Operating Margin

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Price: 23.09 CNY 10% Market Closed

Market Cap: ¥23.1B

11.8%

Improving

by 0.6%

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

11.8%

Operating Income

¥1.4B

Revenue

¥11.9B

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

11.8%

Operating Income

¥1.4B

Revenue

¥11.9B

Peer Comparison

Country		Company	Market Cap	Operating Margin
CN	S	Shanghai Huafon Aluminium Corp SSE:601702	23.1B CNY	Loading...
CN	A	Aluminum Corp of China Ltd OTC:ALMMF	43.7B USD	Loading...
CN	C	China Hongqiao Group Ltd HKEX:1378	339.4B HKD	Loading...
CN		Aluminum Corporation of China Ltd SSE:601600	233.7B CNY	Loading...
IN		Hindalco Industries Ltd NSE:HINDALCO	2.1T INR	Loading...
NO		Norsk Hydro ASA OSE:NHY	168.9B NOK	Loading...
CN		Yunnan Aluminium Co Ltd SZSE:000807	117.1B CNY	Loading...
US		Alcoa Corp NYSE:AA	16.1B USD	Loading...
MY		Press Metal Aluminium Holdings Bhd KLSE:PMETAL	61.1B MYR	Loading...
CN		Tianshan Aluminum Group Co Ltd SZSE:002532	89.3B CNY	Loading...
CN	G	Guangdong Hec Technology Holding Co Ltd SSE:600673	86.3B 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

Shanghai Huafon Aluminium Corp
Glance View

Market Cap

23.1B CNY

Industry

Metals & Mining

Shanghai Huafon Aluminium Corp. stands as a dynamic player in the aluminum industry, intricately weaving its operations into the fabric of modern manufacturing and infrastructure. Established with a clear vision to harness the unique properties of aluminum, the company has honed its capabilities to produce a diverse range of high-quality aluminum products. From lightweight and durable alloys to intricate aluminum sheets and plates, Huafon Aluminium serves a variety of industries including automotive, aerospace, and construction. The company strategically sources bauxite, refines it into alumina, and then processes it into the aluminum products that are increasingly demanded both domestically and internationally. Through efficient production processes and a keen focus on technological innovation, Huafon Aluminium ensures it meets stringent quality standards and gains a competitive edge in the global market. Revenue generation at Shanghai Huafon Aluminium Corp. is deeply rooted in its ability to efficiently manage its supply chain while delivering value-added products that meet the diverse needs of its clients. The company's profitability largely stems from its production of customized solutions that align with the specific requirements of different industries, showcasing a customer-centric approach that has become its hallmark. By investing in state-of-the-art technologies and sustainable practices, Huafon not only improves its operational efficiency but also enhances its product offerings, thereby solidifying long-term partnerships with major players across various sectors. This approach not only helps the company scale its business but also ensures a steady flow of income from a broad spectrum of global industries, attesting to its position as a sturdy pillar within the aluminum manufacturing landscape.

View Shanghai Huafon Aluminium Corp Analysis

Intrinsic Value

Undervaluation 12%

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.

Shanghai Huafon Aluminium Corp
SSE:601702

Peer Comparison

Market Distribution

Other Profitability Ratios

Shanghai Huafon Aluminium Corp
Glance View

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Shanghai Huafon Aluminium Corp SSE:601702