SHANDONG WEIDA Financial Update
Market Activity and Analyst Coverage
Shandong Weida Machinery Co., Ltd., a company listed on the Shenzhen Stock Exchange, has experienced significant market activity recently. On August 4, 2025, the company saw a substantial inflow of large-scale investors, with a net inflow of 17.6 billion CNY, resulting in a 10% increase in its stock price. This activity placed the company at the 19th position in the market ranking out of 5150 companies. The following day, on August 6, 2025, the company continued to attract large-scale investors with a net inflow of 537.76 million CNY, leading to a 3.28% rise in its stock price, ranking 133rd in the market.
Analyst Report and Business Outlook
On August 4, 2025, Huatai Securities issued a research report on Shandong Weida, marking its first coverage of the company. The report, titled “Leading Company in Electric Tool Components, Diversified Business Layout Opens Growth Space,” awarded the company a “Buy” rating. The analysis highlighted Shandong Weida’s leadership in the drill chuck business and its diversified industrial chain layout. The company, originally established in 1976, has strategically transitioned into precision manufacturing, starting with drill chucks to support its electric drill production.
The global electric tool market, which saw a downturn in 2022-2023, rebounded in 2024 with a 24.8% increase in shipments, reaching 57 million units. Shandong Weida’s product range includes drill chucks, lithium battery packs, PCB boards, switches, and precision castings, serving global brands like Stanley Black & Decker and TTI. The company has established overseas subsidiaries in Vietnam, Mexico, and Singapore, enhancing its global brand influence and facilitating international strategy implementation.
Expansion and Future Prospects
Shandong Weida is expanding its business into new energy and high-end intelligent manufacturing sectors. The new energy segment focuses on lithium battery packs for electric tools, landscaping tools, smart home appliances, and convenient transportation, extending into the outdoor energy storage market. The company collaborates with NIO to supply equipment for its fourth-generation battery swap stations. In high-end intelligent manufacturing, its products are widely used in automotive, defense, electronics, and rail transport sectors, with its five-axis CNC machine tools achieving overseas sales.
Investment Outlook
Huatai Securities forecasts Shandong Weida’s net profit for 2025-2027 to be 3.22, 3.65, and 3.99 billion CNY, respectively, with corresponding PE ratios of 16.8, 14.9, and 13.6. The report suggests that the company is well-positioned to benefit from the recovery of the electric tool market.
Risk Factors
Potential risks include rising raw material prices, order delivery delays, slower-than-expected progress in overseas business, and intensified industry competition.
Market Context
The broader market has seen a surge in robotics-related stocks, with companies like Zhejiang Rongtai and Shandong Weida reaching new highs. This trend is supported by announcements from Zhuyuan Robotics about its upcoming partner conference, showcasing new products.
Shandong Weida’s market capitalization stands at approximately 5.91 billion CNY, with a close price of 13.42 CNY on August 4, 2025. The company’s 52-week high was 13.73 CNY, and its low was 7.28 CNY on September 17, 2024. The price-to-earnings ratio is 19.98.