Operating Margin

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Price: 88.14 CNY 0.12% Market Closed

Market Cap: ¥19.3B

28.4%

Improving

by 5.9%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

28.4%

Operating Income

¥913m

Revenue

¥3.2B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

28.4%

Operating Income

¥913m

Revenue

¥3.2B

Peer Comparison

Country		Company	Market Cap	Operating Margin
CN	H	HHC Changzhou Corp SZSE:301061	19.2B CNY	Loading...
US		Tempur Sealy International Inc NYSE:TPX	14.3B USD	Loading...
US		Mohawk Industries Inc NYSE:MHK	7.3B USD	Loading...
CN		Oppein Home Group Inc SSE:603833	34.7B CNY	Loading...
CN		Jason Furniture Hangzhou Co Ltd SSE:603816	28.3B CNY	Loading...
TW		Nien Made Enterprise Co Ltd TWSE:8464	122B TWD	Loading...
HK		Man Wah Holdings Ltd HKEX:1999	18.5B HKD	Loading...
CN		Suofeiya Home Collection Co Ltd SZSE:002572	13.6B CNY	Loading...
CN		A-Zenith Home Furnishings Co Ltd SSE:603389	12.8B CNY	Loading...
CH		Forbo Holding AG SIX:FORN	1.3B CHF	Loading...
CN	D	De Rucci Healthy Sleep Co Ltd SZSE:001323	11.7B CNY	Loading...

Market Distribution

Min	-409 046.1%
30th Percentile	-1.4%
Median	4.2%
70th Percentile	10.3%
Max	876.4%

Other Profitability Ratios

HHC Changzhou Corp
Glance View

Market Cap

19.3B CNY

Industry

Consumer products

Amid the sprawling industrial landscape of Changzhou, a city known for its burgeoning manufacturing sector, HHC Changzhou Corp. has carved out a distinct identity. Established in the early 2000s, this company emerged as a formidable player in the production of specialized machinery and equipment. With a keen focus on innovation and efficiency, HHC Changzhou took strategic steps to differentiate itself in a competitive market. The company capitalized on China’s robust supply chain infrastructure, which allowed it to source quality materials and maintain a competitive edge. This focus on integrating quality with cost-effectiveness has been a cornerstone of its manufacturing process, enabling it to offer both standard and bespoke machinery solutions to a diverse client base that spans automotive, aerospace, and electronics industries. The business model of HHC Changzhou Corp. revolves around designing, manufacturing, and exporting machinery that meets the stringent standards of its international clients. Revenue streams are primarily generated from the sales of these machinery products, which range from automated assembly line equipment to precision tools. By maintaining a strong engineering and design team, the company continues to innovate, often collaborating with global firms to customize solutions for unique manufacturing challenges. To ensure long-term growth, HHC aggressively reinvests earnings into research and development, constantly enhancing its product offerings. Additionally, through strategic partnerships and a global network of distributors, HHC Changzhou not only fortifies its market presence but also ensures a steady influx of business opportunities, catering to both new and repeat customers. This approach has helped the company maintain a sustainable financial model amidst changing global economic tides.

View HHC Changzhou Corp Analysis

Intrinsic Value

Undervaluation 4%

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.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

HHC Changzhou Corp
SZSE:301061

Peer Comparison

Market Distribution

Other Profitability Ratios

HHC Changzhou Corp
Glance View

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HHC Changzhou Corp SZSE:301061