| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 30.01 | 14 |
| Intrinsic value (DCF) | 6.90 | -74 |
| Graham-Dodd Method | 12.94 | -51 |
| Graham Formula | 5.94 | -77 |
Shanghai Huide Science & Technology Co., Ltd. is a specialized chemical company founded in 1997 and headquartered in Shanghai, China, that has established itself as a key player in the polyurethane resin market. The company focuses on the research, production, sale, and service of polyurethane resin for leather and polyurethane elastomer products, serving a diverse range of end markets including clothing and textiles, transportation, automotive interiors, athletic sports, footwear, packaging, and furniture. Operating within the Basic Materials sector and Specialty Chemicals industry, Shanghai Huide leverages its technical expertise to produce essential materials like polyester polyol and polyurethane stock that are critical components for numerous manufacturing processes. With operations extending beyond China to international markets, the company plays a vital role in global supply chains for polyurethane-based products. Shanghai Huide's position in the Shanghai Stock Exchange reflects its established presence in China's chemical industry, serving as a reliable supplier of specialized chemical solutions to various industrial sectors. The company's nearly three decades of experience in polyurethane technology development positions it as a mature player in the competitive specialty chemicals landscape.
Shanghai Huide presents a mixed investment profile with moderate appeal. The company demonstrates reasonable profitability with net income of CNY 124.6 million on revenue of CNY 2.67 billion, translating to a net margin of approximately 4.7%. The diluted EPS of CNY 0.90 and dividend per share of CNY 0.375 indicate shareholder returns, though the dividend payout ratio of approximately 42% suggests balanced capital allocation. Financially, the company maintains a strong liquidity position with cash and equivalents of CNY 588.9 million significantly exceeding total debt of CNY 46.0 million, indicating minimal financial leverage. However, concerning signals include weak operating cash flow of CNY 27.9 million relative to net income and negative capital expenditures of CNY -49.5 million, which may raise questions about maintenance of productive capacity. The low beta of 0.249 suggests defensive characteristics but may also indicate limited growth momentum. The market capitalization of CNY 3.13 billion reflects moderate market recognition for this specialized chemical producer.
Shanghai Huide operates in the highly competitive specialty polyurethane chemicals market, where its competitive positioning is defined by several key factors. The company's primary advantage lies in its specialized focus on polyurethane resins for leather and elastomer applications, allowing for deep technical expertise in these niche segments. This specialization enables Shanghai Huide to develop tailored solutions for specific customer needs in industries such as automotive interiors, footwear, and textiles. The company's nearly three decades of experience since its 1997 founding provides established customer relationships and manufacturing know-how that newer entrants would struggle to replicate. However, Shanghai Huide faces significant competitive pressures from both domestic Chinese chemical producers and multinational corporations with greater scale and R&D capabilities. Larger competitors typically benefit from broader product portfolios, global distribution networks, and more substantial research budgets for innovation. Shanghai Huide's relatively modest market capitalization of CNY 3.13 billion suggests it operates as a mid-sized player rather than an industry leader. The company's international operations provide some geographic diversification but likely face challenges competing against global giants in overseas markets. Its Shanghai location offers advantages in terms of access to China's manufacturing ecosystem and transportation infrastructure, but also places it in direct competition with numerous other chemical producers in the Yangtze River Delta region. The company's financial profile, characterized by solid profitability but modest growth indicators, suggests a stable but not dominant competitive position in its specialized market segments.