| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.92 | 68 |
| Intrinsic value (DCF) | 3.95 | -78 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Hangzhou Landscaping Incorporated is a specialized Chinese engineering and construction company focused on ecological and environmental projects. Founded in 1992 and headquartered in Hangzhou, the company operates across multiple segments including urban landscaping, municipal engineering construction general contracting, landscape garden design, and environmental pollution prevention and control projects. As China continues its urbanization and environmental protection initiatives, Hangzhou Landscaping plays a crucial role in developing sustainable infrastructure and green spaces. The company's diversified service portfolio allows it to participate in various stages of ecological project development, from initial planning and design to final construction. With China's increasing emphasis on ecological civilization and green development under national policies, the company is well-positioned in the growing environmental engineering sector. Hangzhou Landscaping's long-standing presence since 1992 provides established relationships and project experience in China's competitive construction landscape. The company also maintains agricultural development operations, adding another dimension to its environmental focus. As a Shanghai Stock Exchange-listed entity, Hangzhou Landscaping represents an investment opportunity in China's environmental infrastructure development space.
Hangzhou Landscaping presents a challenging investment case with significant financial headwinds offset by strategic positioning in China's growing environmental sector. The company reported a substantial net loss of -CNY 190.2 million for the period, with negative diluted EPS of -1.18, indicating serious operational challenges. However, positive operating cash flow of CNY 85.4 million suggests some underlying business viability. The company's moderate beta of 0.832 indicates lower volatility than the broader market, potentially appealing to risk-averse investors interested in China's environmental theme. With no dividend payments and negative earnings, income-focused investors would find limited appeal. The company's market capitalization of approximately CNY 3.02 billion positions it as a small-cap player in China's competitive construction sector. Investors should monitor the company's ability to translate its positive operating cash flow into sustainable profitability amid China's ongoing urbanization and environmental protection initiatives.
Hangzhou Landscaping operates in China's highly fragmented engineering and construction sector, specializing in the niche ecological project segment. The company's competitive positioning is defined by its regional focus and specialized expertise in environmental projects, particularly in the Hangzhou area and surrounding Zhejiang province. Its competitive advantage stems from nearly three decades of operational experience since its 1992 founding, providing established local relationships and project track record. However, the company faces intense competition from larger state-owned enterprises with greater financial resources and broader geographical reach. The negative net income and EPS indicate significant competitive pressures and potential operational inefficiencies compared to more profitable peers. The company's specialization in ecological projects aligns with China's national environmental policies, but this niche focus also limits diversification compared to general construction competitors. With relatively modest revenue of CNY 722 million, Hangzhou Landscaping operates as a regional player rather than a national leader. The company's cash position of CNY 352.3 million against total debt of CNY 194.8 million provides some financial flexibility, but the negative profitability raises questions about long-term competitive sustainability. Success will depend on the company's ability to leverage its environmental specialization while improving operational efficiency in a price-competitive market.