| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.61 | 392 |
| Intrinsic value (DCF) | 2.28 | -56 |
| Graham-Dodd Method | 2.98 | -43 |
| Graham Formula | 5.00 | -4 |
Shanghai YongLi Belting Co., Ltd is a specialized manufacturer of conveyor belts and high-end precision molded products with a legacy dating back to 1989. Operating in the Auto Parts sector within Consumer Cyclicals, the company serves a remarkably diverse industrial base. Its conveyor belt solutions are critical components across food processing, tobacco, airport logistics, textile printing, and electronic manufacturing, while its precision molded products cater to automotive, home appliances, consumer electronics, and medical equipment industries. This dual-product strategy positions YongLi Belting at the intersection of industrial automation and advanced manufacturing supply chains. Headquartered in Shanghai, China, the company leverages its technical expertise in polymer materials and thermoplastic elastomers to deliver customized solutions for complex industrial applications. As industries increasingly automate and demand higher efficiency, YongLi Belting's role in providing essential motion transmission and precision components makes it a key player in China's industrial ecosystem. The company's broad market penetration across multiple sectors provides natural diversification and resilience against cyclical downturns in any single industry.
Shanghai YongLi Belting presents a mixed investment profile characterized by stable but modest financial performance. The company maintains a conservative financial structure with a beta of 0.33 indicating lower volatility than the broader market, supported by CNY 952 million in cash against CNY 503 million in debt. However, profitability metrics show room for improvement with a net margin of approximately 10% on CNY 2.24 billion revenue. The company generates positive operating cash flow (CNY 329 million) and maintains disciplined capital expenditures (CNY 253 million), suggesting prudent financial management. The modest dividend yield reflects a balanced capital allocation strategy. Primary investment considerations include the company's exposure to cyclical industrial sectors, competitive pressures in the conveyor belt market, and dependence on China's manufacturing ecosystem. The diverse end-market exposure provides some insulation against sector-specific downturns, but overall growth appears constrained by the mature nature of its core markets.
Shanghai YongLi Belting operates in a highly fragmented and competitive market for industrial conveyor belts and precision molded products. The company's competitive positioning is defined by its technical specialization in polymer materials and thermoplastic elastomers, enabling it to serve diverse industrial applications from food processing to automotive components. This broad market reach provides natural diversification but also means competing against both specialized niche players and larger industrial conglomerates. YongLi's competitive advantage appears rooted in its material science expertise and ability to customize products for specific industrial applications, particularly in the Chinese market where local manufacturing relationships are crucial. However, the company faces significant scale disadvantages compared to global industrial giants that benefit from larger R&D budgets and global distribution networks. The conveyor belt market is characterized by price sensitivity and requires continuous innovation in material durability and efficiency. YongLi's position in precision molded products for automotive and electronics sectors places it in competition with specialized component manufacturers that may have deeper customer relationships or technological advantages in specific applications. The company's China-centric operations provide cost advantages and responsive service for domestic customers but may limit international expansion opportunities against established global competitors with stronger brand recognition and international distribution channels.