Yip's Chemical Holdings (0408) AI Stock Analysis

• Market Cap: $939.73M
• Dividend Yield: 12.94%
• Average Volume (3M): 168.90K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.28
• Revenue Growth: -1.70%
• EPS Growth: 12.53%
• Country: HK
• Employees: 2,189
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.17
• Shares Outstanding: 562,714,100
• 10 Day Avg. Volume: 212,888
• 30 Day Avg. Volume: 168,896
• PEG Ratio: -1.75
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.96
• Price Target Upside: 14.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$2.00 ▲(16.96%Upside)

Yip's Chemical Holdings is rated positively with a score of 74. The company's strong valuation with a low P/E ratio and high dividend yield is the most significant strength, indicating potential undervaluation. Technical analysis supports a bullish outlook with the stock trading above key moving averages and positive momentum indicators. Financial performance is stable but suggests room for improvement in operational efficiency and cash flow management.

Yip's Chemical Holdings Business Overview & Revenue Model

Company Description

Yip's Chemical Holdings Limited, an investment holding company, produces and sells petrochemical products in the People's Republic of China, Hong Kong, and internationally. It operates through Solvents, Coatings, Inks, Lubricants, and Properties segments. The Solvents segment produces industrial organic solvents, such as ethyl acetate, normal butyl acetate, mixed butyl acetate, ethanol, and butyl acrylate used in coatings, tannery, medicine, and adhesives industries. The Coatings segment provides architectural coatings, including inner and outer wall paints, and water-based emulsion and wood paints for the household paints market; industrial coatings comprising coatings for furniture, and plastic and mechanical products; and alkyd, acrylic, UV, amino, and water-based resins, as well as PU hardeners. This segment offers its products under the Camel, Aquapro, and VIVA brands. The Inks segment provides plastic and paper printing inks for use in food, drinks and gift packaging, and paper printing applications. The Lubricants segment offers automotive and industrial lubricants, including engine oils, antifreezes, system coolants, brake fluids, greases, gear oils, automatic transmission fluids, hydraulic oils, turbine oils, heat conducting oils, slideway oils, compressor oils, and circulating oils under the Hercules brand. It also provides specialty lubricants under the Pacoil brand to the metal processing, automobiles, home appliances, electronics, steel, toys, power generation, cement, textiles, foundry, plastics, chemicals, paper making, glass, wires, and cables industries. The Properties segment invests in properties. The company also trades in coatings, solvents, resins, inks, lubricants, and sanitizing products; offers treasury and car maintenance services; and generates and sells electricity. The company was formerly known as Hang Cheung Hong. Yip's Chemical Holdings Limited was founded in 1971 and is headquartered in Wanchai, Hong Kong.

How the Company Makes Money

Yip's Chemical Holdings generates revenue primarily through the production and sale of its petrochemical products. The company's key revenue streams include its extensive line of coatings, inks, lubricants, and solvents, which are distributed to both local and international markets. Yip's Chemical Holdings benefits from strategic partnerships and a robust supply chain network that enhances its market reach. Additionally, its commitment to innovation and quality control ensures a competitive edge in the chemical industry, contributing significantly to its earnings.

Yip's Chemical Holdings Financial Statement Overview

Summary

Yip's Chemical Holdings shows moderate financial stability with a strong equity position but faces growth challenges. Profitability ratios are stable, yet there is potential for operational efficiency improvement. Cash flow metrics indicate a need for enhanced cash management strategies.

Income Statement

Yip's Chemical Holdings has demonstrated fluctuating revenue growth with a decrease in recent years. The gross profit margin is stable around 23-24%, suggesting efficient cost management. The net profit margin improved to 3.1% in the latest year, but revenue declined by 1.7%. EBIT and EBITDA margins are low, indicating room for operational improvement.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 0.33, highlighting moderate leverage. Return on equity improved to 2.6%, suggesting better profitability management. The equity ratio is strong at 62.3%, indicating a solid financial structure.

