| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 37.68 | -57 |
| Intrinsic value (DCF) | 23.01 | -74 |
| Graham-Dodd Method | 24.55 | -72 |
| Graham Formula | n/a |
Jiangsu Haili Wind Power Equipment Technology Co., Ltd. is a specialized Chinese manufacturer at the forefront of renewable energy infrastructure, focusing on the production of wind turbine towers and offshore wind turbine jacket platforms. Founded in 2009 and headquartered in Rudong, China, the company is a key player in the industrial machinery sector, serving the rapidly expanding global wind power industry. Haili's business model centers on the precision manufacturing of large-scale structural components essential for both onshore and offshore wind farms, positioning it within the critical supply chain for clean energy generation. As nations worldwide accelerate their transition to sustainable energy sources, the demand for reliable wind power equipment creates significant growth opportunities for established manufacturers like Haili. The company's operations are strategically important to China's domestic wind power expansion and its ambitions to lead in renewable technology exports. This sector relevance is amplified by global decarbonization trends, making Haili a vital contributor to the industrials segment focused on green technology solutions.
Jiangsu Haili presents a specialized play on the global wind energy transition, but carries significant financial and operational risks. The investment case is supported by its niche focus on essential wind power infrastructure and positioning within China's dominant renewable supply chain. However, concerning financial metrics temper attractiveness: despite CNY 1.35 billion in revenue, net income was a modest CNY 66.1 million, indicating thin margins. More alarmingly, the company reported substantial capital expenditures of -CNY 789.9 million against operating cash flow of just CNY 80.7 million, suggesting heavy ongoing investment requirements that may strain liquidity. With total debt of CNY 1.1 billion exceeding its cash position, leverage is a key risk factor. The low beta of 0.259 suggests lower volatility relative to the market, potentially appealing to risk-averse investors seeking renewable energy exposure, but the fundamental financial health requires careful monitoring of cash flow generation and debt management.
Jiangsu Haili operates in a highly competitive and capital-intensive segment of the wind power supply chain. Its competitive positioning is defined by its specialization in wind turbine towers and, notably, offshore jacket platforms—a more complex and higher-value product requiring advanced manufacturing capabilities. This focus on offshore infrastructure could provide a competitive advantage as the global wind industry expands into deep-water locations. However, the company faces intense competition from larger, more diversified industrial conglomerates with greater financial resources and established relationships with major wind turbine OEMs. Haili's relatively small scale (CNY 1.35B revenue) compared to industry leaders may limit its ability to compete on price for large-volume contracts and invest in next-generation manufacturing technologies. The company's location in China provides proximity to the world's largest wind market and potential cost advantages in raw material sourcing and labor, but also exposes it to domestic competition and policy fluctuations. Its competitive durability will depend on maintaining technological parity in fabrication techniques, managing supply chain costs effectively, and securing long-term contracts with wind farm developers. The significant capital expenditures suggest Haili is investing to maintain or advance its technological capabilities, which is essential but financially demanding given its current profitability level.