| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.83 | 481 |
| Intrinsic value (DCF) | 1.63 | -65 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Tian Jin Bohai Chemical Co., Ltd. is a diversified industrial company based in Tianjin, China, operating primarily in the business equipment and supplies sector. The company specializes in card manufacturing, producing a comprehensive range of data cards including bank cards, public utility cards, bus cards, social security cards, and specialized smart cards. Beyond card production, Bohai Chemical offers printed products such as invoices, financial bills, and packaging materials, along with smart card application systems and supporting equipment. The company also maintains operations in chemical products including acrylic and hydrogen. Formerly known as Tianjin Global Magnetic Card Co., Ltd., the company rebranded in February 2021 to reflect its expanded chemical operations. Serving the growing Chinese market for secure identification and payment solutions, Tian Jin Bohai Chemical plays a significant role in China's digital transformation and cashless society initiatives while maintaining a presence in basic chemical manufacturing.
Tian Jin Bohai Chemical presents a challenging investment case with significant financial headwinds. The company reported a substantial net loss of CNY -632 million for the period, with negative EPS of -0.57 CNY, indicating serious operational challenges. While the company maintains a moderate market capitalization of CNY 4.4 billion and operates in growing sectors like digital payment solutions and smart cards, its financial performance raises concerns. The negative operating cash flow of CNY 43.3 million against capital expenditures of CNY -223.6 million suggests cash flow constraints. The company's beta of 0.543 indicates lower volatility than the broader market, potentially offering some defensive characteristics, but the absence of dividends and concerning profitability metrics suggest investors should approach with caution until the company demonstrates improved operational efficiency and a path to profitability.
Tian Jin Bohai Chemical operates in a highly competitive landscape within China's card manufacturing and industrial chemicals sectors. The company's competitive positioning is challenged by its recent financial performance, with significant losses potentially limiting its ability to invest in technology and market expansion. In the card manufacturing segment, Bohai faces competition from both specialized card producers and larger technology companies offering integrated digital solutions. The company's diversification into chemical products provides some revenue diversification but also exposes it to competition in the mature and cyclical chemicals industry. Its location in Tianjin, a major industrial hub, provides logistical advantages for serving northern Chinese markets. However, the company's competitive advantage appears limited given its financial constraints and the increasingly digital nature of payment systems, which may reduce demand for physical cards over time. The company's historical expertise in magnetic card technology may become less relevant as contactless and mobile payment solutions gain dominance, requiring significant adaptation to remain competitive.