| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.90 | -26 |
| Intrinsic value (DCF) | 6.90 | -81 |
| Graham-Dodd Method | 5.59 | -85 |
| Graham Formula | n/a |
Sichuan Chengfei Integration Technology Corp. Ltd. is a specialized automotive and aerospace components manufacturer headquartered in Chengdu, China. Founded in 2000 and operating as a subsidiary of the state-owned Aviation Industry Corporation of China (AVIC), the company has established itself as a key player in China's auto parts sector. Chengfei Integration Technology designs, develops, and manufactures a diverse product portfolio including precision tooling molds, automotive parts, aviation components, and stamping dies. This dual-market focus on both automotive and aerospace industries provides unique diversification benefits and technological synergies. The company's strategic positioning within the AVIC ecosystem offers significant advantages in terms of technical expertise, government relationships, and access to high-value aerospace contracts. Operating in the rapidly evolving Chinese automotive market, Chengfei Integration Technology serves the growing demand for domestic auto parts manufacturing while leveraging its aviation capabilities for premium technical applications. The company's integration of aerospace manufacturing standards into automotive components represents a distinctive competitive edge in quality and precision engineering.
Sichuan Chengfei Integration Technology presents a mixed investment profile with both strategic advantages and significant financial challenges. The company's affiliation with AVIC provides substantial backing and access to government contracts, particularly in the aerospace sector, offering stability amid market volatility. However, recent financial performance raises concerns, with a net loss of ¥75.1 million and negative EPS of -0.21 for the fiscal period. While the company maintains positive operating cash flow of ¥118.7 million and manageable debt levels relative to its ¥14.4 billion market capitalization, the current unprofitability and modest dividend yield of 0.01 per share suggest limited near-term income potential. The beta of 0.862 indicates lower volatility than the broader market, which may appeal to risk-averse investors, but the company must demonstrate a clear path to profitability to justify its current valuation. The dual exposure to both automotive and aerospace sectors provides diversification but also exposes the company to cyclical pressures in both industries.
Sichuan Chengfei Integration Technology occupies a unique competitive position within China's auto parts industry, leveraging its dual expertise in automotive and aerospace manufacturing. The company's most significant competitive advantage stems from its affiliation with AVIC, which provides access to advanced aerospace technologies, government contracts, and substantial financial backing. This relationship enables Chengfei to apply aerospace-grade precision and quality standards to automotive components, differentiating its offerings in a crowded market. The integration of tooling mold design with component manufacturing creates vertical synergies that enhance cost control and production efficiency. However, the company faces intense competition from both specialized auto parts manufacturers and larger integrated automotive suppliers. Its current financial challenges, evidenced by recent losses, may limit investment in R&D and expansion compared to better-capitalized competitors. The company's scale is moderate relative to industry leaders, potentially restricting its ability to compete on price for high-volume contracts. The strategic focus on both automotive and aerospace markets provides diversification but also requires maintaining expertise across two distinct technological domains, potentially diluting resource allocation. Chengfei's positioning as a technology-focused manufacturer with government backing offers stability but may limit agility in responding to rapid market changes compared to purely commercial competitors. The company's future competitiveness will depend on its ability to leverage AVIC's technological resources while improving operational efficiency and returning to profitability.