| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 17.87 | -63 |
| Intrinsic value (DCF) | 15.70 | -67 |
| Graham-Dodd Method | 10.83 | -77 |
| Graham Formula | 18.72 | -61 |
Super-Dragon Engineering Plastics Co., Ltd is a specialized Chinese manufacturer of high-performance modified plastic products, established in 1998 and headquartered in Conghua, China. Operating within the industrials sector's electrical equipment and parts industry, the company develops and sells a comprehensive portfolio of modified polymer materials including modified PP, PC/ABS, PA, PBT, ABS, and HIPS series. These advanced materials serve critical applications across diverse end-markets including automotive components, home appliances, telecommunications equipment, electrical devices, medical supplies, and emerging new energy materials. As China continues to advance its manufacturing capabilities and demand for lightweight, durable materials grows across industrial sectors, Super-Dragon occupies a strategic position in the supply chain. The company's technical expertise in material modification enables it to create tailored solutions that meet specific performance requirements for OEMs across multiple industries. With China's push toward high-tech manufacturing and sustainable materials development, Super-Dragon Engineering Plastics represents a key player in the specialized materials ecosystem supporting the country's industrial modernization efforts.
Super-Dragon Engineering Plastics presents a mixed investment profile with several concerning financial indicators. While the company maintains a modest market capitalization of approximately ¥2.39 billion and operates in growing end-markets including automotive and new energy, its financial performance raises significant concerns. The company generated ¥1.71 billion in revenue but achieved only ¥38.5 million in net income, representing thin margins. More alarmingly, the company reported negative operating cash flow of -¥19.8 million and substantial capital expenditures of -¥116.5 million, indicating potential liquidity strain. With total debt of ¥773 million exceeding cash reserves of ¥267 million, the company's leverage position warrants careful monitoring. The beta of 0.716 suggests lower volatility than the broader market, which may appeal to risk-averse investors, but the fundamental financial metrics indicate operational challenges that require thorough due diligence before investment consideration.
Super-Dragon Engineering Plastics operates in China's highly competitive modified plastics market, where competition is intense among numerous domestic and international players. The company's competitive positioning relies on its specialized expertise in modifying engineering plastics for specific industrial applications, particularly in the automotive and appliance sectors. However, its relatively small scale compared to industry leaders presents significant challenges in achieving cost competitiveness and R&D investment capacity. The company serves multiple end-markets, which provides diversification benefits but may also dilute its focus compared to more specialized competitors. Super-Dragon's financial metrics suggest it may be struggling to maintain profitability in a price-sensitive market, with thin margins indicating potential pricing pressure from larger competitors. The company's negative operating cash flow raises questions about its operational efficiency and ability to fund growth initiatives without additional external financing. In the Chinese modified plastics landscape, scale, technological capability, and customer relationships are critical competitive advantages, and Super-Dragon's position appears challenged by larger, better-capitalized competitors who can invest more heavily in R&D and compete on price. The company's ability to carve out sustainable niches in specific application areas or develop proprietary formulations will be crucial for its long-term competitiveness.