| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 17.49 | 106 |
| Intrinsic value (DCF) | 2.08 | -75 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 1.17 | -86 |
Fujian Nanping Sun Cable Co., Ltd. is a prominent Chinese manufacturer specializing in the research, development, production, and sale of a comprehensive range of wires and cables. Established in 1958 and headquartered in Nanping, China, the company has built a long-standing reputation in the Electrical Equipment & Parts sector. Its diverse product portfolio includes critical infrastructure cables such as aluminum alloy conductor XLPE insulated power cables, mine rubber flexible cables, control cables, and advanced high-voltage 220KV cables. The company also caters to growing renewable energy and specialized industrial markets with its photovoltaic cables, marine cables, and metal sheathed inorganic mineral insulated cables. Operating within China's vast industrial and infrastructure landscape, Nanping Sun Cable plays a vital role in supporting the nation's power transmission, construction, mining, and maritime industries. As a key player in the Industrials sector, the company leverages its decades of manufacturing expertise to meet the demanding specifications of various industrial applications, positioning itself as an essential supplier in the country's ongoing economic development and energy transition.
Fujian Nanping Sun Cable presents a mixed investment profile characterized by stable revenue generation but concerning profitability metrics. With revenue of CNY 13.72 billion, the company demonstrates significant market presence, yet its net income of only CNY 90.9 million reflects extremely thin margins of approximately 0.66%. The company's low beta of 0.255 suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. However, the high debt load of CNY 2.3 billion against cash reserves of CNY 684 million raises liquidity concerns, particularly given the capital-intensive nature of cable manufacturing. The modest dividend yield provides some income component, but the primary investment thesis hinges on whether management can improve operational efficiency and profitability in a competitive market. The company's exposure to infrastructure and renewable energy sectors offers growth potential, but current financial metrics indicate significant execution risk.
Fujian Nanping Sun Cable operates in China's highly fragmented and competitive wire and cable market, where scale, technological capability, and cost efficiency determine competitive positioning. The company's competitive advantage appears limited, as evidenced by its razor-thin profit margins despite substantial revenue. Its long history since 1958 provides established manufacturing experience and potentially loyal customer relationships in specific regional or industrial segments, such as mine cables and photovoltaic applications. However, the company faces intense competition from larger domestic players with greater economies of scale and stronger financial resources. The cable manufacturing industry is characterized by high fixed costs and relatively standardized products, putting pressure on manufacturers to compete primarily on price. Nanping Sun Cable's product diversification across power cables, control cables, and specialized cables like marine and photovoltaic varieties provides some insulation against demand fluctuations in specific end-markets. Nevertheless, the company's modest market capitalization of approximately CNY 4.56 billion suggests it operates as a mid-tier player rather than an industry leader. Its ability to invest in research and development for higher-margin specialized cables may be constrained compared to larger competitors, potentially limiting its competitive positioning in premium product segments. The company's geographical focus within China also exposes it to domestic economic cycles and infrastructure spending patterns without the diversification benefits of international operations.