥22.66 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range ¥11.87 – ¥39.42 · fair‑value band ¥17.77 – ¥27.55 · the ¥14.80 price screens below the ¥22.66 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Shenzhen SED Industry Co (000032) currently trades at ¥14.80, while our model-based Fair Value estimate is ¥22.66, implying the stock looks roughly 53.1% undervalued today. The Quality Score stands at 40/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, Shenzhen SED Industry Co generated revenue of 49.4B CNY at a net margin of -0.4%. Revenue grew 2.1% year over year. It earns a return on equity of 0.4%. The balance sheet holds a net cash position of 3.8B CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥17.77 (bear case) to ¥27.55 (bull case); at ¥14.80, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 48% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 53%, 000032 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
ROIC Compounder ¥12.80 ¥18.02 ¥22.94 72
EPV ¥10.41 ¥11.58 ¥12.60 59
EV/EBITDA ¥19.64 ¥25.06 ¥30.48 54
All 7 models by family
DCF Models
Owner Earnings ¥5.92 ¥9.16 ¥15.95 31
Earnings-Based
EPV ¥10.41 ¥11.58 ¥12.60 59
Multiples
EV/EBIT ¥18.05 ¥22.93 ¥27.82 53
EV/EBITDA ¥19.64 ¥25.06 ¥30.48 54
EV/Revenue ¥13.27 ¥17.50 ¥21.74 43
Asset-Based
NCAV (Graham) ¥3.07 ¥4.11 ¥6.14 50
Economic Profit
ROIC Compounder ¥12.80 ¥18.02 ¥22.94 72

Widest divergence: Multiples (¥22.93) versus Asset-Based (¥4.11). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Revenue (TTM) 49.4B CNY
Revenue growth (YoY) +2.1%
Net margin -0.4%
Return on equity 0.4%
Free cash flow −679M CNY FY2025
Operating margin 0.9%
More key figures
EPS (TTM) ¥-0.1500
Dividend yield 0.1%
EPS growth (YoY) -62.3%
Net cash 3.8B CNY FY2024

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 40 · Market factors (momentum, volatility) 24

Profitability 20
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 23
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 41
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Shenzhen SED Industry Co., Ltd. provides digital and information, and industrial services in China. The company offers cloud computing and storage, data innovation, and digital government and industry digitization services. It also provides high-tech industry services, such as cleanroom services, digital heating, and new energy services.

Full company description

Shenzhen SED Industry Co., Ltd. provides digital and information, and industrial services in China. The company offers cloud computing and storage, data innovation, and digital government and industry digitization services. It also provides high-tech industry services, such as cleanroom services, digital heating, and new energy services. In addition, the company offers housing rental; smart lighting system integration; building decoration, renovation, and other construction industries; software and information technology services; logistic services; as well as manufacturing electronic product. Shenzhen SED Industry Co., Ltd. was founded in 1993 and is based in Shenzhen, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shenzhen SED Industry Co reported revenue of ¥49.2B in FY2025 versus ¥44.1B in FY2021, a compound +2.7%/yr. Reported net income was −¥127M in FY2025.

Growth Quality 44/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
49.2B CNY
Avg. growth/yr (3Y)
+15.2%
Avg. growth/yr (5Y)
+20.3%
Avg. growth/yr (33Y)
+21.3%
Revenue +2.7%/yr
FY21 ¥44.1B
FY22 ¥51.1B
FY23 ¥56.3B
FY24 ¥67.4B
FY25 ¥49.2B
Net income
FY21 ¥387M
FY22 −¥158M
FY23 ¥330M
FY24 ¥330M
FY25 −¥127M

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Cite: Fair Value Calculator (2026). "Shenzhen SED Industry Co Fair Value". https://www.fairvalue-calculator.com/stock/000032

Peer Group

Engineering & Construction · 837 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 40 · Below median
Fair Value upside +53% · Top 25%
Return on equity (TTM) 0% · Below median
Return on assets 1% · Below median
Net margin (TTM) -0% · Bottom 25%
Operating margin (TTM) 1% · Below median
Revenue growth 2% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 1.12× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/B 0.50× · Cheaper than median
P/S (TTM) 0.08× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 16
FUTURE 11 · sector 18
PAST 2 · sector 26
HEALTH 44 · sector 94
DIVIDEND 3 · sector 33

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Shenzhen SED Industry Co (000032) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥22.66 versus a price of ¥14.80, about +53% (undervalued).
What is the fair value of 000032?
Our model-based fair value for Shenzhen SED Industry Co is ¥22.66 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥14.80.
What is the quality score of 000032?
Shenzhen SED Industry Co has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Shenzhen SED Industry Co (000032)?
Shenzhen SED Industry Co reported trailing-twelve-month revenue of about 49.4B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000032?
The net profit margin of Shenzhen SED Industry Co is about -0.4%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Shenzhen SED Industry Co pay a dividend?
Shenzhen SED Industry Co currently shows a dividend yield of about 0.13% relative to its recent price (as of Jul 21, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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