| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 35.23 | -39 |
| Intrinsic value (DCF) | 38.86 | -32 |
| Graham-Dodd Method | 8.25 | -86 |
| Graham Formula | 7.38 | -87 |
Jiangsu Allfavor Intelligent Circuits Technology CO., Ltd. is a specialized Chinese manufacturer of printed circuit boards (PCBs) serving diverse industrial sectors. Founded in 2006 and headquartered in Nanjing, the company produces a comprehensive portfolio of PCB solutions including single/double-sided boards, multi-layer boards, thick copper plates, multi-functional metal substrates, flexible plates, rigid-flex boards, and High-Density Interconnect (HDI) boards. Allfavor's products are critical components in communications equipment, automotive electronics, power systems, consumer electronics, medical devices, and military applications, positioning the company within the essential Technology hardware sector. As China continues to advance its electronics manufacturing capabilities, Allfavor benefits from the country's robust supply chain ecosystem and growing domestic demand for sophisticated circuit boards. The company's technical expertise in producing specialized PCBs for demanding applications demonstrates its capability to serve high-value market segments. With its Shenzhen Stock Exchange listing, Allfavor represents an investment opportunity in China's expanding electronics component manufacturing industry, which supports global technology infrastructure and innovation across multiple end markets.
Jiangsu Allfavor presents a mixed investment profile with several concerning financial metrics. The company generated CNY 596.1 million in revenue with modest net income of CNY 23.7 million, resulting in thin profit margins. More alarmingly, the company reported negative free cash flow due to substantial capital expenditures (CNY -121.8 million) exceeding operating cash flow (CNY 28.2 million), indicating significant ongoing investments that may pressure liquidity. While the company maintains a reasonable debt level (CNY 15.3 million) relative to cash reserves (CNY 215.8 million), the negative cash flow generation raises questions about sustainable operations. The beta of 0.934 suggests moderate volatility relative to the market. The dividend payment of CNY 0.10 per share provides some shareholder return, but the overall financial picture indicates a company in a capital-intensive phase with profitability challenges in a highly competitive PCB manufacturing sector.
Jiangsu Allfavor operates in the highly fragmented and competitive global PCB manufacturing industry, where scale, technological capability, and cost efficiency determine competitive positioning. The company's product portfolio spanning standard boards to specialized HDI and rigid-flex solutions indicates technical competence, but its relatively small scale (CNY 596 million revenue) places it at a disadvantage against industry giants. Allfavor's focus on multiple end markets including communications, automotive, and medical provides diversification but may limit deep specialization in high-growth segments. The company's Chinese base offers supply chain advantages and proximity to manufacturing hubs, but also exposes it to intense domestic competition and potential trade tensions. Allfavor's negative free cash flow suggests it is investing to remain technologically competitive, but this creates financial strain compared to better-capitalized rivals. The company's challenge lies in differentiating itself through technical expertise or customer relationships while managing the capital-intensive nature of PCB manufacturing. Without significant scale advantages, Allfavor must compete on specialized capabilities, responsive service, or niche market focus rather than cost leadership. The competitive landscape requires continuous technological investment to keep pace with evolving PCB requirements, particularly in high-growth areas like automotive electronics and advanced communications infrastructure.