| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 38.27 | -27 |
| Intrinsic value (DCF) | 32.72 | -38 |
| Graham-Dodd Method | 3.21 | -94 |
| Graham Formula | 20.27 | -61 |
Jiangsu Leili Motor Co., Ltd is a prominent Chinese manufacturer specializing in the research, development, and production of micro-motors and precision components. Founded in 1993 and headquartered in Changzhou, a key industrial hub in Jiangsu province, the company has established itself as a critical supplier in the global industrial supply chain. Its diverse product portfolio includes micro stepping motors, synchronous motors, DC brush and brushless motors, hysteresis synchronous motors, and various pump solutions like drain and peristaltic pumps. Beyond motors, Leili Motor expands its industrial reach by manufacturing precision stamping parts, metal components for the automotive sector, and electronic controllers and drives. Operating within the Industrials sector under the Electrical Equipment & Parts industry, the company leverages its vertical integration and technical expertise to serve a broad range of applications, from consumer appliances to automotive systems. With additional activities in equity investment, management consulting, and import/export trade, Jiangsu Leili Motor represents a vertically integrated player essential to the precision manufacturing ecosystem, contributing significantly to China's position as a world leader in motor production.
Jiangsu Leili Motor presents a mixed investment profile. On the positive side, the company maintains a solid financial position with a market capitalization of approximately CNY 25.7 billion, revenue of CNY 3.52 billion, and a healthy net income of CNY 294 million, translating to a diluted EPS of CNY 0.93. The company's strong cash position of CNY 1.23 billion against total debt of CNY 836 million indicates good liquidity and a manageable leverage ratio. A notable positive signal is the dividend payment of CNY 0.43 per share, demonstrating a commitment to shareholder returns. However, a significant concern is the negative operating cash flow of CNY 300 million, exacerbated by substantial capital expenditures of -CNY 396 million, suggesting heavy ongoing investment that may pressure short-term liquidity. The remarkably negative beta of -0.697 is highly unusual and warrants careful scrutiny, as it implies a historical price movement inversely correlated with the broader market, which could be a statistical anomaly or indicate unique risk factors. Investors should weigh the company's established market position and profitability against its cash flow dynamics and the peculiar risk profile suggested by its beta.
Jiangsu Leili Motor's competitive positioning is anchored in its deep specialization in micro-motors and its vertically integrated manufacturing capabilities. The company's strength lies in its diverse product range, which spans various motor types (stepping, synchronous, DC) and extends to pumps, precision stamping parts, and electronic controllers. This diversification allows it to serve multiple end-markets, including appliances, automotive, and industrial automation, reducing reliance on any single sector. Its location in Changzhou, part of the Yangtze River Delta industrial cluster, provides advantages in supply chain logistics and access to a skilled workforce. The competitive landscape for micro-motors in China is intensely crowded, with numerous small to medium-sized enterprises. Leili's scale, evidenced by its multi-billion yuan market cap, provides an advantage over smaller rivals in terms of production capacity, R&D investment, and ability to secure larger contracts. However, it likely faces stiff competition from larger, more diversified industrial conglomerates that possess greater global reach and brand recognition. Its competitive advantage appears to be its focus on precision and specialization within the micro-motor niche, coupled with the ability to offer integrated solutions (motors plus controllers). The key challenge will be maintaining technological parity and cost competitiveness against both low-cost domestic producers and advanced international players, particularly as industries like automotive demand increasingly sophisticated and efficient motor solutions.