| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 22.23 | 86 |
| Intrinsic value (DCF) | 4.49 | -62 |
| Graham-Dodd Method | 3.03 | -75 |
| Graham Formula | 18.13 | 52 |
Zhejiang Jasan Holding Group Co., Ltd. is a prominent Chinese manufacturer specializing in knitted sportswear with a focus on cotton socks and underwear. Founded in 1993 and headquartered in Hangzhou, China, the company has established itself as a vertically integrated player in the global apparel manufacturing sector. Jasan operates across the entire value chain, from design and development to manufacturing and service, catering to worldwide markets. As part of the Consumer Cyclical sector, the company leverages China's manufacturing expertise to produce essential apparel items that serve both athletic and everyday consumer needs. The company's long-standing presence since the 1990s has allowed it to build substantial manufacturing capabilities and supply chain efficiencies. Operating in the competitive apparel manufacturing industry, Jasan's specialization in knitted products positions it to capitalize on growing global demand for comfortable, functional sportswear and basic apparel essentials. The company's Shanghai Stock Exchange listing provides transparency and access to capital markets while maintaining its roots in one of China's key industrial regions.
Zhejiang Jasan presents a mixed investment profile with several positive fundamentals offset by sector-specific challenges. The company demonstrates solid profitability with net income of CNY 325 million on revenue of CNY 2.57 billion, representing a healthy 12.6% net margin. Financial stability is supported by positive operating cash flow of CNY 342 million and a conservative beta of 0.394, suggesting lower volatility than the broader market. The company pays an attractive dividend yielding approximately 3.3% based on current market capitalization. However, investors should note the capital-intensive nature of the apparel manufacturing industry, evidenced by significant capital expenditures of CNY 279 million. The moderate debt level of CNY 956 million against cash holdings of CNY 319 million warrants monitoring, though the debt appears manageable given current profitability. The primary investment consideration is Jasan's exposure to competitive global manufacturing markets where pricing pressure and labor costs remain persistent challenges.
Zhejiang Jasan operates in the highly competitive global apparel manufacturing sector, where its competitive positioning is defined by several key factors. The company's primary advantage lies in its vertical integration and specialization in knitted products, particularly cotton socks and underwear. This focus allows Jasan to develop manufacturing expertise and efficiencies that broader apparel manufacturers may lack. Being based in China provides access to established textile supply chains and manufacturing infrastructure, though this also exposes the company to rising labor costs and international trade dynamics. Jasan's 30-year history since 1993 has enabled the development of long-term client relationships and manufacturing experience that newer entrants cannot easily replicate. However, the company faces intense competition from both domestic Chinese manufacturers and lower-cost producers in Southeast Asia. The apparel manufacturing industry is characterized by thin margins and significant pricing pressure from global brands seeking cost reductions. Jasan's moderate scale compared to industry giants limits its bargaining power with suppliers and customers. The company's competitive strategy appears to focus on quality and specialization rather than competing solely on price, targeting specific market segments where technical manufacturing capabilities provide differentiation. The evolving global supply chain landscape, including shifting manufacturing patterns and sustainability requirements, presents both challenges and opportunities for Jasan's long-term competitive positioning.