| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.11 | 71 |
| Intrinsic value (DCF) | 7.15 | -55 |
| Graham-Dodd Method | 8.75 | -45 |
| Graham Formula | 1.47 | -91 |
Shandong Weida Machinery Co., Ltd. is a specialized Chinese industrial machinery manufacturer with a nearly 50-year legacy in precision tool components. Founded in 1976 and headquartered in Wendeng, China, the company has established itself as a leading producer of drill chucks and power tool accessories under its prominent Peacock and Weida brands. Weida's comprehensive product portfolio spans keyless and key-type drill chucks, precision castings, powder metallurgy parts, and AC/DC switches, serving diverse industrial applications including power tools, automotive components, and hardware instrumentation. Operating in the industrials sector, the company leverages its manufacturing expertise to supply both domestic Chinese markets and international clients with high-precision mechanical components. With a focus on industrial machinery manufacturing, Shandong Weida has developed specialized capabilities in metallurgy and precision casting that position it as a critical supplier to global tool manufacturers. The company's long-standing industry presence and technical specialization in drill chuck manufacturing make it an important player in China's industrial supply chain, contributing to the country's manufacturing ecosystem while maintaining competitive export operations.
Shandong Weida presents a stable investment profile with moderate financial performance and conservative financial positioning. The company generated CNY 2.22 billion in revenue with net income of CNY 300 million, translating to a healthy net margin of approximately 13.5%. With a market capitalization of CNY 6.04 billion, the company maintains a strong balance sheet featuring CNY 1.16 billion in cash against CNY 556 million in total debt, indicating robust liquidity. The beta of 0.493 suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, the company operates in a highly competitive industrial machinery segment with limited growth prospects, as evidenced by its niche focus on drill chucks and power tool components. The dividend yield appears modest at CNY 0.14 per share, while the company's international expansion opportunities may be constrained by global competition. Investors should weigh the company's financial stability against its exposure to cyclical industrial demand and concentrated product focus.
Shandong Weida Machinery competes in the specialized industrial machinery segment focused on drill chucks and power tool components. The company's competitive positioning is defined by its long-standing manufacturing expertise, established brand recognition in China, and specialized technical capabilities in precision casting and powder metallurgy. Weida's primary competitive advantage stems from its nearly five decades of industry experience, which has enabled the development of proprietary manufacturing processes and strong relationships with domestic power tool manufacturers. The company's Peacock and Weida brands enjoy recognition in the Chinese market, providing some pricing power and customer loyalty. However, Weida faces significant challenges in scaling internationally against established global competitors with broader product portfolios and stronger R&D capabilities. The company's focus on drill chucks represents both a strength in specialization and a vulnerability to market concentration. While Weida's manufacturing efficiency and cost structure provide advantages in serving price-sensitive segments, it may struggle to compete with multinational corporations in high-value, technologically advanced product categories. The company's competitive positioning is further complicated by the evolving power tool industry, where electrification and smart technology integration are becoming increasingly important differentiators that may require substantial R&D investment beyond Weida's current capabilities.