Cash Flow

Operating cash flow has weakened, with a significant decrease in free cash flow growth. The operating cash flow to net income ratio is low, reflecting potential cash flow management issues. Free cash flow to net income is positive, but shows a declining trend.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.16B	3.22B	3.36B	17.81B	10.78B
Gross Profit	743.65M	782.27M	717.73M	2.16B	1.72B
EBITDA	117.19M	71.11M	13.32M	30.35M	795.39M
Net Income	96.88M	86.62M	33.67M	574.55M	403.58M
Balance Sheet
Total Assets	6.08B	6.42B	8.01B	10.42B	8.44B
Cash, Cash Equivalents and Short-Term Investments	594.38M	854.25M	1.09B	783.35M	565.30M
Total Debt	1.24B	1.44B	2.22B	2.28B	1.72B
Total Liabilities	2.26B	2.50B	3.55B	5.69B	4.21B
Stockholders Equity	3.79B	3.93B	4.41B	3.80B	3.41B
Cash Flow
Free Cash Flow	46.34M	204.68M	186.57M	-254.15M	32.04M
Operating Cash Flow	86.55M	236.54M	373.01M	266.37M	222.20M
Investing Cash Flow	226.06M	655.38M	68.70M	-316.56M	-184.40M
Financing Cash Flow	-319.25M	-1.34B	-97.68M	230.99M	-520.46M

Yip's Chemical Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0408, the sentiment is Positive. The current price of 1.71 is above the 20-day moving average (MA) of 1.62, above the 50-day MA of 1.56, and above the 200-day MA of 1.44, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 86.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0408.

Yip's Chemical Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0640	75 Outperform	HK$574.62M	4.95	20.67%	20.00%	25.95%	44.16%
0408	74 Outperform	$939.73M	9.74	2.51%	12.94%	-1.70%	12.53%
Sector *	62 Neutral	$10.14B	9.96	0.09%	2.90%	2.26%	-33.42%
0301	56 Neutral	HK$649.23M	―	-8.95%	―	-3.09%	-480.17%
1986	54 Neutral	HK$811.61M	55.38	-1.16%	6.50%	2.49%	-171.78%
0701	52 Neutral	HK$388.35M	―	-6.09%	―	-30.21%	-12.78%
1932	41 Neutral	HK$152.00M	―	-11.66%	―	-31.49%	28.61%

Yip's Chemical Holdings Corporate Events

Yip’s Chemical Holdings Updates on Share Repurchase Strategy

Yip’s Chemical Holdings Limited has announced a supplemental update to its Annual Report for the year ended 31 December 2024. The company repurchased 10,024,000 shares at a cost of HK$14,833,500, which are held as treasury shares. The decision on whether to cancel or sell these shares will depend on market conditions and the company’s capital management needs. This move reflects the company’s strategic approach to capital management and compliance with relevant regulations.

Yip’s Chemical Updates Nomination Committee Guidelines

Yip’s Chemical Holdings Limited has updated the terms of reference for its Nomination Committee, emphasizing the importance of board diversity and strategic alignment. The committee is tasked with reviewing the board’s structure and composition, ensuring a diverse and skilled board to support the company’s corporate strategy.

Yip’s Chemical Holdings Announces Board Changes

Yip’s Chemical Holdings Limited has announced a change in its board of directors with the appointment of Ms. Yau as an independent non-executive director, effective March 22, 2024. Ms. Yau has confirmed her independence, having no financial or other interests in the company’s business or connections with its core connected persons. This change is part of the company’s ongoing efforts to maintain a diverse and independent board, which is crucial for its governance and strategic decision-making.

Yip’s Chemical Holdings AGM: All Resolutions Passed with Strong Support

Yip’s Chemical Holdings Limited successfully held its Annual General Meeting on June 5, 2025, where all proposed resolutions were passed with significant support. Key resolutions included the adoption of financial statements, declaration of a final dividend, reappointment of auditors, and re-election of directors, demonstrating strong shareholder confidence and strategic continuity.

Yip’s Chemical Holdings Announces AGM and Key Resolutions for 2025

Yip’s Chemical Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 5, 2025, in Hong Kong. Key agenda items include the adoption of financial statements, declaration of a final dividend, reappointment of Deloitte Touche Tohmatsu as auditors, and re-election of board members. Additionally, the company seeks shareholder approval for a general mandate to issue additional shares, which could impact its market operations and shareholder value.