TANGYUAN ELECTRIC (300789.SZ) Investment Value Analysis: Divergence Between Record-High Orders and Declining Profits

Based on the latest market data and research reports, I provide a comprehensive analysis of TANGYUAN ELECTRIC.

TANGYUAN ELECTRIC achieved a net profit of 39.0933 million yuan in the first three quarters, a year-on-year decrease of 27.94%[1]. However, the company’s new order volume exceeded 1.03 billion yuan, hitting a historic high[1]. This “hot orders, cold profits” situation reflects that the enterprise is in a critical window period of strategic transformation.

From a financial perspective, the company’s annual salary expenditure reached 1.17 billion yuan, also a record high[1]. This means the company is investing heavily in human resources to layout the AI intelligent agent strategy. The high labor cost has eroded profits in the short term, but it provides talent reserve support for the construction of long-term technical barriers.

The company’s strategic positioning is to transform from a “specialized equipment supplier” to an “industry AI intelligent agent solution provider”[1]. The core advantages of this transformation are:

: The company has machine vision and AI algorithm capabilities that can withstand the test of 350 km/h speed, which is an extremely high technical threshold in the industrial field[1]. Against the backdrop of intelligent rail transit inspection, this technical reserve has a significant first-mover advantage.

: Current P/E ratio is 57.32x, P/B ratio is 3.11x[0][2]. This valuation level is relatively high in the machinery industry, reflecting the market’s expectations for the company’s transformation prospects.

: The company maintains a neutral financial attitude, with a low debt risk rating[2]. Free cash flow is negative (-43.6 million yuan)[2], indicating that it is still in the investment period and has not yet formed stable cash returns.

: The stock price is currently in a sideways consolidation phase (range of 21.93-23.37 yuan), the MACD indicator shows a bullish arrangement but has not formed a golden cross, the KDJ indicator is bullish, and the RSI is in the overbought area[2]. There is a lack of clear trend signals in the short term.

: Considering the current high valuation, weak technicals, and still declining profits, a wait-and-see approach or range operation is recommended.

: If order growth can gradually be converted into revenue release and the AI intelligent agent strategy makes substantial progress, the company is expected to see a valuation re-rating. It is recommended to pay attention to the progress of AI business implementation in the annual report and first quarterly report.

: The company’s transformation direction is in line with the general trend of industrial intelligence, and its technical accumulation is solid. However, it is necessary to closely monitor the changes in its accounts receivable turnover efficiency and customer structure[1], as well as the speed of commercial implementation of AI business.

Overall, TANGYUAN ELECTRIC’s AI intelligent agent strategy has certain medium-to-long-term investment value, but currently it is more suitable for investors with high risk tolerance to participate, and continuous tracking of its strategic implementation is required.

: Risk of high valuation correction, slower-than-expected transformation progress, risk of intensified industry competition.

---

[1] Caifuhao - “The Only Undervalued Leader in Robotics, Hidden King of AI Intelligent Agents, Main Force Heavily Invested” (https://caifuhao.eastmoney.com/news/20260101152632898567350)

[0] Jinling API - Company financial data and market data

[2] Jinling API - Technical analysis data