600352 (Zhejiang Longsheng Group Co Ltd) vs Shanghai Composite Comparison

600352

Shanghai Composite

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600352

Shanghai Composite

Difference

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600352

Shanghai Composite

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Shanghai Composite

600352

SHW

ECL

4063

GIVN

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Zhejiang Longsheng Group Co Ltd
Glance View

Market Cap

31.2B CNY

Industry

Chemicals

Zhejiang Longsheng Group Co., Ltd, a powerhouse in China's industrial landscape, began its journey in the realm of chemicals, carving out a niche in specialty chemicals and dyestuffs. With roots tracing back to the late 20th century, the company evolved from a modest endeavor into a global leader, driven by innovation and investment in technology. Historically focused on textile dyes, Longsheng strategically diversified its portfolio, leaning heavily into the realms of chemicals for leather processing, agrochemicals, and other specialty additives. This diversification is not just an expansion but a calculated symbiosis, where expertise in chemical production feeds its growth across various sectors, enabling it to capitalize on global trade networks and partnerships. In the heart of its profit engine lies a commitment to high-quality production, underpinned by a robust supply chain and broad distribution network. Zhejiang Longsheng's success is closely tied to its streamlined operations and ability to adapt to the ever-changing regulatory and environmental standards in the chemical industry. The company has skillfully navigated these challenges by investing in sustainable practices and research development, which not only reduce its ecological footprint but also enhance its product offerings. By doing so, Longsheng leverages significant competitive advantages—consistently meeting the stringent demands of international markets while fostering strong relationships with key clients across varied industries, thereby ensuring steady cash flow and profitability.

View Zhejiang Longsheng Group Co Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US		Sherwin-Williams Co NYSE:SHW	Select
US		Ecolab Inc NYSE:ECL	Select
JP		Shin-Etsu Chemical Co Ltd TSE:4063	Select
CH		Givaudan SA SIX:GIVN	Select
US		Dupont De Nemours Inc NYSE:DD	Select
CN		Wanhua Chemical Group Co Ltd SSE:600309	Select
US		PPG Industries Inc NYSE:PPG	Select
CH	D	DSM-Firmenich AG AEX:DSFIR	Select
IN		Asian Paints Ltd NSE:ASIANPAINT	Select
DK		Novozymes A/S CSE:NZYM B	Select

US		Sherwin-Williams Co NYSE:SHW	Add
US		Ecolab Inc NYSE:ECL	Add
JP		Shin-Etsu Chemical Co Ltd TSE:4063	Add
CH		Givaudan SA SIX:GIVN	Add
US		Dupont De Nemours Inc NYSE:DD	Add
CN		Wanhua Chemical Group Co Ltd SSE:600309	Add
US		PPG Industries Inc NYSE:PPG	Add
CH	D	DSM-Firmenich AG AEX:DSFIR	Add
IN		Asian Paints Ltd NSE:ASIANPAINT	Add
DK		Novozymes A/S CSE:NZYM B	Add

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600352

vs

Shanghai Composite

Stocks Performance
600352 vs Shanghai Composite

Performance Gap
600352 vs Shanghai Composite

Performance By Year
600352 vs Shanghai Composite

Competitors Performance
Zhejiang Longsheng Group Co Ltd vs Peers

Zhejiang Longsheng Group Co Ltd
Glance View

Company

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600352 vs Shanghai Composite

Stocks Performance 600352 vs Shanghai Composite

Performance Gap 600352 vs Shanghai Composite

Performance By Year 600352 vs Shanghai Composite

Competitors Performance Zhejiang Longsheng Group Co Ltd vs Peers

Zhejiang Longsheng Group Co Ltd Glance View

Company

Help

Tools

Stocks

600352

vs

Shanghai Composite

Stocks Performance
600352 vs Shanghai Composite

Performance Gap
600352 vs Shanghai Composite

Performance By Year
600352 vs Shanghai Composite

Competitors Performance
Zhejiang Longsheng Group Co Ltd vs Peers

Zhejiang Longsheng Group Co Ltd
Glance View