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Stock Analysis & ValuationNanjing Business & Tourism Corp., Ltd. (600250.SS)

Professional Stock Screener
Previous Close
$11.43
Sector Valuation Confidence Level
Moderate
Valuation methodValue, $Upside, %
Artificial intelligence (AI)28.24147
Intrinsic value (DCF)4.49-61
Graham-Dodd Method1.42-88
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Nanjing Business & Tourism Corp., Ltd. is a diversified Chinese conglomerate established in 1978 and headquartered in Nanjing, China. The company operates primarily in the import and export sector, specializing in garments, textile materials, electrical and machinery products, light industrial goods, and chemical products. Its diverse product portfolio includes hardware, pharmaceutical products, building materials, and various raw materials. Beyond traditional trading, the company engages in agency services for import/export activities, manages domestic and foreign joint ventures, and provides international labor services for foreign projects. As a Shanghai Stock Exchange-listed entity, Nanjing Business & Tourism leverages China's position as a global manufacturing and export hub, serving multiple industrial sectors while maintaining a strategic focus on international trade relationships. The company's conglomerate structure allows it to navigate various market cycles by diversifying across different product categories and service offerings within the broader industrials sector.

Investment Summary

Nanjing Business & Tourism presents a mixed investment profile with several concerning metrics. The company operates with a high beta of 1.28, indicating significant volatility relative to the market. While it maintains a positive net income of CNY 45.6 million and generates positive operating cash flow of CNY 117.7 million, its revenue of CNY 776.4 million appears modest for its market capitalization of CNY 3.89 billion. The company carries substantial total debt of CNY 468.3 million against cash reserves of CNY 418.3 million, creating a leveraged position. The absence of dividend payments may deter income-focused investors. The conglomerate structure provides diversification benefits but may also indicate lack of focused competitive advantages in any single business line. Investors should carefully assess the company's ability to manage its debt load while growing its diverse business operations in a competitive international trade environment.

Competitive Analysis

Nanjing Business & Tourism operates in the highly competitive Chinese import/export sector, where scale, relationships, and operational efficiency determine competitive positioning. As a medium-sized player with diversified product offerings, the company lacks the scale advantages of larger Chinese trading conglomerates. Its competitive position appears challenged by several factors: the fragmented nature of China's export industry, pressure on margins from global competition, and the capital-intensive nature of maintaining diverse product inventories. The company's strength lies in its long-established presence (founded 1978) and experience in navigating China's export regulations and international trade relationships. However, its debt level of CNY 468 million relative to its market capitalization suggests financial constraints that may limit competitive investments in technology, logistics, or market expansion. The company's beta of 1.28 indicates higher volatility than the market, reflecting sensitivity to trade policy changes, currency fluctuations, and global economic conditions that affect import/export businesses. Without clear technological or scale advantages, Nanjing Business & Tourism likely competes primarily on relationships, service quality, and niche market expertise rather than cost leadership or differentiated offerings.

Major Competitors

  • Xiamen C&D Inc. (600153.SS): Xiamen C&D is a much larger Chinese conglomerate with significant supply chain and trading operations. Its scale provides substantial advantages in purchasing power, logistics networks, and financial resources. The company's diversified operations across multiple sectors including real estate and financial services create cross-selling opportunities that Nanjing Business & Tourism cannot match. However, Xiamen C&D's larger size may make it less agile in niche market opportunities.
  • Shenzhen Wongtee International Enterprise Co., Ltd. (000056.SZ): Shenzhen Wongtee operates in property and international trade, competing directly in some of Nanjing Business & Tourism's segments. The company has stronger financial resources and better-established international networks. Its property development business provides diversification benefits that Nanjing lacks. However, Wongtee's focus on property may divert attention from its trading operations, creating opportunities for more focused competitors.
  • Zhejiang Orient Financial Holdings Group Co., Ltd. (600120.SS): Zhejiang Orient operates in financial services and international trade, offering integrated financial solutions that complement its trading business. This integrated approach provides competitive advantages in trade financing and risk management that Nanjing Business & Tourism cannot match. The company's stronger balance sheet and financial services expertise create barriers to competition. However, its financial focus may limit attention to operational excellence in pure trading activities.
  • Jiangsu Zhongtian Technology Co., Ltd. (002091.SZ): While primarily a technology company, Jiangsu Zhongtian engages in international trade of technology products and materials. Its technological expertise and manufacturing capabilities provide advantages in specific product categories that Nanjing cannot match. The company's stronger R&D capabilities and proprietary products create higher margins. However, its narrower focus on technology products limits its diversification across the broader range of goods that Nanjing trades.
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