Yip's Chemical Holdings (0408) AI Stock Analysis

• Market Cap: HK$1.07B
• Dividend Yield: 7.85%
• Average Volume (3M): 215.34K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.38
• Revenue Growth: -5.37%
• EPS Growth: 25.20%
• Country: HK
• Employees: 2,189
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.12
• Shares Outstanding: 562,714,100
• 10 Day Avg. Volume: 120,600
• 30 Day Avg. Volume: 215,336
• PEG Ratio: 0.65
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 18.16
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$2.00 ▲(5.26% Upside)

Yip's Chemical Holdings has a solid valuation with a low P/E ratio and high dividend yield, making it attractive for income investors. The technical analysis shows positive momentum, although caution is advised due to overbought signals. Financial performance is stable but shows room for improvement in growth and cash management.

Positive Factors

Strong Equity Position

A strong equity position with moderate leverage indicates financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Profitability Management

Improved return on equity reflects enhanced profitability management, which can lead to better shareholder returns and support long-term financial health.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management, which is crucial for maintaining profitability and competitive pricing in the long term.

Negative Factors

Revenue Growth Challenges

Fluctuating and declining revenue growth can hinder the company's ability to expand and capture market share, posing a risk to long-term growth prospects.

Weak Operating Cash Flow

Weak operating cash flow limits the company's ability to reinvest in growth opportunities and manage debt, potentially affecting its financial flexibility and stability.

Low EBIT and EBITDA Margins

Low EBIT and EBITDA margins suggest inefficiencies in operations, which can impact profitability and competitiveness if not addressed through strategic improvements.

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 sale of its chemical products, which include industrial coatings, adhesives, and specialty chemicals tailored for specific applications. The company's revenue model is built on both the direct sale of products to end-users and the provision of customized solutions for clients in various industries. Key revenue streams include bulk sales to manufacturers, long-term supply contracts with large corporations, and collaborations with industry partners for product development. The company also benefits from economies of scale, allowing it to optimize production costs and enhance profit margins. Strategic partnerships with other companies in related sectors further contribute to its earnings by expanding market reach and enhancing product offerings.

Yip's Chemical Holdings Financial Statement Overview

Summary

Yip's Chemical Holdings demonstrates moderate financial stability with a strong equity position. However, it faces growth challenges with declining revenue and low EBIT and EBITDA margins. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	3.16B	3.22B	3.36B	3.99B	10.78B
Gross Profit	738.70M	743.65M	782.27M	717.73M	832.83M	1.72B
EBITDA	118.19M	117.19M	122.20M	56.29M	30.35M	795.39M
Net Income	128.94M	96.88M	86.62M	1.22B	406.28M	302.57M
Balance Sheet
Total Assets	6.13B	6.08B	6.42B	8.01B	10.42B	8.44B
Cash, Cash Equivalents and Short-Term Investments	398.15M	594.38M	854.25M	1.09B	783.35M	565.30M
Total Debt	1.12B	1.24B	1.44B	2.22B	2.28B	1.72B
Total Liabilities	2.19B	2.26B	2.50B	3.55B	5.69B	4.21B
Stockholders Equity	3.92B	3.79B	3.93B	4.41B	3.80B	3.41B
Cash Flow
Free Cash Flow	82.96M	46.34M	204.68M	186.57M	-254.15M	32.04M
Operating Cash Flow	129.50M	86.55M	236.54M	373.01M	266.37M	222.20M
Investing Cash Flow	-21.43M	226.06M	655.38M	77.53M	-316.56M	-184.40M
Financing Cash Flow	-175.10M	-319.25M	-1.34B	-147.38M	230.99M	-520.46M

Yip's Chemical Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.9 is above the 20-day moving average (MA) of 1.90, below the 50-day MA of 1.93, and above the 200-day MA of 1.69, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, 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	77 Outperform	HK$829.95M	6.04	20.67%	8.71%	25.95%	44.12%
0408	69 Neutral	HK$1.07B	8.26	3.36%	7.85%	-5.37%	25.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0301	56 Neutral	HK$625.71M	-18.00	-14.53%	―	0.35%	-153.95%
1986	54 Neutral	HK$771.20M	-26.58	-1.52%	5.55%	0.37%	-331.54%
0701	49 Neutral	HK$375.03M	-3.73	-8.05%	―	-24.13%	-27.54%
1932	48 Neutral	HK$138.00M	-2.22	-15.93%	―	-25.21%	12.04%

Yip's Chemical Holdings Corporate Events

Yip’s Chemical Holdings Granted Waiver for Circular Dispatch Delay

Yip’s Chemical Holdings Limited announced a delay in the dispatch of a circular related to a major transaction involving the acquisition of a 60% equity interest in a target company. The company has been granted a waiver by the Stock Exchange of Hong Kong to extend the dispatch date to December 12, 2025, allowing additional time to finalize necessary information. This extension may impact stakeholders by delaying the availability of detailed transaction information.

The most recent analyst rating on (HK:0408) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Yip’s Chemical Holdings stock, see the HK:0408 Stock Forecast page.

Yip’s Chemical Holdings Announces Major Acquisition in Chemical Vapor Management

Yip’s Chemical Holdings has announced a major transaction involving the acquisition of a 60% equity interest in a leading enterprise in the PRC specializing in chemical vapor emissions management. This acquisition, valued between RMB254.4 million and RMB384 million, is expected to enhance Yip’s Chemical Holdings’ market position and operational capabilities in the chemical industry, subject to shareholder approval and compliance with Hong Kong’s Listing Rules.

The most recent analyst rating on (HK:0408) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Yip’s Chemical Holdings stock, see the HK:0408 Stock Forecast page.