| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19.28 | -25 |
| Intrinsic value (DCF) | 265.62 | 934 |
| Graham-Dodd Method | 11.16 | -57 |
| Graham Formula | 16.59 | -35 |
HUNAN RESUN Co., Ltd. is a leading Chinese manufacturer of surfactants and detergents with a rich heritage dating back to 1956. Headquartered in Changsha, the company specializes in the research, development, production, and sale of a comprehensive portfolio of cleaning and personal care products, including washing powders, liquid detergents, soaps, toothpastes, and specialized hotel washing solutions. Operating within the Consumer Defensive sector, HUNAN RESUN has established a significant presence both domestically and internationally, exporting its products to approximately 50 countries and regions. The company's focus on surfactants—key active ingredients that lower surface tension in cleaning products—positions it as a critical supplier in the global household and personal care value chain. With its long-standing operational history and integrated R&D capabilities, HUNAN RESUN plays a vital role in China's consumer goods industry, catering to the essential needs of households and the hospitality sector while demonstrating resilience as a defensive stock. This SEO-optimized overview highlights HUNAN RESUN's business model, industry context, and sector relevance for investors seeking exposure to established Chinese consumer defensive companies.
HUNAN RESUN presents a mixed investment profile characterized by defensive attributes and modest growth metrics. The company's low beta of 0.266 suggests relative stability compared to broader market movements, appealing to risk-averse investors. With a market capitalization of approximately CNY 2.63 billion, it operates as a small-cap player in the consumer defensive space. Financial health appears reasonable with a net income of CNY 109 million on revenue of CNY 3.65 billion, though profit margins are thin at around 3%. The company maintains a strong balance sheet with minimal total debt (CNY 1.72 million) against cash holdings of CNY 663 million, indicating financial prudence. A dividend yield derived from the CNY 0.51 per share payout provides income component. However, investors should note the modest earnings per share of CNY 0.83 and the capital-intensive nature evidenced by significant capital expenditures. The primary investment thesis revolves around HUNAN RESUN's defensive positioning, international footprint, and financial stability, though growth prospects appear limited given the mature nature of its core markets.
HUNAN RESUN operates in the highly competitive household and personal products industry, where its competitive positioning is defined by several key factors. The company's primary competitive advantage stems from its specialized focus on surfactants—the essential chemical compounds that enable cleaning action in detergents. This technical expertise, developed over nearly seven decades since its 1956 founding, provides a manufacturing depth that distinguishes it from purely branded consumer product companies. HUNAN RESUN's dual role as both a B2B ingredient supplier and B2C finished goods producer creates diversification benefits, though it faces competition on both fronts. In the domestic Chinese market, the company competes with larger, more diversified consumer goods conglomerates that benefit from greater scale, brand recognition, and distribution networks. Its international exports to 50 countries demonstrate global competency but likely face margin pressure from commoditized product categories and competition from lower-cost manufacturers. The company's competitive positioning is further shaped by its relatively small size (CNY 2.63B market cap) within an industry dominated by giants, limiting its marketing and R&D resources compared to global leaders. However, HUNAN RESUN's minimal debt load and strong cash position provide financial flexibility that could support niche market expansion or product specialization. The company's longevity and established manufacturing capabilities represent enduring strengths, though its ability to differentiate in crowded market segments remains a persistent challenge. Competitive advantages appear more pronounced in technical manufacturing rather than brand-driven consumer facing businesses.