| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.71 | 631 |
| Intrinsic value (DCF) | 1.71 | -55 |
| Graham-Dodd Method | 2.61 | -31 |
| Graham Formula | 5.20 | 37 |
Yotrio Group Co., Ltd. stands as a prominent Chinese manufacturer and global supplier in the outdoor furniture industry. Founded in 1992 and headquartered in Linhai, China, the company has established a comprehensive portfolio specializing in the research, development, and sale of a diverse range of outdoor furniture. Its product lines include aluminum and steel furniture, meshes, wickers, resin wood, and wood products, catering to residential and commercial markets worldwide. Yotrio operates under a multi-brand strategy, featuring well-known names such as Das Original, Royal Garden, SunVilla, and Outdoor Essentials, which allows it to target different market segments and price points. As a key player in the Consumer Cyclical sector within the Furnishings, Fixtures & Appliances industry, Yotrio leverages its integrated manufacturing capabilities and global distribution network to serve customers across China and internationally. The company's long-standing presence since the early 1990s has cemented its reputation for quality and innovation in the competitive outdoor living space, making it a significant entity for investors tracking the home and garden consumer goods market.
Yotrio presents a mixed investment profile characterized by moderate profitability but concerning cash flow dynamics. With a market capitalization of approximately CNY 8.5 billion and a low beta of 0.244, the stock may offer lower volatility relative to the broader market. The company generated solid revenue of CNY 5.68 billion for the period, translating to a net income of CNY 462 million and a diluted EPS of CNY 0.21, indicating reasonable operational efficiency. However, a significant risk factor is the weak operating cash flow of CNY 242.9 million, which is only slightly above half of the net income, suggesting potential issues with working capital management or receivables. While the company maintains a cash position of CNY 770 million against total debt of CNY 1.13 billion, the modest dividend of CNY 0.04 per share reflects a conservative capital return policy. Investors should closely monitor the company's ability to convert earnings into sustainable cash flow in future periods.
Yotrio Group's competitive positioning is anchored by its vertically integrated manufacturing model and multi-brand strategy, which allows it to serve various customer segments from premium to value-oriented markets. The company's three-decade history provides established supply chain relationships and manufacturing expertise, particularly in aluminum and steel products, giving it a cost advantage in production. Its portfolio of brands, including Das Original and SunVilla, enables targeted marketing and distribution channel management. However, Yotrio operates in a highly fragmented and competitive global outdoor furniture market where brand recognition, design innovation, and distribution reach are critical differentiators. The company's primary competitive challenge lies in competing against larger international players with stronger global brand equity and more extensive retail partnerships. While Yotrio's Chinese manufacturing base offers cost advantages, it may face perception challenges regarding quality in certain premium markets compared to European or North American competitors. The company's relatively modest operating cash flow compared to net income suggests potential competitive pressures on working capital terms or inventory management efficiency. Yotrio's future competitive success will depend on its ability to enhance brand value, innovate in product design and materials, and expand its direct-to-consumer and international distribution capabilities while maintaining cost discipline.