| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.67 | 89 |
| Intrinsic value (DCF) | 5.20 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 11.88 | -13 |
Jiangsu Liba Enterprise Joint-Stock Co., Ltd. is a specialized Chinese manufacturer of composite materials primarily serving the home appliance industry. Founded in 1994 and headquartered in Yixing, China, Liba produces high-quality film-coated and organic coated boards used extensively in refrigerator panels, washing machine exteriors, microwave ovens, water heaters, and building door panels. As a key supplier to China's massive home appliance manufacturing sector, the company plays a critical role in the technology hardware supply chain by providing essential surface materials that combine aesthetic appeal with functional durability. Operating in the Technology sector's Hardware, Equipment & Parts industry, Liba leverages its technical expertise in coating technologies to meet the stringent quality requirements of major appliance manufacturers. The company's strategic positioning within China's industrial ecosystem allows it to benefit from both domestic consumption growth and the country's position as the world's leading appliance exporter. With nearly three decades of industry experience, Jiangsu Liba has established itself as a reliable partner for appliance brands seeking advanced composite solutions that enhance product appearance while maintaining cost efficiency.
Jiangsu Liba presents a specialized investment opportunity within China's industrial materials sector, characterized by moderate financial performance and low market volatility. The company generated CNY 1.71 billion in revenue with net income of CNY 159 million, translating to a diluted EPS of CNY 0.60. While the company maintains a conservative financial structure with cash holdings of CNY 407 million against total debt of CNY 166 million, its operating cash flow of CNY 98 million appears relatively constrained compared to net income. The attractive dividend yield, with a dividend per share of CNY 1.00 representing a significant payout ratio, may appeal to income-focused investors. However, the low beta of 0.251 suggests limited correlation with broader market movements, which could be both a stability advantage and a growth limitation. Investment attractiveness is tempered by the company's niche market focus and dependence on the cyclical home appliance industry, though its established market position provides some defensive characteristics.
Jiangsu Liba's competitive positioning is defined by its specialization in coated composite materials for the home appliance industry, where it has developed technical expertise over nearly 30 years of operation. The company's primary competitive advantage lies in its deep understanding of appliance manufacturers' specific requirements for surface materials that must balance aesthetic quality, durability, and cost-effectiveness. Liba's long-standing relationships with Chinese appliance brands provide a stable customer base and recurring revenue streams. However, the company operates in a highly competitive segment where larger industrial materials companies could potentially leverage scale advantages. Liba's relatively modest market capitalization of CNY 3.34 billion suggests it occupies a niche position rather than dominating the broader industrial materials market. The company's competitive strengths include its specialized technical capabilities in coating technologies and its proximity to China's major appliance manufacturing hubs, which reduces logistics costs and enables responsive customer service. Potential vulnerabilities include dependence on a single industry segment and limited diversification across end markets. The company's low beta indicates it may be somewhat insulated from broader economic cycles but also suggests limited growth dynamism compared to more diversified materials companies. Liba's competitive positioning appears sustainable in its core niche but may face challenges from both larger diversified materials suppliers and specialized competitors with more advanced technological capabilities.