Tiande Chemical Holdings Limited (0609) AI Stock Analysis

• Market Cap: HK$1.45B
• Dividend Yield: 3.52%
• Average Volume (3M): 225.60K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.27
• Revenue Growth: -5.29%
• EPS Growth: -32.47%
• Country: HK
• Employees: 1,358
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.04
• Shares Outstanding: 878,418,000
• 10 Day Avg. Volume: 119,200
• 30 Day Avg. Volume: 225,600
• PEG Ratio: -0.21
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 4.78
• 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: 61 Neutral
• Price Target: HK$1.50 ▲(5.63% Upside)

The score is driven primarily by weakening profitability and margin compression, partially offset by a conservative balance sheet and continued positive free cash flow. Technical indicators are broadly neutral, while valuation is fair with a moderate dividend yield but a mid-range P/E.

Positive Factors

Low leverage / conservative balance sheet

Very low debt and a large equity base provide durable financial flexibility for a cyclical chemicals business. This reduces refinancing and interest burdens, supports continuity of operations during downturns, and preserves capacity for capex, dividends, or M&A without stressing liquidity.

Growing free cash flow

Material and improving free cash flow is a structural strength: it funds reinvestment, services shareholder returns, and provides a buffer against earnings volatility. Persistent FCF growth supports capital allocation flexibility even if margins remain under pressure.

Positive operating cash generation

Strong operating cash flow relative to earnings indicates underlying cash-generative operations typical of established chemical producers. Persistent OCF supports working capital needs, funds maintenance capex, and makes the business less reliant on external financing.

Negative Factors

Sharp margin compression

Sustained margin erosion materially reduces return on capital and weakens the firm's ability to absorb input cost swings or invest for growth. If margins remain compressed, profitability volatility could persist and constrain long-term cash available for strategic initiatives.

Revenue decline trend

Consecutive flat-to-declining top-line trends indicate demand or share-pressure in key markets. Structural revenue weakness limits operating leverage benefits, makes margin recovery harder, and forces reliance on cost cuts rather than sustainable volume-driven growth.

Falling returns on equity

A marked drop in ROE signals deteriorating efficiency in converting equity into profits. Persistently low ROE undermines shareholder value creation, reduces attractiveness for reinvestment, and may pressure management to pursue higher-risk strategies to restore returns.

Tiande Chemical Holdings Limited Business Overview & Revenue Model

Company Description

Tiande Chemical Holdings Limited, an investment holding company, engages in the research, development, manufacture, sale, and distribution of fine chemical products in the People's Republic of China, India, the United States, Taiwan, the United Kingdom, and internationally. Its principal products include sodium cyanide, cyanoacetic acid and cyanoacetates, malonates, diethyl ethoxymethylenemalonate, EDTA acids and salts, mono chloroacetic acid and derivatives, ethanol, tert-butanol, cyanoacrylate monomers, and related by-products. The company also engages in the research and development, manufacture, and sale of medical instrument products; and manufacture and sale of adhesive products. Its products are used in synthesis of pharmaceutical products, pesticides, adhesive products, sealants, essences, aromatics, etc. The company was founded in 1997 and is headquartered in Weifang, the People's Republic of China. Tiande Chemical Holdings Limited is a subsidiary of Cheerhill Group Limited.

How the Company Makes Money

Tiande Chemical Holdings Limited generates revenue through the production and sale of its chemical products. The company's key revenue streams include the sale of cyanoacetic acid and its derivatives, which are used in the synthesis of pharmaceuticals, agrochemicals, and other chemical products. The company benefits from its established distribution network and strategic partnerships with major industry players, which help facilitate the sale and distribution of its products. Additionally, the company's focus on research and development allows it to innovate and expand its product offerings, contributing to its financial performance.

Tiande Chemical Holdings Limited Financial Statement Overview

Summary

Mixed fundamentals: earnings and margins deteriorated sharply in 2023–2024 (net margin ~3.6% in 2024 vs ~10.1% in 2023), but the balance sheet remains low-leverage (debt-to-equity ~0.09) and cash generation stayed positive with operating cash flow (~395.4M) and free cash flow (~195.7M) in 2024.

Income Statement

Profitability and growth have weakened meaningfully. Revenue declined in 2024 (-2.2% YoY) after a flat 2023, and margins compressed sharply versus the strong 2021–2022 period: net margin fell to ~3.6% in 2024 from ~10.1% in 2023 and ~24.7% in 2022. Gross margin also dropped to ~12.1% in 2024 (from ~21.1% in 2023). While the company remained profitable in 2024 (net income ~66.9M), the magnitude of the decline and margin volatility are key concerns.

Balance Sheet

The balance sheet looks relatively conservative. Leverage is low with debt-to-equity at ~0.09 in 2024 (and effectively zero in 2023), supported by a sizable equity base (~2.42B) versus total assets (~3.08B). The main weakness is the drop in shareholder returns: return on equity fell to ~2.8% in 2024 from ~8.6% in 2023 and much higher levels in 2021–2022, reflecting the earnings downturn more than balance-sheet stress.

