| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 47.51 | 23 |
| Intrinsic value (DCF) | 17.90 | -54 |
| Graham-Dodd Method | 15.60 | -60 |
| Graham Formula | 17.30 | -55 |
Sichuan Anning Iron and Titanium Co., Ltd. is a prominent Chinese industrial materials company specializing in the mining, washing, and sale of vanadium-titanium magnetite. Founded in 1994 and headquartered in the resource-rich Panzhihua City, China, the company operates at the heart of one of the world's most significant vanadium-titanium magnetite basins. Its core products include high-grade titanium concentrates and vanadium-titanium iron concentrates, which are essential raw materials for the steel, aerospace, chemical, and pigment industries. As a key player in China's basic materials sector, Sichuan Anning leverages its strategic location and integrated operations to serve domestic industrial demand. The company's focus on vanadium-titanium resources positions it within critical supply chains for high-strength steel alloys and titanium dioxide production. With China's emphasis on industrial upgrading and advanced manufacturing, Sichuan Anning plays a vital role in supplying specialized materials necessary for technological advancement and infrastructure development.
Sichuan Anning Iron and Titanium presents an attractive investment profile characterized by strong profitability metrics and financial health. The company generated CNY 1.86 billion in revenue with an impressive net income of CNY 852 million, translating to a robust net margin of approximately 46%. With diluted EPS of CNY 2.13 and a generous dividend payout of CNY 1 per share, the company demonstrates shareholder-friendly capital allocation. Financially, Sichuan Anning maintains a strong balance sheet with CNY 3.82 billion in cash against only CNY 416 million in total debt, providing significant financial flexibility. The company's substantial operating cash flow of CNY 1.18 billion supports both dividend payments and strategic capital expenditures. However, investors should consider the cyclical nature of industrial materials and potential exposure to Chinese industrial policy changes. The company's low beta of 0.909 suggests relative stability compared to broader market movements.
Sichuan Anning Iron and Titanium's competitive advantage stems from its strategic positioning within China's Panzhihua vanadium-titanium magnetite basin, one of the largest such deposits globally. The company benefits from geographic proximity to high-quality ore bodies, reducing transportation costs and ensuring consistent raw material supply. Its integrated mining and washing operations create cost efficiencies throughout the production process. The specialized nature of vanadium-titanium magnetite processing creates significant barriers to entry, as the technical expertise required for efficient separation and concentration is substantial. Sichuan Anning's focus on titanium and vanadium-titanium iron concentrates differentiates it from generic iron ore producers, allowing it to capture premium pricing for these specialized industrial materials. The company's strong financial position enables sustained investment in operational efficiency and potential capacity expansion. However, its competitive positioning is somewhat constrained by regional concentration and dependence on Chinese industrial demand patterns. The company's scale, while substantial, may limit its ability to compete on global markets against larger international mining conglomerates with diversified resource portfolios and broader geographic reach.