--- title: "The only undervalued true dragon in A-shares, orders plummet, northbound funds increase their positions against the trend by 165%?" type: "News" locale: "en" url: "https://longbridge.com/en/news/288162048.md" description: "Kaizhong Precision's orders decreased by 16% year-on-year, but northbound funds increased their positions by 165%. The company mainly focuses on robots and automation equipment, with a net profit growth of 7% year-on-year, mainly due to an increase in gross profit margin. Although operational capacity has declined due to weakened overseas demand, cash flow is abundant and bad debts have been significantly recovered, indicating a solid fundamental situation. Although the valuation is not low, the growth in inventory is expected to drive future performance, supporting the logic of northbound funds' layout" datetime: "2026-05-31T05:13:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288162048.md) - [en](https://longbridge.com/en/news/288162048.md) - [zh-HK](https://longbridge.com/zh-HK/news/288162048.md) generator: "portal-rs" --- # The only undervalued true dragon in A-shares, orders plummet, northbound funds increase their positions against the trend by 165%? **Risk Warning: This article is a financial report teaching article and does not contain any recommendations. Please do not act based on this, and pay attention to safety.** **To give back to the fans who have always supported the financial officer, anyone who marks it as a star, likes it with a 👍, and ❤️ in the comments section, and actively interacts, will have the chance to communicate with the financial officer for free about financial report interpretation insights.** **“Today's case - Kaizhong Precision, the company's orders are 8.69 million, a year-on-year decrease of 16%.” I paused, “However, northbound funds increased their positions by 165% against the trend.”** **“Angels, find out the reason.” I stared at the screen.** **“The company's main business is core precision components.” Detective agency, assistant Xiao Sun took out the report. “Mainly engaged in robotics and automation equipment.”** **“The company has long-term cooperation with international giants such as Daimler, Toyota, Bosch, and ZF.” Xiao Zhao added, “Research and development of SOFC fuel cells suitable for humanoid robots and low-altitude economy.”** **“Net profit is 52.28 million, a year-on-year increase of 7%.” Xiao Huang's voice rang out, “The growth in performance is due to the increase in gross profit margin.”** **“Sales gross profit margin is 21%, an increase of 13%.” Xiao Sun took out the report, “However, operational capability has declined.”** **“Sales speed has slowed down by 13%.” Xiao Zhao paused, “The collection speed has slowed down by 11%.”** **“The reason is weak overseas demand.” Xiao Huang interjected, “Major clients are delaying payments, and industry payment terms are extended. This is an industry issue, not a company issue.”** **“The decline in operational capability is not a problem because cash flow is very abundant.” Xiao Sun typed on the keyboard, “The net cash received from sales of goods reached 101 million, higher than net profit.** **“Cash flow is higher than net profit, offsetting the risk of declining operational capability.” Xiao Zhao tapped on the table, “The company's fundamentals have not encountered issues.”** **“That's right, bad debts have also been significantly recovered.” Xiao Huang's pupils shrank suddenly, “Bad debts - 2.8 million, a year-on-year decrease of 3019%.”** **“Don't focus on past financial data.” I picked up my cup, “Look at the valuation and the company's future development.”** **“Price-to-earnings ratio is 29 times, price-to-book ratio is 2.83 times.” Xiao Sun's voice rang out, “The valuation is not low.”** **“But inventory is 533 million, an increase of 9%.” Xiao Zhao paused, “If all the inventory is sold, performance will grow, and the valuation will naturally come down.”** **“That's right, the company's fundamentals are solid, and performance growth is expected.” I stood up, “The choice of northbound funds is very wise.”** **If we categorize the financial reports of listed companies from high to low into five levels: A, B, C, D, E, the financial report translator personally believes that this company can maintain a C-level status. (The rating does not constitute an investment rating suggestion)** **【Warm Reminder】All financial report data in this article comes from publicly announced information of listed companies. The dialogues and scenes in the text are literary fictional interpretations, intended for reading entertainment only and do not constitute any investment advice.** **【Financial Report Teaching Scenario Simulation】The following office dialogue is a fictional teaching scenario based on real financial report data, aimed at helping readers understand financial report analysis methods.** ### Related Stocks - [002823.CN](https://longbridge.com/en/quote/002823.CN.md) - [7203.JP](https://longbridge.com/en/quote/7203.JP.md) - [TM.US](https://longbridge.com/en/quote/TM.US.md) - [TOYOF.US](https://longbridge.com/en/quote/TOYOF.US.md) ## Related News & Research - [His robotics company IPO'd this week. 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