Operating Margin - Ningxia Jiaze Renewables Corp Ltd (SSE:601619)

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Price: 4.86 CNY 1.89%

Market Cap: 14.2B CNY

51.5%

Current

52%

Average

13.9%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

51.5%

Operating Profit

1.3B

Revenue

2.5B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
CN	N	Ningxia Jiaze Renewables Corp Ltd SSE:601619	14.2B CNY	51%
CN		China Yangtze Power Co Ltd SSE:600900	667.7B CNY	53%
ID	B	Barito Renewables Energy PT Tbk IDX:BREN	1 267.6T IDR	72%
CN		Huaneng Lancang River Hydropower Inc SSE:600025	164.7B CNY	50%
CN		China Longyuan Power Group Corp Ltd HKEX:916	148.9B HKD	36%
IN		Adani Green Energy Ltd NSE:ADANIGREEN	1.6T INR	57%
CN		China Three Gorges Renewables Group Co Ltd SSE:600905	118.6B CNY	34%
ES	E	EDP Renovaveis SA ELI:EDPR	13.3B EUR	11%
RO		Societatea de Producere a Energiei Electrice in Hidrocentrale Hidroelectrica SA F:E28	11B EUR	40%
CN		Sichuan Chuantou Energy Co Ltd SSE:600674	68.5B CNY	31%
IN		NHPC Ltd NSE:NHPC	828B INR	40%

Ningxia Jiaze Renewables Corp Ltd
Glance View

Market Cap

14.2B CNY

Industry

Utilities

Ningxia Jiaze Renewables Corp Ltd. has carved out a significant niche in China's renewable energy landscape, showcasing a commitment to sustainable power solutions. Starting from its roots in Ningxia, the company has expanded across China, capitalizing on the nation’s sweeping focus on clean energy and sustainable development. Primarily engaging in the operation of photovoltaic power plants, wind farms, and even biomass energy projects, Ningxia Jiaze is not merely content with riding the green wave but is actively shaping it. By harnessing solar and wind resources, they feed clean electricity into the grid, capitalizing on China's generous subsidies for renewable energy producers and favorable policy frameworks. The firm’s strategic focus on diverse geographical locations allows it to mitigate risks associated with climate variability and harness varying natural resources efficiently. Revenue generation for Ningxia Jiaze stems chiefly from the sale of electricity produced through its expansive network of renewable energy projects. By signing power purchase agreements (PPAs) with state-owned grid operators and local governments, the company ensures a steady income stream while simultaneously enhancing energy security and stability. Additionally, as renewable energy tariffs remain favorable, particularly for solar and wind power, the economic performance of the company remains robust. Their continuous investments into cutting-edge technology enhance operational efficiency and energy yield, further solidifying their earnings potential. By maintaining a forward-thinking approach with a focus on innovation and sustainability, Jiaze Renewables not only supports China's carbon reduction goals but also secures a prominent position in the global shift towards clean energy.

View Ningxia Jiaze Renewables Corp Ltd Analysis

Ningxia Jiaze Renewables Corp 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.

The AI Assistant may sometimes provide inaccurate information.

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

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Ningxia Jiaze Renewables Corp Ltd
SSE:601619