| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 18.77 | 331 |
| Intrinsic value (DCF) | 2.06 | -53 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 5.31 | 22 |
Longjian Road&Bridge Co., Ltd. is a prominent Chinese infrastructure specialist focused on the engineering and construction of critical transportation networks. Headquartered in Harbin, China, the company provides comprehensive general contracting services for major projects including road and bridge construction, municipal public engineering, highway pavement and subgrade works, and tunnel engineering. Operating both domestically and internationally, Longjian leverages China's massive infrastructure development initiatives and Belt and Road projects. As part of the industrials sector, the company plays a vital role in China's economic development by connecting communities and facilitating commerce through modern transportation infrastructure. Longjian's expertise spans the entire project lifecycle from initial design to final construction, positioning it as a key player in China's ongoing urbanization and infrastructure modernization efforts.
Longjian Road&Bridge presents a mixed investment profile with moderate appeal for infrastructure-focused investors. The company operates in a strategically important sector supported by Chinese government infrastructure spending, providing some revenue stability. However, investors should note concerning financial metrics including high total debt of CNY 11.68 billion relative to market capitalization of CNY 4.23 billion, indicating significant leverage. While the company generated positive operating cash flow of CNY 2.63 billion and maintains reasonable liquidity with CNY 5.67 billion in cash, the low net income margin of approximately 2.3% on CNY 18.29 billion revenue suggests thin profitability in this competitive sector. The beta of 0.373 indicates lower volatility than the broader market, which may appeal to risk-averse investors seeking exposure to Chinese infrastructure development.
Longjian Road&Bridge operates in the highly competitive Chinese construction and infrastructure sector, where competitive positioning is determined by project scale capabilities, government relationships, technical expertise, and financing capacity. The company's competitive advantage lies in its specialized focus on road and bridge infrastructure, particularly in northern China where its Harbin headquarters provides regional familiarity. However, Longjian faces intense competition from larger state-owned enterprises with superior financial resources and broader geographical reach. The company's relatively small market capitalization limits its ability to compete for mega-projects against construction giants. Longjian's international operations provide some diversification but likely face similar competitive pressures from both Chinese and local international contractors. The company's moderate profitability margins suggest it competes primarily on cost rather than technical differentiation, making it vulnerable to pricing pressure in competitive bidding processes. Its debt-heavy capital structure may constrain growth opportunities compared to better-capitalized competitors, particularly during periods of rising interest rates or economic uncertainty.