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Shanghai Liangxin Electrical Co (002706) Fair Value & Analysis

Industrials · CN · Market cap 14.1B CNY

SL Shanghai Liangxin Electrical Co 002706 · SHE
Price¥8.92
Fair Value¥7.77
Upside-12.9%
Quality53/100
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Expensive Growth
Thin margins · 4.8% net margin
Low debt · negative free cash flow
1.66% dividend yield
Trails peers (5/13)
Narrow moat 35/100
Evidence: High Range ¥5.82 – ¥9.71 Share as image

Fair value as of: Jul 22, 2026

From 17 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from ¥4.96 to ¥7.77 (+56.6%) since Jun 25, 2026. Share price −11.1% over the past month.

A solid business, but screening 13% overvalued on our models.

What matters now

  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from ¥5.82 (bear) to ¥9.71 (bull), base ¥7.77. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 53/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥23.11 ¥5.31 Fair Value ¥7.77 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 ¥5.31 – ¥23.11 · fair‑value band ¥5.82 – ¥9.71 · the ¥8.92 price screens above the ¥7.77 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

Shanghai Liangxin Electrical Co (002706) currently trades at ¥8.92, while our model-based Fair Value estimate is ¥7.77, implying the stock looks roughly 12.9% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Shanghai Liangxin Electrical Co generated revenue of 4.5B CNY at a net margin of 4.8%. Revenue grew 4.5% year over year. It earns a return on equity of 5.2%. The balance sheet holds a net cash position of 551M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥5.82 (bear case) to ¥9.71 (bull case); at ¥8.92, the current price sits within 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 42% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -13%, 002706 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
Residual Income ¥3.04 ¥3.18 ¥3.28 76
ROIC Compounder ¥3.27 ¥3.69 ¥4.48 72
Gordon GGM ¥1.99 ¥4.13 ¥6.55 70
All 17 models by family
DCF Models
Owner Earnings ¥2.72 ¥4.68 ¥8.40 31
Earnings-Based
Graham-Dodd ¥1.61 ¥9.10 ¥12.65 54
Lynch FV ¥2.56 ¥3.65 ¥4.75 50
PEG = 1.0 ¥2.56 ¥3.65 ¥4.75 46
EPV ¥3.27 ¥3.69 ¥4.05 59
Dividend Discount
Gordon GGM ¥1.99 ¥4.13 ¥6.55 70
DDM Multi-Stage ¥1.99 ¥3.48 ¥4.34 61
Multiples
P/E Multiple ¥3.72 ¥4.96 ¥6.20 63
P/S Multiple ¥3.01 ¥4.01 ¥5.02 58
P/B Multiple ¥3.01 ¥4.01 ¥5.02 55
EV/EBIT ¥4.56 ¥5.83 ¥7.09 53
EV/EBITDA ¥4.94 ¥6.33 ¥7.72 54
EV/Revenue ¥3.47 ¥4.63 ¥5.80 43
Asset-Based
NCAV (Graham) ¥1.89 ¥2.54 ¥3.79 50
Economic Profit
Residual Income ¥3.04 ¥3.18 ¥3.28 76
ROIC Compounder ¥3.27 ¥3.69 ¥4.48 72
Growth Earnings
Growth-Adj P/E ¥3.81 ¥5.44 ¥7.08 68

Widest divergence: Growth Earnings (¥5.44) versus Asset-Based (¥2.54). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 4.5B CNY
Revenue growth (YoY) +4.5%
Net margin 4.8%
Return on equity 5.2%
Free cash flow −29.8M CNY FY2025
P/E ratio 66.1
More key figures
Operating margin 7.1%
EPS (TTM) ¥0.1900
Dividend yield 1.7%
EPS growth (YoY) -50.0%
Net cash 551M CNY FY2024

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

Quality Score breakdown

Overall quality 53/100

Of which business quality 53 · Market factors (momentum, volatility) 30

Profitability 39
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 17
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 34
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 72
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

Shanghai Liangxin Electrical Co.,LTD. manufactures and sells low-voltage electrical appliances in China and internationally.

Full company description

Shanghai Liangxin Electrical Co.,LTD. manufactures and sells low-voltage electrical appliances in China and internationally. The company offers air circuit breakers, molded case circuit breakers, automatic transfer switching equipment, isolating switches, miniature circuit breakers, busbar and sockets, distribution boxes, surge protectors, hydraulic electromagnetic circuit breakers, AC contactors, contactor relays, switching capacitor contactors, tri-star starters, transfer switches, electronic overload relays, and motor protection circuit breakers. Its products are used in PV power generation, power transmission and distribution, wind power generation, electric power supply, rail transportation, port dock, telecom facility, industrial building, data center, commercial building, public building, civil residence, automobile manufacturing, welding equipment, charging facility, elevator conveying, construction lifting, steel and petrochemical, Compressor, air-conditioning and refrigeration, cement and paper Making, packaging and printing, industrial control. The company was founded in 1999 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Liangxin Electrical Co reported revenue of ¥4.5B in FY2025 versus ¥4.0B in FY2021, a compound +2.7%/yr. Reported net income was ¥265M in FY2025, compounding −10.8%/yr from FY2021.

Growth Quality 45/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
4.5B CNY
Latest YoY
+5.8%
Avg. growth/yr (3Y)
+2.6%
Avg. growth/yr (5Y)
+8.3%
Avg. growth/yr (18Y)
+18.8%
Revenue +2.7%/yr
FY21 ¥4.0B
FY22 ¥4.2B
FY23 ¥4.6B
FY24 ¥4.2B
FY25 ¥4.5B
Net income −10.8%/yr
FY21 ¥419M
FY22 ¥422M
FY23 ¥511M
FY24 ¥312M
FY25 ¥265M

002706 screens 13% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Shanghai Liangxin Electrical Co Fair Value". https://www.fairvalue-calculator.com/stock/002706

Peer Group

Electrical Equipment & Parts · 528 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 53 · Above median
Fair Value upside −13% · Above median
Return on equity (TTM) 5% · Below median
Return on assets 3% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 7% · Above median
Revenue growth 5% · Below median
Dividend yield (TTM) 1.7% · Above median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 66.1× · Pricier than 75% of peers
P/B 3.31× · Pricier than median
P/S (TTM) 3.11× · Pricier than median
EV/EBITDA 35.4× · Pricier 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 16 · sector 0
FUTURE 23 · sector 57
PAST 21 · sector 26
HEALTH 100 · sector 97
DIVIDEND 33 · sector 18

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 10.16 SGD 1.47 SGD -86%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

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Frequently asked questions

Is Shanghai Liangxin Electrical Co (002706) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥7.77 versus a price of ¥8.92, about −13% (overvalued).
What is the fair value of 002706?
Our model-based fair value for Shanghai Liangxin Electrical Co is ¥7.77 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥8.92.
What is the quality score of 002706?
Shanghai Liangxin Electrical Co has a Quality Score of 53/100. 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 Shanghai Liangxin Electrical Co (002706)?
Shanghai Liangxin Electrical Co reported trailing-twelve-month revenue of about 4.5B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002706?
The net profit margin of Shanghai Liangxin Electrical Co is about 4.8%, meaning it keeps roughly 4.8% of revenue as net income. Based on the latest reported figures.
Does Shanghai Liangxin Electrical Co pay a dividend?
Shanghai Liangxin Electrical Co currently shows a dividend yield of about 1.66% relative to its recent price (as of Jul 22, 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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