Sinofert Holdings (0297) AI Stock Analysis

• Market Cap: $10.68B
• Dividend Yield: 3.52%
• Average Volume (3M): 32.71M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.75
• Revenue Growth: -0.34%
• EPS Growth: 64.10%
• Country: HK
• Employees: 4,371
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 0.17
• Shares Outstanding: 7,024,455,600
• 10 Day Avg. Volume: 26,468,492
• 30 Day Avg. Volume: 32,708,843
• PEG Ratio: 0.11
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 10.26
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 4.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.52
• Revenue Forecast (FY): $179.26B

• Rating: 71 Outperform
• Price Target: HK$1.50 ▼(-5.66% Downside)

Sinofert Holdings' strong valuation and financial stability are offset by technical weakness and cash flow volatility. The stock appears undervalued with a solid dividend yield, but short-term momentum is lacking.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Profitability

High profit margins reflect effective cost management and operational efficiency, which are crucial for sustaining long-term profitability and competitive positioning.

Market Position

Being a leading player in the fertilizer industry with a broad distribution network strengthens Sinofert's market position, supporting revenue stability and growth potential.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term strategic planning and investment, potentially affecting market confidence and the company's ability to capitalize on growth opportunities.

Cash Flow Volatility

Volatile cash flow can challenge the company's ability to fund operations and investments, posing risks to financial health and growth initiatives.

Revenue Decline

Declining revenue trends can impact the company's ability to maintain market share and profitability, necessitating strategic adjustments to reverse the trend.

Sinofert Holdings Business Overview & Revenue Model

Company Description

Sinofert Holdings (0297) is a leading agricultural products company based in China, primarily engaged in the production and distribution of fertilizers and related products. The company operates in the agricultural sector, focusing on enhancing crop yields and improving the efficiency of agricultural practices. Sinofert's core offerings include nitrogenous, phosphatic, and potassium fertilizers, as well as other agricultural chemicals and services that support the farming industry.

How the Company Makes Money

Sinofert Holdings generates revenue through the sale of a diverse range of fertilizers and agricultural products. Key revenue streams include the manufacturing and distribution of nitrogenous, phosphatic, and potassium fertilizers, which are essential for crop production. The company also engages in trading agricultural commodities, which supplements its earnings. Sinofert's business model is supported by strategic partnerships with various agricultural cooperatives and institutions, allowing for a broader distribution network and enhanced market presence. Additionally, fluctuations in commodity prices and agricultural demand significantly influence the company's profitability, as it responds to market needs and adjusts its product offerings accordingly.

Sinofert Holdings Financial Statement Overview

Summary

Sinofert Holdings shows strong profitability and a stable balance sheet, with high scores in income statement and balance sheet metrics. However, cash flow volatility and inconsistent revenue growth slightly detract from the overall financial performance.

Income Statement

Sinofert Holdings demonstrates strong gross and net profit margins in the latest year, indicating efficient cost management and profitability. However, revenue growth has been inconsistent, showing declines in recent years. Notably, EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity base and a low debt-to-equity ratio, suggesting financial stability. The equity ratio remains robust, indicating a solid proportion of equity financing. Return on equity is positive, contributing to shareholder value.

Cash Flow

Cash flow from operations shows volatility, with the most recent period lacking operational cash flow data. The free cash flow position is unclear due to missing recent figures, posing potential risk for cash management. Historical free cash flow growth has been positive, but inconsistent.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.30B	21.26B	21.73B	23.00B	22.64B	21.38B
Gross Profit	2.86B	2.50B	2.26B	2.29B	1.91B	1.97B
EBITDA	1.59B	1.28B	1.35B	1.22B	880.53M	777.63M
Net Income	1.11B	1.06B	625.55M	1.12B	866.61M	644.07M
Balance Sheet
Total Assets	19.93B	21.42B	21.98B	20.82B	17.49B	17.11B
Cash, Cash Equivalents and Short-Term Investments	4.08B	3.81B	3.92B	3.36B	1.32B	767.21M
Total Debt	1.79B	1.87B	1.83B	1.82B	1.09B	1.77B
Total Liabilities	8.63B	10.78B	12.06B	11.09B	8.51B	8.94B
Stockholders Equity	11.08B	10.42B	9.71B	9.50B	8.74B	8.00B
Cash Flow
Free Cash Flow	-404.19M	784.62M	1.85B	812.75M	220.34M	389.36M
Operating Cash Flow	-131.45M	1.04B	2.49B	2.00B	1.57B	990.37M
Investing Cash Flow	-82.22M	-1.50B	-1.46B	-152.99M	-103.93M	-676.72M
Financing Cash Flow	-393.26M	-356.46M	-478.02M	185.09M	-911.40M	-879.07M

Sinofert Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0297, the sentiment is Positive. The current price of 1.59 is below the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.54, and above the 200-day MA of 1.31, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 63.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0297.

