Xinxing Ductile Iron Pipes Co., Ltd. (000778.SZ)

Xinxing Ductile Iron Pipes Co., Ltd. (000778.SZ) — VMCI valuation read

Headline read on 000778.SZ: VMCI of 48/100 versus a Basic Materials sector median of 50. The 3-point below-median position is what makes Xinxing Ductile Iron Pipes Co., Ltd. a relative-value laggard in the mid-cap cohort, before any pillar-level review.

Form 4 filings on 000778.SZ: zero in the trailing 30 days. The absence of insider transactions is itself a data point, just a low-information one. The thesis runs on financials and price action until that changes.

**Investor frame.** Three reads on 000778.SZ: value (000778.SZ trades at 19.0x earnings, 6% above the Basic Materials median of 18.0x), quality (ROIC of 19.0% sits 9.0pp above the Basic Materials median (10.0%)), and risk (net debt to EBITDA of -0.8x leaves covenant headroom). The value read also implies an EV/EBITDA gap of +4.0x against the Basic Materials 12.0x baseline.

000778.SZ rose 3.0% over the trailing 7 days, with a -19.4% read on a 30-day basis.