| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 1.89 | -25 |
| Graham Formula | 5.46 | 118 |
YSX Tech. Co., Ltd (NASDAQ: YSXT) is a China-based provider of insurance aftermarket value-added services, specializing in auto insurance and brokerage support. The company offers a comprehensive suite of vehicle safety inspection services, including gearbox, transmission, steering system, and electronic system checks, alongside driving risk screening. Additionally, YSXT provides designated driver and rescue services, such as towing and jump-starts, as well as vehicle maintenance solutions like car washes, oil changes, and battery services. Operating in the Specialty Business Services sector under Industrials, YSXT also engages in software development and IT services. Founded in 2022 and headquartered in Guangzhou, the company is a subsidiary of Jeffre Xiao XJ Holding Limited. With a market cap of approximately $115 million, YSXT serves a niche but growing segment in China's automotive aftermarket industry, leveraging technology to enhance insurance-related services.
YSX Tech. Co., Ltd presents a specialized investment opportunity in China's auto insurance aftermarket sector, with a focus on value-added services. The company's revenue of $58.5 million and net income of $4.6 million in FY 2024 reflect its early-stage growth potential. However, negative operating cash flow (-$693,959) raises liquidity concerns, though its modest debt ($3.8 million) and cash reserves ($4.3 million) provide some buffer. The lack of dividends and low beta (0.69) suggest limited volatility but also lower growth appeal. Investors should weigh YSXT's niche positioning against execution risks in a competitive market and regulatory uncertainties in China's insurance sector.
YSX Tech. Co., Ltd competes in China's fragmented auto insurance aftermarket services space, differentiating itself through integrated inspection, maintenance, and rescue offerings. Its competitive advantage lies in bundling these services for insurance providers, creating stickiness. However, the company faces challenges from larger automotive service chains and standalone tech-driven platforms that offer similar inspections or maintenance. YSXT's asset-light model (minimal capex) allows agility but may limit scalability compared to vertically integrated rivals. Its software development capabilities could enhance digital integration with insurers, though this remains underdeveloped relative to established IT service providers in the auto sector. The lack of brand recognition outside its regional focus (Guangzhou) further constrains its ability to compete nationally against incumbents like Autohome or Tuhu.