| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.57 | 215 |
| Intrinsic value (DCF) | 3.19 | -64 |
| Graham-Dodd Method | 1.15 | -87 |
| Graham Formula | n/a |
Qingdao Kingking Applied Chemistry Co., Ltd. is a prominent Chinese manufacturer and distributor in the consumer defensive sector, specializing in personal care and household products. Founded in 1993 and headquartered in Qingdao, the company has established a diverse portfolio under its ALLL BEAUTY brand, encompassing skincare, makeup, fragrances, facial masks, and maternal-infant products. Kingking operates both domestically within China and internationally, leveraging online sales channels to reach a broad consumer base. The company's unique positioning combines chemical manufacturing expertise with consumer brand development, creating an integrated business model from production to retail. In the competitive Chinese personal care market, Kingking competes by offering affordable quality products while maintaining manufacturing control over its supply chain. The company's longevity since 1993 demonstrates resilience in the evolving cosmetics industry, though it faces intense competition from both domestic giants and international brands expanding in the Chinese market. As consumer preferences shift toward quality and value in personal care, Kingking's vertical integration provides potential cost advantages while its ALLL BEAUTY brand seeks to capture market share in China's growing beauty sector.
Qingdao Kingking presents a mixed investment profile with several concerning financial metrics despite its established market position. The company's negative operating cash flow of -CNY 21.6 million and substantial capital expenditures of -CNY 23.3 million raise liquidity concerns, particularly when combined with significant total debt of CNY 1.07 billion against cash reserves of CNY 591.7 million. While the company maintains positive net income of CNY 35.1 million on revenue of CNY 1.79 billion, the thin profit margins and negative cash generation suggest operational challenges. The negative beta of -0.273 indicates potential defensive characteristics but may also reflect limited market correlation. The absence of dividends and modest EPS of 0.051 CNY further limit income appeal. Investors should carefully monitor the company's ability to improve cash flow generation and manage its debt load in a highly competitive personal care market.
Qingdao Kingking operates in the intensely competitive Chinese personal care and cosmetics market, where it faces pressure from both domestic powerhouses and international brands. The company's competitive positioning is defined by its vertical integration as both manufacturer and brand owner, which theoretically provides cost control advantages but appears to be delivering limited profitability in practice. Kingking's ALLL BEAUTY brand targets the mid-market segment where competition is most fierce, competing against brands that often have stronger marketing budgets and distribution networks. The company's manufacturing capabilities represent a potential strength, allowing for quality control and private label opportunities, but this hasn't translated into significant competitive advantage given the current financial performance. In the online channel where Kingking operates, it faces particularly intense competition from digitally-native brands and e-commerce giants that dominate consumer attention. The company's international operations provide diversification but likely face even stiffer competition from established global brands. Kingking's longevity since 1993 suggests some brand resilience, but the financial metrics indicate it may be losing ground to more agile competitors. The competitive landscape requires Kingking to either differentiate its product offerings more effectively or achieve greater operational efficiencies to improve margins in a market where scale players increasingly dominate.