| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 46.95 | -44 |
| Intrinsic value (DCF) | 54.84 | -34 |
| Graham-Dodd Method | 10.03 | -88 |
| Graham Formula | 76.34 | -8 |
Himile Mechanical Science and Technology (Shandong) Co., Ltd is a leading Chinese manufacturer specializing in high-precision tire molds and related industrial equipment. Founded in 1995 and headquartered in Gaomi, China, the company has established itself as a key player in the global tire manufacturing supply chain. Himile's core business encompasses the design, production, and sale of tire molds, which are essential tools for the tire industry, alongside complementary products like gas turbine casings, castings, and rubber machinery. Operating within the industrials sector, specifically industrial machinery, the company serves both domestic and international markets, leveraging China's manufacturing prowess. With a market capitalization exceeding CNY 31 billion, Himile demonstrates significant scale and stability. The company's strategic focus on technological innovation and precision engineering positions it as a critical partner for tire producers worldwide, contributing to advancements in tire performance, safety, and efficiency. Its strong financial performance, characterized by robust revenue and net income, underscores its operational excellence and solid market position in a niche but vital industrial segment.
Himile presents an attractive investment profile characterized by strong profitability, a healthy balance sheet, and a dominant position in a specialized industrial niche. The company generated a substantial net income of CNY 2.01 billion on revenue of CNY 8.81 billion for the period, translating to a high net profit margin of approximately 23%. Its financial strength is evident with minimal total debt (CNY 96.6 million) compared to a cash position of CNY 1.25 billion, indicating a robust, low-leverage balance sheet. A beta of 0.462 suggests lower volatility than the broader market, which may appeal to risk-averse investors. The company also returns capital to shareholders, evidenced by a dividend per share of CNY 0.775. Key risks include reliance on the cyclical tire industry, exposure to global automotive production trends, and potential competitive pressures. However, its specialized expertise, market leadership, and strong financial metrics make it a compelling consideration within the industrial machinery space.
Himile's competitive advantage is rooted in its deep specialization and scale within the tire mold manufacturing industry. As a first-mover in China with a history dating back to 1995, the company has accumulated significant technical expertise and proprietary knowledge in designing and producing high-precision, durable molds. This creates high barriers to entry, as mold manufacturing requires sophisticated engineering capabilities, precision machining, and long-term relationships with tire manufacturers. Himile's positioning is further strengthened by its integrated operations in Shandong, a major industrial hub in China, which provides cost advantages and supply chain efficiencies. The company's diverse product portfolio, which extends to gas turbine casings and other castings, provides some diversification beyond the tire industry, although tire molds remain the core profit driver. Its global reach, serving markets internationally, mitigates over-reliance on any single geographic region. The primary competitive threat comes from other specialized global mold makers who compete on technology, quality, and delivery times. Himile's ability to consistently generate high profit margins and maintain a debt-light balance sheet is a clear indicator of its strong competitive moat and pricing power within its niche. Its challenge will be to continue innovating to meet the evolving demands of tire manufacturers for molds that produce more complex, fuel-efficient, and intelligent tires.