| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.41 | 39 |
| Intrinsic value (DCF) | 8.32 | -55 |
| Graham-Dodd Method | 8.53 | -53 |
| Graham Formula | n/a |
Fujian Longking Co., Ltd. is a leading Chinese manufacturer of comprehensive air pollution control solutions with a global footprint spanning 40 countries. Founded in 1971 and headquartered in Longyan, China, the company specializes in advanced environmental protection equipment including flue gas dust collection systems, flue gas desulfurization (FGD) units, selective non-catalytic reduction (SNCR) systems, bulk material conveying equipment, and integrated electrical control solutions. Longking serves critical industrial sectors such as electric power generation, metallurgy, building materials, light industry, and chemical processing with turnkey package solutions for flue gas pollutants. As China intensifies its environmental regulations and global demand for pollution control technology grows, Longking leverages its five decades of engineering expertise and international export capabilities to position itself at the forefront of the industrial pollution treatment controls market. The company's extensive product portfolio and cross-industry application expertise make it a key player in helping industrial clients worldwide meet increasingly stringent emissions standards.
Fujian Longking presents a stable investment opportunity with moderate growth potential in the essential environmental protection sector. The company demonstrates solid financial fundamentals with CNY 10.02 billion in revenue, CNY 830 million net income, and strong operating cash flow of CNY 2.18 billion. With a low beta of 0.31, the stock offers defensive characteristics relative to broader market volatility. The company's global presence across 40 countries provides geographic diversification, while its focus on pollution control equipment aligns with China's and global environmental regulatory trends. However, investors should note the significant capital expenditures (CNY -2.22 billion) indicating ongoing investment requirements, and the industrial nature of its business makes it cyclical to economic conditions. The dividend yield, while present, may not be the primary attraction for income-focused investors. The company's positioning in essential pollution control infrastructure provides some resilience, but growth is tied to industrial investment cycles and environmental regulation enforcement.
Fujian Longking operates in the highly competitive industrial pollution control equipment market, where its competitive advantage stems from several key factors. The company benefits from its early market entry (founded 1971) and extensive experience in developing integrated solutions for diverse industrial applications including power generation, metallurgy, and building materials. Its comprehensive product portfolio covering dust collection, FGD, SNCR, and complete flue gas treatment packages allows it to offer one-stop solutions, differentiating it from single-product competitors. Longking's global reach across 40 countries, particularly in developing markets like India, Brazil, Thailand, and Southeast Asia, provides diversification and growth opportunities beyond the domestic Chinese market. The company's technological expertise in adapting solutions for various industrial processes and emissions requirements represents a significant barrier to entry for new competitors. However, Longking faces intense competition from both domestic Chinese manufacturers and international technology providers. Its position is strengthened by China's increasing environmental regulations, which drive domestic demand, but international expansion requires competing with established global players who may have more advanced proprietary technologies. The company's scale and manufacturing capabilities in China provide cost advantages, but it must continuously invest in R&D to maintain technological competitiveness against both domestic rivals and multinational corporations with greater research budgets.