| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 40.84 | -63 |
| Intrinsic value (DCF) | 40.78 | -63 |
| Graham-Dodd Method | 18.84 | -83 |
| Graham Formula | n/a |
Wuxi Paike New Materials Technology Co., Ltd. is a specialized manufacturer of high-performance metal forgings serving critical industrial sectors across China and international markets. Founded in 2006 and headquartered in Wuxi, China, the company specializes in the research, development, production, and sale of rolled ring forgings, free forging parts, and precision die forgings using advanced materials including carbon steel, alloy steel, stainless steel, high-temperature alloys, aluminum alloys, titanium alloys, and magnesium alloys. Wuxi Paike's products are essential components in aerospace, electric power generation, marine engineering, petrochemical machinery, and various industrial applications requiring superior strength, durability, and precision. As a key player in China's industrial supply chain, the company leverages its technical expertise in metal fabrication to serve demanding sectors where material performance and reliability are paramount. With its Shanghai Stock Exchange listing, Wuxi Paike has established itself as a significant contributor to China's advanced manufacturing ecosystem, positioning at the intersection of materials science and industrial technology.
Wuxi Paike presents a mixed investment profile with several positive indicators offset by concerning financial metrics. The company maintains a strong liquidity position with CNY 1.29 billion in cash against CNY 466.5 million in total debt, providing financial flexibility. However, the negative beta of -0.011 suggests unusual price behavior disconnected from broader market movements, potentially indicating limited institutional interest or liquidity concerns. While the company generated CNY 263.9 million in net income on CNY 3.21 billion revenue, representing an 8.2% net margin, the capital expenditure of CNY 594.4 million nearly equaled operating cash flow, indicating heavy reinvestment requirements. The dividend yield appears modest at CNY 0.778 per share. Investors should carefully assess the company's ability to maintain profitability amid significant capital investment demands and its exposure to cyclical industrial sectors.
Wuxi Paike operates in the highly competitive metal forgings market where competitive advantage derives from technical capabilities, material expertise, and customer relationships. The company's positioning appears focused on serving China's industrial and aerospace sectors with specialized forged components. Its product portfolio spanning multiple alloy types suggests technical breadth, though the competitive landscape is fragmented with numerous specialized players. The company's financial metrics indicate moderate scale with CNY 3.21 billion in revenue, positioning it as a mid-sized player in China's industrial supply chain. Competitive advantages likely include proximity to China's manufacturing ecosystem and technical expertise in processing diverse materials including high-temperature alloys and titanium alloys used in aerospace applications. However, the significant capital expenditure relative to operating cash flow suggests the company faces ongoing investment requirements to maintain technological competitiveness. The company's international presence, while mentioned, likely represents a smaller portion of business compared to domestic Chinese operations. Competitive positioning appears dependent on maintaining technical capabilities and customer relationships in sectors requiring certified and reliable forged components. The company's ability to compete against larger, more diversified industrial manufacturers and specialized forging operations will depend on continued technological advancement and cost management.