| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.83 | 372 |
| Intrinsic value (DCF) | 3.62 | -36 |
| Graham-Dodd Method | 5.07 | -11 |
| Graham Formula | 1.84 | -68 |
Zhejiang Feida Environmental Science & Technology Co., Ltd. is a prominent Chinese industrial machinery company specializing in comprehensive environmental protection solutions. Founded in 1969 and headquartered in Zhuji, China, Feida Environmental designs, manufactures, sells, and installs advanced pollution control systems for flue gas, water, and solid waste treatment. Operating in China's critical environmental protection sector, the company addresses the nation's pressing need for industrial pollution mitigation amid stringent environmental regulations. As a key player in the industrials sector, Feida leverages decades of engineering expertise to provide integrated environmental solutions to industrial clients across China. The company's comprehensive product portfolio positions it at the forefront of China's environmental technology landscape, serving the growing demand for sustainable industrial practices and compliance with environmental standards. With its established market presence and technical capabilities, Zhejiang Feida represents a significant contributor to China's environmental infrastructure and green technology development.
Zhejiang Feida presents a mixed investment profile with several notable strengths and risks. The company operates in a favorable regulatory environment as China intensifies its environmental protection efforts, creating sustained demand for pollution control equipment. Financially, Feida demonstrates solid revenue generation (CNY 4.29 billion) and positive net income (CNY 241 million), with strong operating cash flow of CNY 1.04 billion indicating healthy operational efficiency. However, significant concerns include substantial capital expenditures (CNY -1.82 billion) that may pressure near-term liquidity, and a debt level (CNY 1.55 billion) that nearly matches cash reserves (CNY 1.55 billion). The company's low beta (0.432) suggests relative stability compared to the broader market, but investors should monitor the balance between growth investments and financial sustainability. The modest dividend (CNY 0.10 per share) provides some income component, though the payout ratio appears conservative given earnings.
Zhejiang Feida Environmental Science & Technology competes in China's specialized environmental protection equipment market, where its competitive advantage stems from decades of industry experience and comprehensive product offerings across multiple pollution control segments. The company's integrated approach—providing design, production, sale, and installation services—creates customer stickiness and cross-selling opportunities. Feida's long-established presence since 1969 provides technical expertise and industry relationships that newer entrants cannot easily replicate. However, the company operates in a fragmented market with both domestic and international competitors vying for contracts in China's environmental sector. Its positioning as a domestic Chinese player provides advantages in understanding local regulatory requirements and customer needs, but may face challenges competing with larger multinational corporations with more advanced technological capabilities. The company's comprehensive solution portfolio across flue gas, water, and solid waste treatment differentiates it from more specialized competitors, though this breadth may also dilute focus compared to niche players. Feida's financial resources, while substantial, may be constrained relative to larger competitors when bidding for major projects, potentially limiting market share growth in an increasingly competitive environment where scale matters for large infrastructure projects.