| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.74 | -10 |
| Intrinsic value (DCF) | 24.30 | -27 |
| Graham-Dodd Method | 1.69 | -95 |
| Graham Formula | 25.69 | -23 |
NBTM New Materials Group Co., Ltd. is a leading Chinese manufacturer specializing in powder metal structural parts and magnetic materials components for diverse industrial applications. Headquartered in Ningbo, China, the company serves critical sectors including automotive, home appliances, motorcycles, and mechanical engineering with precision-engineered components. NBTM's product portfolio includes powder metal structural components for automotive engines, transmission systems, and chassis, along with compressor parts for air conditioners and refrigerators. The company has expanded into high-growth areas through its soft magnetic materials division, producing alloy powder, iron powder cores, and alloy powder cores for electric vehicles, charging infrastructure, solar energy systems, and UPS applications. As China continues to advance its manufacturing capabilities and electric vehicle adoption, NBTM occupies a strategic position in the supply chain for both traditional automotive and emerging green technology sectors. The company's expertise in powder metallurgy and magnetic materials makes it an essential partner for manufacturers seeking high-performance, reliable components in China's massive industrial ecosystem.
NBTM New Materials presents a mixed investment case with several notable strengths and challenges. The company operates in essential automotive and industrial supply chains with a market capitalization of approximately CNY 18.1 billion and generated CNY 5.14 billion in revenue with CNY 397 million net income. The low beta of 0.376 suggests defensive characteristics relative to the broader market, which may appeal to risk-averse investors. However, concerning factors include high total debt of CNY 2.43 billion relative to cash reserves of CNY 318 million, creating leverage concerns. The company maintains a dividend payment of CNY 0.30 per share, indicating shareholder returns, but investors should monitor debt levels and the impact of China's economic fluctuations on automotive and industrial demand. The transition toward electric vehicles represents both an opportunity through magnetic materials demand and a risk as traditional automotive components face structural decline.
NBTM New Materials competes in the specialized powder metallurgy and magnetic materials sector, leveraging its technical expertise and established customer relationships in China's industrial ecosystem. The company's competitive positioning stems from its diversified application across automotive, appliances, and emerging green technology sectors, providing some insulation against cyclical downturns in any single industry. Its powder metal components business benefits from long-standing relationships with automotive manufacturers, creating switching costs and recurring revenue streams. The magnetic materials division positions NBTM to capitalize on China's aggressive electric vehicle and renewable energy adoption, though this segment likely faces more intense competition from specialized magnetic materials producers. The company's main competitive challenges include competing against larger, more diversified automotive suppliers with greater R&D resources and global scale. Additionally, as powder metallurgy technology advances, NBTM must continuously invest in manufacturing capabilities to maintain technical parity with international competitors. The company's China-focused operations provide domestic market advantages but limit geographic diversification, creating concentration risk relative to global competitors. NBTM's moderate scale (CNY 5.14B revenue) suggests it may lack the purchasing power and R&D budget of largest global players, necessitating a focused strategy on specific application areas rather than competing broadly across all powder metallurgy segments.