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Stock Analysis & ValuationJiangyin Haida Rubber And Plastic Co., Ltd. (300320.SZ)

Professional Stock Screener
Previous Close
$10.27
Sector Valuation Confidence Level
Moderate
Valuation methodValue, $Upside, %
Artificial intelligence (AI)28.59178
Intrinsic value (DCF)4.54-56
Graham-Dodd Method4.02-61
Graham Formula7.54-27

Strategic Investment Analysis

Company Overview

Jiangyin Haida Rubber And Plastic Co., Ltd. is a specialized Chinese manufacturer at the forefront of developing and producing advanced rubber and plastic materials for critical industrial applications. Operating in the Auto - Parts sector within the Consumer Cyclical industry, the company provides essential sealing and vibration damping systems that are vital for the performance and safety of rail transit, construction, automobile, and shipping industries. Headquartered in Jiangyin, China, Haida leverages its technical expertise to serve both domestic and international markets, positioning itself as a key supplier in the industrial supply chain. The company's focus on research and development underscores its commitment to innovation, enabling it to meet the evolving demands for durability and efficiency in harsh operating environments. As infrastructure development and transportation sectors continue to grow globally, particularly in emerging markets, Jiangyin Haida's specialized product portfolio places it in a strategically relevant position to capitalize on long-term industrial and automotive trends.

Investment Summary

Jiangyin Haida presents a mixed investment profile with several notable factors. On the positive side, the company maintains a modest market capitalization of approximately CNY 6.42 billion and exhibits a low beta of 0.59, suggesting lower volatility compared to the broader market, which may appeal to risk-averse investors. The company generated revenue of CNY 3.31 billion with net income of CNY 161.7 million, resulting in a diluted EPS of CNY 0.27. However, concerning indicators include weak cash flow generation, with operating cash flow of only CNY 95.0 million against capital expenditures of CNY -90.2 million, indicating limited free cash flow. The company's financial position shows cash and equivalents of CNY 135.0 million against total debt of CNY 340.1 million, reflecting a leveraged balance sheet. The modest dividend yield, with a dividend per share of CNY 0.038, may provide some income but is not a primary attraction. Investment attractiveness is tempered by the company's moderate profitability and leveraged financial structure within a competitive auto parts sector.

Competitive Analysis

Jiangyin Haida's competitive positioning is defined by its specialization in rubber and plastic materials for sealing and vibration damping systems across multiple industrial sectors. The company's primary competitive advantage lies in its focused expertise in niche applications for rail transit, construction, automobile, and shipping industries, allowing it to develop specialized solutions that may not be efficiently produced by larger, more diversified competitors. This sector-specific knowledge provides some insulation from broader competitive pressures. However, the company operates in a highly competitive auto parts market where scale, technological innovation, and global reach are significant advantages that larger competitors possess. Haida's relatively small market capitalization of CNY 6.42 billion suggests it lacks the scale advantages of major global automotive suppliers, potentially limiting its bargaining power with customers and suppliers. The company's financial metrics, including moderate profitability with net income of CNY 161.7 million on revenue of CNY 3.31 billion, indicate it operates with thinner margins than industry leaders. Its competitive positioning is further challenged by its primarily domestic Chinese focus, which may limit growth opportunities compared to globally diversified competitors. The company's ability to maintain and grow its market share will depend on continued technological innovation, cost management, and potential expansion into higher-margin product segments or geographic markets.

Major Competitors

  • Ningbo Tuopu Group Co., Ltd. (600469.SS): Ningbo Tuopu is a major Chinese automotive parts supplier specializing in vibration control products and lightweight automotive components. The company has strong relationships with major automakers and benefits from significant scale advantages. However, its broader product focus may limit its specialization in specific rubber and plastic sealing systems where Jiangyin Haida operates.
  • Ningbo Huaxiang Electronic Co., Ltd. (002048.SZ): Ningbo Huaxiang is a leading Chinese automotive parts manufacturer with global operations, producing interior and exterior trim components. The company has extensive international presence and technological capabilities. Its weakness relative to Jiangyin Haida may be less specialized focus on vibration damping and sealing systems specifically.
  • Anhui Zhongding Sealing Parts Co., Ltd. (000887.SZ): Anhui Zhongding is a specialized sealing products manufacturer with strong market position in automotive sealing systems. The company has technical expertise and scale advantages in sealing products. However, it may have less diversified application across rail transit and shipping sectors compared to Jiangyin Haida's broader industrial focus.
  • Fuyao Glass Industry Group Co., Ltd. (600660.SS): Fuyao Glass is the world's largest automotive glass manufacturer with global operations and significant scale advantages. While not a direct competitor in rubber products, it represents the competitive pressure from large, globally diversified automotive suppliers. Fuyao's weakness in this context is its lack of specialization in rubber and plastic sealing systems.
  • Dana Incorporated (DANA): Dana is a global leader in drivetrain and sealing solutions with extensive technological capabilities and global reach. The company has strong R&D resources and diverse product portfolio. However, as a global player, it may face different cost structures and less focus on the specific Chinese market dynamics where Jiangyin Haida operates.
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