| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.74 | 233 |
| Intrinsic value (DCF) | 3.27 | -54 |
| Graham-Dodd Method | 2.78 | -61 |
| Graham Formula | n/a |
Keshun Waterproof Technology Co., Ltd. is a leading Chinese manufacturer specializing in comprehensive waterproof engineering solutions for the construction industry. Founded in 1996 and headquartered in Foshan, China, Keshun has established itself as a key player in the basic materials sector, specifically within the chemicals industry. The company's diverse product portfolio includes waterproof coiled materials, waterproof coatings, mortar paints, sealing materials, construction auxiliary materials, metal roofing materials, tile paving systems, and repair plugging solutions. Keshun serves both new construction and building repair markets, providing integrated waterproofing systems that address critical infrastructure needs across residential, commercial, and industrial projects. Operating on the Shenzhen Stock Exchange, the company leverages its technical expertise and manufacturing capabilities to maintain a strong market position in China's rapidly evolving construction materials landscape. As urbanization continues and building quality standards rise in China, Keshun's focus on durable, reliable waterproofing solutions positions it well within the essential building materials supply chain.
Keshun Waterproof Technology presents a mixed investment profile with several concerning financial metrics. While the company maintains substantial cash reserves of CNY 3.42 billion, it carries significant total debt of CNY 4.13 billion, resulting in a leveraged balance sheet. The company generated revenue of CNY 6.83 billion but achieved minimal net income of CNY 44.07 million, indicating very thin profit margins of approximately 0.6%. The diluted EPS of CNY 0.04 reflects this profitability challenge. Positive aspects include reasonable operating cash flow of CNY 315.6 million and a generous dividend payment of CNY 0.30 per share, which significantly exceeds earnings. However, the high beta of 1.242 suggests above-average volatility relative to the market. Investors should carefully consider the company's ability to improve profitability while managing its debt load in a competitive construction materials market.
Keshun Waterproof Technology operates in a highly competitive Chinese construction materials market where scale, technical expertise, and distribution networks are critical competitive advantages. The company's primary strength lies in its comprehensive product portfolio that covers the entire waterproofing value chain, from basic materials to complete engineering solutions. This vertical integration allows Keshun to serve diverse customer needs across both new construction and maintenance segments. However, the company faces intense competition from larger, more established players with greater financial resources and broader geographic reach. Keshun's relatively thin profit margins suggest pricing pressure and potentially limited pricing power in the market. The company's competitive positioning is further challenged by its significant debt load, which may constrain investment in innovation and market expansion compared to better-capitalized competitors. While Keshun's long-standing presence since 1996 provides brand recognition and customer relationships, the highly fragmented nature of China's construction materials industry means the company must continuously demonstrate technical superiority and cost efficiency to maintain market share. The company's future competitiveness will depend on its ability to leverage its specialized expertise while improving operational efficiency and financial stability.