Stock

Chengdu Galaxy Magnets Co.

300127.SZ
67
Hardware, Equipment & Parts · Technology
Price
¥22.98
-0.11 (-0.48%)
Market Cap
¥7.43B
Exchange
Shenzhen Stock Exchange
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 9, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
19/30
Growth
Strong
15/20
Cash Flow
Exceptional
9/10
Stability
Exceptional
10/10
Valuation
Weak
2/10
Ownership
Good
10/15
Dividends
Mixed
2/5

67 of 100 counted points = Winston Score 67.

§Winston Score History

The full picture

Chengdu Galaxy Magnets makes high-performance permanent magnets, which are special magnets used in electric motors, wind turbines, and electronics. Its core products are neodymium-iron-boron (NdFeB) magnets, which are among the strongest magnets available and are critical components in electric vehicles (EVs), industrial motors, and consumer electronics. The company is based in China and serves manufacturers across the clean energy and automotive industries.

The company earns money by selling finished magnet products and magnetic assemblies to manufacturers, with pricing tied to both production volume and rare earth material costs. It operates primarily in China but supplies customers globally, and with a market cap of roughly $8.3 billion, it is one of the larger specialty magnet producers in the sector. Its competitive position benefits from technical expertise in magnet processing and proximity to China's rare earth supply chain, though its main risk is exposure to volatile rare earth raw material prices, which can squeeze margins if input costs rise faster than selling prices.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+44.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+42.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

54.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

¥538M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Chengdu Galaxy Magnets Co. grew revenue 44% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 323.1M (2021) → 323.1M (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
34.9%
Modest — 34.9% gross margin
Profit after running costs
Operating Margin
23.6%
Excellent — 23.6% operating margin
Return on the money invested
ROCE
15.6%
Strong — 15.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+27.9%
Fast-growing sales (+27.9% YoY)
Profit growth
EPS YoY
+39.7%
Earnings growing fast (+39.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
115%
Turns 115% of profit into real cash
Spare cash per sale
FCF Margin
16.1%
Converts sales into free cash efficiently (16.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.00
Conservative — low debt load (0.00)
Covers its interest
Interest Cover
356.40x
Comfortably covers interest (356.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
34.8x
Pricey — P/E 34.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
-8.4
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
1.66%
Small dividend — 1.66% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+3.3%
Dividend growing modestly (3.3% YoY)

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