| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.94 | 197 |
| Intrinsic value (DCF) | 4.22 | -50 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Shenzhen Silver Basis Technology Co., Ltd. is a prominent Chinese industrial manufacturer specializing in precision molds and automated tooling systems. Founded in 1993 and headquartered in Shenzhen, the company has established itself as a key player in the metal fabrication sector within the broader industrials landscape. Silver Basis Technology's comprehensive product portfolio includes automotive tooling, gauge and gripper equipment, and installation systems, serving both domestic Chinese and international markets. The company manufactures critical auto parts such as exterior components, interior trims, functional pieces, and security systems, alongside plastic structural parts and hardware structures. A significant technological offering is their BHRT hot runner products, featuring needle valve type control systems and hot runner assemblies, which represent advanced manufacturing solutions. The company also provides B+ODM/OEM products and industrial design services, positioning itself as an integrated solutions provider in the precision manufacturing ecosystem. Operating in China's massive industrial manufacturing sector, Silver Basis Technology leverages its decades of experience to serve automotive and industrial clients requiring high-precision components and tooling systems.
Shenzhen Silver Basis Technology presents a high-risk investment profile characterized by significant financial challenges. The company reported a substantial net loss of -272 million CNY for the period, with negative diluted EPS of -0.55 CNY, indicating profitability concerns. While revenue of 2.22 billion CNY demonstrates meaningful scale, the negative operating cash flow of 44.8 million CNY, coupled with capital expenditures of -35.8 million CNY, suggests cash flow constraints. The company's high beta of 1.726 indicates substantial volatility relative to the market, amplifying investment risk. With total debt of 700 million CNY outweighing cash reserves of 92 million CNY, the balance sheet appears leveraged. The absence of dividend payments reflects the company's focus on preserving capital. Investors should carefully consider the company's ability to return to profitability and improve its cash flow generation before considering an investment position.
Shenzhen Silver Basis Technology operates in the highly competitive precision mold and automotive components manufacturing sector, where scale, technological capability, and customer relationships determine competitive positioning. The company's competitive advantage appears rooted in its long-standing presence in the market since 1993, providing established industry experience and potentially durable customer relationships. Its integrated offering spanning precision molds, automotive tooling, and hot runner systems creates cross-selling opportunities and positions it as a comprehensive solutions provider. However, the company faces significant challenges against larger, better-capitalized competitors. The negative profitability and constrained cash flow position limit Silver Basis's ability to invest in advanced manufacturing technologies and research & development, potentially hindering its capacity to keep pace with industry technological advancements. In the automotive components sector, where manufacturers increasingly demand sophisticated, lightweight, and electronically integrated solutions, Silver Basis may struggle to compete with global tier-1 suppliers possessing greater R&D budgets. The company's focus on the Chinese market provides proximity advantages but also exposes it to domestic economic cycles and competition from both state-owned enterprises and multinational corporations operating in China. The competitive landscape requires continuous technological upgrading, which may be challenging given the company's current financial position.