| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.94 | 331 |
| Intrinsic value (DCF) | 1.62 | -74 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Yongyue Science&Technology Co.,Ltd is a specialized chemical company headquartered in Quanzhou, China, focusing on the research, development, production, and sale of synthetic resins. Founded in 2011 and listed on the Shanghai Stock Exchange, Yongyue operates within China's basic materials sector, specifically targeting the specialty chemicals industry. The company's core product portfolio includes unsaturated polyester resins and polyurethane resins, which are essential raw materials used across various downstream applications such as construction, automotive, marine, and consumer goods manufacturing. As a domestic Chinese producer, Yongyue leverages its regional presence to serve local industrial markets that require high-performance polymer materials. The company's strategic positioning in China's manufacturing ecosystem allows it to cater to the growing demand for advanced synthetic materials driven by infrastructure development and industrial modernization. Yongyue's business model integrates R&D capabilities with production efficiency, aiming to capture value in the competitive specialty chemicals landscape while addressing the specific technical requirements of diverse industrial customers throughout China.
Yongyue Science&Technology presents significant investment risks based on its FY2024 financial performance. The company reported a substantial net loss of -165.5 million CNY on revenue of 370.4 million CNY, resulting in negative diluted EPS of -0.46 CNY. Operating cash flow was negative at -35.8 million CNY, indicating fundamental operational challenges. While the company maintains a modest cash position of 33.9 million CNY against total debt of 10.6 million CNY, the persistent losses and negative cash generation raise concerns about sustainability. The beta of 0.635 suggests lower volatility than the broader market, but this may reflect limited trading activity rather than stability. The absence of dividends and the challenging financial metrics indicate that Yongyue is facing severe headwinds in the competitive synthetic resins market, making it an unattractive investment proposition without clear evidence of operational turnaround or market repositioning.
Yongyue Science&Technology operates in China's highly competitive specialty chemicals sector, specifically within the synthetic resins segment dominated by larger, more established players. The company's competitive positioning is challenged by its relatively small scale (market cap of approximately 2.24 billion CNY) and recent financial distress. Yongyue's focus on unsaturated polyester resins and polyurethane places it against both domestic giants and multinational corporations with superior R&D capabilities, production efficiencies, and distribution networks. The company's competitive advantage appears limited, as it lacks the economies of scale enjoyed by larger competitors and demonstrates weak financial performance amid industry headwinds. While its location in Quanzhou provides some regional advantages for serving local manufacturers, this geographical focus also limits market diversification opportunities. The negative operating cash flow and substantial losses suggest Yongyue is struggling with pricing pressure, raw material cost volatility, or potentially outdated production technologies compared to more advanced competitors. Without significant technological differentiation or cost leadership, Yongyue's market position remains vulnerable to industry consolidation and competitive intensity from both state-owned enterprises and private sector leaders with stronger financial resources and technical expertise.