| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.83 | 119 |
| Intrinsic value (DCF) | 4.30 | -65 |
| Graham-Dodd Method | 3.71 | -70 |
| Graham Formula | 3.09 | -75 |
Sichuan Haite High-tech Co., Ltd. is a prominent Chinese aerospace and defense company specializing in aircraft airborne equipment maintenance services. Founded in 1991 and headquartered in Chengdu, the company has expanded beyond its core maintenance operations to become an integrated aviation technology enterprise. Haite High-tech engages in comprehensive aviation technology research and development, aviation product manufacturing, specialized aviation training, aviation material maintenance, and has diversified into microelectronics and gas turbine engineering. The company also operates leasing activities, creating multiple revenue streams within the aviation value chain. Operating in China's strategically important aerospace and defense sector under the Industrials classification, Haite High-tech plays a critical role in maintaining and supporting the country's growing aviation infrastructure. With China's aviation market experiencing rapid expansion and increasing defense expenditures, the company is well-positioned to benefit from long-term industry growth trends. Its Chengdu location places it in one of China's major aviation hubs, providing strategic advantages for serving both commercial and military aviation customers across the region.
Sichuan Haite High-tech presents a mixed investment profile with several notable strengths and risks. The company demonstrates reasonable financial health with positive net income of CNY 70.9 million and strong operating cash flow of CNY 407.2 million, which comfortably covers capital expenditures. The low beta of 0.453 suggests defensive characteristics with lower volatility than the broader market, potentially appealing to risk-averse investors. However, concerns include modest profitability margins with diluted EPS of only CNY 0.0957 on revenue of CNY 1.32 billion, and a relatively high debt load of CNY 1.31 billion compared to cash reserves of CNY 463.9 million. The dividend yield appears sustainable but modest at CNY 0.05 per share. The company's fortunes are heavily tied to Chinese aviation sector growth and government defense spending, creating both opportunity and concentration risk. Investors should monitor the company's ability to improve operational efficiency and manage its debt levels while capitalizing on China's expanding aviation infrastructure.
Sichuan Haite High-tech operates in a specialized niche within China's aerospace and defense sector, focusing primarily on aircraft airborne equipment maintenance while diversifying into related aviation services. The company's competitive positioning is shaped by its integrated service model that combines maintenance with R&D, manufacturing, and training capabilities. This vertical integration provides potential cost advantages and customer stickiness, as clients can access multiple services through a single provider. Haite's location in Chengdu, a major aviation and defense hub in southwestern China, offers geographic advantages for serving regional military and commercial aviation customers. The company's long-standing presence since 1991 has likely established relationships and certifications that create barriers to entry for new competitors. However, Haite faces significant competition from larger state-owned aviation enterprises that benefit from greater scale, resources, and political connections. The company's relatively small market capitalization of approximately CNY 8.88 billion suggests it operates as a mid-tier player rather than a market leader. Its diversification into microelectronics and gas turbine engineering represents strategic moves to reduce reliance on the competitive maintenance segment, though these ventures may face established competition from specialized players. The company's moderate financial performance indicates it operates in a competitive environment where pricing pressure may limit margin expansion. Success likely depends on leveraging its integrated service model and regional expertise to differentiate from both larger state-owned enterprises and smaller specialized competitors.