| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.07 | 103 |
| Intrinsic value (DCF) | 5.07 | -63 |
| Graham-Dodd Method | 0.51 | -96 |
| Graham Formula | 8.55 | -38 |
Tongling Jingda Special Magnet Wire Co., Ltd. is a leading Chinese manufacturer specializing in high-performance magnet wires and electrical conductors essential for modern industrial applications. Founded in 1990 and headquartered in Tongling, China, the company produces an extensive range of specialized enameled copper and aluminum wires, automobile wires, special conductors, and rod materials. These critical components serve diverse industries including household appliances, electronics, automotive systems, electric power infrastructure, communication equipment, and power tools. Tongling Jingda's product portfolio features advanced materials like polyimide, polyamide-imide, and multi-layer composite enameled wires designed for demanding applications such as DC inverter compressors, HFC air-conditioners, and inverter motors. The company has established both domestic market leadership and international presence with exports to Europe and South Asia, positioning itself as a key supplier in the global electrical equipment supply chain. As industries increasingly demand energy-efficient motors and specialized electrical components, Tongling Jingda's technical expertise in magnet wire manufacturing provides essential infrastructure for electrification and automation trends worldwide.
Tongling Jingda presents a mixed investment profile with several concerning financial indicators despite its established market position. The company's low beta of 0.274 suggests defensive characteristics relative to the broader market, which may appeal to risk-averse investors. However, the negative operating cash flow of -589 million CNY raises significant liquidity concerns, particularly when combined with substantial total debt of 4.12 billion CNY. The company maintains a reasonable net income margin of approximately 2.5% and offers a dividend yield, but the cash flow situation suggests potential strain on both operations and future dividend sustainability. Investors should carefully monitor the company's ability to improve cash generation and manage its debt load, as these factors could significantly impact long-term viability in this capital-intensive industry.
Tongling Jingda operates in the highly specialized magnet wire manufacturing sector, where competitive advantage derives from technical expertise, production scale, and customer relationships. The company's extensive product portfolio covering various enameled copper and aluminum wires positions it as a comprehensive solutions provider, particularly for the Chinese appliance and automotive industries. Its long-standing presence since 1990 has likely established durable customer relationships and manufacturing know-how. However, the competitive landscape is challenging with both domestic and international players vying for market share. The company's negative operating cash flow suggests potential operational inefficiencies or working capital challenges that may impair its competitive positioning against better-capitalized rivals. Tongling Jingda's export business to Europe and South Asia provides geographic diversification but also exposes it to international competition and trade dynamics. The company's specialization in magnet wires rather than broader electrical components may limit cross-selling opportunities but allows for focused technical development. The capital-intensive nature of the industry and the company's substantial debt load could constrain its ability to invest in next-generation technologies or expand capacity relative to competitors with stronger balance sheets.