| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19.39 | 36 |
| Intrinsic value (DCF) | 9.02 | -37 |
| Graham-Dodd Method | 4.73 | -67 |
| Graham Formula | n/a |
Hailir Pesticides and Chemicals Group Co., Ltd. is a prominent Chinese agricultural inputs company specializing in the research, development, production, and sale of crop protection products and fertilizers. Founded in 1999 and headquartered in Qingdao, the company has established itself as a key player in China's basic materials sector, serving the critical agricultural industry. Hailir's comprehensive product portfolio includes fungicides, herbicides, insecticides, and various fertilizer solutions, along with technical-grade products (TC) and bioassay services. Operating in the essential agricultural inputs industry, the company supports food security and modern farming practices across China. As a domestically focused enterprise listed on the Shanghai Stock Exchange, Hailir leverages its integrated manufacturing capabilities and R&D expertise to meet the evolving needs of Chinese farmers. The company's strategic positioning in the world's largest agricultural market provides significant growth potential, while its diverse product range helps mitigate seasonal and crop-specific demand fluctuations. Hailir represents a vital link in China's agricultural value chain, contributing to sustainable crop yields and farm productivity through advanced chemical solutions.
Hailir Pesticides presents a mixed investment profile with several notable strengths and concerns. The company maintains a reasonable market capitalization of approximately CNY 5 billion and demonstrates financial stability with a beta of 0.36, indicating lower volatility compared to the broader market. However, profitability metrics raise concerns, with net income of CNY 181 million representing a relatively thin 4.6% margin on revenues of CNY 3.9 billion. The company maintains adequate liquidity with CNY 1.35 billion in cash, though total debt of CNY 1.21 billion suggests moderate leverage. Positive operating cash flow of CNY 286 million supports ongoing operations, while substantial capital expenditures of CNY 335 million indicate active investment in capacity expansion. The attractive dividend yield supported by a CNY 0.50 per share payout provides income appeal, but investors should monitor margin pressures and the competitive dynamics in China's fragmented agricultural chemicals market. The company's domestic focus offers insulation from global trade tensions but also limits diversification benefits.
Hailir Pesticides operates in China's highly competitive agricultural inputs market, where it faces significant pressure from both domestic giants and specialized producers. The company's competitive positioning is characterized by its mid-tier scale and regional focus, which differentiates it from national champions but also limits its market reach. Hailir's primary competitive advantage lies in its integrated operations spanning R&D, production, and distribution, allowing for cost control and quality management across the value chain. The company's diverse product portfolio covering fungicides, herbicides, and insecticides provides cross-selling opportunities and risk diversification against crop-specific demand fluctuations. However, Hailir faces substantial competitive challenges from larger domestic players with greater R&D budgets, broader distribution networks, and stronger brand recognition. The agricultural chemicals sector is also experiencing consolidation trends, potentially threatening Hailir's independent status. Regulatory compliance costs and environmental regulations present additional hurdles, particularly for mid-sized producers with limited resources. The company's regional strength in Eastern China provides a stable revenue base but may constrain growth ambitions compared to competitors with national footprints. Technological innovation and product differentiation will be critical for Hailir to maintain relevance against both low-cost generic producers and premium multinational brands expanding in the Chinese market.