| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 31.05 | 16 |
| Intrinsic value (DCF) | 8.95 | -67 |
| Graham-Dodd Method | 9.25 | -65 |
| Graham Formula | n/a |
Hangzhou Chuhuan Science & Technology Company Limited is a specialized environmental protection solutions provider headquartered in Hangzhou, China. Founded in 2005 and listed on the Shenzhen Stock Exchange, the company focuses on industrial pollution control with core expertise in exhaust gas and odor control systems. Chuhuan's comprehensive service portfolio includes designing and implementing air pollution abatement solutions, selling water treatment equipment, and providing ongoing equipment maintenance services. Operating within China's rapidly growing environmental protection sector, the company addresses critical industrial compliance needs as the country intensifies its environmental regulations. As a niche player in the Industrial - Pollution & Treatment Controls industry, Chuhuan serves manufacturing and industrial clients requiring specialized emission control technologies. The company's regional focus in Zhejiang province, one of China's industrial heartlands, positions it strategically to capitalize on the nation's increasing emphasis on sustainable industrial development and stricter environmental standards enforcement.
Hangzhou Chuhuan presents a mixed investment profile with several notable characteristics. The company demonstrates financial stability with a modest net income of CNY 28.3 million on revenue of CNY 401.7 million, translating to a diluted EPS of CNY 0.35. Positive operating cash flow of CNY 52.2 million indicates operational efficiency, though significant capital expenditures of CNY -102.8 million suggest ongoing investment in growth. The company maintains a conservative financial structure with total debt of CNY 65.8 million against cash reserves of CNY 189.7 million, supported by a remarkably low beta of 0.144 indicating low volatility relative to the market. However, the modest market capitalization of approximately CNY 1.83 billion reflects the company's small-cap status in a competitive sector. The dividend payment of CNY 0.15 per share provides income appeal, but investors should consider the company's exposure to China's regulatory environment and its ability to compete against larger environmental solution providers.
Hangzhou Chuhuan Science & Technology operates in a highly competitive segment of China's environmental protection industry, specializing in niche pollution control solutions. The company's competitive positioning is defined by its regional focus and specialized expertise in exhaust gas and odor control systems, which differentiates it from broader environmental service providers. Chuhuan's competitive advantage appears to stem from its technical specialization and localized service capabilities in Zhejiang province, a major industrial region. However, the company faces significant scale disadvantages compared to larger national and international competitors who benefit from greater financial resources, broader geographic coverage, and more diversified service offerings. The competitive landscape is characterized by intense price competition and technological innovation pressures, particularly as Chinese environmental standards become increasingly stringent. Chuhuan's relatively small size (CNY 401.7 million revenue) limits its ability to undertake large-scale projects that larger competitors can pursue. The company's maintenance services business provides recurring revenue streams and customer retention advantages, but technological obsolescence risk remains a concern in this rapidly evolving sector. Success likely depends on maintaining strong regional relationships, technical expertise in specific pollution control applications, and cost-effective solutions for mid-sized industrial clients who may be underserved by larger competitors.