| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.16 | 183 |
| Intrinsic value (DCF) | 2.64 | -68 |
| Graham-Dodd Method | 3.31 | -59 |
| Graham Formula | 1.31 | -84 |
China Animal Husbandry Industry Co., Ltd. (CAHIC) is a prominent Chinese manufacturer and distributor of animal health and nutrition products, playing a critical role in the nation's food security and agricultural sector. Founded in 1998 and headquartered in Beijing, the company operates across three core segments: veterinary drugs and vaccines, veterinary biological products, and feed and feed additives. This integrated approach positions CAHIC as a key supplier to China's massive livestock industry, which is essential for meeting the protein demands of its population. As a publicly traded entity on the Shanghai Stock Exchange, the company leverages its strategic location and deep industry expertise to serve a vital link in the agricultural value chain. Its business model focuses on improving animal health and productivity, which directly supports the stability and efficiency of China's domestic meat, dairy, and egg production. For investors and industry stakeholders, CAHIC represents a specialized play on China's ongoing modernization of its agriculture and healthcare sectors, combining elements of pharmaceutical manufacturing with essential agribusiness services.
China Animal Husbandry Industry presents a mixed investment profile characterized by its essential role in China's food supply chain against a backdrop of modest profitability and significant leverage. The company's ultra-low beta of 0.359 suggests defensive characteristics and low correlation to broader market movements, which may appeal to risk-averse investors seeking exposure to China's agricultural modernization. However, with a net income margin of just 1.18% on CNY 6.02 billion in revenue, operational efficiency appears challenged. The company maintains adequate liquidity with CNY 1.09 billion in cash, though total debt of CNY 1.01 billion results in a concerning debt-to-equity position. The minimal dividend yield provides limited income appeal. Investment attractiveness hinges on China's policy support for domestic food security and livestock industry development, but investors must weigh these macro tailwinds against the company's thin margins and leveraged balance sheet.
China Animal Husbandry Industry Co. operates in a highly fragmented market with competition from both domestic players and multinational corporations. The company's competitive positioning is strengthened by its integrated product portfolio spanning vaccines, pharmaceuticals, and nutrition products, creating cross-selling opportunities within China's vast livestock sector. Its Beijing headquarters provides proximity to regulatory authorities and policy makers, potentially facilitating smoother product approvals and awareness of agricultural development initiatives. However, CAHIC faces intense competition from larger pharmaceutical companies with greater R&D capabilities and more extensive distribution networks. The company's relatively small market capitalization (CNY 7.66 billion) limits its scale advantages compared to both global animal health giants and larger Chinese peers. While the company benefits from domestic market knowledge and established customer relationships, it may lack the technological innovation and product differentiation of more specialized competitors. Its competitive advantage appears rooted in its comprehensive product offering and understanding of local market dynamics rather than technological leadership or superior margins, positioning it as a mid-tier player in China's animal health landscape.