| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 21.96 | -21 |
| Intrinsic value (DCF) | 7.94 | -71 |
| Graham-Dodd Method | 12.65 | -54 |
| Graham Formula | 5.75 | -79 |
Anhui Jinchun Nonwoven Co., Ltd. is a specialized Chinese manufacturer of nonwoven fabrics, serving diverse industrial and consumer markets. Founded in 2011 and headquartered in Chuzhou, China, the company produces four main nonwoven product lines: spunlace nonwovens for sanitary, decoration, and industrial applications; hot air nonwovens for civil cleaning; silk microfiber nonwovens for cleaning, decoration, and industrial uses; and meltblown nonwovens for sanitary materials and industrial fields. Operating within the Consumer Cyclical sector's Apparel Manufacturing industry, Jinchun plays a critical role in the supply chain for hygiene products, cleaning materials, and industrial components. The company's strategic positioning in China's massive manufacturing ecosystem allows it to serve both domestic and international markets with essential textile materials. With a market capitalization of approximately 3.14 billion CNY, Jinchun has established itself as a significant player in China's nonwoven fabric industry, leveraging technological expertise to meet growing demand for specialized textile solutions across multiple applications.
Anhui Jinchun presents a mixed investment profile with several concerning financial metrics. While the company maintains a modest market capitalization of 3.14 billion CNY and demonstrates low volatility (beta of 0.337), its profitability appears strained with net income of only 30.9 million CNY on revenue of 1.03 billion CNY, representing a thin net margin of approximately 3%. The company's operating cash flow of 35.6 million CNY is barely sufficient to cover capital expenditures of 57.8 million CNY, indicating potential cash flow challenges. Positive factors include a reasonable cash position of 275 million CNY against total debt of 84.6 million CNY, providing some financial flexibility, and a modest dividend payment of 0.1 CNY per share. However, the low EPS of 0.26 CNY and tight margins suggest operational efficiency concerns in a competitive nonwoven fabrics market.
Anhui Jinchun operates in the highly competitive nonwoven fabrics industry, where scale, technological capability, and cost efficiency are critical success factors. The company's competitive positioning appears challenged by its relatively small scale compared to global leaders, with revenue of approximately 1.03 billion CNY suggesting a regional rather than global footprint. Jinchun's product diversification across spunlace, hot air, silk microfiber, and meltblown nonwovens provides some market breadth, but each segment faces intense competition from specialized manufacturers. The company's location in China's manufacturing heartland offers supply chain advantages but also exposes it to domestic competition from larger, more established players. Jinchun's thin profit margins (approximately 3%) indicate limited pricing power and potential cost structure disadvantages compared to more efficient competitors. The company's technological capabilities in producing multiple nonwoven types could provide some differentiation, but the capital-intensive nature of the industry and Jinchun's negative free cash flow (operating cash flow minus capex) suggest potential challenges in maintaining competitive manufacturing technology. The nonwoven industry's growth, particularly in sanitary and industrial applications, provides market opportunities, but Jinchun's ability to capture meaningful share appears constrained by its financial scale and margin profile relative to industry leaders.