| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 18.15 | 892 |
| Intrinsic value (DCF) | 0.72 | -61 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 11.62 | 535 |
Jilin Yatai (Group) Co., Ltd. is a diversified Chinese conglomerate headquartered in Changchun with core operations spanning building materials, real estate development, coal wholesale, and pharmaceutical production. Founded in 1984 and listed on the Shanghai Stock Exchange, the company has established a significant regional presence in Northeast China's industrial sector. Jilin Yatai's building materials segment serves China's construction industry, while its real estate arm develops residential and commercial properties. The company's diversified business model provides some insulation against sector-specific downturns but also exposes it to multiple cyclical industries simultaneously. As a CNY 7.39 billion market cap company operating in China's industrial conglomerate space, Jilin Yatai represents a play on Northeast China's economic development and infrastructure investment trends, though its recent financial performance reflects the challenges facing China's property and construction sectors.
Jilin Yatai presents a high-risk investment proposition characterized by significant financial distress. The company reported a substantial net loss of CNY -2.92 billion on revenues of CNY 7.21 billion, with negative EPS of -0.9 and no dividend distribution. While the company maintains positive operating cash flow of CNY 551 million, its enormous total debt of CNY 27.3 billion creates severe balance sheet pressure, far exceeding its cash position of CNY 739 million. The beta of 0.923 suggests moderate correlation with broader market movements, but the company's exposure to China's troubled property sector and highly leveraged position creates substantial downside risk. Investors should approach with extreme caution given the company's negative profitability, high debt burden, and exposure to multiple cyclical industries facing headwinds in the Chinese economy.
Jilin Yatai operates as a regional conglomerate with a diversified but unfocused business model that spans building materials, real estate, coal, and pharmaceuticals. This diversification theoretically provides stability but in practice exposes the company to multiple cyclical headwinds simultaneously, particularly China's property market downturn which negatively impacts both its building materials and real estate segments. The company's competitive positioning is challenged by its significant debt burden (CNY 27.3 billion), which limits strategic flexibility and investment capacity compared to better-capitalized competitors. While its regional presence in Northeast China provides some local market knowledge and distribution advantages, Jilin Yatai lacks the scale, specialization, or financial strength of leading players in any of its operating segments. The company's pharmaceutical business represents a potential growth area given China's aging population and healthcare expansion, but it remains a relatively small component of the overall business. Ultimately, Jilin Yatai's competitive disadvantage stems from its stretched balance sheet, lack of clear market leadership in any segment, and exposure to multiple structurally challenged industries in the current Chinese economic environment.