#Founder-Controlled Governance

Sieyuan Electric: A Premium-Priced Export Compounder With Zero Margin of Safety

Sieyuan Electric is a founder-controlled Chinese power-equipment exporter whose overseas revenue reached 26.94% of 2025 sales, up 85.84% year on year, helping drive 2025 revenue growth of 39.3% to RMB 21.54 billion and net-profit growth of 53.7% to RMB 3.15 billion, even as operating cash flow of RMB 2.23 billion trailed profit and a Toshiba-related stake cut from 90% to 70% now leaks more earnings to minority holders. Rating Watch: business quality is real, but at RMB 151.73 the stock trades near 37.6 times trailing earnings, well above domestic peers Xuji, Pinggao and NARI, pricing in years of clean execution with zero margin of safety against the report's RMB 95 conservative fair value, with the ideal buy zone at RMB 78 to 88.