| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 35.77 | -37 |
| Intrinsic value (DCF) | 54.50 | -5 |
| Graham-Dodd Method | 13.37 | -77 |
| Graham Formula | 27.01 | -53 |
Avary Holding (Shenzhen) Co., Limited is a leading Chinese printed circuit board (PCB) manufacturer with a comprehensive business model spanning research and development, design, manufacturing, and sales. Founded in 1999 and headquartered in Shenzhen, China's technology hub, Avary serves diverse end markets including communications, consumer electronics, computers, automotive electronics, and industrial control systems. As a key player in the global technology hardware sector, the company leverages China's manufacturing ecosystem to produce essential components that power modern electronic devices. Avary's strategic positioning in Shenzhen provides proximity to major technology customers and supply chain partners, enabling efficient operations and rapid response to market demands. The company's focus on multiple high-growth industries demonstrates its diversified approach to the PCB market, reducing reliance on any single sector while capitalizing on trends like 5G infrastructure, automotive electrification, and industrial automation. With over two decades of industry experience, Avary has established itself as a reliable supplier in the competitive global electronics manufacturing value chain.
Avary Holding presents a mixed investment profile with several attractive fundamentals alongside sector-specific challenges. The company demonstrates solid financial health with CNY 13.5 billion in cash reserves against CNY 3.5 billion in total debt, providing strong liquidity and financial flexibility. With a market capitalization of approximately CNY 126 billion and a beta of 0.535, Avary shows lower volatility than the broader market. The company generated CNY 35.1 billion in revenue with net income of CNY 3.6 billion, resulting in diluted EPS of CNY 1.56 and a dividend payout of CNY 1 per share. Positive operating cash flow of CNY 7.1 billion supports ongoing operations and strategic investments. However, investors should consider exposure to cyclical electronics demand, competitive pricing pressures in the PCB industry, and potential impacts from global supply chain dynamics and trade policies affecting Chinese technology exporters.
Avary Holding competes in the highly fragmented and competitive global PCB manufacturing industry, where scale, technological capability, and customer relationships determine competitive positioning. The company's primary competitive advantages include its established presence in China's electronics manufacturing ecosystem, diversified customer base across multiple end markets, and two decades of industry experience. Avary's location in Shenzhen provides strategic advantages through proximity to major technology companies and efficient supply chain integration. The company's focus on communication equipment (including 5G infrastructure) and automotive electronics positions it well in growing segments, though it faces intense competition from both domestic Chinese manufacturers and international PCB producers. Avary's financial strength enables continued investment in advanced manufacturing technologies, which is crucial for maintaining competitiveness in the capital-intensive PCB industry. However, the company operates in a market characterized by price sensitivity and requires continuous technological advancement to meet evolving customer demands for higher-density, more complex boards. The competitive landscape requires balancing cost efficiency with investment in R&D to address the trend toward miniaturization and increased functionality in electronic devices across all served markets.