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Song Chuan Precision Co (7788) Fair Value & Analysis

Industrials · TW · Market cap 18.3B TWD

SC Song Chuan Precision Co 7788 · TW
Price235.00 TWD
Fair Value70.88 TWD
Upside-69.8%
Quality41/100
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Weak Growth
Thin margins · 4.5% net margin
Low debt · generates free cash flow
0.74% dividend yield
Trails peers (3/14)
Narrow moat 39/100
Evidence: High Range 48.20 TWD – 88.60 TWD Share as image

Fair value as of: Jul 21, 2026

From 26 valuation models · updated 19 days ago

Share price −2.2% over the past month.

Below-average quality, and screening another 70% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (88.60 TWD). The favourable scenario is already priced in.
  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (48.20 TWD to 88.60 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (21 months)

289.46 TWD 99.13 TWD Fair Value 70.88 TWD Oct 2024 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

21‑month range 99.13 TWD – 289.46 TWD · fair‑value band 48.20 TWD – 88.60 TWD · the 235.00 TWD price screens above the 70.88 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Song Chuan Precision Co (7788) currently trades at 235.00 TWD, while our model-based Fair Value estimate is 70.88 TWD, implying the stock looks roughly 69.8% overvalued today. The Quality Score stands at 41/100 (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, Song Chuan Precision Co generated revenue of 6.7B TWD at a net margin of 4.5%. Revenue grew 14.4% year over year. It earns a return on equity of 5.5%. Net debt stands at 274M TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 48.20 TWD (bear case) to 88.60 TWD (bull case); at 235.00 TWD, 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 18% below its 52-week high and 135% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -70%, 7788 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 25.79 TWD 31.68 TWD 40.05 TWD 80
Residual Income 56.65 TWD 57.34 TWD 54.08 TWD 76
Rev-Margin DCF 51.27 TWD 79.90 TWD 112.08 TWD 74
All 26 models by family
DCF Models
FCF DCF 25.55 TWD 32.15 TWD 42.11 TWD 38
Owner Earnings 52.66 TWD 73.82 TWD 105.76 TWD 31
5Y Revenue Exit 51.27 TWD 80.57 TWD 118.45 TWD 39
5Y EBITDA Exit 76.26 TWD 126.93 TWD 186.39 TWD 41
5Y P/E Exit 48.20 TWD 74.88 TWD 102.85 TWD 38
10Y Revenue Exit 40.13 TWD 64.67 TWD 98.30 TWD 36
10Y EBITDA Exit 57.65 TWD 96.72 TWD 149.76 TWD 37
10Y P/E Exit 39.83 TWD 60.74 TWD 86.49 TWD 35
Earnings-Based
Graham-Dodd 22.95 TWD 68.45 TWD 90.64 TWD 54
Lynch FV 14.46 TWD 20.66 TWD 26.85 TWD 50
PEG = 1.0 14.46 TWD 20.66 TWD 26.85 TWD 46
EPV 58.39 TWD 65.92 TWD 72.50 TWD 59
Dividend Discount
Gordon GGM 20.90 TWD 43.46 TWD 68.94 TWD 70
DDM Multi-Stage 20.90 TWD 33.93 TWD 45.61 TWD 61
Multiples
P/E Multiple 53.16 TWD 70.88 TWD 88.60 TWD 63
P/S Multiple 43.03 TWD 57.38 TWD 71.72 TWD 58
P/B Multiple 43.03 TWD 57.38 TWD 71.72 TWD 55
EV/EBIT 89.74 TWD 115.24 TWD 140.73 TWD 53
EV/EBITDA 115.12 TWD 149.08 TWD 183.03 TWD 54
EV/Revenue 67.85 TWD 91.24 TWD 114.64 TWD 43
Asset-Based
NCAV (Graham) 37.12 TWD 49.75 TWD 74.25 TWD 50
Growth DCF
Growth DCF 25.79 TWD 31.68 TWD 40.05 TWD 80
Rev-Margin DCF 51.27 TWD 79.90 TWD 112.08 TWD 74
Economic Profit
Residual Income 56.65 TWD 57.34 TWD 54.08 TWD 76
ROIC Compounder 58.39 TWD 65.92 TWD 72.50 TWD 72
Growth Earnings
Growth-Adj P/E 43.32 TWD 61.89 TWD 80.45 TWD 68

