| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.38 | 35 |
| Intrinsic value (DCF) | 6.96 | -68 |
| Graham-Dodd Method | 7.71 | -65 |
| Graham Formula | 6.47 | -70 |
Ningbo Tianlong Electronics Co., Ltd. is a specialized Chinese manufacturer of precision plastic components for the automotive electronics sector, founded in 2000 and headquartered in Ningbo. The company operates within the Consumer Cyclical sector, specifically in the Auto Parts industry, producing critical components such as electronic water pumps, executive motors, electronic controller systems, battery systems, and IGBT function modules. Its product portfolio extends to various automotive systems including door, engine, car light, fuel tank, heat exchange, central control instrument, and skylight systems. With a global footprint, Ningbo Tianlong exports its products to key automotive markets including Japan, North America, and Germany, positioning itself as a supplier in the evolving electric vehicle (EV) and traditional automotive supply chains. The company's focus on commodity mold products and components for circuit breakers and junction boxes further diversifies its revenue streams. As China continues to expand its automotive manufacturing capabilities, particularly in electric vehicles, Ningbo Tianlong's specialization in electronic plastic parts places it at the intersection of automotive innovation and manufacturing efficiency.
Ningbo Tianlong Electronics presents a mixed investment profile with several notable characteristics. The company maintains a modest market capitalization of approximately CN¥4.7 billion and demonstrates profitability with net income of CN¥110 million on revenue of CN¥1.37 billion. Its low beta of 0.021 suggests minimal correlation with broader market movements, potentially offering defensive characteristics. However, investors should note the company's relatively thin profit margins and moderate financial scale compared to larger automotive suppliers. The positive operating cash flow of CN¥209 million provides some financial stability, but the dividend yield appears modest at CN¥0.17 per share. The company's exposure to the evolving automotive electronics sector, particularly in electric vehicles, offers growth potential, but competitive pressures and dependence on the broader automotive cycle present inherent risks. The balance sheet shows reasonable liquidity with CN¥213 million in cash against CN¥208 million in debt, indicating a manageable leverage position.
Ningbo Tianlong Electronics competes in the highly fragmented automotive components manufacturing sector, specializing specifically in plastic parts for electronic applications. The company's competitive positioning relies on its technical expertise in plastic injection molding for automotive electronics, serving both traditional automotive systems and emerging electric vehicle components. Its focus on precision plastic components for electronic water pumps, controller systems, and IGBT modules provides some specialization advantage as vehicles become increasingly electrified. The company's export business to Japan, North America, and Germany indicates capability to meet international quality standards, though it likely competes primarily on cost-effectiveness within the global supply chain. However, Ningbo Tianlong faces significant competitive pressures from larger, more diversified automotive suppliers with greater R&D capabilities and global manufacturing footprints. The automotive components sector is characterized by intense price competition and pressure from OEMs to reduce costs, which may constrain margins. The company's relatively small scale (CN¥1.37 billion revenue) limits its ability to compete with global giants on research investment and purchasing power. Its competitive advantage appears to lie in specialized manufacturing capabilities for specific electronic plastic components rather than broad system integration. The transition to electric vehicles represents both an opportunity and threat, as it may require continued technological adaptation while potentially disrupting traditional supply relationships.