Operating Margin - Jiangsu Guotai International Group Co Ltd (SZSE:002091)

Watchlist Manager

Watchlist

Price: 8.8 CNY 2.68%

Market Cap: 14.3B CNY

Current

Average

3.8%

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

Operating Profit

2.4B

Revenue

39.5B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
CN	J	Jiangsu Guotai International Group Co Ltd SZSE:002091	14.3B CNY	6%
JP		Mitsubishi Corp TSE:8058	13.8T JPY	2%
JP		Itochu Corp TSE:8001	13.3T JPY	5%
JP		Mitsui & Co Ltd TSE:8031	12.9T JPY	3%
US		United Rentals Inc NYSE:URI	50.5B USD	25%
US	W	WW Grainger Inc XMUN:GWW	41.6B EUR	14%
US		W W Grainger Inc NYSE:GWW	48.6B USD	14%
US		Fastenal Co NASDAQ:FAST	48.1B USD	20%
JP		Marubeni Corp TSE:8002	7.1T JPY	5%
US		Ferguson Enterprises Inc NYSE:FERG	44.1B USD	9%
JP		Sumitomo Corp TSE:8053	6.4T JPY	5%

Jiangsu Guotai International Group Co Ltd
Glance View

Market Cap

14.3B CNY

Industry

Trading Companies & Distributors

Jiangsu Guotai International Group Co., Ltd., often regarded as a significant pillar in China's trading industry, stands as a testament to the country's capability to evolve with the dynamic demands of global commerce. Founded in 1998, the company roots itself in the vibrant economic backdrop of Jiangsu province, leveraging its strategic position to thrive in international trade. With a core focus on building a robust multinational trading network, Jiangsu Guotai has developed an extensive portfolio of businesses ranging from textile exports to pharmaceuticals and chemical imports. Its intricate network of subsidiaries ensures that the company remains at the forefront of supply chain efficiency, punctuated by its prowess in navigating the complex web of global distribution channels. Their astute focus on diversification mitigates risk, thereby providing a solid foundation for consistent revenue streams. The company's success is largely driven by its ability to seamlessly integrate traditional trade practices with innovative solutions, adapting to shifts in market demand and regulatory frameworks. Jiangsu Guotai’s focus on high-value industries like advanced textiles and pharmaceuticals underscores its strategic adaptability, allowing it to capitalize on emerging trends. Through strategic alliances and partnerships, often collaborating with major international firms, the company enhances its competitive edge and deepens its market penetration across continents. This, in tandem with a commitment to corporate social responsibility and sustainable development, not only enhances its brand reputation but also creates a resilient value proposition. Ultimately, Jiangsu Guotai International Group Co., Ltd. exemplifies how a nuanced understanding of global market dynamics, paired with localized insights, can drive sustained economic growth in the global marketplace.

View Jiangsu Guotai International Group Co Ltd Analysis

Intrinsic Value

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.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Hofseth Biocare ASA OSE:HBC	1.36 NOK
	Totens Sparebank OSE:TOTG	290 NOK

	Johnson & Johnson NYSE:JNJ	210.33 USD 0.49%
	Berkshire Hathaway Inc NYSE:BRK.A	756 120.01 USD 0.93%
	Bank of America Corp NYSE:BAC	54.55 USD -0.47%
	Mastercard Inc NYSE:MA	565.47 USD -0.1%
	UnitedHealth Group Inc NYSE:UNH	331.63 USD -0.77%
	Exxon Mobil Corp NYSE:XOM	117.41 USD 2.38%

	Franklin Covey Co NYSE:FC	16.73 USD 2.58%
	Mohawk Industries Inc NYSE:MHK	109.2 USD -1%
	Ardmore Shipping Corp NYSE:ASC	11.14 USD -0.18%
	ASGN Inc NYSE:ASGN	48.73 USD 2.05%
	Skyworks Solutions Inc NASDAQ:SWKS	65 USD -1.54%
	Weatherford International PLC NASDAQ:WFRD	77.405 USD 1.54%

	Johnson & Johnson NYSE:JNJ	210.33 USD 0.49%
	Bank of America Corp NYSE:BAC	54.55 USD -0.47%
	Mastercard Inc NYSE:MA	565.47 USD -0.1%
	Salesforce Inc NYSE:CRM	258.14 USD 1.27%
	Abbvie Inc NYSE:ABBV	224.31 USD 0.29%
	Home Depot Inc NYSE:HD	356.75 USD 1.15%

Jiangsu Guotai International Group Co Ltd
SZSE:002091