Intrinsic Value Shenzhen Feima International Supply Chain Co., Ltd. (002210.SZ)

• Previous Close: $3.15
• Intrinsic Value: $1.01
• Upside potential: -68%

Stock Valuation Context

Business Model And Market Position

Shenzhen Feima International Supply Chain operates as a diversified industrial services provider with a core focus on integrated supply chain solutions. The company generates revenue through coal procurement, logistics, and distribution services tailored for terminal users, complemented by comprehensive import/export customs clearance and procurement execution capabilities. Its operations extend to specialized sectors including corporate overseas contracting, foreign aid services, and a non-ferrous metal e-commerce platform, creating multiple revenue streams. Beyond traditional supply chain management, Feima has diversified into renewable energy through straw and garbage power generation projects, solid waste processing, and industrial park development. This strategic expansion positions the company at the intersection of industrial logistics and environmental sustainability. The firm maintains a distinctive market position by combining physical logistics infrastructure with digital commerce platforms, serving both domestic Chinese and international markets from its Shenzhen headquarters established in 1998.

Revenue Profitability And Efficiency

The company reported revenue of approximately CNY 239 million for the period, demonstrating moderate scale within its specialized industrial niche. Net income reached CNY 28.5 million, indicating effective cost management and a healthy net profit margin of approximately 12%. Operating cash flow generation was robust at CNY 89.4 million, significantly exceeding net income and reflecting strong cash conversion efficiency. Capital expenditures of CNY 91 million suggest ongoing investment in operational infrastructure and business expansion initiatives.

Earnings Power And Capital Efficiency

Feima International delivered diluted earnings per share of CNY 0.0107, translating the company's profitability to a per-share basis for investor analysis. The substantial operating cash flow relative to net income indicates quality earnings supported by actual cash generation. The company's capital allocation strategy appears balanced between maintaining operational capabilities through significant capital investments and preserving financial flexibility, with capex nearly matching operating cash flow for the period.

Balance Sheet And Financial Health

The company maintains a conservative financial structure with cash and equivalents of CNY 105.6 million providing substantial liquidity coverage. Total debt stands at CNY 29 million, resulting in a strong net cash position that enhances financial stability. This low-leverage profile supports operational resilience and provides capacity for strategic investments or weathering industry cyclicality without significant financial stress.

Growth Trends And Dividend Policy

Current financial metrics suggest a company focused on reinvesting earnings into business development rather than shareholder distributions, as evidenced by a dividend per share of zero. The capital expenditure level relative to operating cash flow indicates an expansion-oriented strategy across its diversified service segments. The company's growth trajectory appears driven by organic investments in both traditional supply chain services and newer renewable energy initiatives.

Valuation And Market Expectations

With a market capitalization of approximately CNY 9.66 billion, the company trades at a significant premium to its reported financial metrics, suggesting market expectations for future growth beyond current operational scale. The negative beta of -0.003 indicates low correlation with broader market movements, potentially reflecting the specialized nature of its business model and investor perception of defensive characteristics in its service offerings.

Strategic Advantages And Outlook

Feima's strategic positioning combines traditional supply chain expertise with emerging environmental services, creating diversification benefits across economic cycles. The company's established presence since 1998 provides operational experience, while its renewable energy initiatives align with China's sustainability priorities. The outlook depends on successful execution across its diversified portfolio and ability to scale newer business segments while maintaining profitability in core operations.

Sources

Company filingsShenzhen Stock Exchange data