Xi'an Bright Laser Technologies Co.,Ltd. provides metal additive manufacturing and repairing solutions. The company offers customized products, equipment, raw materials, software, and 3D printing and other technical services. It serves various industries, including aerospace, national defense, energy, medical, mold, automobile, and others. The company was founded in 2011 and is headquartered in Xi'an, the People's Republic of China.

China

Xi'an Bright Laser Technologies Co.,Ltd.

Industrials

The company pays dividends from time to time. It has paid dividends in less than half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

688333.SS reported revenue of CNY 1 283mn in the last 12 months, up 2% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 82% from FY24 to CNY 0.05. Market expects EPS to reach CNY 0.53 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 34ppts over past six months and grown 4ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 5.3% in the last 12 months, a decline from 22.7% in FY23. 

Historically, 688333.SS has reported average net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 4.6%, down from 11.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 1.1%, below the peers. The consensus estimate for FY24 for RoCE is 2.0%, again behind the peers. 

Xi'an Bright Laser Technologies Co.,Ltd. reported a return on equity (RoE) of 1.2% in the last 12 months, down from 4.5% in FY23. The market consensus projects an RoE of 1.9% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to 0.8% in the last 12 months, a decrease from 3.0% in FY23. The market analysts predict that RoA will be 1.4% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.2 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

688333.SS boasts high trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, and poor working capital management.

In highly turbulent market conditions, 688333.SS is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, 688333.SS is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to average. We would also like to highlight the average intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITD. 

Xi'an Bright Laser Technologies Co.,Ltd.

CN¥ 62.76

4

Xi'an Bright Laser Technologies Co.,Ltd.

CN¥ 62.76

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 62.76

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