| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 20.86 | 114 |
| Intrinsic value (DCF) | 641.53 | 6480 |
| Graham-Dodd Method | 2.05 | -79 |
| Graham Formula | 0.94 | -90 |
Henan Tong-Da Cable Co., Ltd. is a prominent Chinese manufacturer specializing in the research, development, and production of a comprehensive range of wires and cables. Founded in 1987 and headquartered in Yanshi, China, the company operates within the industrials sector, specifically in electrical equipment and parts. Tong-Da Cable's diverse product portfolio includes critical infrastructure components such as ground wires, power cables, overhead insulated cables, and specialized contact wires for electrified railways. The company serves vital industries including power transmission, rail transit, and home improvement, with a significant global footprint evidenced by exports to 80 countries. As a key player in China's massive cable market, Henan Tong-Da leverages its decades of manufacturing expertise to meet the growing demand for electrical infrastructure both domestically and internationally. The company's strategic positioning in China's industrial heartland enables it to efficiently serve one of the world's largest markets for electrical components while maintaining competitive export capabilities.
Henan Tong-Da Cable presents a mixed investment profile characterized by stable but modest profitability within a highly competitive industry. The company maintains a reasonable market capitalization of approximately CNY 3.87 billion with a beta of 0.69, suggesting lower volatility than the broader market. While revenue of CNY 6.20 billion demonstrates substantial scale, net income of CNY 25.49 million and diluted EPS of CNY 0.05 indicate thin profit margins typical of the cable manufacturing sector. Positive operating cash flow of CNY 91.14 million is offset by significant capital expenditures of CNY -216.05 million, reflecting ongoing investment in production capacity. The company's financial position is supported by substantial cash reserves of CNY 1.19 billion against total debt of CNY 1.55 billion, providing adequate liquidity. The dividend yield based on CNY 0.10 per share offers income potential, but investors should consider the intense competition and margin pressures inherent in the cable manufacturing industry.
Henan Tong-Da 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 stems from its specialized focus on railway and power transmission cables, which require specific technical certifications and manufacturing expertise. Tong-Da's export reach to 80 countries demonstrates international quality recognition and competitive pricing, though it faces intense domestic competition from larger state-owned enterprises and numerous regional manufacturers. The company's moderate scale compared to industry leaders limits its bargaining power with raw material suppliers, particularly copper and aluminum producers, impacting cost structure. Technological differentiation in fireproof, load-bearing, and specialized rail transit cables provides some insulation from pure commodity competition. However, the industry's low barriers to entry for standard products and consistent overcapacity in China create persistent margin pressure. Tong-Da's regional presence in Henan province provides logistical advantages for serving central China's industrial base but may limit national market penetration compared to competitors with broader geographic distribution networks. The company's challenge lies in balancing investment in higher-margin specialized products while maintaining competitiveness in volume-driven standard cable segments.