Does Shanghai BOCHU Electronic Technology Corporation Limited have an economic moat?

Shanghai BOCHU Electronic Technology Corporation Limited (688188.SS) has a Quality factor score of 82/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the financial characteristics of a moated business.

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688188.SS

STRONG BUYAPPROVE

Shanghai BOCHU Electronic Technology Corporation Limited · Technology · China · $7.0B · Avg Vol: $93M/d

StockRank

P/E (TTM)

39.3x

ROE

19.5%

D/E

0.0x

Dividend %

1.7%

Director Trades · 180d

None in 180d →

Buybacks · 180d

None in 180d →

AI CONVICTION THESIS

Bochu Electronic is the absolute dominant player in laser cutting control systems in China, boasting software-like gross margins (80%+) and exceptional ROIC. As global manufacturing localizes and upgrades to high-power automated laser cutting, Bochu acts as a high-margin tollbooth on industrial modernization. It perfectly blends Terry Smith quality (asset-light, high ROIC, software moat) with the localization macro tailwind.

COMPANY DESCRIPTION

Shanghai BOCHU Electronic Technology Corporation Limited develops laser cutting control systems, CAD/CAM software, and hardware components for laser processing equipment. Its competitive moat is anchored by a dominant market share in China's medium-and-low power laser cutting control systems, with rapid expansion into high-power segments. The company is a highly profitable, software-driven industrial automation leader serving as the technological core of laser cutting machinery.

FINANCIAL SUMMARY

Year	2022	2023	2024	2025	CAGR
Revenue	133M	208M	256M	325M	34.7%
EPS	0.25	0.38	0.45	0.57	31.7%
Shares	286M	287M	288M	289M	+0.9%
Debt	850,829	722,397	1M	3M	58.8%
Equity	632M	735M	808M	897M	12.4%
Op CF	92M	127M	141M	163M	21.3%
Inv CF	-235M	-54M	-127M	-96M	—
Fin CF	113M	-25M	-75M	-81M	—

PRICE (1M)+14.9%

SMA 50SMA 200

$24.22

RSI (14)

50.8

52W High

$26.57

From 52W High

0.9%

SCORE BREAKDOWN

Quality

ROIC

20.4%87.1

ROE

19.5%82.4

GP/Assets

26.3%62.8

Op. Margin

59.4%99.4

FCF/Assets

10.9%82.6

Piotroski

—44.6

Int. Cover

50.0x87.6

D/E Ratio

0.00x97.3

Current Ratio

16.06x98.4

Value

P/E (TTM)

39.3x45.9

EV/EBITDA

32.6x27.8

P/FCF

445.1x28.8

P/B

7.2x21.8

P/S

20.5x9.0

Div Yield

1.7%61.8

Momentum

52W High %

91%83.3

RS 6M

18%69.6

SMA 50/200

1.05x49.2

EPS Rev 4W

—N/A

EPS Rev 12W

—N/A

EPS Improve

+44%32.7

Q Growth

24%53.4

FUNDAMENTALS

Market Cap

$7.0B

P/E (Forward)

27.3x

Gross Margin

76.9%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of 688188.SS are excluded.

Ticker	Company	Mkt Cap	StockRank	Signal
688188.SS	Shanghai BOCHU Electronic Technology Corporation Limited(you)	$7.0B	88	STRONG BUY
688766.SS	Puya Semiconductor (Shanghai) Co., Ltd.	$8.4B	79	BUY
300475.SZ	Shannon Semiconductor Technology Co.,Ltd.	$12.5B	84	STRONG BUY
300373.SZ	Yangzhou Yangjie Electronic Technology Co., Ltd.	$8.6B	70	BUY
300661.SZ	SG Micro Corp	$10.8B	67	BUY
301536.SZ	SigmaStar Technology Ltd.	$5.2B	63	HOLD
603893.SS	Rockchip Electronics Co., Ltd.	$10.9B	62	HOLD
688099.SS	Amlogic (Shanghai) Co.,Ltd.	$6.6B	54	HOLD
300223.SZ	Ingenic Semiconductor Co.,Ltd.	$11.2B	60	HOLD
001309.SZ	Shenzhen Techwinsemi Technology Co., Ltd.	$21.5B	72	BUY

Peer medians: ROE 3.8% · P/E 77.4x · Gross margin 25.9%

Shanghai BOCHU Electronic Technology Corporation Limited (688188.SS) — Stock Score Summary

Shanghai BOCHU Electronic Technology Corporation Limited (688188.SS) has a MoatMap StockRank of 88/100 based on Quality (82/100), Value (34/100), and Momentum (60/100) factor scores. The current signal is STRONG BUY. Bochu Electronic is the absolute dominant player in laser cutting control systems in China, boasting software-like gross margins (80%+) and exceptional ROIC. As global manufacturing localizes and upgrades to high-power automated laser cutting, Bochu acts as a high-margin tollbooth on industrial modernization. It perfectly blends Terry Smith quality (asset-light, high ROIC, software moat) with the localization macro tailwind.

Key Financial Metrics

Price	$24.22
Market Cap	$7.0B
P/E (TTM)	39.29
P/E (Forward)	27.29
Price/Book	7.19
Return on Equity	19.5%
Return on Invested Capital	20.4%
Debt/Equity	0.19
Gross Margin	76.9%
Operating Margin	59.4%
Revenue Growth	10.5%
Dividend Yield	1.7%
Free Cash Flow	$16M

Shanghai BOCHU Electronic Technology Corporation Limited operates in the Semiconductors industry, part of the Technology sector (China).

Frequently Asked Questions

What is Shanghai BOCHU Electronic Technology Corporation Limited’s (688188.SS) StockRank?: MoatMap’s StockRank for Shanghai BOCHU Electronic Technology Corporation Limited (688188.SS) is 88/100, with a Strong Buy signal. It is a composite of Quality (82), Value (34), and Momentum (60) factor ranks across MoatMap’s 19,000+ stock universe.
Does Shanghai BOCHU Electronic Technology Corporation Limited have an economic moat?: Shanghai BOCHU Electronic Technology Corporation Limited (688188.SS) has a Quality factor score of 82/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Shanghai BOCHU Electronic Technology Corporation Limited a buy, hold, or sell?: MoatMap’s current signal for Shanghai BOCHU Electronic Technology Corporation Limited (688188.SS) is Strong Buy, based on a StockRank of 88/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Shanghai BOCHU Electronic Technology Corporation Limited in?: Shanghai BOCHU Electronic Technology Corporation Limited (688188.SS) operates in the Technology sector, specifically the Semiconductors industry (China).