Ningbo Sanxing Medical Electric Co., Ltd. (601567)

Equity Research Report　|　Industry: Smart Power Distribution and Utilization and Healthcare Services　|　Report Date: October 1, 2026　|　Market data as of the September 30, 2026 close; outlook period: October 8–14

This report was automatically compiled by AI based on public information and is for reference only. It does not constitute investment advice.

Core Conclusion: A sharp first-half profit decline; overseas orders are not yet sufficient to support the recovery required by a high PE

Market data as of: market data as of the September 30, 2026 close; outlook period: October 8–14

1. Key Investment Points

• Profit fell far more sharply than revenue, putting earnings under pressure: In 2026H1, revenue declined 8.90% year over year, net profit attributable to shareholders fell 55.61%, and adjusted net profit fell 63.46%; gross margin dropped to 24.82%.
• Growth from overseas orders remains to be realized, while the core business is still weak: Contracts for a U.S. data center project totaled approximately RMB 885 million and a Polish project approximately RMB 175 million. However, power distribution and utilization revenue grew just 0.38% in 2025, while healthcare services revenue declined 8.67%.
• PE is near a historical high, while PB is near a low: At the September 30 close of RMB 13.67, PE-TTM was 32.55x, at the 98th percentile over the past 5.2 years; PB was 1.64x, at the 5th percentile.

Market Expectations and Evidence

• What the market is pricing in: A PE of 32.55x implies average annual future EPS growth of approximately 16.7%. Institutional forecasts see EPS rising from RMB 0.86 in 2026 to RMB 1.46 in 2028, a CAGR of approximately 30%. The implied growth rate is below the forecast-period growth rate, but assumes earnings first recover from their 2026 low.
• What the evidence shows: An earnings recovery has yet to be validated by operating data: in 2026H1, net profit attributable to shareholders fell 55.61% and gross margin was 24.82%. Profit margins and delivery schedules for the U.S. and Polish orders have not been disclosed; revenue recognition and profit contributions remain to be seen.

Evidence tilt: Bearish; Confidence: Medium

The first-half earnings decline and high PE percentile are clear. Profit contributions from overseas orders and a subsequent earnings recovery have yet to be verified.

2. Business and Competitive Strength

2.1 Business Mix

The company sells smart meters, power distribution equipment, and solutions to grid and power-sector customers, and serves patients and medical insurance payers through hospital operations and rehabilitation healthcare services.

2.2 Competitive Advantages

Competitive Advantage Strength: Medium

• Customer access and channels: In 2025, the company disclosed 10 production bases and more than 40 sales centers globally, and won its first power distribution orders in several overseas countries.
• Manufacturing and technology: Offers power distribution products rated up to and including 35 kV; disclosed automation investment of more than RMB 200 million and 32 related patents over the past three years.
• Healthcare operations: Operates 38 hospitals and 32 rehabilitation hospitals, with more than 10,000 beds, and has established standardized modules for hospital expansion and operations.

Key threats: Competitive grid tenders and material costs squeeze gross margins in power distribution and utilization; initial overseas orders do not yet indicate stable, large-scale revenue, while healthcare operations are exposed to medical insurance payments, operating costs, and the ramp-up of individual hospitals.

2.3 Value-Chain Position and Earnings Trends

• Power distribution and utilization manufacturing involves circuit breakers, copper wire, silicon steel, and transformer components. These are listed in regulatory responses as typical procurement categories, not as the 2025 procurement mix.
• In 2025, direct materials accounted for approximately 90.17% of the principal operating costs of the electrical instrument business. Copper wire, silicon steel, and other materials are purchased at market prices, limiting the scope for cost-side bargaining.
• Power distribution and utilization customers include grid and other power-sector customers. Competitive tendering, acceptance, and settlement processes constrain suppliers’ pricing power.
• Healthcare services are provided to patients and payers such as medical insurance schemes; medical insurance payment policies and service prices affect revenue, collections, and gross margins.
• The 2025 annual report shows that the top five customers accounted for 10.91% of sales and the top five suppliers for 13.21% of procurement. The company did not disclose customer names; these percentages indicate overall concentration and do not rule out structural dependence.
• At year-end 2025, gross accounts receivable were RMB 3.240 billion, approximately 22.6% of revenue and 2.54x net profit attributable to shareholders. Net operating cash flow was RMB 1.771 billion, or 1.39x net profit attributable to shareholders.

