| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 46.10 | 184 |
| Intrinsic value (DCF) | 4.45 | -73 |
| Graham-Dodd Method | 2.98 | -82 |
| Graham Formula | 1.20 | -93 |
Shenke Slide Bearing Corporation is a specialized industrial manufacturer focused on the research, development, production, and sale of thick-walled sliding bearings and parts kits. Founded in 1996 and headquartered in Zhuji, China, the company serves critical infrastructure sectors including power generation (hydroelectric, thermal, wind, and nuclear), large-scale motors, and heavy industrial machinery. Shenke's product portfolio encompasses several specialized bearing series: the DQY end cover sliding bearings for large AC/DC motors; ZQ/ZQKT pedestal bearings; ZH dynamic/static pressure seat bearings for reversible conversion speed motors in steel rolling and mining; VTBS vertical thrust bearings for hydroelectric generators; and dedicated series for high-capacity steam turbine generators. The company also supplies comprehensive bearing parts kits and accessories for generator main shafts, turbine cylinders, and wind power components. Operating in the metal fabrication subsector of industrials, Shenke plays a vital role in China's industrial supply chain, providing essential components that ensure the reliability and efficiency of heavy rotating equipment across energy and manufacturing sectors.
Shenke Slide Bearing presents a highly specialized investment profile with both notable strengths and significant risks. The company's niche focus on thick-walled sliding bearings for critical power generation and industrial applications provides some insulation from broader economic cycles, supported by its involvement in China's strategic energy infrastructure development. However, concerning financial metrics raise substantial red flags: extremely thin net margins (approximately 2.1%), minimal earnings per share (CNY 0.046), and zero dividend payments despite positive operating cash flow. The company's modest market capitalization of CNY 2.35 billion and remarkably low beta of 0.182 suggest limited market interest and trading liquidity. While the debt load appears manageable relative to cash reserves, the fundamental profitability challenges and absence of shareholder returns make this a speculative investment suitable only for investors with high risk tolerance and specific conviction about the company's niche positioning within China's industrial policy priorities.
Shenke Slide Bearing Corporation competes in a highly specialized segment of the industrial components market, with its competitive positioning defined by several key factors. The company's primary advantage lies in its deep specialization in thick-walled sliding bearings for large-scale rotating machinery, particularly in power generation applications. This niche focus allows Shenke to develop proprietary expertise in demanding applications where reliability and precision are critical, such as hydroelectric generators, steam turbines, and large industrial motors. The company's product range covering multiple power generation technologies (hydro, thermal, wind, nuclear) provides some diversification within its specialized domain. However, Shenke faces significant competitive challenges. As a smaller player with annual revenue of approximately CNY 324 million, it competes against larger industrial bearing manufacturers with greater R&D resources, global distribution networks, and economies of scale. The company's geographic concentration in China, while providing access to domestic infrastructure development, also limits its exposure to international markets where premium pricing might be achievable. Shenke's competitive positioning is further constrained by its modest financial performance, which may limit its ability to invest in technological innovation or expansion. The company's value proposition appears rooted in serving specific domestic infrastructure projects and replacement part markets rather than competing on innovation or cost leadership in the broader bearing industry. Its future competitiveness will likely depend on maintaining technical expertise in its niche while navigating pressure from larger competitors and potential import competition in the Chinese market.