| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 31.26 | -14 |
| Intrinsic value (DCF) | 23.71 | -35 |
| Graham-Dodd Method | 6.40 | -82 |
| Graham Formula | 6.63 | -82 |
GuangDong Leary New Material Technology Co., Ltd. is a specialized chemical materials company at the forefront of China's advanced materials sector. Founded in 2004 and headquartered in Foshan, Guangdong, the company focuses on the research, development, production, and sale of high-performance functional coating films for cutting-edge electronic applications. Leary's product portfolio includes low voltage differential signal shield films, electronic/auto FFC hot melt adhesive films, polyester supporting tapes, high-speed transmission films, lithium battery aluminum plastic films, and LED flexible circuit board films. These specialized materials serve critical functions across multiple high-growth industries including 3C (computer, communication, and consumer electronics), automotive electronics, LED lighting, lithium batteries, and semiconductor manufacturing. As China continues to advance its domestic semiconductor and new energy vehicle industries, Leary's position as a materials supplier to these strategic sectors provides significant growth potential. The company's listing on the Shanghai Stock Exchange's STAR Market underscores its technological focus and innovation-driven business model within China's basic materials landscape.
GuangDong Leary New Material Technology presents a specialized investment opportunity in China's functional materials sector with moderate financial performance. The company generated CNY 525.6 million in revenue with net income of CNY 37.4 million, translating to a net margin of approximately 7.1%. While the company maintains a conservative beta of 0.167 indicating lower volatility relative to the market, investors should note the significant capital expenditures of CNY -256.4 million which substantially exceeded operating cash flow of CNY 40.2 million, suggesting aggressive expansion or investment activities. The company's financial position shows CNY 145.5 million in cash against CNY 166.3 million in total debt, indicating manageable leverage. The diluted EPS of 0.24 and dividend per share of 0.066 provide modest returns, but the high capital intensity relative to current earnings warrants careful monitoring of future revenue growth and profitability improvements to justify the expansion strategy.
GuangDong Leary New Material Technology operates in a highly specialized niche within China's functional coating films market, competing primarily on technological expertise and application-specific solutions. The company's competitive positioning is defined by its focus on high-performance materials for electronic applications, particularly in the rapidly growing 3C, automotive electronics, and lithium battery sectors. Leary's strength lies in its vertical integration and R&D capabilities developed since 2004, allowing it to customize solutions for specific client requirements in China's evolving electronics supply chain. However, the company faces intense competition from both domestic Chinese material suppliers and international chemical giants with broader product portfolios and greater R&D resources. The functional films market is characterized by high technical barriers but also significant price competition, particularly in standardized products. Leary's relatively small scale (CNY 525.6 million revenue) compared to global competitors may limit its ability to compete on cost for high-volume applications, though its specialization in niche electronic materials provides some insulation. The company's listing on the STAR Market provides access to capital for technology development, which is crucial for maintaining competitiveness in this innovation-driven sector. Success will depend on Leary's ability to continuously develop proprietary technologies and form strategic partnerships with leading electronics manufacturers in China's evolving supply chain.