| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 115.92 | 763 |
| Intrinsic value (DCF) | 3.81 | -72 |
| Graham-Dodd Method | 2.31 | -83 |
| Graham Formula | n/a |
Chongqing Wanli New Energy Co., Ltd. is a specialized Chinese manufacturer of lead-acid batteries with a legacy dating back to 1943. Headquartered in Chongqing, China, the company designs, manufactures, and sells power, maintenance-free, and low-maintenance batteries serving diverse sectors including transportation, energy, telecommunications, electric power systems, defense, and scientific research. Operating in the Electrical Equipment & Parts industry within the Industrials sector, Wanli New Energy has pivoted from its former identity as Wanli Group Co., Ltd. to focus on energy storage solutions. The company leverages China's growing demand for reliable power storage across industrial and infrastructure applications. Despite facing industry headwinds from lithium-ion battery adoption, Wanli maintains relevance through its established manufacturing capabilities and broad application expertise in traditional lead-acid battery technology. The company's Shanghai Stock Exchange listing provides investors with exposure to China's industrial battery market and energy infrastructure development.
Chongqing Wanli New Energy presents a challenging investment case with significant fundamental concerns. The company reported a net loss of CNY 39.4 million on revenue of CNY 577.9 million for the period, resulting in negative EPS of -0.26. While the company maintains a debt-free balance sheet with CNY 90 million in cash and positive operating cash flow of CNY 27 million, its declining revenue and profitability reflect intense competitive pressures and technological disruption in the battery sector. The low beta of 0.154 suggests limited correlation with broader market movements, but also indicates stagnant growth prospects. The absence of dividends and persistent losses make this a speculative investment suitable only for investors with high risk tolerance and specific conviction about a turnaround in the traditional lead-acid battery market. The company's future depends on its ability to adapt to evolving energy storage technologies or find niche applications where lead-acid batteries maintain competitive advantages.
Chongqing Wanli New Energy operates in a highly competitive battery market where it faces significant challenges from both traditional lead-acid competitors and disruptive lithium-ion technology providers. The company's competitive positioning is weakened by the industry-wide shift toward lithium-ion batteries, which offer higher energy density, longer lifespan, and better environmental credentials. While Wanli benefits from established manufacturing expertise and relationships in specific industrial applications where lead-acid technology remains cost-effective, its product portfolio lacks diversification into newer energy storage technologies. The company's financial performance (-CNY 39.4 million net income) indicates it is losing ground to more technologically advanced competitors. Its competitive advantage appears limited to certain niche applications where lead-acid's lower upfront cost and established infrastructure provide temporary shelter from technological disruption. However, without significant R&D investment or strategic pivoting, Wanli risks further market share erosion. The company's debt-free status provides some flexibility, but its modest cash position (CNY 90 million) may be insufficient to fund meaningful innovation or market expansion. Wanli's future competitiveness depends on either dominating remaining lead-acid applications or successfully transitioning to newer battery technologies.