Longyan Kaolin Clay Co (SHSE:605086) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SHSE:605086 Longyan Kaolin Clay Co Ltd SHSE:605086
81 GF Score
Price ¥23.81
GF Value ¥21.30
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Longyan Kaolin Clay Co Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Longyan Kaolin Clay Co is: Low Risk: Strong fundamentals, worth long-term holding.

Longyan Kaolin Clay Co  (SHSE:605086) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Longyan Kaolin Clay Co Risk Assessment Related Terms

Longyan Kaolin Clay Co Risk Assessment Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Longyan Kaolin Clay Co's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Longyan Kaolin Clay Co Risk Assessment vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Longyan Kaolin Clay Co's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Longyan Kaolin Clay Co's Risk Assessment falls into.


SHSE:605086
81GF Score
Longyan Kaolin Clay Co Ltd SHSE:605086
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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Is Longyan Kaolin Clay Co (SHSE:605086) Overvalued in 2026?

Based on GuruFocus' analysis, Longyan Kaolin Clay Co stock appears to be overvalued. The current stock price of ¥23.81 is trading 11.8% above its estimated GF Value™ of ¥21.30. GuruFocus considers Longyan Kaolin Clay Co to be Modestly Overvalued.

Key valuation signals for SHSE:605086:

  • Risk Assessment:
  • GF Value™: ¥21.30 vs. price of ¥23.81 (11.8% above fair value)
  • GF Score™: 81/100 with 4 warning signs

No single metric tells the full story. See the SHSE:605086 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Longyan Kaolin Clay Co Business Description

Address No.260 Longyan Avenue, Xibei Street, Floor 10-12, State-owned Building, Xinluo District, Fujian Province, Longyan, CHN, 364000
Longyan Kaolin Clay Co Ltd is engaged in the selection, processing and sales of kaolin. The company's main products are kaolin ore, 325 mesh kaolin concentrate, super Longyan kaolin, and modified kaolin. The products have the characteristics of low iron, titanium and other harmful impurities, high firing whiteness, and good ceramic performance. It is widely used in daily ceramics, arts and crafts ceramics and high-end architectural ceramics.
81GF Score

Get the complete analysis for SHSE:605086

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥23.81
Price
¥21.30
GF Value