| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 48.52 | 2 |
| Intrinsic value (DCF) | 24733.29 | 51774 |
| Graham-Dodd Method | 16.33 | -66 |
| Graham Formula | 13.96 | -71 |
Zhejiang EV-Tech Co., Ltd. is a specialized Chinese automotive components manufacturer focused exclusively on the rapidly growing new energy vehicle (NEV) sector. Founded in 2011 and headquartered in Huzhou, China, the company specializes in the research, development, production, and sales of high-voltage power supply systems, which are critical components for electric vehicles (EVs). As a pure-play supplier in the Auto - Parts sector within the Consumer Cyclical category, EV-Tech's business model is directly tied to the expansion of China's and the global EV market. The company's positioning as a dedicated NEV component supplier makes it a strategic player in the automotive supply chain transformation driven by electrification trends. With China being the world's largest EV market, EV-Tech benefits from proximity to major domestic automakers and government policies supporting NEV adoption. The company's focus on high-voltage systems represents a technological niche that requires specialized expertise in power electronics and vehicle electrification, positioning it as an essential supplier in the evolving automotive landscape where traditional internal combustion engine components are being replaced by electric powertrain systems.
Zhejiang EV-Tech presents a high-beta (1.72) investment opportunity with significant exposure to the growing Chinese EV market, but carries substantial operational and financial risks. The company generated CNY 1.93 billion in revenue with modest net income of CNY 94.6 million, reflecting thin margins in the competitive auto parts sector. Concerningly, the company reported weak operating cash flow of CNY 25.9 million against substantial capital expenditures of CNY -149.9 million, indicating heavy investment requirements that may strain liquidity despite a current cash position of CNY 507.9 million. The minimal dividend yield (CNY 0.01 per share) suggests management prioritizes reinvestment over shareholder returns. While positioned in a growth industry, the company's financial metrics indicate challenges in converting top-line growth into sustainable profitability and cash generation, making it suitable only for investors with high risk tolerance seeking pure-play EV supply chain exposure.
Zhejiang EV-Tech operates in the highly competitive automotive high-voltage systems market, where it faces pressure from both established multinational suppliers and emerging Chinese specialists. The company's competitive positioning is defined by its focus as a China-domestic pure-play EV component supplier, which provides advantages in serving the world's largest EV market but also exposes it to intense local competition and pricing pressures. EV-Tech's competitive advantage lies in its specialized expertise in high-voltage power systems and its integration within China's robust EV supply chain ecosystem, allowing for responsive service to domestic automakers. However, the company faces significant challenges against larger, more diversified global suppliers that benefit from scale, broader product portfolios, and established relationships with international automakers. The automotive components industry requires substantial R&D investment to keep pace with rapidly evolving EV technologies, and EV-Tech's relatively modest scale (CNY 1.93B revenue) may limit its ability to compete with giants spending billions on research. Additionally, as automakers increasingly seek integrated solutions from single suppliers, EV-Tech's narrow focus on high-voltage systems could become a limitation unless it expands its product offerings or forms strategic partnerships. The company's future competitiveness will depend on its ability to maintain technological parity with larger rivals while leveraging its China-focused agility and cost advantages.