Risk factor
Strong & resilient to price shocks
Profitability factor
Very poor margins and returns
About
Tecon Biology Co. Ltd. is a diversified agribusiness operating in China and globally, with key activities spanning animal nutrition, livestock, and financial services. The company's primary focus involves the research, development, manufacturing, and distribution of a comprehensive range of animal feed products, designed for various species including poultry, swine, ruminants, and aquatic life. Beyond specialized feeds, Tecon also produces essential protein feed components and edible oils sourced from soybeans, sunflowers, rapeseed, and cottonseeds. Its involvement in the livestock sector extends to pig breeding and rearing, as well as meat processing and sales. Additionally, the company is a producer and supplier of veterinary biological products. Expanding its portfolio, Tecon offers a variety of financial services, including loan and bill acceptance guarantees, trade and project financing, credit provisions, and supervision for commodity financing. Established in Urumqi, China, in 1993, the company adopted its current name, Tecon Biology Co.Ltd, in June 2016, having previously operated as Xinjiang Tecon Animal Husbandry Bio-Technology Co., Ltd.
Company Valuation
Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. In particular, the stock is 'expensive' on EV/EBITDA.
Target Price
The average target price of 002100.SZ is 8.04 and suggests 4.69% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommen