| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.33 | -38 |
| Intrinsic value (DCF) | 304.23 | 713 |
| Graham-Dodd Method | 3.96 | -89 |
| Graham Formula | 2.61 | -93 |
Jiangsu Lettall Electronic Co., Ltd. is a specialized Chinese manufacturer of electronic components with over three decades of industry presence since its founding in 1991. Headquartered in Yixing, China, the company operates in the Technology sector's Hardware, Equipment & Parts industry, focusing on power supply solutions and electronic components. Lettall's diverse product portfolio includes wall plugs, switching power adapters, LCD-TV power plates, chargers, transformers, inductors, power filters, and LCD TV brackets. These components serve critical functions in consumer electronics such as color TVs, LCD TVs, air conditioners, and various household electrical appliances. As China continues to be a global manufacturing hub for electronics, Jiangsu Lettall occupies a strategic position in the supply chain, providing essential components to major appliance manufacturers. The company's long-standing presence in the industry demonstrates its resilience and adaptability in the rapidly evolving electronics manufacturing landscape. With its specialized focus on power-related components, Jiangsu Lettall plays a vital role in supporting China's domestic electronics ecosystem while potentially serving international markets through downstream manufacturers.
Jiangsu Lettall presents a mixed investment profile with several concerning financial metrics. The company's market capitalization of approximately CNY 6.27 billion and modest revenue of CNY 2.25 billion position it as a small-to-mid cap player in the competitive electronics components space. The extremely low beta of 0.084 suggests minimal correlation with broader market movements, which could appeal to risk-averse investors but may indicate limited growth potential. More concerning are the financial fundamentals: despite positive net income of CNY 24.6 million, the company carries substantial total debt of CNY 2.07 billion against cash reserves of only CNY 369 million, indicating potential liquidity constraints. The negative capital expenditures of -CNY 449 million raise questions about the company's investment in future growth. The diluted EPS of 0.1 and dividend per share of 0.05 provide minimal yield, while the operating cash flow of CNY 74.8 million appears insufficient relative to the debt burden. Investors should carefully assess the company's ability to manage its debt load while maintaining operational viability in a highly competitive industry.
Jiangsu Lettall operates in a highly fragmented and competitive electronic components market where scale, technological capability, and customer relationships determine competitive positioning. The company's competitive advantage appears limited given its financial profile and market position. With revenue of approximately CNY 2.25 billion, Lettall is substantially smaller than leading global electronic component manufacturers, constraining its ability to achieve economies of scale or make significant R&D investments. The company's focus on power adapters, transformers, and TV-related components positions it in mature market segments with likely margin pressure. Its specialization in components for household appliances ties its fortunes closely to the cyclical consumer electronics market, particularly the TV industry which has experienced consolidation and pricing pressures. The substantial debt load (CNY 2.07 billion) relative to market capitalization and cash reserves suggests financial constraints that may limit competitive responsiveness. While the company's 30+ year history provides operational experience and established customer relationships, the electronic components industry requires continuous technological advancement and cost efficiency—areas where larger competitors typically excel. Lettall's positioning as a domestic Chinese supplier may provide some insulation from international competition but exposes it to intense price competition within China's manufacturing ecosystem. The company's ability to differentiate through specialized products or proprietary technology is not evident from available data, suggesting it competes primarily on cost and reliability in a commodity-like segment of the components market.