| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.99 | 254 |
| Intrinsic value (DCF) | 4.48 | -41 |
| Graham-Dodd Method | 3.90 | -49 |
| Graham Formula | 17.89 | 134 |
Zhejiang Hangmin Co., Ltd. is a prominent Chinese textile printing and dyeing manufacturer headquartered in Hangzhou, China. Founded in 1998 and listed on the Shanghai Stock Exchange, the company specializes in producing a diverse range of fabrics including corduroy, cotton, stretch cotton, shirting, linen, non-woven, fiber blended, facsimile, and printed fabrics. Operating in the consumer cyclical sector, Hangmin has established a vertically integrated business model that extends beyond textile manufacturing to include thermoelectric generation, logistics services, and sewage treatment operations. The company maintains significant international reach, exporting its textile products to key markets across Southeast Asia, the Middle East, North America, the European Union, Hong Kong, and Macau. As a comprehensive textile solutions provider, Zhejiang Hangmin leverages China's manufacturing infrastructure while addressing environmental sustainability through its integrated sewage treatment capabilities, positioning itself as a modern textile enterprise with both production efficiency and ecological responsibility.
Zhejiang Hangmin presents a mixed investment profile with several notable strengths and risks. The company demonstrates solid financial health with a strong cash position of CNY 3.39 billion against minimal debt of CNY 40.6 million, providing financial stability and flexibility. With a market capitalization of CNY 7.46 billion and revenue of CNY 11.47 billion, the company maintains a reasonable scale in the competitive textile manufacturing sector. The dividend payment of CNY 0.30 per share indicates shareholder-friendly capital allocation. However, the net income margin of approximately 6.3% and diluted EPS of 0.69 suggest moderate profitability in a highly competitive industry. The low beta of 0.234 indicates defensive characteristics but may also reflect limited growth expectations. Key risks include exposure to global textile demand fluctuations, international trade tensions, and environmental regulatory pressures, though the company's integrated sewage treatment operations help mitigate some environmental compliance risks.
Zhejiang Hangmin operates in the highly fragmented and competitive Chinese textile printing and dyeing industry, where competitive advantages are derived from scale, technological capabilities, and vertical integration. The company's positioning is strengthened by its diverse product portfolio spanning multiple fabric types, which provides some insulation against demand fluctuations in specific textile segments. Its vertical integration into thermoelectric generation offers potential cost advantages in energy-intensive dyeing processes, while the in-house sewage treatment capability addresses critical environmental compliance requirements in a industry facing increasing regulatory scrutiny. The company's export focus to multiple international markets provides geographic diversification but also exposes it to global trade dynamics and currency fluctuations. However, Hangmin faces intense competition from both large integrated textile manufacturers and specialized smaller players. The company's moderate scale compared to industry leaders may limit its bargaining power with suppliers and customers. The textile manufacturing industry is characterized by thin margins and high capital intensity, requiring continuous investment in technology and efficiency improvements to maintain competitiveness. Hangmin's relatively strong balance sheet with minimal debt provides flexibility to navigate industry cycles and potentially pursue strategic investments or acquisitions.