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300408:SZSEChaozhou Three-Circle (Group) Co., Ltd. Class A Analysis

Data as of 2026-06-14 - not real-time

CN¥126.50

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Technical outlook: The stock is trading above its 20‑day and 50‑day simple moving averages, indicating a bullish price trend, while volume is on an upward trajectory. However, the MACD histogram has turned negative and the signal line is bearish, suggesting short‑term momentum weakness as the price approaches a key resistance level.
Fundamental outlook: The company boasts strong revenue growth, healthy margins, abundant cash and a modest debt load, but valuation metrics are stretched far beyond peers, with a price‑to‑earnings multiple many times the industry average and a discounted cash‑flow estimate that is a fraction of the current market price. The dividend payout is low, supporting sustainability, yet the high volatility and extreme greed sentiment add caution.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish MACD histogram indicating weakening momentum
  • Price positioned just below recent 52‑week high resistance
  • Elevated short‑term volatility

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Robust revenue growth and expanding operating margins
  • Strong cash generation and low leverage
  • Increasing trading volume supporting liquidity

Long Term

> 3 years
Neutral
Model confidence: 5/10

Key Factors

  • Fundamental strength tempered by severe valuation premium
  • Sustainable dividend with low payout ratio
  • Sector cyclicality and potential policy headwinds

Key Metrics & Analysis

Financial Health

Revenue Growth46.30%
Profit Margin29.19%
P/E Ratio83.8
ROE13.43%
ROA6.78%
Debt/Equity2.53
P/B Ratio10.8
Op. Cash FlowCN¥2.8B
Free Cash FlowCN¥1.5B
Industry P/E36.8

Technical Analysis

TrendBullish
RSI58.6
SupportCN¥84.64
ResistanceCN¥144.00
MA 20CN¥121.65
MA 50CN¥91.39
MA 200CN¥59.35
MACDBearish
VolumeIncreasing
Fear & Greed Index89.86

Valuation

Fair ValueCN¥31.64
Target PriceCN¥98.75
Upside/Downside-21.94%
GradeOvervalued
TypeGrowth
Dividend Yield0.36%

Risk Assessment

Beta0.74
Volatility84.57%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.