600704 (Wuchan Zhongda Group Co Ltd) vs Shanghai Composite Comparison

600704

Shanghai Composite

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600704

Shanghai Composite

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600704

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

600704

GPC

POOL

LKQ

DIE

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Wuchan Zhongda Group Co Ltd
Glance View

Market Cap

24.5B CNY

Industry

Distributors

Wuchan Zhongda Group Co., Ltd., a formidable player in China’s supply chain service industry, navigates the intricate corridors of the global trading landscape with remarkable agility. Founded in 1980 and based in Hangzhou, Zhejiang Province, this conglomerate has evolved into a multi-faceted entity that smoothly integrates trade, logistics, and modern services. The company’s expansive network leverages the synergy of its various business segments to foster growth and adaptability in a rapidly changing economic environment. It delves into an array of sectors, with a core focus on commodity trading, which encompasses ferrous and non-ferrous metals, energy, chemicals, and agricultural products. Through strategic logistics operations and a robust distribution framework, Wuchan Zhongda ensures an uninterrupted flow of these essential commodities to its clients, sustaining its foothold as a linchpin in the supply chain. The company’s operational prowess is further augmented by its ventures into supply chain management solutions, which involve the delineation and optimization of complex logistics pathways to maximize efficiency and reduce costs for its partners. This venture into logistical optimization is not just a byproduct of its trading activities but a core pillar of its business model, securing a steady stream of revenue through service fees and value-added services. Additionally, Wuchan Zhongda's technology-driven enhancements and innovative service offerings provide a crucial competitive edge in the tech-savvy commercial landscape, simultaneously broadening its client base and enhancing customer loyalty. This strategic layering of traditional trade with modern service capabilities positions Wuchan Zhongda convincingly as a quintessential modern enterprise adapting comprehensively to the dual demands of market dynamism and logistical sophistication.

View Wuchan Zhongda 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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CN	L	Liaoning Cheng Da Co Ltd SSE:600739	Select
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US		Pool Corp NASDAQ:POOL	Add
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BE		D'Ieteren Group NV XBRU:DIE	Add
ZA	C	CA Sales Holdings Ltd JSE:CAA	Add
UK		Inchcape PLC LSE:INCH	Add
CN	X	Xinhua Winshare Publishing and Media Co Ltd SSE:601811	Add
HK	C	China Tobacco International HK Co Ltd HKEX:6055	Add
CN	L	Liaoning Cheng Da Co Ltd SSE:600739	Add
CN		Zhejiang Orient Financial Holdings Group Co Ltd SSE:600120	Add

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600704

vs

Shanghai Composite

Stocks Performance
600704 vs Shanghai Composite

Performance Gap
600704 vs Shanghai Composite

Performance By Year
600704 vs Shanghai Composite

Competitors Performance
Wuchan Zhongda Group Co Ltd vs Peers

Wuchan Zhongda Group Co Ltd
Glance View

Company

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600704 vs Shanghai Composite

Stocks Performance 600704 vs Shanghai Composite

Performance Gap 600704 vs Shanghai Composite

Performance By Year 600704 vs Shanghai Composite

Competitors Performance Wuchan Zhongda Group Co Ltd vs Peers

Wuchan Zhongda Group Co Ltd Glance View

Company

Help

Tools

Stocks

600704

vs

Shanghai Composite

Stocks Performance
600704 vs Shanghai Composite

Performance Gap
600704 vs Shanghai Composite

Performance By Year
600704 vs Shanghai Composite

Competitors Performance
Wuchan Zhongda Group Co Ltd vs Peers

Wuchan Zhongda Group Co Ltd
Glance View