002101 (Guangdong Hongtu Technology Holdings Co Ltd) vs Shanghai Composite Comparison

002101

Shanghai Composite

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

Select Stock to Compare

002101

Shanghai Composite

Difference

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

002101

Shanghai Composite

Add Stock

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

Select Stock to Compare

Shanghai Composite

002101

ZATA

HAL

CFM

Add Stock

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.

Select Stock to Compare

Guangdong Hongtu Technology Holdings Co Ltd
Glance View

Market Cap

8.1B CNY

Industry

Machinery

Guangdong Hongtu Technology Holdings Co Ltd emerged as a formidable player in the field of automotive and manufacturing industries. Originally founded in the bustling manufacturing hub of Guangdong Province, the company has swiftly evolved into a key supplier of die-cast aluminum alloy products. At the heart of their operations lies a sophisticated blend of technological innovation and manufacturing prowess. Through continuous research and development, Hongtu Technology crafts precision-engineered components that are essential for the automotive sector, ranging from engine parts to structural components. These products are integral to reducing vehicle weight, thus enhancing fuel efficiency and performance, which aligns with the global push towards sustainable automotive solutions. The company’s business model hinges on a highly efficient production process, which maximizes economies of scale, enabling Hongtu to offer competitive pricing without sacrificing quality. By investing significantly in automation and cutting-edge equipment, they streamline production, ensuring high consistency and rapid turnaround. Moreover, Hongtu Technology has forged strategic alliances with leading automakers, securing a steady flow of contracts that underpin its revenue stream. The focus on quality and reliability helps in maintaining long-term relationships with these clients, propelling continual growth. As such, Guangdong Hongtu Technology not only manifests itself as a pivotal link in the automotive supply chain but also as a dynamic contributor to the evolution of modern automotive manufacturing.

View Guangdong Hongtu Technology Holdings Co Ltd Analysis

Intrinsic Value

Overvaluation 27%

Intrinsic Value

Price

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.

002101

vs

S
Shanghai Composite

Stocks Performance
002101 vs Shanghai Composite

Performance Gap
002101 vs Shanghai Composite

Performance By Year
002101 vs Shanghai Composite

Competitors Performance
Guangdong Hongtu Technology Holdings Co Ltd vs Peers

Guangdong Hongtu Technology Holdings Co Ltd
Glance View

Company

Help

Tools

Stocks

002101 vs S Shanghai Composite

Stocks Performance 002101 vs Shanghai Composite

Performance Gap 002101 vs Shanghai Composite

Performance By Year 002101 vs Shanghai Composite

Competitors Performance Guangdong Hongtu Technology Holdings Co Ltd vs Peers

Guangdong Hongtu Technology Holdings Co Ltd Glance View

Company

Help

Tools

Stocks

002101

vs

S
Shanghai Composite

Stocks Performance
002101 vs Shanghai Composite

Performance Gap
002101 vs Shanghai Composite

Performance By Year
002101 vs Shanghai Composite

Competitors Performance
Guangdong Hongtu Technology Holdings Co Ltd vs Peers

Guangdong Hongtu Technology Holdings Co Ltd
Glance View