| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Kelin Environmental Protection Equipment, Inc. is a prominent Chinese industrial pollution control specialist with over four decades of experience in manufacturing environmental protection equipment. Founded in 1979 and headquartered in Suzhou, the company produces a comprehensive range of air pollution control solutions including bag filters, electrostatic precipitators, desulfurization and denitration equipment, and specialized filtration systems. Kelin serves diverse industrial sectors including metallurgical, power generation, solid waste incineration, building materials, and chemical industries through both equipment sales and full EPC (Engineering, Procurement, and Construction) services. Operating in China's critical environmental protection sector, Kelin addresses the nation's growing demand for industrial emission control technologies amid increasing environmental regulations. As China continues its push toward cleaner industrial production and carbon neutrality goals, companies like Kelin play a vital role in helping industrial clients meet stringent environmental standards. The company's long-standing presence since 1979 positions it as an established player in China's industrial pollution control market, leveraging its technical expertise across multiple heavy industries.
Kelin Environmental Protection Equipment presents a challenging investment case with significant financial headwinds despite operating in China's growing environmental protection sector. The company reported a substantial net loss of -CNY 289.9 million on revenue of CNY 170.0 million for FY 2021, indicating severe profitability challenges. While the company maintained positive operating cash flow of CNY 41.5 million, its high total debt of CNY 266.8 million relative to its market capitalization of CNY 162.5 million raises solvency concerns. The positive dividend payment of CNY 0.308 per share appears inconsistent with the company's loss-making position. Investors should carefully assess the company's ability to return to profitability amid China's evolving environmental regulatory landscape and competitive market conditions. The beta of 0.80 suggests moderate volatility relative to the broader market.
Kelin Environmental Protection Equipment operates in China's highly competitive industrial pollution control equipment market, where it faces competition from both large state-owned enterprises and specialized private manufacturers. The company's competitive positioning is challenged by its relatively small scale (CNY 170 million revenue) and financial difficulties, which may limit its ability to invest in R&D and compete for large-scale projects. Kelin's strength lies in its comprehensive product portfolio covering various filtration and emission control technologies, serving multiple industrial sectors including metallurgical, power, and waste incineration. However, its competitive advantage appears limited given the financial distress evidenced by significant losses. The company's long history since 1979 provides some established customer relationships and technical experience, but this may not be sufficient to overcome larger, better-capitalized competitors. In China's environmental protection equipment market, scale, technological innovation, and financial stability are critical competitive factors, areas where Kelin appears disadvantaged. The company's ability to secure EPC projects may be constrained by its financial condition, potentially limiting growth opportunities in a market where larger competitors can offer more favorable financing terms and demonstrate greater project execution capability.