| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 42.95 | 411 |
| Intrinsic value (DCF) | 3.98 | -53 |
| Graham-Dodd Method | 4.56 | -46 |
| Graham Formula | n/a |
Liaoning Shidai Wanheng Co., Ltd. is a diversified Chinese company with a 70-year history headquartered in Dalian, operating primarily in apparel manufacturing and international trade. The company's core business involves importing and exporting clothing products under its proprietary 'bee and butterfly' trademarks, serving approximately 60 countries across Europe, North America, Japan, and Southeast Asia. Beyond its textile operations, Liaoning Shidai Wanheng has expanded into real estate development and equity investments, creating a diversified business model. As a Shanghai-listed company in the consumer cyclical sector, it combines traditional manufacturing with modern investment activities. The company maintains significant cash reserves and minimal debt, providing financial stability in the volatile apparel export market. Its long-established presence in Dalian, a major port city, provides strategic advantages for international trade operations in the competitive Asian manufacturing landscape.
Liaoning Shidai Wanheng presents a mixed investment case with both attractive qualities and significant risks. The company's minimal debt load (CNY 1.16 million) against substantial cash reserves (CNY 499.67 million) provides exceptional financial stability and flexibility. However, with modest revenue of CNY 400.88 million and net income of CNY 19.38 million, the company demonstrates limited scale and profitability in its core apparel operations. The absence of dividend payments may deter income-focused investors, while the beta of 0.936 suggests moderate volatility relative to the market. The diversification into real estate and equity investments adds potential growth avenues but also introduces additional complexity and risk. The company's small market cap (CNY 2.54 billion) and niche positioning in the competitive global apparel manufacturing sector suggest it may be more suitable for investors seeking exposure to small-cap Chinese consumer cyclical stocks with conservative financial management.
Liaoning Shidai Wanheng operates in a highly competitive global apparel manufacturing sector where scale, efficiency, and supply chain integration typically determine success. The company's competitive positioning is challenged by its relatively small size (CNY 400 million revenue) compared to industry leaders who benefit from massive economies of scale. Its proprietary 'bee and butterfly' trademarks provide some brand differentiation, but the company lacks the global recognition of major apparel brands. The diversification into real estate and equity investments represents an attempt to create additional revenue streams beyond the low-margin apparel export business, though this may dilute management focus. The company's strengths include its long-established trade relationships across 60 countries, minimal debt providing financial flexibility, and its strategic location in Dalian—a major port city facilitating international trade. However, competing against vertically integrated manufacturers with direct retail channels and larger Chinese apparel exporters with superior scale presents significant challenges. The company's niche positioning may allow it to serve specific market segments, but it lacks the cost advantages or brand strength of leading competitors in the increasingly consolidated global apparel manufacturing industry.