| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.44 | 504 |
| Intrinsic value (DCF) | 1.92 | -54 |
| Graham-Dodd Method | 6.22 | 48 |
| Graham Formula | 0.64 | -85 |
Zhejiang Yasha Decoration Co., Ltd. is a prominent Chinese architectural decoration company founded in 1995 and headquartered in Hangzhou. Specializing in comprehensive interior and exterior decoration solutions, Yasha Decoration serves a diverse clientele including hotels, large public buildings, high-end residences, airports, transportation stations, commercial complexes, financial institutions, hospitals, and cultural centers. The company's integrated service portfolio encompasses curtain wall systems, landscaping, mechanical and electrical installation, building intellectualization, and stone processing, positioning it as a full-service provider in China's booming construction sector. Operating within the Consumer Cyclical sector's Furnishings, Fixtures & Appliances industry, Yasha leverages its nearly three decades of experience to capitalize on China's urban development and infrastructure growth. With a market capitalization of approximately CNY 5.2 billion, the company has established itself as a reliable contractor for high-profile projects across Eastern China and beyond, benefiting from the region's continuous economic expansion and real estate development.
Zhejiang Yasha Decoration presents a mixed investment profile with moderate appeal. The company's low beta of 0.563 suggests relative stability compared to the broader market, which may attract risk-averse investors in the volatile construction sector. However, with a net income margin of just 2.5% on CNY 12.1 billion revenue, operational efficiency appears constrained. The positive operating cash flow of CNY 243 million and substantial cash reserves of CNY 2.57 billion provide financial flexibility, though the modest EPS of CNY 0.23 and dividend yield indicate limited shareholder returns. The company's exposure to China's property market slowdown represents a significant headwind, while its specialization in high-end projects could provide some insulation from broader market weakness. Investors should monitor the company's ability to maintain profitability amid China's ongoing real estate sector challenges.
Zhejiang Yasha Decoration operates in a highly fragmented and competitive Chinese architectural decoration market. The company's competitive positioning is built on its regional strength in Zhejiang province and Eastern China, where its long-established presence since 1995 provides local market knowledge and client relationships. Yasha's comprehensive service offering—spanning interior/exterior decoration, curtain walls, landscaping, and building intellectualization—creates a one-stop-shop advantage for large-scale projects requiring integrated solutions. However, the company faces intense competition from both large national players and numerous local contractors. The architectural decoration industry in China is characterized by low barriers to entry in certain segments, leading to price competition that pressures margins. Yasha's focus on high-end projects including hotels, airports, and cultural centers provides some differentiation from mass-market competitors, but also exposes it to cyclical fluctuations in commercial and public construction spending. The company's moderate scale (CNY 12.1 billion revenue) positions it as a mid-tier player rather than a market leader, limiting its bargaining power with suppliers and clients compared to larger national competitors. Its technological capabilities in building intellectualization and curtain wall systems represent areas of potential competitive advantage, though these require continuous investment to maintain relevance.