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Shenzhen Deren Electronic Co (002055) Fair Value & Analysis

Technology · CN · Market cap 3.7B CNY

SD Shenzhen Deren Electronic Co 002055 · SHE
Price¥5.57
Fair Value¥9.49
Upside+70.4%
Quality49/100
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Weak Growth
Loss-making · -0.9% net margin
Low debt · negative free cash flow
Ranks above peers (7/11)
Narrow moat 28/100
Evidence: Low Range ¥7.04 – ¥11.93 Share as image

Fair value as of: Jul 22, 2026

From 7 valuation models · updated 19 days ago

Share price −14.2% over the past month.

Below-average quality, screening 70% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥7.04). 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.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥16.45 ¥4.74 Fair Value ¥9.49 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥4.74 – ¥16.45 · fair‑value band ¥7.04 – ¥11.93 · the ¥5.57 price screens below the ¥9.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Shenzhen Deren Electronic Co (002055) currently trades at ¥5.57, while our model-based Fair Value estimate is ¥9.49, implying the stock looks roughly 70.4% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Technology 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 Deren Electronic Co generated revenue of 4.6B CNY at a net margin of -0.9%. Revenue grew 5.4% year over year. It earns a return on equity of -2.8%. Net debt stands at 178M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥7.04 (bear case) to ¥11.93 (bull case); at ¥5.57, 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 37% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at 70%, 002055 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 ¥2.95 ¥3.68 ¥4.53 72
EPV ¥2.83 ¥3.26 ¥3.63 59
EV/EBITDA ¥8.45 ¥11.25 ¥14.04 54
All 7 models by family
DCF Models
Owner Earnings ¥0.7200 ¥1.04 ¥1.52 31
Earnings-Based
EPV ¥2.83 ¥3.26 ¥3.63 59
Multiples
EV/EBIT ¥7.41 ¥9.86 ¥12.30 53
EV/EBITDA ¥8.45 ¥11.25 ¥14.04 54
EV/Revenue ¥5.02 ¥7.14 ¥9.26 43
Asset-Based
NCAV (Graham) ¥1.09 ¥1.46 ¥2.19 50
Economic Profit
ROIC Compounder ¥2.95 ¥3.68 ¥4.53 72

Widest divergence: Multiples (¥9.86) versus DCF Models (¥1.04). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Revenue (TTM) 4.6B CNY
Revenue growth (YoY) +5.4%
Net margin -0.9%
Return on equity -2.8%
Free cash flow −531M CNY FY2025
Operating margin 5.9%
More key figures
EPS (TTM) ¥-0.0700
EPS growth (YoY) -21.1%
Net debt 178M CNY FY2025

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 46 · Market factors (momentum, volatility) 36

Profitability 27
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 10
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 Deren Electronic Co., Ltd. engages in the research, development, manufacture, and sale of electronic connectors and precision components worldwide.

Full company description

Shenzhen Deren Electronic Co., Ltd. engages in the research, development, manufacture, and sale of electronic connectors and precision components worldwide. The company offers home appliance, computer, LED, FPC, and communication connectors used in consumer electronics, as well as automotive connectors and wiring harnesses, safety and warning sensors, on-board charging modules, and vehicle networking products for the automotive field. It serves the home appliance, consumer and automotive electronics, and telematics technology sectors. The company was founded in 1992 and is headquartered in Shenzhen, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shenzhen Deren Electronic Co reported revenue of ¥4.5B in FY2025 versus ¥7.6B in FY2021, a compound −12.2%/yr. Reported net income was −¥33.8M in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
4.5B CNY
Latest YoY
−13.0%
Avg. growth/yr (3Y)
−16.6%
Avg. growth/yr (5Y)
−9.1%
Avg. growth/yr (22Y)
+13.4%
Revenue −12.2%/yr
FY21 ¥7.6B
FY22 ¥7.8B
FY23 ¥6.0B
FY24 ¥5.2B
FY25 ¥4.5B
Net income
FY21 −¥592M
FY22 −¥256M
FY23 −¥203M
FY24 −¥1.2B
FY25 −¥33.8M

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Cite: Fair Value Calculator (2026). "Shenzhen Deren Electronic Co Fair Value". https://www.fairvalue-calculator.com/stock/002055

Peer Group

Electronic Components · 626 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 49 · Below median
Fair Value upside +70% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) -1% · Bottom 25%
Operating margin (TTM) 6% · Above median
Revenue growth 5% · Below median
Debt / equity 0.09× · Lower than median

Valuation Multiples vs Electronic Components median · lower = cheaper

P/B 0.41× · Cheaper than 75% of peers
P/S (TTM) 0.12× · Cheaper than 75% of peers
EV/EBITDA 1.2× · 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 0
FUTURE 27 · sector 32
PAST 0 · sector 24
HEALTH 95 · sector 95
DIVIDEND 0 · sector 25

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 Electronic Components stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$297.00 HK$103.98 -65%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is Shenzhen Deren Electronic Co (002055) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥9.49 versus a price of ¥5.57, about +70% (undervalued).
What is the fair value of 002055?
Our model-based fair value for Shenzhen Deren Electronic Co is ¥9.49 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥5.57.
What is the quality score of 002055?
Shenzhen Deren Electronic Co has a Quality Score of 49/100. 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 Deren Electronic Co (002055)?
Shenzhen Deren Electronic Co reported trailing-twelve-month revenue of about 4.6B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002055?
The net profit margin of Shenzhen Deren Electronic Co is about -0.9%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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