| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.80 | 14 |
| Intrinsic value (DCF) | 7.44 | -68 |
| Graham-Dodd Method | 13.38 | -43 |
| Graham Formula | 14.50 | -38 |
Jinglv Environment Science and Technology Co., Ltd. (001230.SZ) is a leading environmental solutions provider specializing in comprehensive sanitation services and equipment manufacturing. Founded in 2002 and headquartered in Hefei, China, the company operates across multiple segments including sanitation equipment manufacturing, waste management services, and environmental infrastructure solutions. Jinglv's core business encompasses the production of sanitation vehicles, garbage compression equipment, rural sewage treatment systems, and toilet products, while also providing integrated services such as household garbage collection, sorting, transfer services, and toilet renovation management. The company employs a franchising model for sanitation investment operation management, offering municipalities and communities end-to-end environmental management solutions. Operating in China's rapidly growing pollution control and environmental services sector, Jinglv addresses critical urban and rural infrastructure needs through its diversified product portfolio and service capabilities. As environmental protection becomes increasingly prioritized in China's national development strategy, Jinglv is well-positioned to capitalize on government initiatives aimed at improving waste management and sanitation infrastructure across the country.
Jinglv Environment presents a mixed investment profile with moderate growth potential tempered by operational challenges. The company's revenue of CNY 1.54 billion and net income of CNY 140.7 million reflect stable operations in China's essential environmental services sector. However, concerning operational cash flow of CNY 94 million against capital expenditures of CNY -234 million indicates significant investment requirements that may strain liquidity. The company maintains a reasonable debt level with total debt of CNY 291.7 million against cash reserves of CNY 406 million, suggesting adequate financial flexibility. The low beta of 0.188 indicates relative stability compared to broader market movements, which may appeal to risk-averse investors seeking exposure to China's environmental sector. The dividend yield supported by CNY 0.32 per share distribution provides income component, though investors should monitor the company's ability to maintain cash flow generation to support both capital investments and shareholder returns.
Jinglv Environment operates in a highly fragmented but strategically important segment of China's environmental services market. The company's competitive positioning is defined by its integrated approach combining equipment manufacturing with service provision, creating a vertically oriented business model that differentiates it from pure-play equipment manufacturers or service providers. This integration allows Jinglv to capture value across the sanitation value chain, from equipment sales to long-term operation and maintenance contracts. The company's focus on rural and municipal sanitation solutions aligns with Chinese government priorities in environmental protection and rural revitalization, providing policy tailwinds. However, Jinglv faces intense competition from larger state-owned enterprises with stronger government relationships and greater financial resources. The company's regional concentration in Anhui province and surrounding areas represents both a strength through local expertise and a limitation for national expansion. Jinglv's equipment manufacturing capabilities provide cost advantages in service delivery, but scale limitations may hinder competitiveness against larger industrial manufacturers. The franchising model for sanitation operations offers scalability potential but requires careful capital management given the significant upfront investments. The company's technological capabilities in rural sewage treatment and waste compression equipment represent specialized expertise, though continuous innovation is necessary to maintain competitive edge against technologically advanced competitors.