Risk factor
Good trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Yantai Tayho Advanced Materials Co., Ltd. (002254.SZ) is a Chinese enterprise specializing in the development, manufacturing, and distribution of cutting-edge synthetic fibers. The company's product portfolio includes "Newstar Spandex," a highly elastic polyurethane fiber. This versatile material is integral to products like underwear, hosiery, activewear, swimwear, and formal suits, as well as specialized items such as medical textiles, hygiene products, and automotive interior components. Another key offering is "Newstar Meta-aramid," an advanced aromatic polyamide fiber. Its exceptional properties make it suitable for demanding sectors such as aerospace, high-speed rail, fire-resistant clothing (firefighter apparel, training uniforms, workwear), environmental protection applications, high-temperature industrial materials, automobile hoses, premium sound insulation, and electrical insulation. Yantai Tayho also produces "Taparan Para-aramid fibers," which are crucial for reinforcing rubber structures, strengthening fabrics, tire cords, various packing and sealing materials, and optical cable reinforcement. Additionally, "Tametar anti-static fibers" are supplied for anti-static fabric, 3T fabric, and industrial filtration solutions, alongside "Metastar Aramid papers." Established in Yantai, China, in 1993, the company initially operated as Yantai Spandex Co., Ltd. It underwent a name change to Yantai Tayho Advanced Materials Co., Ltd. in September 2011.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBIT
Target Price
The average target price of 002254.SZ is 11.9 and suggests 15.3% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation