| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 31.12 | 122 |
| Intrinsic value (DCF) | 14.05 | 0 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 12.00 | -14 |
Sichuan Guoguang Agrochemical Co., Ltd. is a prominent Chinese agrochemical manufacturer specializing in the research, development, production, and distribution of comprehensive crop protection solutions. Founded in 1984 and headquartered in Chengdu, the company's diverse product portfolio includes plant growth regulators, fertilizers, fungicides, insecticides, bio-pesticides, and herbicides. Operating within China's vital Basic Materials sector, Sichuan Guoguang serves both domestic agricultural markets and international clients across the United States, Japan, Korea, Malaysia, Vietnam, Pakistan, and Egypt. The company's strategic positioning in China's agricultural heartland enables it to address the growing demand for advanced crop protection technologies while contributing to global food security. With over three decades of industry experience, Sichuan Guoguang has established itself as a reliable supplier in the competitive agrochemical landscape, leveraging its manufacturing expertise and research capabilities to develop sustainable agricultural solutions. The company's international export business demonstrates its competitive quality standards and ability to meet diverse regulatory requirements across multiple markets.
Sichuan Guoguang presents a conservative investment profile with moderate financial performance and low market volatility. The company generated CNY 1.99 billion in revenue with net income of CNY 367 million, translating to a diluted EPS of CNY 0.80. The investment case is supported by strong liquidity with CNY 1.42 billion in cash against minimal debt of CNY 16.8 million, indicating a robust balance sheet. The generous dividend of CNY 1.3 per share represents a significant payout ratio, appealing to income-focused investors. However, the company's low beta of 0.186 suggests limited correlation with broader market movements, which may appeal to defensive investors but could indicate slower growth prospects. The modest operating cash flow of CNY 437.7 million relative to market capitalization warrants monitoring of operational efficiency. The agrochemical sector's sensitivity to agricultural cycles and regulatory changes presents both opportunities and risks that investors should carefully evaluate.
Sichuan Guoguang operates in the highly competitive Chinese agrochemical market, where it must compete against both state-owned enterprises and private sector players. The company's competitive positioning is defined by its specialized focus on plant growth regulators alongside traditional crop protection products, creating a differentiated product portfolio. Its international export business to multiple countries demonstrates quality standards that meet diverse regulatory requirements, providing a competitive edge in global markets. However, the company faces significant competition from larger domestic players with greater scale and resources. The agrochemical industry is characterized by high research and development requirements, regulatory compliance costs, and increasing environmental standards, which may challenge smaller players like Sichuan Guoguang. The company's minimal debt position provides financial flexibility but may also indicate conservative growth strategies compared to more aggressive competitors. Its location in Chengdu, a major agricultural region, offers logistical advantages for serving key domestic markets. The competitive landscape requires continuous innovation and cost management to maintain market position against both domestic giants and international agrochemical corporations expanding in the Chinese market. The company's ability to maintain export relationships across Asia, North America, and Africa suggests established quality and reliability, though pricing pressure from generic product manufacturers remains a persistent challenge.