Widest divergence: DCF Models (73.82 TWD) versus Earnings-Based (20.66 TWD). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 6.7B TWD
Revenue growth (YoY) +14.4%
Net margin 4.5%
Return on equity 5.5%
Free cash flow 87.2M TWD FY2025
P/E ratio 73.3
More key figures
Operating margin 9.6%
EPS (TTM) 3.63 TWD
Dividend yield 0.7%
EPS growth (YoY) +11.6%
Net debt 274M TWD FY2025

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

Quality Score breakdown

Overall quality 41/100

Of which business quality 43 · Market factors (momentum, volatility) 60

Profitability 31
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 32
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 88
Price trend over the last 3–12 months (market factor)
52W Momentum 83
Distance to the 52-week high (market factor)
Net Issuance 25
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

Song Chuan Precision Co., Ltd. manufactures and sells electromechanical power relays in Taiwan and internationally. It primarily offers relays, PCB and plug-in automotive relays, PCB miniature power relays, industrial and general-purpose relays, and safety relays for home appliance, automotive, IT product, and other applications.

Full company description

Song Chuan Precision Co., Ltd. manufactures and sells electromechanical power relays in Taiwan and internationally. It primarily offers relays, PCB and plug-in automotive relays, PCB miniature power relays, industrial and general-purpose relays, and safety relays for home appliance, automotive, IT product, and other applications. The company was founded in 1974 and is headquartered in New Taipei City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Song Chuan Precision Co reported revenue of 6.4B TWD in FY2025 versus 5.2B TWD in FY2021, a compound +5.4%/yr. Reported net income was 269M TWD in FY2025, compounding +21.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
6.4B TWD
Latest YoY
+7.9%
Avg. growth/yr (3Y)
+1.6%
Revenue +5.4%/yr
FY21 5.2B TWD
FY22 6.1B TWD
FY23 5.5B TWD
FY24 6.0B TWD
FY25 6.4B TWD
Net income +21.7%/yr
FY21 123M TWD
FY22 515M TWD
FY23 380M TWD
FY24 504M TWD
FY25 269M TWD

7788 screens 70% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Song Chuan Precision Co Fair Value". https://www.fairvalue-calculator.com/stock/7788

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 41 · Bottom 25%
Fair Value upside −70% · Bottom 25%
Return on equity (TTM) 5% · Below median
Return on assets 3% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 10% · Above median
Revenue growth 14% · Above median
Dividend yield (TTM) 0.7% · Below median
Debt / equity 0.18× · Higher than median

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

P/E (TTM) 63.1× · Pricier than 75% of peers
P/B 3.08× · Pricier than median
P/S (TTM) 2.74× · Pricier than median
P/FCF 6.5× · Pricier than median
EV/EBITDA 21.9× · Pricier than median

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 72 · sector 57
PAST 22 · sector 26
HEALTH 91 · sector 97
DIVIDEND 15 · 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 21, 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 Song Chuan Precision Co (7788) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 70.88 TWD versus a price of 235.00 TWD, about −70% (overvalued).
What is the fair value of 7788?
Our model-based fair value for Song Chuan Precision Co is 70.88 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 235.00 TWD.
What is the quality score of 7788?
Song Chuan Precision Co has a Quality Score of 41/100. 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 Song Chuan Precision Co (7788)?
Song Chuan Precision Co reported trailing-twelve-month revenue of about 6.7B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 7788?
The net profit margin of Song Chuan Precision Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Song Chuan Precision Co pay a dividend?
Song Chuan Precision Co currently shows a dividend yield of about 0.74% 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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