| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 33.87 | -21 |
| Intrinsic value (DCF) | 11.42 | -73 |
| Graham-Dodd Method | 5.20 | -88 |
| Graham Formula | 34.89 | -19 |
CoCreation Grass Co., Ltd is a leading Chinese manufacturer specializing in high-quality artificial grass solutions for global markets. Headquartered in Nanjing, the company produces artificial turf for both athletic applications and landscape purposes, serving a diverse client base that includes professional football clubs, government entities, educational institutions, and residential customers. Operating within the specialty chemicals sector of basic materials, CoCreation Grass has established itself as a significant player in the rapidly growing artificial turf industry, which is driven by increasing demand for low-maintenance, durable landscaping solutions and high-performance sports surfaces. The company's global reach demonstrates its competitive manufacturing capabilities and ability to meet international quality standards. With the artificial grass market experiencing sustained growth due to water conservation concerns, urbanization trends, and expanding sports infrastructure development worldwide, CoCreation Grass is well-positioned to capitalize on these macroeconomic trends. The company's focus on research and development ensures it remains at the forefront of product innovation in an industry where performance, safety, and environmental considerations are increasingly important to customers across different market segments.
CoCreation Grass presents an intriguing investment case with strong profitability metrics but faces sector-specific challenges. The company demonstrates robust financial health with a net income margin of approximately 17.3% on CNY 2.95 billion in revenue, indicating efficient operations in its niche market. With a market capitalization of CNY 13.96 billion and a beta of 1.076, the stock shows moderate volatility relative to the market. The company's solid cash position (CNY 942.9 million) relative to manageable debt (CNY 152.7 million) provides financial flexibility, while positive operating cash flow (CNY 465.5 million) supports ongoing operations and the attractive dividend yield (50% payout ratio at CNY 0.64 per share). However, investors should monitor potential headwinds including raw material cost volatility in the chemicals sector, competitive pressures in the global artificial turf market, and exposure to cyclical construction and infrastructure spending patterns that drive demand for both landscape and sports turf products.
CoCreation Grass competes in the highly fragmented global artificial turf market, where competitive positioning depends on manufacturing scale, product quality, and geographic reach. The company's primary competitive advantage lies in its Chinese manufacturing base, which provides cost efficiencies in production while maintaining quality standards suitable for international markets. This allows CoCreation to compete effectively on price while serving demanding clients like professional football clubs that require FIFA-quality specifications. The company's dual focus on both landscape and athletic segments provides diversification benefits, reducing reliance on any single market segment. However, CoCreation faces significant competition from established Western manufacturers with stronger brand recognition and deeper relationships in key markets like Europe and North America. These competitors often benefit from local production facilities that avoid import tariffs and shipping costs. The artificial turf industry is also experiencing consolidation, with larger players acquiring smaller manufacturers to gain scale and market access. CoCreation's challenge is to maintain its cost advantage while building brand equity and distribution networks in premium markets. Environmental considerations represent another competitive frontier, as manufacturers develop more sustainable products using recycled materials and environmentally friendly production processes. The company's ability to innovate in these areas while maintaining cost competitiveness will be crucial for long-term positioning against global competitors with greater R&D resources.