| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.31 | 155 |
| Intrinsic value (DCF) | 8.33 | -13 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 6.19 | -35 |
Guangzhou Guangri Stock Co., Ltd. is a prominent Chinese industrial machinery company specializing in elevator and escalator manufacturing, installation, and maintenance services. Founded in 1993 and headquartered in Guangzhou, China, the company operates as a subsidiary of Guangzhou Guangri Group Co., Ltd. Guangri's comprehensive business model encompasses the design, production, installation, repair, and maintenance of elevators, escalators, moving walks, intelligent mechanical parking equipment, and platform screen door systems. The company also manufactures elevator electrical components, guide rails, and spare parts while offering additional logistics services including transportation, warehousing, packaging, and circulation processing. As a key player in China's industrial machinery sector, Guangri leverages its integrated manufacturing capabilities and service network to serve the growing urban infrastructure and construction markets across China. The company's diversified product portfolio and maintenance services position it well within the industrials sector, particularly in vertical transportation solutions for residential, commercial, and public infrastructure projects.
Guangzhou Guangri presents a mixed investment profile with several attractive fundamentals offset by concerning operational metrics. The company demonstrates strong profitability with net income of CNY 812 million on revenue of CNY 7.26 billion, representing an impressive 11.2% net margin. The generous dividend yield of CNY 1.35 per share indicates shareholder-friendly capital allocation. With minimal debt (CNY 65 million) and substantial cash reserves (CNY 4.2 billion), the company maintains a robust balance sheet. However, concerning operational cash flow of only CNY 110 million relative to earnings and significant capital expenditures (CNY -256 million) suggest potential working capital challenges or aggressive investment spending. The low beta of 0.527 indicates defensive characteristics but may also reflect limited growth expectations. Investors should monitor the company's ability to convert earnings into sustainable cash flow and the returns on its substantial capital investments.
Guangzhou Guangri operates in the highly competitive Chinese elevator and escalator market, where it faces competition from both multinational giants and domestic manufacturers. The company's competitive positioning is primarily regional, leveraging its Guangzhou headquarters and Chinese manufacturing base to serve local markets efficiently. Guangri's integrated business model spanning manufacturing, installation, and maintenance provides a competitive advantage through recurring revenue streams from service contracts. The company's diversification into intelligent mechanical parking equipment and platform screen door systems represents a strategic expansion beyond traditional elevator products. However, Guangri likely faces scale disadvantages compared to global leaders like Otis and Schindler, which benefit from worldwide distribution networks and larger R&D budgets. The company's focus on electrical components and spare parts manufacturing suggests some vertical integration benefits, potentially improving margins and supply chain control. In the Chinese market, Guangri must compete with state-owned enterprises and other regional players on price, service quality, and government relationships. The company's substantial cash position provides strategic flexibility for potential acquisitions or technology investments, but its relatively modest market capitalization of CNY 8.4 billion suggests it remains a mid-tier player in the global elevator industry.