| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 50.43 | 17 |
| Intrinsic value (DCF) | 22.82 | -47 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 37.00 | -14 |
Zhejiang Supor Co., Ltd. stands as a leading Chinese manufacturer and global distributor of comprehensive kitchen and household appliances. Founded in 1994 and headquartered in Hangzhou, Supor has established itself as a dominant force in the consumer cyclical sector, specifically within furnishings, fixtures, and appliances. The company's diversified product portfolio spans three core categories: cookware (including pressure cookers, woks, and cookware sets), small kitchen electric appliances (such as rice cookers, induction hobs, and electric kettles), and large kitchen appliances (including range hoods and gas stoves). Supor's integrated business model encompasses research and development, manufacturing, and global sales, enabling it to control quality and costs effectively. Operating in the highly competitive home appliances market, Supor leverages its strong brand recognition and extensive distribution network within China while expanding its international footprint. The company's focus on innovation and a complete product ecosystem for the modern kitchen positions it to capitalize on consumer trends towards convenience, health, and smart home integration. As a key player on the Shenzhen Stock Exchange, Supor represents a significant investment opportunity tied to the growth of China's consumer market and the global demand for reliable household goods.
Supor presents an attractive investment profile characterized by strong profitability, a healthy balance sheet, and shareholder-friendly policies. With a market capitalization of approximately CNY 40.1 billion, the company demonstrates robust financial health, evidenced by a net income of CNY 2.24 billion on revenues of CNY 22.43 billion, translating to a solid net margin of around 10%. The company's low beta of 0.532 suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. Supor's strong cash generation is highlighted by an operating cash flow of CNY 2.58 billion, significantly exceeding capital expenditures, resulting in substantial free cash flow. The balance sheet is conservative, with cash and equivalents of CNY 2.48 billion outweighing total debt of CNY 1.52 billion. A notable positive is the full payout of earnings as dividends, with a dividend per share matching its diluted EPS of CNY 2.81. Primary risks include exposure to cyclical consumer spending, intense competition in the home appliance sector, and potential raw material cost inflation impacting margins.
Supor's competitive advantage is rooted in its strong brand equity within China, a comprehensive product portfolio that creates cross-selling opportunities, and a vertically integrated model that ensures quality control and cost efficiency. The company's positioning as a one-stop shop for kitchen solutions, from basic cookware to sophisticated electric appliances, allows it to build customer loyalty and benefit from ecosystem effects. Its extensive distribution network across China provides a significant barrier to entry for new competitors. However, Supor operates in a fiercely competitive landscape. It faces pressure from both domestic giants like Midea and Gree, which boast larger scales and broader product ranges extending beyond kitchen appliances into air conditioners and white goods, and from international players like SEB, which owns Supor's parent company and competes globally. Supor's focus primarily on kitchenware is both a strength, allowing for specialization, and a potential weakness, as it lacks the diversification of its largest competitors. The company's innovation in product design and smart technology integration is crucial for maintaining its market position against rivals who are also investing heavily in R&D. While Supor holds a leading position in specific cookware categories, its ability to gain share in the highly contested large appliance market against established players remains a key challenge and opportunity for future growth.