Is 301596.SZ overvalued or undervalued?

301596.SZ currently has a P/E ratio of 37.02. Relative to the sector average of 23.20, this suggests the stock may be overvalued. A higher P/E than peers means investors are paying more for each unit of earnings, often because they expect faster future growth. However, if that growth does not materialize, the stock can appear overvalued. A lower P/E may indicate weaker growth expectations or higher risk, but it can also signal a potential valuation discount.

How can I buy Reach Machinery Co Ltd stock?

Reach Machinery Co Ltd trades on SHZ. Investors in Latin America can buy it through international and regional brokerage and investment platforms. You simply need a valid government ID or passport to get started.

Can I buy fractional shares of 301596.SZ?

Yes. Through fractional investing, you can invest exactly the amount you want, starting with as little as $1 or $5 USD (depending on what investment platform you use), and own a proportional piece of the company.

Does buying 301596.SZ protect my money against local inflation?

Many investors in Latin America buy international stocks like 301596.SZ to protect their purchasing power. Because 301596.SZ is priced in foreign currency, your investment is tied to a hard currency. If your local currency devalues against the foreign currency, usually USD or Euro, the underlying value of your stock portfolio remains protected from local inflation.

Do I need a foreign bank account or a Visa to buy 301596.SZ shares?

No. A common misconception is that you need a foreign bank account or a foreign visa to invest in international stocks. Today, modern investment platforms allow you to fund your account using local bank transfers or local payment methods right from your home country.

Is 301596.SZ a suitable investment for my portfolio?

There is no universal answer, since fit depends on your situation, not just the stock. Think about three things: how well 301596.SZ diversifies what you already own, whether you can stomach its price swings given your risk tolerance, and how long you plan to stay invested. As a rule, a single stock works best as one piece of a broader asset allocation and with a multi-year time horizon. This is general information, not personalized financial advice.

All stocks301596.SZ

Reach Machinery Co Ltd

¥44.79-¥0.61-1.34%

SHZ / CNY

Market cap

¥4.8B

P/E

37.0

EPS (TTM)

¥0.13

Dividend yield

1.08%

Beta

0.52

1Y return

-29.76%

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Financials

The numbers behind the company

Revenue vs net income

RevenueNet income

$89M2021

$85M2022

$82M2023

$84M2024

$92M2025

Financial health

Gross margin

Operating margin

ROE

ROA

Debt to equity0.11Low
Current ratio3.33
Cash ratio0.61
Net margin14.3%
Free cash flow—

Valuation

Is it expensive right now

P/E vs the market

scale 0–50

0153050

301596.SZ37.0
Consumer Cyclical sector median23.2
S&P 50022.0

Trades about 60% above its sector, the market expects faster growth.

Ratios

PEG-2.61
Price to book5.33
EPS (TTM)¥0.13
Payout ratio1,774%
FCF yield1.80%

Range & risk

¥38.08¥67.14

Trading in the lower third of its 52-week band

Beta0.52

Profile

What Reach Machinery Co Ltd actually does

Reach Machinery Co., Ltd. is an enterprise focused on the design, production, and sale of essential components for automation equipment, power transmission, and braking systems, serving both the Chinese domestic and international markets. The company's diverse product portfolio encompasses precision transmission elements, electromagnetic brakes and clutches, harmonic reducers, couplings, expansion sleeves, and synchro wheels. These specialized parts are integral to a wide array of modern industrial applications, including robotics, automated assembly lines, elevators, wind power generation, CNC machinery, cranes, tower cranes, electric forklifts, automated three-dimensional parking garages, and high-altitude platform vehicles, as well as general automation and high-end manufacturing sectors. The firm was established in 2009 and is based in Chengdu, China.

CEO

Xiaorong Lu

Employees

1,208

Headquarters

Chengdu, SI

Founded

2024-05-13

Company website

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Community sentiment

Bullish—

Distribution

Bearish0%
Neutral0%
Bullish0%

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Q&A

Questions people ask

301596.SZ has a beta of 0.52, which indicates how sensitive it has historically been to movements in its broader market. A beta below 1 indicates lower relative volatility than the market. Beta is based on historical data and does not predict future performance.

Reach Machinery Co Ltd