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Ocean's King Lighting Science & Technology Co (002724) Fair Value & Analysis

Industrials · CN · Market cap 4.0B CNY

OS Ocean's King Lighting Science & Technology Co 002724 · SHE
Price¥5.33
Fair Value¥2.43
Upside-54.4%
Quality65/100
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Weak Growth
Thin margins · 4.5% net margin
Low debt · generates free cash flow
1.94% dividend yield
Trails peers (5/14)
Narrow moat 27/100
Evidence: High Range ¥1.82 – ¥3.03 Share as image

Fair value as of: Jul 22, 2026

From 24 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from ¥2.60 to ¥2.43 (−6.5%) since Jun 25, 2026. Share price +11.0% over the past month.

A solid business, but screening 54% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥3.03). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥19.68 ¥3.90 Fair Value ¥2.43 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 ¥3.90 – ¥19.68 · fair‑value band ¥1.82 – ¥3.03 · the ¥5.33 price screens above the ¥2.43 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

Ocean's King Lighting Science & Technology Co (002724) currently trades at ¥5.33, while our model-based Fair Value estimate is ¥2.43, implying the stock looks roughly 54.4% overvalued today. The Quality Score stands at 65/100 (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, Ocean's King Lighting Science & Technology Co generated revenue of 1.7B CNY at a net margin of 4.5%. Revenue declined 10.6% year over year. It earns a return on equity of 1.9%. The balance sheet holds a net cash position of 430M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥1.82 (bear case) to ¥3.03 (bull case); at ¥5.33, the current price sits above 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 43% below its 52-week high and 5% 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 -54%, 002724 screens richer 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
Growth DCF ¥2.68 ¥3.41 ¥4.40 80
Residual Income ¥2.63 ¥2.60 ¥2.29 76
Rev-Margin DCF ¥1.80 ¥2.24 ¥2.73 74
All 24 models by family
DCF Models
FCF DCF ¥2.62 ¥3.39 ¥4.48 38
Owner Earnings ¥2.17 ¥2.78 ¥3.63 31
5Y Revenue Exit ¥1.80 ¥2.20 ¥2.68 39
5Y EBITDA Exit ¥2.15 ¥2.82 ¥3.56 41
5Y P/E Exit ¥2.54 ¥3.49 ¥4.44 38
10Y Revenue Exit ¥2.08 ¥2.48 ¥2.94 36
10Y EBITDA Exit ¥2.32 ¥2.89 ¥3.55 37
10Y P/E Exit ¥2.55 ¥3.33 ¥4.15 35
Earnings-Based
Graham-Dodd ¥0.9700 ¥1.97 ¥2.48 54
EPV ¥1.26 ¥1.38 ¥1.47 59
Dividend Discount
Gordon GGM ¥0.4500 ¥0.6500 ¥0.8400 70
DDM Multi-Stage ¥0.4500 ¥0.6300 ¥0.8300 61
Multiples
P/E Multiple ¥2.25 ¥3.00 ¥3.74 63
P/S Multiple ¥1.82 ¥2.43 ¥3.03 58
P/B Multiple ¥1.82 ¥2.43 ¥3.03 55
EV/EBIT ¥1.67 ¥2.04 ¥2.42 53
EV/EBITDA ¥2.07 ¥2.58 ¥3.09 54
EV/Revenue ¥1.34 ¥1.69 ¥2.03 43
Asset-Based
NCAV (Graham) ¥1.79 ¥2.40 ¥3.59 50
Growth DCF
Growth DCF ¥2.68 ¥3.41 ¥4.40 80
Rev-Margin DCF ¥1.80 ¥2.24 ¥2.73 74
Economic Profit
Residual Income ¥2.63 ¥2.60 ¥2.29 76
ROIC Compounder ¥1.26 ¥1.38 ¥1.47 72
Growth Earnings
Growth-Adj P/E ¥1.63 ¥2.34 ¥3.04 68

