| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 143.61 | 8765 |
| Intrinsic value (DCF) | 5.79 | 257 |
| Graham-Dodd Method | 13.31 | 721 |
| Graham Formula | 7.39 | 356 |
Wetouch Technology Inc. (OTC: WETH) is a specialized manufacturer of medium to large-sized projected capacitive touchscreens, serving industries such as automotive, financial terminals, industrial HMI, gaming, and smart home applications. Founded in 2011 and headquartered in Meishan, China, the company offers a diverse product portfolio, including Glass-Glass, Glass-Film-Film, Plastic-Glass, and Glass-Film touchscreens, catering to high-end GPS systems, automotive entertainment panels, point-of-sale terminals, and industrial automation. Wetouch Technology operates primarily in China, Taiwan, and South Korea, with a growing international presence. The company’s focus on high-quality, durable touchscreens positions it as a key supplier for specialized industries requiring precision and reliability. Despite being classified under Real Estate - Services, its core business aligns more closely with advanced electronics manufacturing, making it a niche player in the touchscreen technology market.
Wetouch Technology presents a mixed investment profile. On the positive side, the company maintains strong profitability with a net income of $8.26M (20.8% margin) and robust operating cash flow ($12.7M). Its debt levels are minimal ($1.7M), and it holds a substantial cash reserve ($98M), providing financial stability. However, the stock trades on the OTC market with low liquidity and a beta of 0.071, indicating minimal correlation with broader market movements. The lack of dividends may deter income-focused investors. Additionally, its classification under Real Estate - Services is misleading, potentially causing investor confusion. Growth prospects depend on demand from automotive and industrial sectors, but competition from larger electronics manufacturers poses a risk.
Wetouch Technology competes in the specialized touchscreen market, differentiating itself through customized solutions for automotive, industrial HMI, and financial terminals. Its competitive advantage lies in its product durability and adaptability to niche applications, such as high-end car entertainment systems and lottery machines. However, the company faces intense competition from larger global touchscreen manufacturers with greater R&D budgets and economies of scale. Wetouch’s small market cap ($11.7M) limits its ability to invest in cutting-edge innovations compared to industry leaders. Its focus on medium-to-large touchscreens (7-42 inches) allows it to avoid direct competition with consumer electronics giants but leaves it vulnerable to pricing pressures from regional Asian manufacturers. The company’s financial strength (high cash reserves, low debt) provides stability, but its OTC listing and limited brand recognition outside China constrain its growth potential. Expansion into international markets could improve its positioning, but execution risks remain high given the dominance of established players in North America and Europe.