Power distribution and utilization is positioned in midstream equipment manufacturing and systems delivery, while healthcare services operate at the downstream service end. Gross margins fell in both businesses in 2025. Margin improvement depends on stabilizing tender prices, upgrading the product mix, scaling up in mature overseas markets, and improving hospital operating efficiency.

2.4 Industry and Peer Comparison

The company’s profits are affected by grid tender prices and direct material costs. In 2025, power distribution and utilization revenue was broadly flat, but gross margin declined; healthcare services revenue and gross margin also fell. Medical insurance payments and operating efficiency are key variables.

Sanxing Electric’s smart power distribution and utilization gross margin was 27.08% in 2025, below the disclosed figures for the related businesses of all three peers. However, differences in product mix, overseas exposure, and systems integration are substantial, so gross margin alone cannot establish competitive positioning.

3. Financial Quality

3.1 Operating Performance

Consolidated financial statement basis; first-half 2026 figures are actual reported figures from the interim report.

The decline in profit was significantly greater than the decline in revenue. Low-price tender deliveries, raw material costs, and foreign exchange factors weighed on gross margin; in 2025, impairment of healthcare-related goodwill totaled approximately RMB 356 million.

3.2 Financial Health Check

4. Valuation and Market Expectations

4.1 Valuation

Valuation multiples calculated programmatically using closing data as of 2026-09-30 (trailing twelve-month basis)

Implied market expectations: At the current PE of 32.55x, if investors require an annualized return of 8% and assume a PE of 15x in 10 years, EPS would need to grow at an average annual rate of approximately 16.7% (excluding dividends; a conservative assumption). This can be compared with the consensus growth expectations below.

PE-TTM of 32.55x is at the 98th percentile over the past 5.2 years, above the median of 20.59x. PB of 1.64x is at the 5th percentile and PS of 1.41x at the 1st percentile, producing mixed valuation signals. The price implies average annual EPS growth of approximately 16.7%, below the approximately 30% CAGR forecast by institutions for 2026–2028; however, that forecast assumes a rebound following the 2026 profit decline.

4.2 Consensus Expectations

Simple average of three named institutions, with reports dated August 31 to September 3; a separate aggregate of seven institutions gives a 2026 average net profit attributable to shareholders of RMB 1.394 billion, based on a different sample.

4.3 Institutional Views

Seven rating samples over the past 180 days; the median target price among four institutions was RMB 31.68, while the mean and range were not provided. The latest verifiable rating was from Soochow Securities on September 2, 2026.

5. Catalysts and Recent Events

5.1 Key Upcoming Milestones

5.2 Recent Material Events

• August 31, 2026: First-half profit fell sharply year over year (Negative): First-half revenue was RMB 7.262 billion and net profit attributable to shareholders was RMB 546 million, down 8.90% and 55.61%, respectively, year over year; adjusted net profit fell 63.46%. The company cited pressure from order prices, raw materials, and foreign exchange.
• September 24, 2026: Won a U.S. data center transformer project (Positive): A wholly owned subsidiary won a U.S. data center energy-storage oil-immersed transformer project, with a contract value of USD 132 million, equivalent to approximately RMB 885 million according to the announcement. Delivery schedule and profit margin were not disclosed; contract value is not equivalent to current-period earnings.
• August 7, 2026: Signed a smart metering contract in Poland (Positive): Controlling subsidiary Foxytech signed a contract for smart meters and communication modules with Poland’s Stoen Operator, worth approximately RMB 175 million, or 1.22% of 2025 revenue. Fulfillment remains subject to delivery, foreign exchange, and other factors.
• August 18, 2026: Southern Grid project at preliminary award stage (Positive): A wholly owned subsidiary became a candidate for a Southern Power Grid distribution equipment project, with an estimated value of approximately RMB 204.6 million. At the time of the announcement, it had not yet received the award notice, so this should not be treated as a signed contract.

6. Bull-Bear Debate and Risks

6.1 Bull Case

• The U.S. data center transformer project is worth approximately RMB 885 million, or about 6.2% of 2025 revenue, and could generate incremental revenue if delivery proceeds smoothly.
• The Polish smart metering contract is worth approximately RMB 175 million. Together with the overseas production and sales network, it provides a foundation for expanding the power distribution and utilization business.
• Institutional average forecasts see net profit attributable to shareholders rising from RMB 1.205 billion in 2026 to RMB 2.051 billion in 2028; if achieved, this would represent a marked earnings recovery.

6.2 Bear Case

• In 2026H1, net profit attributable to shareholders fell 55.61% year over year and adjusted net profit fell 63.46%, significantly more than the decline in revenue.
• In 2025, gross margin was 27.08% for power distribution and utilization and 28.84% for healthcare services; revenue in the two businesses grew just 0.38% and declined 8.67%, respectively.
• PE-TTM of 32.55x is at the 98th percentile over the past 5.2 years, while institutional forecasts put 2026 net profit attributable to shareholders at RMB 1.205 billion, below the RMB 1.274 billion recorded in 2025.

6.3 Other Risks

• Gross accounts receivable of RMB 3.240 billion were approximately 22.6% of revenue; slower collections would tie up working capital and intensify cash flow pressure.
• Direct materials account for approximately 90.17% of the principal operating costs of the electrical instrument business. If higher material costs cannot be passed through, power distribution and utilization gross margins would face further pressure.
• Healthcare services are exposed to medical insurance payments and hospital operating efficiency; weaker-than-expected payment policies or ramp-up at individual hospitals could weigh on revenue and profits and increase goodwill impairment pressure.
• The H-share listing has not passed the hearing and the offering price has not been determined; if financing arrangements proceed, dilution from the offering could affect EPS.

7. Monitoring Checklist

8. Share Price and Short-Term Outlook (One-Week Scenario Analysis, for Reference Only)

⚠️ Risk Warning: The scenario weights below are subjective heuristic judgments, not statistical probabilities, and do not constitute investment advice.

8.1 Technical Overview

The share price is below its moving averages and the Bollinger midline, and fund flows have been net negative in recent sessions, indicating near-term weakness. Support near RMB 12.8 and resistance at RMB 14.0–14.7 are key levels to watch.

8.2 Key Price Levels

8.3 One-Week Range Based on Historical Volatility

Using the September 30, 2026 price of RMB 13.67 as the baseline, the closing-price ranges for the next five trading days are estimated from the return distribution over the past 300 trading days (scaled using the current index-weighted daily volatility of approximately 4.2%, while retaining this stock’s own frequency of large gains and losses):

This range reflects only the stock’s recent volatility and does not indicate price direction. Actual movements may exceed the range in the event of a major announcement or a sharp market decline.

8.4 One-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound trading (relatively higher weight, approximately 50%): Around RMB 12.8–14.1. If support at RMB 12.8–13.2 holds and there is no significant negative news, the share price may remain capped near RMB 14.0 and continue to consolidate.
• Weak downside (medium weight, approximately 30%): Around RMB 12.5–12.8. If the closing price decisively falls below RMB 12.8, trading value expands, and fund outflows continue, the share price may test the area near the Bollinger lower band.
• Stronger rebound (relatively low weight, approximately 20%): Around RMB 14.5–15.5. If the share price recovers RMB 14.06 and moves above the RMB 14.5–14.7 moving-average zone, with the sector strengthening or an effective catalyst emerging, conditions for a rebound would improve.

8.5 Capital Flows and Liquidity

On September 30, the turnover rate was 1.73% and trading value was approximately RMB 334 million; recent daily trading value ranged from approximately RMB 141 million to RMB 857 million, with a marked increase in volume on September 28. As of June 30, 2026, the top 10 shareholders collectively held 65.84%, primarily comprising the controlling shareholder and related individuals. No public funds or social security funds were listed in the shareholder roster; a data provider reported fund holdings equal to 3.59% of the free float. This figure is not real-time, and the shareholder structure may have changed. Trading activity fluctuates, so order-book depth and slippage should be monitored when trading.

If the share price recovers RMB 14.06 and moves toward RMB 14.5, daily trading value of approximately RMB 450 million or more without a sharp intraday reversal could be watched as a sign of increased capital participation.

The scenario analysis above is based on closing data as of September 30, 2026, and calculations using historical prices and technical indicators. Short-term share-price movements will also be affected by news, capital flows, broader market conditions, and other factors. Technical indicators are inherently lagging and limited; this analysis does not guarantee future actual performance and does not constitute a buy or sell recommendation. Please make independent decisions based on the latest market information and bear your own investment risk.

Sources

• 三星电气(601567)公司资料_新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：2025年年度报告新浪财经_新浪网
• 公司公告_三星医疗：2024年年度报告新浪财经_新浪网
• 三星医疗(601567) - 基本面研究报告 - 爱股网
• 海兴电力(603556)_公司公告_海兴电力：2025年年度报告新浪财经_新浪网
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• 三星电气(601567)_公司公告_三星电气：2026年半年度报告摘要新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：2026年半年度业绩预告新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：2026年半年度报告新浪财经_新浪网
• 三星电气（601567）9月29日主力资金净卖出2295.99万元_主力研究_股票_证券之星
• 三星电气(601567)市盈率|估值|基本面 - 理杏仁
• 三星电气(601567)市净率|估值|基本面 - 理杏仁
• F10 - 电气设备板块 - 宽度指数|Sector Market Breadth Index
• 三星电气(601567) 盈利预测_F10_同花顺金融服务网
• 三星电气(601567)_公司公告_三星电气：2026年半年度报告新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：关于子公司签订海外经营合同的公告新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：关于子公司经营合同预中标的提示性公告新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：关于子公司签订海外经营合同的公告新浪财经_新浪网
• 宁波三星医疗电气股份有限公司2026年半年度报告摘要|上海证券报
• 宁波三星医疗电气股份有限公司关于向香港联交所递交H股发行上市的申请并刊发申请资料的公告|上海证券报
• 三星电气(601567)_公司公告_三星电气：关于董事、总裁辞职暨补选董事、聘任总裁的公告新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：关于为子公司提供担保的进展公告新浪财经_新浪网
• 宁波三星医疗电气股份有限公司关于变更公司证券简称实施公告|上海证券报
• 三星电气(601567)_资金流向_证券之星
• 三星电气(601567)_历史上榜数据
• 三星电气(601567)-机构持仓
• 宁波三星医疗电气股份有限公司关于子公司签订海外经营合同的公告_新浪财经_新浪网
• 三星电气(601567)_公司公告_三星电气：关于全资子公司完成工商变更登记的公告新浪财经_新浪网
• 关于2026年中秋节、国庆节休市安排的通知

This report was automatically researched, compiled, and generated by AI based on publicly available sources. Information is current as of the market close on September 30, 2026; the outlook period is October 8–14. Some information may be subject to timing differences. Please refer to the company’s formal announcements and authoritative data terminals for specific figures. This report is for information compilation and research reference only and does not constitute investment advice. Investors should make independent judgments and bear their own investment risks.