| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 47.84 | -6 |
| Intrinsic value (DCF) | 203.49 | 301 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 12.12 | -76 |
Anhui Anfu Battery Technology Co., Ltd. is a prominent Chinese battery manufacturer that has undergone a significant transformation from its origins as a department store operator. Founded in 1984 and headquartered in Hefei, China, the company rebranded in May 2022 to focus exclusively on the battery technology sector, reflecting China's strategic push toward advanced manufacturing and clean energy technologies. Operating within the Electrical Equipment & Parts industry under the Industrials sector, Anfu Battery specializes in the development, production, and distribution of various battery products primarily serving the domestic Chinese market. The company's pivot to battery technology positions it at the forefront of China's growing energy storage and electric vehicle supply chain ecosystem. With a market capitalization of approximately 8.66 billion CNY, Anfu Battery leverages its established manufacturing capabilities and strategic location in Anhui province, a key industrial hub, to capitalize on the expanding demand for energy storage solutions across multiple applications including consumer electronics, automotive, and industrial power systems.
Anhui Anfu Battery Technology presents a compelling but speculative investment case with several notable characteristics. The company demonstrates solid revenue generation of 4.64 billion CNY with positive net income of 168 million CNY, indicating operational viability following its recent strategic pivot. The healthy operating cash flow of 935 million CNY and substantial cash reserves of 1.24 billion CNY provide financial stability, though the relatively high total debt of 1.89 billion CNY warrants monitoring. The low beta of 0.123 suggests defensive characteristics with lower volatility compared to the broader market, which may appeal to risk-averse investors. However, the company's recent transition from retail to battery manufacturing raises execution risks, and its current focus primarily on the domestic Chinese market exposes it to regional economic fluctuations and intense local competition. The dividend yield, while present, may be secondary to growth prospects given the company's ongoing capital investment requirements in the capital-intensive battery sector.
Anhui Anfu Battery Technology operates in a highly competitive Chinese battery market characterized by rapid technological evolution and intense price competition. The company's competitive positioning is challenged by its relatively recent entry into the battery sector compared to established industry leaders. Anfu's primary competitive advantages include its established manufacturing infrastructure from its previous retail operations, strategic location in China's industrial heartland, and potential synergies with the growing electric vehicle and renewable energy ecosystems in Anhui province. However, the company faces significant scale disadvantages compared to battery giants that benefit from massive production volumes and established supply chain relationships. The competitive landscape demands continuous R&D investment to keep pace with technological advancements in battery chemistry and energy density. Anfu's focus on the domestic Chinese market provides familiarity with local regulations and customer preferences but limits diversification benefits. The company's ability to secure long-term supply contracts and develop proprietary technology will be critical determinants of its sustainable competitive advantage. While the low beta suggests some insulation from market volatility, this may also reflect limited analyst coverage and investor recognition compared to more prominent battery manufacturers. The capital expenditure requirements for maintaining competitive manufacturing capabilities will continue to pressure margins in an industry where cost leadership is paramount.