| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 49.57 | 274 |
| Intrinsic value (DCF) | 6.23 | -53 |
| Graham-Dodd Method | 6.44 | -52 |
| Graham Formula | 0.03 | -100 |
Anhui Huaertai Chemical Co., Ltd. is a specialized chemical manufacturer based in Chizhou, China, with operations spanning research, development, production, and sales of diverse chemical products. Founded in 2000 and listed on the Shenzhen Stock Exchange, the company produces essential chemicals including ammonium sulfate, hydrogen peroxide, melamine, various acids (sulfuric, nitric, oleum), and industrial compounds like sodium nitrite and methanol. Operating within the Basic Materials sector and Specialty Chemicals industry, Huaertai serves critical industrial supply chains in agriculture, manufacturing, and materials processing. The company's product portfolio addresses fundamental industrial needs, positioning it as a key supplier in China's chemical manufacturing ecosystem. With its established presence and diversified chemical offerings, Anhui Huaertai plays a significant role in regional industrial development while navigating the competitive landscape of China's chemical sector. The company's strategic location in Anhui province provides logistical advantages for serving industrial markets across Eastern China.
Anhui Huaertai Chemical presents a mixed investment profile with moderate financial performance in a competitive sector. The company generated CNY 1.64 billion in revenue with net income of CNY 87.7 million, translating to diluted EPS of CNY 0.26. While the company maintains a conservative financial structure with minimal debt (CNY 60 million) relative to its market capitalization of CNY 4.03 billion, its profitability margins appear compressed. The positive operating cash flow of CNY 433.8 million is offset by substantial capital expenditures of CNY 580.8 million, indicating significant ongoing investment in production capacity. The beta of 0.381 suggests lower volatility than the broader market, potentially appealing to risk-averse investors. However, the modest dividend yield and competitive pressures in China's chemical industry warrant careful consideration of growth prospects and margin sustainability.
Anhui Huaertai Chemical operates in China's highly competitive specialty chemicals market, where scale, technological capability, and cost efficiency determine competitive positioning. The company's diversified product portfolio spanning fertilizers, industrial acids, and basic chemicals provides some insulation against demand fluctuations in specific segments. However, its relatively small market capitalization of approximately CNY 4 billion positions it as a mid-tier player in an industry dominated by chemical giants. Huaertai's competitive advantage appears rooted in regional market presence and product diversification rather than technological leadership or significant scale advantages. The company's low beta suggests stable but potentially limited growth prospects compared to more dynamic chemical innovators. Its substantial capital expenditures indicate ongoing modernization efforts, but competing against larger players with greater R&D budgets and distribution networks presents challenges. The company's location in Anhui province offers logistical benefits for serving Eastern China's industrial base, though this regional focus may limit national market penetration. Profitability metrics suggest Huaertai operates with thinner margins than industry leaders, likely reflecting intense price competition and the commodity-like nature of many products in its portfolio. Success will depend on operational efficiency improvements, potential specialization in higher-margin segments, and navigating environmental regulations affecting chemical production in China.