| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.51 | 262 |
| Intrinsic value (DCF) | 6.26 | -15 |
| Graham-Dodd Method | 2.13 | -71 |
| Graham Formula | 2.62 | -64 |
YanTai LongYuan Power Technology Co., Ltd. is a specialized Chinese industrial machinery company focused on advanced combustion control solutions for the electric power sector. Founded in 1998 and headquartered in Yantai, China, the company has established itself as a key player in power generation efficiency technologies. LongYuan Power's core business revolves around the research, development, and implementation of plasma ignition equipment and low-NOx combustion systems, which help power plants achieve cleaner and more efficient energy production. The company's product portfolio also includes power station operation intelligence software, creating a comprehensive ecosystem for power generation optimization. Operating within the industrials sector, LongYuan Power addresses critical environmental challenges facing China's energy industry by reducing nitrogen oxide emissions and improving combustion efficiency. As China continues its transition toward cleaner energy production, the company's technologies position it at the forefront of power plant modernization and emission reduction initiatives. With nearly three decades of industry experience, YanTai LongYuan Power Technology serves the growing demand for sustainable energy solutions in one of the world's largest power markets.
YanTai LongYuan Power Technology presents a specialized investment opportunity in China's power efficiency sector with moderate financial performance. The company generated CNY 1.28 billion in revenue with net income of CNY 65.3 million, resulting in diluted EPS of CNY 0.13. While the company maintains a strong cash position of CNY 747 million against modest total debt of CNY 58.3 million, its profitability margins appear relatively thin for the industry. The positive operating cash flow of CNY 134.9 million and dividend payment of CNY 0.15 per share indicate financial stability. However, the company's beta of 0.66 suggests lower volatility compared to the broader market, which may appeal to conservative investors seeking exposure to China's industrial modernization theme. Key risks include dependence on China's power sector investment cycles, potential regulatory changes in emission standards, and competitive pressures in the specialized combustion technology market. The investment case hinges on China's continued emphasis on power plant efficiency improvements and emission reductions.
YanTai LongYuan Power Technology competes in the niche but critical market of power plant combustion optimization systems. The company's competitive positioning is defined by its specialized focus on plasma ignition and low-NOx combustion technologies, which have become increasingly important as China implements stricter environmental regulations for thermal power plants. LongYuan's nearly 25-year history in this specific segment provides established relationships with major Chinese power generators and technical expertise that newer entrants would struggle to match. The company's integrated approach combining hardware (ignition equipment) with software (power station intelligence systems) creates a comprehensive solution that addresses both operational efficiency and environmental compliance needs. However, the company faces significant competition from larger industrial conglomerates that offer broader power plant solutions and may have greater financial resources for research and development. LongYuan's relatively small market capitalization of approximately CNY 3.7 billion limits its ability to compete on scale with industrial giants, forcing it to maintain a focused specialization strategy. The company's competitive advantage appears strongest in its deep technical knowledge of combustion dynamics and established track record with Chinese power producers, though it must continuously innovate to maintain its position against both domestic and international competitors offering alternative emission reduction technologies. The transition toward renewable energy represents both a challenge and opportunity, as thermal power plants seek to maximize efficiency during the energy transition period.