| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.29 | 569 |
| Intrinsic value (DCF) | 1.61 | -61 |
| Graham-Dodd Method | 0.72 | -82 |
| Graham Formula | 0.01 | -100 |
Jiangsu Baoli International Investment Co., Ltd. is a specialized Chinese construction materials company focused on the research, development, production, and sale of advanced asphalt and road materials. Headquartered in Jiangyin, Jiangsu Province, the company serves critical infrastructure projects across China including expressways, high-speed railways, highways, bridges, municipal roads, and airport runways. Baoli's diverse product portfolio encompasses various modified asphalt types such as SBS modified, SBR modified, EVA modified, and specialized formulations for high-speed railways and high-viscosity applications. The company has expanded beyond its core asphalt business to include forest escort and emergency rescue services, along with aircraft rental and sales operations. Operating in China's massive infrastructure development sector, Jiangsu Baoli plays a vital role in supporting the country's ongoing urbanization and transportation network expansion. As a publicly traded company on the Shenzhen Stock Exchange, Baoli leverages its technical expertise and manufacturing capabilities to capitalize on China's sustained infrastructure investment, positioning itself as a key supplier in the basic materials sector with specialized knowledge in road construction technologies.
Jiangsu Baoli presents a specialized investment opportunity in China's infrastructure materials sector with modest financial performance. The company generated CNY 1.97 billion in revenue with net income of CNY 22.3 million, resulting in diluted EPS of CNY 0.024. While the company maintains a conservative beta of 0.373, indicating lower volatility than the broader market, its profitability metrics remain thin with minimal earnings generation. Positive operating cash flow of CNY 202.6 million provides some financial stability, and the company maintains a reasonable cash position of CNY 207.1 million against total debt of CNY 608.6 million. The absence of dividend payments suggests capital retention for business development. Key investment considerations include the company's niche specialization in modified asphalt products, exposure to China's infrastructure spending cycles, and the competitive nature of the construction materials market. Investors should monitor the company's ability to improve profit margins and capitalize on government infrastructure initiatives.
Jiangsu Baoli operates in the highly competitive Chinese construction materials market, where its competitive positioning is defined by specialization in modified asphalt products rather than scale. The company's primary competitive advantage lies in its technical expertise in developing specialized asphalt formulations for specific applications, particularly high-speed railways and specialized infrastructure projects. This niche focus allows Baoli to compete against larger, more diversified construction materials companies by offering tailored solutions for complex engineering requirements. However, the company faces significant competitive pressures from larger state-owned enterprises and private competitors with greater financial resources, broader geographic reach, and economies of scale. Baoli's relatively small market capitalization of approximately CNY 4 billion positions it as a mid-tier player in a market dominated by much larger competitors. The company's expansion into auxiliary services such as forest escort and aircraft rental represents a diversification strategy but may dilute management focus from its core asphalt business. Competitive positioning is further challenged by the capital-intensive nature of the industry and the cyclical demand patterns tied to government infrastructure spending. Baoli's ability to maintain technological differentiation while managing costs will be critical for sustaining its market position against both large integrated competitors and regional specialists.