Sinofert Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1866	76 Outperform	HK$10.10B	6.46	15.41%	3.01%	0.82%	2.99%
0297	71 Outperform	$10.68B	8.91	10.34%	3.52%	-0.34%	64.10%
3983	69 Neutral	$11.29B	10.22	5.60%	5.20%	-8.24%	-24.53%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1702	59 Neutral	HK$1.21B	16.88	3.61%	2.41%	-8.51%	-68.34%
0609	54 Neutral	HK$1.26B	19.62	2.46%	3.47%	-5.29%	-32.47%
8189	37 Underperform	HK$640.17M	―	-44.61%	―	-5.79%	-129.73%

Sinofert Holdings Corporate Events

Sinofert Holdings to Discuss Financial Services Agreement at Special General Meeting

Sinofert Holdings Limited has announced a special general meeting to be held on December 19, 2025, in Hong Kong. The meeting will address the approval of the Financial Services Framework Agreement and related Deposit Services, which are expected to impact the company’s financial operations. The resolution, if passed, will authorize the directors to execute necessary documents and actions for the implementation of these services, potentially affecting stakeholders by enhancing the company’s financial service capabilities.

Sinofert Holdings Announces Register Closure for SGM Voting

Sinofert Holdings Limited has announced the closure of its register of members from December 16 to December 19, 2025, to determine the entitlement of shareholders to attend and vote at the Special General Meeting (SGM) scheduled for December 19, 2025. This move is part of the company’s ongoing major and connected transactions under the Financial Services Framework Agreement, which may have implications for its operational and strategic directions.

Sinofert Holdings Announces Change in Company Secretary

Sinofert Holdings Limited announced the resignation of Ms. Cheung Kar Mun, Cindy as the company secretary and a member of the corporate governance committee, effective November 24, 2025. Ms. Lai Ying Tung has been appointed as the new company secretary, bringing nearly a decade of experience in corporate secretarial services. The board expressed gratitude to Ms. Cheung for her contributions and welcomed Ms. Lai to her new role.

Sinofert Holdings Initiates Equipment Renewal Project

Sinofert Holdings Limited announced a connected transaction involving its subsidiary, Sinochem Yunlong, which has entered into an EPC General Contracting Agreement with CBLE and Yunnan Qiangshi for the renewal and renovation of electrical and instrumentation equipment. This project, valued at up to RMB31,000,000, aims to enhance the safety and reliability of operations by upgrading outdated equipment. The transaction, classified as a connected transaction under the Listing Rules, does not require independent shareholders’ approval but must comply with reporting and announcement requirements.

Sinofert Holdings Advances Phosphogypsum Utilization Project

Sinofert Holdings Limited, through its subsidiary Sinochem Fuling, has announced a connected transaction involving the harmless phosphogypsum backfill utilization project. This initiative aligns with national policies requiring 100% harmless treatment of phosphogypsum by 2026. The project, valued at RMB62,644,158.09, involves CBLE and Zhejiang Tuohai as contractors for design, procurement, and construction. This transaction, under the General Contracting Agreement, is subject to reporting and announcement requirements but is exempt from independent shareholders’ approval, reflecting its strategic importance in enhancing land utilization efficiency and compliance with regulatory standards.

Sinofert Holdings Reports 6% Profit Increase Amidst Market Challenges

Sinofert Holdings Limited announced its unaudited key operating data for the nine months ended 30 September 2025, reporting a turnover of approximately RMB19,373 million and a net profit of RMB1,364 million, marking a 6% increase from the previous year. Despite challenges such as high raw material costs and declining ammonia prices, the company advanced its ‘Bio+’ strategy, achieving synergies across its operations and driving steady development in its results.

Sinofert Holdings Expands Financial Services Agreement with Sinochem Finance

Sinofert Holdings Limited has entered into a new Financial Services Framework Agreement with Sinochem Finance, effective after approval by independent shareholders, to increase the maximum daily outstanding balance of deposits and extend the agreement’s term by three years. This move is part of the company’s strategy to optimize its financial operations and comply with the Hong Kong Listing Rules, which require reporting, announcement, and shareholder approval for major transactions. The agreement aims to enhance Sinofert’s financial flexibility and strengthen its market position, with implications for stakeholders including the need for independent shareholder approval and advisory from Somerley Capital Limited.

Sinofert Holdings Revises Annual Cap for Information System Services Agreement

Sinofert Holdings Limited has announced a revision of the annual cap for its continuing connected transactions under the Information System Services Agreement with Sinochem Information. The company anticipates that the fees payable under this agreement for 2025 will exceed the original cap, prompting the board to revise it. This adjustment reflects the company’s ongoing commitment to maintaining robust information system services, which include system operation, maintenance, software licensing, procurement, and artificial intelligence services. The revision is subject to certain reporting and review requirements but does not require independent shareholders’ approval.