Risk factor
Weak & very vulnerable to price shocks
Profitability factor
Good growth
About
Sichuan Zigong Conveying Machine Group Co., Ltd. is a Chinese enterprise that specializes in the engineering and manufacturing of equipment for material handling and transport. Its comprehensive product range encompasses various types of conveyors, such as belt, pipe, bucket, screw, chain, and curved belt systems, alongside essential associated components like drive units, holdback mechanisms, bucket elevators, gearboxes, and backstops. These conveyance solutions are crucial for operations across a multitude of sectors, including power generation, metallurgy (steel and iron production), coal mining, transportation, hydroelectric power, chemical processing, petroleum, and the building material industry. Founded in 2003 and based in Zigong, China, the company not only serves the domestic market but also maintains a significant international footprint, exporting its products to numerous countries globally. Its export destinations include India, Nigeria, Senegal, Pakistan, Indonesia, Laos, Vietnam, Malaysia, the United States, Mali, and Myanmar, among others.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITD.