300916 (Shenzhen Longtech Smart Control Co Ltd) vs Shanghai Composite Comparison

300916

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Performance Gap Between 300916 and SSEC

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300916

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Shenzhen Longtech Smart Control Co Ltd
Glance View

Market Cap

4.9B CNY

Industry

Electrical Equipment

Shenzhen Longtech Smart Control Co., Ltd. engages in the research and development, design, production, and sales of smart controller and smart products. The company is headquartered in Shenzhen, Guangdong and currently employs 1,288 full-time employees. The company went IPO on 2020-12-02. Its products include two major categories. Smart controllers include smart home appliances and home appliances smart controllers, automotive electronics smart controllers and other smart controllers, such as coffee machine smart controllers, passenger car master controllers, and electronic cigarette smart controllers. Smart products include off-grid lighting products, new consumer electronics products and others, such as multi-functional off-grid lighting systems, smart beer mugs, smart gateways, and human-like commercial service robots. Its products are mainly used in industries such as smart home and home appliances, off-grid lighting, automotive electronics and new consumer electronics. The firm conducts its businesses in the China market and overseas markets such as Asia, Africa and North America.

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Shenzhen Longtech Smart Control 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.

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300916

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Shanghai Composite

Stocks Performance
300916 vs Shanghai Composite

Performance Gap
300916 vs Shanghai Composite

Performance By Year
300916 vs Shanghai Composite

Competitors Performance
Shenzhen Longtech Smart Control Co Ltd vs Peers

Shenzhen Longtech Smart Control Co Ltd
Glance View

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S 300916 vs S Shanghai Composite

Stocks Performance 300916 vs Shanghai Composite

Performance Gap 300916 vs Shanghai Composite

Performance By Year 300916 vs Shanghai Composite

Competitors Performance Shenzhen Longtech Smart Control Co Ltd vs Peers

Shenzhen Longtech Smart Control Co Ltd Glance View

Company

Help

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Stocks

S
300916

vs

S
Shanghai Composite

Stocks Performance
300916 vs Shanghai Composite

Performance Gap
300916 vs Shanghai Composite

Performance By Year
300916 vs Shanghai Composite

Competitors Performance
Shenzhen Longtech Smart Control Co Ltd vs Peers

Shenzhen Longtech Smart Control Co Ltd
Glance View