| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.35 | 92 |
| Intrinsic value (DCF) | 2.74 | -77 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Anhui Deli Household Glass Co., Ltd. (002571.SZ) is a prominent Chinese manufacturer specializing in high-quality hotel and household glassware products. Founded in 2002 and headquartered in Chuzhou, Anhui Province, the company has established itself as a key player in China's consumer defensive sector. Deli's diverse product portfolio includes goblets, cups, water sets, dishes, bowls, sealed tanks, wine dispensers, ashtrays, decanters, and kitchen supplies like kettle tea makers. The company markets its products under multiple well-recognized brands including Green Apple, AGLAIA, DeLi, Spele, and Idelita, utilizing both online platforms and regional sales teams. With significant export operations, Anhui Deli serves both domestic and international markets, positioning itself at the intersection of traditional manufacturing and modern consumer goods. The company operates in the competitive household and personal products industry, where quality, brand recognition, and distribution networks are critical success factors. As consumer preferences evolve toward premium household goods, Anhui Deli's focus on glassware manufacturing presents both opportunities in the growing home goods market and challenges from alternative materials and international competition.
Anhui Deli presents a challenging investment case with significant financial headwinds offset by its established market position. The company reported a net loss of CNY 173 million for the period with negative EPS of -0.44, indicating operational difficulties. However, positive operating cash flow of CNY 124 million suggests some underlying business viability. The company's market capitalization of approximately CNY 3.08 billion reflects investor expectations of recovery potential. With a beta of 1.05, the stock exhibits slightly higher volatility than the market, typical for consumer goods manufacturers. The absence of dividends and substantial debt of CNY 872 million against cash reserves of CNY 181 million raises liquidity concerns. Investment attractiveness hinges on the company's ability to return to profitability, manage its debt load, and capitalize on its brand portfolio and export capabilities in a competitive glassware market.
Anhui Deli operates in a highly competitive glassware market characterized by fragmentation, price sensitivity, and evolving consumer preferences. The company's competitive positioning relies on its multi-brand strategy, manufacturing expertise, and dual-channel distribution approach. Deli's portfolio spanning from premium (AGLAIA) to value-oriented (Green Apple) brands allows it to target different market segments, though this may dilute brand focus. The company's export operations provide geographic diversification but expose it to international competition and trade dynamics. Financially, Deli's current unprofitability weakens its competitive stance against more financially stable rivals. The company's competitive advantages include its established manufacturing capabilities, brand portfolio, and domestic market presence. However, these are offset by challenges including intense competition from both large-scale manufacturers and specialized glassware producers, pressure from alternative materials like plastic and stainless steel, and the capital-intensive nature of glass manufacturing. The company's negative net income and EPS suggest operational inefficiencies or market share pressures that require addressing to strengthen its competitive position. Deli's ability to innovate in product design, improve cost structures, and enhance brand differentiation will be critical for regaining competitive advantage in both domestic and export markets.