| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 37.30 | -3 |
| Intrinsic value (DCF) | 17.68 | -54 |
| Graham-Dodd Method | 9.14 | -76 |
| Graham Formula | 16.71 | -56 |
Jiangsu Tongli Risheng Machinery Co., Ltd. is a prominent Chinese industrial manufacturer specializing in the production and sale of elevators for both domestic and international markets. Founded in 2003 and headquartered in Danyang City, Jiangsu province, the company operates within the industrials sector, specifically in metal fabrication for the construction and urban development industries. As China continues its rapid urbanization and infrastructure development, Tongli Risheng plays a critical role in supplying essential vertical transportation solutions for residential, commercial, and industrial buildings. The company's business model encompasses the entire manufacturing process, leveraging its expertise in metal fabrication to produce reliable elevator systems. With a market capitalization of approximately CN¥7.88 billion, Tongli Risheng has established itself as a significant player in China's elevator manufacturing landscape, benefiting from the country's ongoing construction boom and urban migration trends. The company's international operations further diversify its revenue streams and provide exposure to global infrastructure development markets.
Jiangsu Tongli Risheng presents a specialized investment opportunity within China's industrial manufacturing sector, with particular exposure to the construction and urbanization themes. The company demonstrates solid profitability with net income of CN¥246 million on revenue of CN¥2.53 billion, translating to a healthy net margin of approximately 9.8%. Financially, the company maintains a conservative debt profile with total debt of CN¥300 million against cash reserves of CN¥574 million, indicating strong liquidity. The diluted EPS of CN¥1.42 supports a dividend payment of CN¥0.24 per share, providing income to investors. However, significant capital expenditures of CN¥-508 million suggest substantial ongoing investments in capacity expansion or modernization, which impacted operating cash flow of CN¥377 million. The extremely low beta of 0.099 indicates minimal correlation with broader market movements, potentially offering defensive characteristics but also raising questions about growth momentum. Primary investment considerations include exposure to China's property market cycles, competitive pressures in elevator manufacturing, and the company's ability to maintain profitability amid significant capital investment programs.
Jiangsu Tongli Risheng operates in the highly competitive elevator manufacturing industry, where it faces competition from both domestic giants and international players. The company's competitive positioning is primarily as a mid-tier manufacturer focused on the Chinese market, leveraging local production advantages and understanding of domestic regulatory requirements. Tongli Risheng's competitive advantage appears rooted in its specialized metal fabrication capabilities and established presence in China's industrial ecosystem, allowing for cost-effective manufacturing and responsive service to domestic clients. The company's financial metrics, including a 9.8% net margin, suggest reasonable operational efficiency within its segment. However, the competitive landscape is challenging, dominated by large multinational corporations with superior technological capabilities, global distribution networks, and stronger brand recognition. Tongli Risheng's relatively modest market capitalization of CN¥7.88 billion positions it as a smaller player compared to industry leaders, potentially limiting its R&D investment capacity and ability to compete on technological innovation. The company's international operations provide some diversification but likely face stiff competition from established global brands in overseas markets. Its competitive strategy likely emphasizes cost leadership and responsiveness to specific Chinese market requirements rather than technological differentiation. The significant capital expenditures suggest ongoing efforts to enhance manufacturing capabilities and potentially close competitive gaps with larger rivals.