| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 35.49 | -9 |
| Intrinsic value (DCF) | 342.64 | 778 |
| Graham-Dodd Method | 15.21 | -61 |
| Graham Formula | 64.13 | 64 |
Shanghai Yanpu Metal Products Co., Ltd. is a specialized automotive components manufacturer established in 1999 and headquartered in Shanghai, China. The company operates in the consumer cyclical sector, specifically within the auto parts industry, focusing on the design and manufacturing of precision stamping parts, assembly and welding components, and stamping dies. Shanghai Yanpu's product portfolio includes critical automotive components such as seat stampings, skylight systems, engine parts, car lock mechanisms, seat assemblies, and window roller stamping parts. As a key supplier to China's massive automotive manufacturing ecosystem, the company leverages its technical expertise in metal stamping and assembly processes to serve both domestic and international automotive OEMs. With China being the world's largest automotive market, Shanghai Yanpu occupies a strategic position in the automotive supply chain, benefiting from the country's manufacturing infrastructure and proximity to major automotive production hubs. The company's focus on precision engineering and quality control makes it an important player in the highly competitive automotive components sector, where reliability and technical specifications are paramount for vehicle safety and performance.
Shanghai Yanpu presents a mixed investment profile with several notable strengths and risks. The company demonstrates solid financial fundamentals with a market capitalization of approximately CNY 8.49 billion and positive earnings of CNY 137 million. The diluted EPS of CNY 1.15 and dividend payment of CNY 0.2604 per share indicate shareholder returns, while the beta of 0.687 suggests lower volatility than the broader market. However, the net profit margin of approximately 6% appears relatively thin for an automotive components manufacturer, potentially indicating pricing pressure or competitive challenges. The company maintains reasonable liquidity with CNY 481 million in cash against CNY 477 million in total debt, and positive operating cash flow of CNY 253 million supports ongoing operations. The primary investment considerations include exposure to China's automotive cycle, competitive pressures in the auto parts sector, and dependence on the health of the domestic automotive industry. Investors should monitor the company's ability to maintain margins amid potential industry headwinds and its capacity to secure contracts with major automotive manufacturers.
Shanghai Yanpu operates in the highly competitive Chinese automotive components market, where it faces significant pressure from both domestic and international players. The company's competitive positioning is primarily built on its specialization in metal stamping components and its strategic location in Shanghai, which provides proximity to major automotive manufacturing clusters. However, the automotive components industry is characterized by intense price competition, high customer concentration risks, and substantial pressure from OEMs to reduce costs. Shanghai Yanpu's focus on specific components like seat systems, skylights, and locking mechanisms represents a niche specialization, but this also limits its diversification compared to larger, full-service automotive suppliers. The company's moderate scale (CNY 2.28 billion in revenue) positions it as a mid-tier player in a market dominated by much larger competitors. Its competitive advantage appears to stem from technical expertise in stamping processes and established relationships with automotive customers, though the relatively thin margins suggest limited pricing power. The automotive industry's transition toward electric vehicles and advanced driver assistance systems presents both challenges and opportunities for Shanghai Yanpu, as it may need to adapt its product portfolio to meet evolving technical requirements. The company's ability to maintain quality standards while controlling costs will be critical for its long-term competitive positioning in an industry where larger players benefit from economies of scale and global reach.