Widest divergence: DCF Models (¥2.82) versus Dividend Discount (¥0.6300). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.7B CNY
Revenue growth (YoY) -10.6%
Net margin 4.5%
Return on equity 1.9%
Free cash flow 163M CNY FY2025
P/E ratio 51.7
More key figures
Operating margin -7.8%
EPS (TTM) ¥0.1000
Dividend yield 1.9%
EPS growth (YoY) +68.5%
Net cash 430M CNY FY2024

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

Quality Score breakdown

Overall quality 65/100

Of which business quality 66 · Market factors (momentum, volatility) 29

Profitability 35
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 84
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

Ocean's King Lighting Science & Technology Co., Ltd. engages in research and development, manufacture, and sale of lighting products in China. It offers lighting products, including fixed explosion-proof lighting, fixed professional lighting, mobile professional lighting, portable explosion-proof lighting, and portable professional lighting products.

Full company description

Ocean's King Lighting Science & Technology Co., Ltd. engages in research and development, manufacture, and sale of lighting products in China. It offers lighting products, including fixed explosion-proof lighting, fixed professional lighting, mobile professional lighting, portable explosion-proof lighting, and portable professional lighting products. The company also provides control products, such as detectors, controllers, and gateways; and value-added services. Its products are used in power generation, mining and industrial, oil and gas, water and wastewater, and transportation applications. Ocean's King Lighting Science & Technology Co., Ltd. was founded in 1995 and is headquartered in Shenzhen, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ocean's King Lighting Science & Technology Co reported revenue of ¥1.7B in FY2025 versus ¥2.1B in FY2021, a compound −5.0%/yr. Reported net income was ¥110M in FY2025, compounding −27.2%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.7B CNY
Latest YoY
+0.5%
Avg. growth/yr (3Y)
−0.2%
Avg. growth/yr (5Y)
+0.2%
Avg. growth/yr (16Y)
+3.7%
Revenue −5.0%/yr
FY21 ¥2.1B
FY22 ¥1.7B
FY23 ¥1.7B
FY24 ¥1.7B
FY25 ¥1.7B
Net income −27.2%/yr
FY21 ¥392M
FY22 ¥139M
FY23 ¥43.7M
FY24 −¥147M
FY25 ¥110M

002724 screens 54% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Ocean's King Lighting Science & Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/002724

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 65 · Top 25%
Fair Value upside −54% · Below median
Return on equity (TTM) 2% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 4% · Below median
Operating margin (TTM) -8% · Bottom 25%
Revenue growth -11% · Bottom 25%
Dividend yield (TTM) 1.9% · Above median
Debt / equity 0.00× · Lower than 75% of peers

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

P/E (TTM) 51.7× · Pricier than median
P/B 1.44× · Cheaper than median
P/S (TTM) 2.37× · Pricier than median
P/FCF 3.6× · Cheaper than median
EV/EBITDA 50.4× · 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 0 · sector 0
FUTURE 0 · sector 57
PAST 8 · sector 26
HEALTH 100 · sector 97
DIVIDEND 39 · sector 18

VALUE 0: the price sits above our fair-value range.

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 Ocean's King Lighting Science & Technology Co (002724) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥2.43 versus a price of ¥5.33, about −54% (overvalued).
What is the fair value of 002724?
Our model-based fair value for Ocean's King Lighting Science & Technology Co is ¥2.43 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥5.33.
What is the quality score of 002724?
Ocean's King Lighting Science & Technology Co has a Quality Score of 65/100. 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 Ocean's King Lighting Science & Technology Co (002724)?
Ocean's King Lighting Science & Technology Co reported trailing-twelve-month revenue of about 1.7B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002724?
The net profit margin of Ocean's King Lighting Science & Technology Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Ocean's King Lighting Science & Technology Co pay a dividend?
Ocean's King Lighting Science & Technology Co currently shows a dividend yield of about 1.94% 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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