000521 (Changhong Meiling Co Ltd) vs Shanghai Composite Comparison

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000521

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Changhong Meiling Co Ltd
Glance View

Market Cap

6.8B CNY

Industry

Consumer products

In the bustling landscape of Chinese manufacturing, Changhong Meiling Co Ltd stands as a dynamic entity, intricately weaving technology and innovation within the realms of home appliances and consumer electronics. Born from the union of Changhong and Meiling, two venerable icons in China’s industrial tapestry, the company has navigated the competitive market by blending traditional craftsmanship with modern technological advancements. Its portfolio is extensive, ranging from refrigerators to washing machines and televisions, all finely tuned to meet the evolving needs of the consumer. By leveraging an integrated production model, Changhong Meiling effectively controls its supply chain, ensuring quality and efficiency from inception to delivery, significantly bolstering its profit margins. The company's business model is a testament to its strategic foresight, as it capitalizes on both domestic demand and international markets. Primarily, Changhong Meiling makes money through the direct sale of its diversified product line, but it also reaps gains from after-sales services, enhancing customer loyalty and brand strength. Furthermore, its investments in research and development underscore a commitment to smart technology, which propels its products into the future of interconnected homes. This embrace of smart appliances has not only positioned the company as a leader in innovation but also opened revenue streams through potential long-term partnerships and collaborations with tech-focused entities. Through these multifaceted strategies, Changhong Meiling continually reinforces its status as a formidable player in the global home appliance market.

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Changhong Meiling Co Ltd Intrinsic Value

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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.

000521

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S
Shanghai Composite

Stocks Performance
000521 vs Shanghai Composite

Performance Gap
000521 vs Shanghai Composite

Performance By Year
000521 vs Shanghai Composite

Competitors Performance
Changhong Meiling Co Ltd vs Peers

Changhong Meiling Co Ltd
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000521 vs S Shanghai Composite

Stocks Performance 000521 vs Shanghai Composite

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000521

vs

S
Shanghai Composite

Stocks Performance
000521 vs Shanghai Composite

Performance Gap
000521 vs Shanghai Composite

Performance By Year
000521 vs Shanghai Composite

Competitors Performance
Changhong Meiling Co Ltd vs Peers

Changhong Meiling Co Ltd
Glance View