Risk factor
Meaningful price volatility
Profitability factor
Undervalued vs peers
About
Founded in 1982 and headquartered in Linzhou, China, Linzhou Heavy Machinery Group Co.,Ltd (002535.SZ) is a prominent manufacturer and supplier of coal mining equipment within China. Specializing in solutions for coal extraction, their comprehensive product portfolio includes essential items such as roadheaders, shearers, belt and scraper conveyors, metal roof beams, fluid couplings, rescue cabins, and advanced hydraulic support series. They also provide electro-hydraulic control systems and various casting and forging accessories. Beyond its core mining machinery operations, the company has diversified into several other key areas. These include steel casting and forging, manufacturing equipment for the energy industry, and the provision of financial leasing solutions. Furthermore, Linzhou Heavy Machinery is involved in military equipment production, the development of explosion-proof electrical appliances, and a suite of services covering coal mine operations, maintenance, and equipment leasing.
Company Valuation
Considering past and projected metrics, the stock is 'cheaper' than its peers. Specifically, the stock is overvalued on EV/EBITDA, underpriced on P/FC.