Risk factor
Meaningful price volatility
Profitability factor
Greatly overvalued vs peers
About
Fujian Raynen Technology Co., Ltd. specializes in two primary areas: the nationwide distribution of integrated circuit (IC) products across China, and the research, development, manufacturing, and sale of industrial automation control solutions. Its comprehensive range of automation products includes advanced computer control systems, servo systems, and frequency converters, catering to general industrial applications as well as specific sectors like knitting and sewing equipment. Notable offerings encompass complete computer control systems for both flat knitting and vamp flat knitting machines, along with crucial components such as operation boxes, main controllers, carriage controllers, take-down comb controllers, integrated power supplies, and both single-axis and digital dual-axis servo drivers. Additionally, the company is involved in developing specialized application software for the knitting industry, distributing industrial electrical automation products, and providing system integration services. Established in 2007 in Fuzhou, China, the company adopted its current name in 2013, having previously been known as Fujian Raynen Electronics Co., Ltd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI