| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 44.02 | -32 |
| Intrinsic value (DCF) | 475.61 | 639 |
| Graham-Dodd Method | 9.77 | -85 |
| Graham Formula | 6.91 | -89 |
Kunshan GuoLi Electronic Technology Co., Ltd. is a specialized Chinese manufacturer of electrical vacuum products, serving critical industrial and high-tech sectors. Founded in 2000 and headquartered in Kunshan, China, the company specializes in the research, development, and manufacturing of high-voltage relays, vacuum capacitors, vacuum interrupters, and various vacuum electrical apparatus. GuoLi's products are essential components across diverse applications including mining, broadcast communication, new energy infrastructure, metallurgy, power systems, medical equipment, semiconductor manufacturing, and security inspection devices. As a technology hardware company operating in China's growing industrial electronics sector, GuoLi leverages its expertise in vacuum technology to address complex electrical challenges requiring high reliability and performance. The company's position in the new energy and semiconductor supply chains positions it strategically within China's technological advancement initiatives. With its Shanghai Stock Exchange listing, GuoLi represents a specialized play on China's industrial technology ecosystem, combining traditional electrical applications with emerging high-tech sectors.
Kunshan GuoLi presents a mixed investment profile with several notable characteristics. The company maintains a modest market capitalization of approximately 6.12 billion CNY and exhibits low volatility with a beta of 0.54, suggesting relative stability compared to broader market movements. Financially, GuoLi generated 792 million CNY in revenue with net income of 30.2 million CNY, resulting in diluted EPS of 0.34 CNY. The company maintains a strong cash position of 747.6 million CNY against total debt of 635.7 million CNY, indicating reasonable financial health. However, negative capital expenditures of -78.7 million CNY combined with modest operating cash flow of 35.9 million CNY raise questions about the company's investment strategy and operational efficiency. The dividend yield, while present at 0.21 CNY per share, may not be sufficiently attractive for income-focused investors. The company's exposure to China's new energy and semiconductor sectors offers growth potential, but investors should carefully assess execution risks and competitive pressures in these rapidly evolving markets.
Kunshan GuoLi operates in the specialized niche of electrical vacuum products, a market segment that requires significant technical expertise and manufacturing capabilities. The company's competitive positioning is defined by its focus on vacuum technology applications across both traditional industrial sectors and emerging high-tech industries. GuoLi's strength lies in its diversified product portfolio that spans high-voltage relays, vacuum capacitors, and interrupters, allowing it to serve multiple end markets including mining, power systems, and semiconductor manufacturing. This diversification provides some insulation against sector-specific downturns. The company's technological capabilities in vacuum apparatus represent a barrier to entry for potential competitors, as these products require specialized manufacturing processes and quality control standards. However, GuoLi faces intense competition from both domestic Chinese manufacturers and international players with greater scale and R&D resources. The company's relatively small size (792 million CNY revenue) may limit its ability to compete on price with larger competitors or invest in cutting-edge research. Its positioning in China's new energy supply chain represents a significant opportunity, but also exposes it to policy changes and competitive pressures in this rapidly evolving sector. The company's challenge will be to maintain technological relevance while scaling operations to compete effectively against both domestic champions and global specialists in electrical components.