| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 30.72 | 48 |
| Intrinsic value (DCF) | 41.35 | 100 |
| Graham-Dodd Method | 6.80 | -67 |
| Graham Formula | 10.25 | -50 |
Chang Lan Electric Technology Co., Ltd. is a specialized Chinese manufacturer of cable accessories and related installation tools with a legacy dating back to 1958. Headquartered in Changsha, China, the company operates in the Electrical Equipment & Parts industry within the broader Industrials sector. Chang Lan's comprehensive product portfolio includes DC and AC cable accessories, cold and heat shrink solutions, grounding devices, cable fittings, and specialized installation tools like cable burnishing machines and hauling equipment. The company serves critical infrastructure sectors including power grid operations, power plants, new energy projects, railway and subway systems, and nuclear power facilities. With its long-established presence and technical expertise, Chang Lan has positioned itself as a key supplier to China's growing energy and transportation infrastructure markets. The company's focus on both products and auxiliary materials creates a complete solution package for cable installation and maintenance, catering to the specific needs of industrial and utility customers across China's rapidly developing infrastructure landscape.
Chang Lan Electric Technology presents a mixed investment profile with several notable considerations. The company operates in stable infrastructure markets with a beta of 0.276 indicating lower volatility than the broader market. However, with a net income margin of approximately 6% and diluted EPS of 0.39 CNY, profitability appears modest. The company maintains a strong liquidity position with cash and equivalents of 499.6 million CNY against total debt of 71.6 million CNY, providing financial flexibility. Positive operating cash flow of 127 million CNY supports ongoing operations, though capital expenditures of 74.5 million CNY suggest ongoing investment needs. The 0.2 CNY dividend per share provides some income component, but investors should weigh the company's exposure to China's infrastructure spending cycles and competitive pressures in the cable accessories market against its established market position and long operating history.
Chang Lan Electric Technology competes in the highly fragmented Chinese cable accessories market, where its competitive positioning is built on several key factors. The company's primary advantage stems from its extensive experience, having been founded in 1958, which provides deep institutional knowledge and established relationships within China's power infrastructure sector. This long-standing presence has likely created barriers to entry through customer loyalty and technical expertise. Chang Lan's comprehensive product portfolio covering both cable accessories and installation tools creates a one-stop-shop solution for customers, potentially increasing customer stickiness and cross-selling opportunities. The company's focus on serving critical infrastructure sectors including power grid, new energy, and transportation aligns with China's ongoing infrastructure development priorities. However, the cable accessories market is characterized by intense competition from numerous domestic players, potentially limiting pricing power and margin expansion. Chang Lan's relatively modest scale compared to larger industrial conglomerates may constrain its R&D capabilities and geographic expansion beyond its established markets. The company's specialization in cable accessories rather than broader electrical equipment limits diversification benefits but allows for focused technical expertise. Competitive positioning is further influenced by regulatory requirements and technical standards in the power infrastructure sector, where Chang Lan's long history may provide certification advantages. The company's ability to maintain relevance will depend on adapting to technological shifts in power transmission and renewable energy infrastructure while defending its niche against both specialized competitors and larger electrical equipment manufacturers expanding into adjacent product categories.