Risk factor
Resilient to price shocks
Profitability factor
Overvalued vs peers
About
Luoniushan Co., Ltd. operates extensively in China, with its primary activities centered on animal husbandry and property development. Its comprehensive agricultural division manages pig breeding, commercial pork production, feed supply, disease control, livestock slaughtering and processing, environmental sustainability practices, scientific advancement, and food safety quarantine, in addition to offering cold chain logistics. On the real estate front, the company is engaged in the development and construction of residential properties. Furthermore, Luoniushan has diversified interests, running educational institutions spanning primary, junior high, high school, and tertiary levels, as well as vocational and technical colleges. The company also provides hospitality services like accommodation and catering, occasional training courses, and examination services. Adding to its portfolio, it offers financial support through loans to small and medium-sized businesses and various merchants. Founded in 1987 and headquartered in Haikou City, China, the company underwent a name change from Haikou Agriculture & Industry & Trade (Luoniushan) Co Ltd to its present form in July 2013.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA, overvalued on P/FC.