Huadi International Group Co., Ltd. (HUDI) | Investment Case

1. Company Snapshot

1.a. Company Description

Huadi International Group Co., Ltd.develops, manufactures, markets, and sells industrial stainless steel seamless pipes, tubes, bars, and plates in the People's Republic of China.The company's products are used in oil and gas transmission, chemistry engineering, food processing, medical devices, aeronautics and astronautics, boiler, irrigation works construction, electricity, automobile, naval architecture, paper mill, and mechanical industries.

It also exports its products to 20 countries, including the United States, Mexico, Thailand, Australia, Argentina, India, the Philippines, the United Arab Emirates, Taiwan, Canada, and internationally.The company was founded in 1992 and is based in Wenzhou, the People's Republic of China.Huadi International Group Co., Ltd.

is a subsidiary of Yongqiang Donghai Limited.

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1.b. Last Insights on HUDI

Have nothing to say about that one ...

1.c. Company Highlights

Last Price	1.26
Change Percentage	0.47%
Open	1.25
Previous Close	1.25
Market Cap ( Millions)	18
Volume	76
Year High	5.46
Year Low	1.06
M A 50	1.33
M A 200	1.38

FCF Yield	8.59%
Dividend Yield	0.00%
ROE	-0.68%
Debt / Equity	18.15%
Net Debt / EBIDTA	-250.61%
Price To Book	0.24
Price Earnings Ratio	-35.16
Price To FCF	11.64
Price To sales	0.27
EV / EBITDA	-12.45

2. Transcript Summary

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3. NewsRoom

Huadi International Group Co., Ltd. Announces Fiscal Year 2023 Financial Results

Feb -06

Source: prnewswire.com

Traders and investors see opportunity in high-stakes ‘musical chairs' of Chinese stocks, Stocktwits says

Sep -21

Source: Market Watch

Huadi International Group Co., Ltd. Announces the First six Months of Fiscal Year 2023 Financial Results

Sep -06

Source: prnewswire.com

Huadi International Group Co., Ltd. Announces Results of 2023 Annual Meeting of Shareholders

Sep -01

Source: globenewswire.com

Small-cap Chinese stocks spark meme-like buzz

May -02

Source: Market Watch

HUDI Stock Alert: Why Is Huadi International Up 200% Today?

Apr -28

Source: InvestorPlace

Will the Fed Raise Interest Rates in 2023? What to Know Ahead of Jan. 31.

Jan -05

Source: InvestorPlace

Why Is Huadi International (HUDI) Stock Up 30% Today?

Jan -05

Source: InvestorPlace

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Industrial Stainless Steel Seamless Pipes and Tubes

Expected Growth: 4.5%

Growing demand for corrosion-resistant pipes in industries such as oil and gas, chemical processing, and power generation, driven by increasing investments in infrastructure development and stringent regulations for environmental protection.

Production Service

Expected Growth: 8.5%

Growing demand for manufacturing and assembly solutions in automotive, aerospace, and electronics industries, driven by increasing adoption of electric vehicles, rising aerospace production, and growing demand for electronic devices.

7. Detailed Products

Steel Products

Huadi International Group Co., Ltd. offers a wide range of steel products, including hot-rolled coils, cold-rolled coils, galvanized coils, and prepainted coils.

Iron Ore

Huadi International Group Co., Ltd. supplies high-quality iron ore, a primary ingredient in steel production, sourced from reputable mines around the world.

Coking Coal

Huadi International Group Co., Ltd. provides high-quality coking coal, a critical component in steel production, sourced from leading mines globally.

Metallurgical Coke

Huadi International Group Co., Ltd. offers high-quality metallurgical coke, a critical component in steel production, sourced from leading manufacturers globally.

Logistics Services

Huadi International Group Co., Ltd. provides comprehensive logistics services, including transportation, storage, and customs clearance, for its products.

Financial Services

Huadi International Group Co., Ltd. offers financial services, including trade financing, to support its customers' business operations.

8. Huadi International Group Co., Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Huadi International Group Co., Ltd. operates in a industry with moderate threat of substitutes. The company's products are moderately differentiated, and customers have some alternatives available.

Bargaining Power Of Customers

Huadi International Group Co., Ltd. operates in a industry with high bargaining power of customers. The company's customers are large and have significant negotiating power.

Bargaining Power Of Suppliers

Huadi International Group Co., Ltd. operates in a industry with low bargaining power of suppliers. The company has multiple suppliers and can easily switch between them.

Threat Of New Entrants

Huadi International Group Co., Ltd. operates in a industry with moderate threat of new entrants. The company has some barriers to entry, but new entrants can still enter the market with some effort.

Intensity Of Rivalry

Huadi International Group Co., Ltd. operates in a highly competitive industry with high intensity of rivalry. The company faces significant competition from established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	13.40%
Debt Cost	3.95%
Equity Weight	86.60%
Equity Cost	16.21%
WACC	14.57%
Leverage	15.48%

11. Quality Control: Huadi International Group Co., Ltd. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Aperam

A-Score: 6.1/10

Value: 7.9

Growth: 4.3

Quality: 4.9

Yield: 8.8

Momentum: 6.5

Volatility: 4.3

1-Year Total Return ->

Jacquet Metals

A-Score: 5.5/10

Value: 7.3

Growth: 5.2

Quality: 2.6

Yield: 4.4

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Alleima

A-Score: 4.8/10

Value: 5.2

Growth: 5.2

Quality: 5.1

Yield: 3.1

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

Stalprodukt

A-Score: 4.7/10

Value: 5.8

Growth: 2.3

Quality: 3.5

Yield: 5.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

Huadi International

A-Score: 4.5/10

Value: 8.3

Growth: 5.3

Quality: 5.4

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

Hongli

A-Score: 4.4/10

Value: 7.0

Growth: 2.2

Quality: 6.4

Yield: 0.0

Momentum: 8.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.90%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

14.57%

Huadi International Group Co., Ltd. - KYG4645E1052

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on HUDI

Have nothing to say about that one ...

1.c. Company Highlights

Average Quality

Average Growth

Medium Volatility

Lower Growth

Average Yield

Better Quality

Fairly Valued

Stable Momentum

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Industrial Stainless Steel Seamless Pipes and Tubes

Expected Growth: 4.5%

Production Service

Expected Growth: 8.5%

7. Detailed Products

Steel Products

Iron Ore

Coking Coal

Metallurgical Coke

Logistics Services

Financial Services

8. Huadi International Group Co., Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Huadi International Group Co., Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.26$

Current Price

1.26$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA