Shennan Circuit Company Limited (002916.SZ) stock analysis

In our weekly check, Shennan Circuit Company Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5.

About Shennan Circuit Company Limited

Shennan Circuit Company Limited is a Technology company (Hardware, Equipment & Parts) based in China, listed on SHZ as 002916.SZ.

What our checks show for 002916.SZ

Red flags

• Free cash flow is negative (-17% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 67.6% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• The share count grew by 30.3% in 2 years: each shareholder owns a smaller slice.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating cash flow is only 0.69x net profit: part of the reported profit does not arrive as cash.
• Beta 1.3: the stock usually moves more than the market, both up and down.

Strengths

• Operating profit covers interest 51.7 times over.
• The net margin rose by 4.9 points over 5 years, to 15.5%.
• The gross margin is 31.7% and has risen by 9.1 points: pricing power is holding.
• Analysts expect earnings per share to grow about 49.6% a year over the next years.
• Analysts expect revenue to grow about 31.8% a year over the next years.
• Analysts expect the net margin to improve by 5.1 points from today's 15.5%.

Similar companies

300408.SZ · 6805.TW · 000725.SZ · 002384.SZ · 002463.SZ · 8069.TWO

Questions

What grade does Shennan Circuit Company Limited (002916.SZ) have?

In our weekly check, Shennan Circuit Company Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 002916.SZ stock?

This week's biggest flags for Shennan Circuit Company Limited: Weak free cash flow, Very volatile, Deep past fall. In total 7 of 25 checks show a warning or a red flag.

What does Shennan Circuit Company Limited do?

Shennan Circuit Company Limited is a Technology company (Hardware, Equipment & Parts) based in China, listed on SHZ as 002916.SZ.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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