| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.13 | 92 |
| Intrinsic value (DCF) | 3.49 | -75 |
| Graham-Dodd Method | 4.66 | -67 |
| Graham Formula | 0.19 | -99 |
Ningbo Yunsheng Co., Ltd. is a prominent Chinese manufacturer specializing in rare earth permanent magnet materials, particularly sintered and bonded NdFeB magnets. Founded in 1994 and headquartered in Ningbo, China, the company operates at the intersection of industrial manufacturing and advanced materials technology. Yunsheng's comprehensive product portfolio includes magnetic assemblies, servo motors, and precision components that serve critical applications across electronic information systems, industrial automation equipment, automotive systems, medical devices, and various high-tech sectors. As a key player in the global rare earth magnet supply chain, the company maintains significant export operations to Europe, the United States, and Southeast Asia. Yunsheng's vertically integrated approach from material research to finished magnet production positions it strategically within China's industrial policy focus on high-value manufacturing and technological self-sufficiency. The company's expertise in NdFeB magnet technology makes it an essential supplier for industries transitioning toward electrification and energy efficiency.
Ningbo Yunsheng presents a mixed investment case with both compelling opportunities and notable risks. The company operates in the strategically important rare earth magnet sector, benefiting from growing demand driven by electric vehicles, renewable energy, and industrial automation trends. With a market capitalization of approximately CNY 16.5 billion and revenue of CNY 5.04 billion, the company maintains a solid market position. However, investors should note the relatively thin net margin of 1.9% (CNY 95 million net income) and high beta of 1.74, indicating significant volatility relative to the market. The company's strong operating cash flow of CNY 854 million and healthy cash position of CNY 1.05 billion provide financial stability, while the modest dividend yield offers some income component. Key risks include exposure to rare earth price fluctuations, intense competition in the magnet industry, and potential trade policy impacts given its export-focused business model.
Ningbo Yunsheng competes in the highly specialized rare earth permanent magnet market, where technological capability, production scale, and cost efficiency determine competitive positioning. The company's primary competitive advantage lies in its integrated manufacturing approach, combining material research with production of both sintered and bonded NdFeB magnets. This vertical integration allows Yunsheng to control quality throughout the production process and offer customized solutions for diverse applications from automotive to medical devices. The company's export footprint across Europe, the US, and Southeast Asia demonstrates international competitiveness beyond the domestic Chinese market. However, Yunsheng faces intense competition from larger Chinese magnet producers with greater scale and resources, as well as international players with more advanced technological capabilities. The company's moderate profit margins suggest it operates in a highly competitive price environment, though its specialized magnetic assemblies and servo motors may offer some differentiation. Yunsheng's position is strengthened by China's dominance in rare earth processing and magnet production, but it must continuously innovate to maintain relevance against both domestic giants and technologically advanced international competitors. The company's future competitiveness will depend on its ability to develop higher-value applications, improve production efficiency, and navigate the complex geopolitics of rare earth supply chains.