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Suzhou Veichi Electric Co (688698) Fair Value & Analysis

Industrials · CN · Market cap 12.7B CNY

SV Suzhou Veichi Electric Co 688698 · SHG
Price¥50.11
Fair Value¥21.32
Upside-57.5%
Quality47/100
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Expensive Growth
Solidly profitable · 12.6% net margin
Low debt · negative free cash flow
0.87% dividend yield
Mixed vs. peers (6/13)
Moderate moat 51/100
Evidence: High Range ¥13.15 – ¥26.65 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥22.62 to ¥21.32 (−5.7%) since Jun 24, 2026. Share price −6.5% over the past month.

Below-average quality, and screening another 57% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥26.65). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥13.15 to ¥26.65) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥110.42 ¥13.32 Fair Value ¥21.32 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥13.32 – ¥110.42 · fair‑value band ¥13.15 – ¥26.65 · the ¥50.11 price screens above the ¥21.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Suzhou Veichi Electric Co (688698) currently trades at ¥50.11, while our model-based Fair Value estimate is ¥21.32, implying the stock looks roughly 57.5% overvalued today. The Quality Score stands at 47/100 (below-average 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, Suzhou Veichi Electric Co generated revenue of 2.0B CNY at a net margin of 12.6%. Revenue grew 21.0% year over year. It earns a return on equity of 11.1%. The balance sheet holds a net cash position of 89.7M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥13.15 (bear case) to ¥26.65 (bull case); at ¥50.11, 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 56% below its 52-week high and 19% 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 -57%, 688698 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
Residual Income ¥10.02 ¥11.64 ¥22.57 76
ROIC Compounder ¥13.82 ¥18.86 ¥23.51 72
Gordon GGM ¥3.84 ¥7.99 ¥12.68 70
All 17 models by family
DCF Models
Owner Earnings ¥13.68 ¥29.73 ¥63.41 31
Earnings-Based
Graham-Dodd ¥8.53 ¥59.46 ¥83.45 54
Lynch FV ¥23.03 ¥32.90 ¥42.77 50
PEG = 1.0 ¥23.03 ¥32.90 ¥42.77 46
EPV ¥12.30 ¥14.16 ¥15.80 59
Dividend Discount
Gordon GGM ¥3.84 ¥7.99 ¥12.68 70
DDM Multi-Stage ¥3.84 ¥6.74 ¥8.39 61
Multiples
P/E Multiple ¥19.75 ¥26.33 ¥32.91 63
P/S Multiple ¥13.64 ¥18.19 ¥22.73 58
P/B Multiple ¥15.99 ¥21.32 ¥26.65 55
EV/EBIT ¥17.75 ¥23.31 ¥28.86 53
EV/EBITDA ¥15.95 ¥20.90 ¥25.84 54
EV/Revenue ¥12.56 ¥17.47 ¥22.38 43
Asset-Based
NCAV (Graham) ¥5.49 ¥7.35 ¥10.98 50
Economic Profit
Residual Income ¥10.02 ¥11.64 ¥22.57 76
ROIC Compounder ¥13.82 ¥18.86 ¥23.51 72
Growth Earnings
Growth-Adj P/E ¥29.21 ¥41.72 ¥54.24 68

Widest divergence: Growth Earnings (¥41.72) versus Dividend Discount (¥6.74). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.0B CNY
Revenue growth (YoY) +21.0%
Net margin 12.6%
Return on equity 11.1%
Free cash flow −59.6M CNY FY2025
P/E ratio 49.3
More key figures
Operating margin 12.4%
EPS (TTM) ¥1.20
Dividend yield 0.9%
EPS growth (YoY) -14.8%
Net cash 89.7M CNY FY2024

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 48 · Market factors (momentum, volatility) 32

Profitability 57
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 23
Disciplined investing over empire-building
Low Volatility 44
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 52
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

Suzhou Veichi Electric Co., Ltd. engages in the research and development, procurement, production, and sale of industrial automation products in China and internationally.

Full company description

Suzhou Veichi Electric Co., Ltd. engages in the research and development, procurement, production, and sale of industrial automation products in China and internationally. The company offers long voltage drives, Servo systems, PLC, HMI, medium voltage drives, multi-motor drives, four-quadrant inverters, VFD accessories, and robot components; and industrial robot products, such as six axis, four axis, Scara, collaborative, and welding robots, as well as robot system equipment. It also provides solar pump system including solar water pump system and inverter, solar pump inverter cabinet, AC solar water pump, BLDC solar pump system, center pivot irrigation system, solar connector, solar dc cable, pv combiner box, solar panel, and accessories. In addition, the company offers renewable energy products, including hybrid inverters, off-grid and on-grid inverters, battery test system, EV controller, and lithium batteries; and industry specific drive products. The company was founded in 2005 and is headquartered in Suzhou, China. Suzhou Veichi Electric Co., Ltd. operates as a subsidiary of Huaian Veichi Electric Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Suzhou Veichi Electric Co reported revenue of ¥1.9B in FY2025 versus ¥819M in FY2021, a compound +24.2%/yr. Reported net income was ¥268M in FY2025, compounding +20.6%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.9B CNY
Latest YoY
+18.7%
Avg. growth/yr (3Y)
+29.0%
Avg. growth/yr (5Y)
+27.7%
Avg. growth/yr (8Y)
+25.2%
Revenue +24.2%/yr
FY21 ¥819M
FY22 ¥906M
FY23 ¥1.3B
FY24 ¥1.6B
FY25 ¥1.9B
Net income +20.6%/yr
FY21 ¥127M
FY22 ¥140M
FY23 ¥191M
FY24 ¥245M
FY25 ¥268M

688698 screens 57% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Suzhou Veichi Electric Co Fair Value". https://www.fairvalue-calculator.com/stock/688698

Peer Group

Specialty Industrial Machinery · 809 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 47 · Below median
Fair Value upside −58% · Below median
Return on equity (TTM) 11% · Above median
Return on assets 4% · Above median
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 12% · Above median
Revenue growth 21% · Top 25%
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 49.3× · Pricier than median
P/B 5.39× · Pricier than 75% of peers
P/S (TTM) 6.25× · Pricier than 75% of peers
EV/EBITDA 43.7× · 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 100 · sector 23
PAST 45 · sector 28
HEALTH 100 · sector 96
DIVIDEND 17 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Suzhou Veichi Electric Co (688698) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥21.32 versus a price of ¥50.11, about −57% (overvalued).
What is the fair value of 688698?
Our model-based fair value for Suzhou Veichi Electric Co is ¥21.32 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥50.11.
What is the quality score of 688698?
Suzhou Veichi Electric Co has a Quality Score of 47/100. 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 Suzhou Veichi Electric Co (688698)?
Suzhou Veichi Electric Co reported trailing-twelve-month revenue of about 2.0B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688698?
The net profit margin of Suzhou Veichi Electric Co is about 12.6%, meaning it keeps roughly 12.6% of revenue as net income. Based on the latest reported figures.
Does Suzhou Veichi Electric Co pay a dividend?
Suzhou Veichi Electric Co currently shows a dividend yield of about 0.87% relative to its recent price (as of Jul 12, 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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