002890 (Shandong Hongyu Agricultural Machinery Co Ltd) vs Shanghai Composite Comparison

002890

Shanghai Composite

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002890

Shanghai Composite

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002890

Shanghai Composite

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Shanghai Composite

002890

CNHI

6326

TTC

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Shandong Hongyu Agricultural Machinery Co Ltd
Glance View

Market Cap

1.6B CNY

Industry

Machinery

Shandong Hongyu Agricultural Machinery Co., Ltd. engages in the research, development, manufacture and sales of tractor hydraulic lifters. The company is headquartered in Yantai, Shandong and currently employs 690 full-time employees. The company went IPO on 2017-08-02. The firm's main products include large, medium and small horsepower lifter products and related spare parts. Its spare parts mainly include the distributor, cylinder and other lifter parts. Its products are mainly applied for the manufacturing of tractors and other heavy machineries. The firm mainly distributes its products in domestic market.

View Shandong Hongyu Agricultural Machinery 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		Deere & Co NYSE:DE	Select
UK		CNH Industrial NV MIL:CNHI	Select
JP		Kubota Corp TSE:6326	Select
US		Toro Co NYSE:TTC	Select
US		AGCO Corp NYSE:AGCO	Select
IN		Escorts Kubota Ltd NSE:ESCORTS	Select
SE		Husqvarna AB STO:HUSQ B	Select
TR		Turk Traktor ve Ziraat Makineleri AS IST:TTRAK.E	Select
CN	F	First Tractor Co Ltd SSE:601038	Select
US		Lindsay Corp NYSE:LNN	Select

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JP		Kubota Corp TSE:6326	Add
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IN		Escorts Kubota Ltd NSE:ESCORTS	Add
SE		Husqvarna AB STO:HUSQ B	Add
TR		Turk Traktor ve Ziraat Makineleri AS IST:TTRAK.E	Add
CN	F	First Tractor Co Ltd SSE:601038	Add
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002890

vs

Shanghai Composite

Stocks Performance
002890 vs Shanghai Composite

Performance Gap
002890 vs Shanghai Composite

Performance By Year
002890 vs Shanghai Composite

Competitors Performance
Shandong Hongyu Agricultural Machinery Co Ltd vs Peers

Shandong Hongyu Agricultural Machinery Co Ltd
Glance View

Company

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002890 vs Shanghai Composite

Stocks Performance 002890 vs Shanghai Composite

Performance Gap 002890 vs Shanghai Composite

Performance By Year 002890 vs Shanghai Composite

Competitors Performance Shandong Hongyu Agricultural Machinery Co Ltd vs Peers

Shandong Hongyu Agricultural Machinery Co Ltd Glance View

Company

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Stocks

002890

vs

Shanghai Composite

Stocks Performance
002890 vs Shanghai Composite

Performance Gap
002890 vs Shanghai Composite

Performance By Year
002890 vs Shanghai Composite

Competitors Performance
Shandong Hongyu Agricultural Machinery Co Ltd vs Peers

Shandong Hongyu Agricultural Machinery Co Ltd
Glance View