| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 9.22 | -56 |
| Intrinsic value (DCF) | 6.22 | -70 |
| Graham-Dodd Method | 4.95 | -76 |
| Graham Formula | 1.81 | -91 |
Shanghai QiFan Cable Co., Ltd is a prominent Chinese manufacturer specializing in comprehensive wire and cable solutions, serving diverse industrial and infrastructure needs across China. Founded in 1994 and headquartered in Shanghai, the company has established itself as a key player in the Electrical Equipment & Parts sector within the broader Industrials landscape. QiFan Cable's extensive product portfolio spans low, medium, and extra high voltage power cables, control cables, submarine cables, building wires, and specialized cables for renewable energy applications including solar cables. The company's strategic location in Shanghai, China's economic hub, provides significant advantages in serving the massive domestic infrastructure market while maintaining export capabilities. As China continues its massive infrastructure development and energy transition initiatives, QiFan Cable is well-positioned to capitalize on growing demand for reliable power transmission and distribution solutions. The company's diverse product range caters to multiple end markets including construction, industrial manufacturing, energy generation, and telecommunications, making it an integral component of China's industrial supply chain.
Shanghai QiFan Cable presents a mixed investment profile with several concerning financial metrics. While the company operates in a strategically important sector with steady demand from China's infrastructure development, its financial performance raises significant concerns. The negative beta of -0.159 suggests unusual price movement patterns that may not correlate with broader market trends. More critically, the company's profitability metrics are weak, with net income of just 135.5 million CNY on revenue of 22.76 billion CNY, representing a razor-thin net margin of approximately 0.6%. The high total debt of 5.78 billion CNY compared to market capitalization of 7.18 billion CNY indicates substantial leverage, while the modest operating cash flow of 498 million CNY relative to debt levels suggests potential liquidity challenges. The diluted EPS of 0.32 CNY and dividend of 0.04 CNY provide limited return potential for investors. The company's attractiveness is primarily tied to China's infrastructure spending trends, but current financial metrics suggest significant operational inefficiencies or competitive pressures.
Shanghai QiFan Cable operates in China's highly competitive wire and cable manufacturing industry, which is characterized by numerous players ranging from large state-owned enterprises to smaller private manufacturers. The company's competitive positioning appears challenged by several factors evident in its financial metrics. The extremely thin net margin of 0.6% suggests intense price competition and limited pricing power in the market. QiFan's product diversification across multiple cable categories provides some buffer against sector-specific downturns, but may also indicate a lack of specialization in high-margin niche segments. The company's location in Shanghai offers logistical advantages for serving eastern China's industrial base, but also means higher operating costs compared to manufacturers in lower-cost regions. The substantial debt load of 5.78 billion CNY relative to its market capitalization indicates potential financial constraints that may limit investment in technological upgrades or capacity expansion compared to better-capitalized competitors. The company's export activities provide some geographic diversification, but the domestic Chinese market likely remains its primary focus. The competitive landscape is further complicated by the presence of large, vertically integrated competitors with stronger financial positions and broader customer relationships. QiFan's ability to maintain market share will depend on improving operational efficiency and potentially focusing on higher-value specialty cable segments where competition may be less intense.