Cash Flow

Cash generation is a relative strength, with positive operating cash flow (~395.4M) and free cash flow (~195.7M) in 2024, and free cash flow up strongly (+22.1% YoY). However, cash conversion weakened: operating cash flow covered only ~0.75x of net income in 2024 (down from ~2.04x in 2023), and free cash flow was ~49% of net income, indicating less efficient cash translation versus prior years despite remaining solidly positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	1.87B	2.08B	3.52B	2.58B	1.36B
Gross Profit	200.07M	227.48M	438.84M	1.48B	777.87M	181.13M
EBITDA	160.26M	154.21M	436.44M	1.40B	678.07M	144.80M
Net Income	59.68M	66.88M	211.07M	870.92M	379.65M	94.82M
Balance Sheet
Total Assets	3.18B	3.08B	2.92B	2.96B	2.32B	1.92B
Cash, Cash Equivalents and Short-Term Investments	848.92M	851.55M	615.06M	492.13M	226.35M	125.31M
Total Debt	354.19M	220.13M	0.00	45.72M	154.76M	215.51M
Total Liabilities	678.38M	569.51M	364.24M	456.06M	561.92M	536.01M
Stockholders Equity	2.43B	2.42B	2.44B	2.41B	1.75B	1.39B
Cash Flow
Free Cash Flow	113.33M	195.67M	330.76M	592.74M	60.86M	-45.32M
Operating Cash Flow	293.93M	395.43M	649.23M	854.84M	274.33M	170.53M
Investing Cash Flow	199.29M	-219.65M	-543.42M	-469.45M	-84.39M	-180.60M
Financing Cash Flow	3.37M	6.65M	-232.55M	-337.13M	-88.77M	-29.44M

Tiande Chemical Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.42
• 50DMA: Positive
• 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:0609, the sentiment is Positive. The current price of 1.42 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.48, and above the 200-day MA of 1.30, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0609.

Tiande Chemical Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	73 Outperform	HK$4.98B	8.79	9.36%	6.70%	-3.73%	6.09%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0609	61 Neutral	HK$1.45B	22.34	2.46%	3.52%	-5.29%	-32.47%
1702	59 Neutral	HK$1.03B	16.02	3.61%	2.20%	-8.51%	-68.34%
2198	50 Neutral	HK$5.47B	7.25	13.87%	―	9.20%	213.87%
0827	43 Neutral	HK$210.84M	-0.30	-112.79%	―	-22.72%	-212.73%

Tiande Chemical Holdings Limited Corporate Events

Tiande Chemical Announces 2026 Board Line-up and Committee Roles

Tiande Chemical Holdings Limited has announced the composition of its board of directors with effect from 1 January 2026, naming Liu Yang as chairman alongside executive directors Chen Xiaohua and Dou Aobo, non-executive director Wang Zijiang, and independent non-executive directors Leung Kam Wan, Liu Chenguang and Shan Honghong. The company has also confirmed the membership and leadership of its four key board committees—Audit, Remuneration, Nomination, and Safety and Environmental Protection—clarifying oversight responsibilities among directors and reinforcing its corporate governance and risk management framework, particularly in financial control, pay policies, board succession, and environmental and safety matters.

The most recent analyst rating on (HK:0609) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Tiande Chemical Holdings Limited stock, see the HK:0609 Stock Forecast page.

Tiande Chemical to Fully Consolidate Key Subsidiary with RMB88 Million Stake Purchase

Tiande Chemical Holdings Limited has agreed to acquire the remaining 49% equity interest in a non-wholly owned subsidiary from an existing substantial shareholder for RMB88 million, turning the target into an indirect wholly owned subsidiary. The consideration will be settled mainly by offsetting debt owed by the vendor to the purchaser, with a small remaining balance to be paid in cash, and the deal is classified as a discloseable and connected transaction under Hong Kong’s Listing Rules, though exempt from shareholder approval; directors state the terms are fair and in the interests of the company and its shareholders, indicating a move to consolidate control and streamline the group’s corporate structure.

Tiande Chemical Tightens Audit Committee Charter to Bolster Governance

Tiande Chemical Holdings Limited has revised and approved updated terms of reference for its audit committee, effective 23 December 2025, formalising requirements that the committee comprise at least three members drawn from independent non-executive directors, including at least one with professional accounting or financial management expertise, and be chaired by an independent non-executive director. The revised framework strengthens the company’s corporate governance by detailing membership criteria, meeting frequency and notice procedures, quorum rules, minute-keeping, and requirements for annual meetings with external auditors, which collectively are designed to enhance oversight of financial reporting and internal control for the benefit of shareholders and other stakeholders.

Tiande Chemical Tightens Governance With Updated Remuneration Committee Mandate

Tiande Chemical Holdings Limited has revised and approved updated terms of reference for its remuneration committee, effective 23 December 2025, setting out the committee’s composition, roles and operating procedures. The new terms formalize that a majority of members, including the committee chair, must be independent non-executive directors, define meeting frequency, notice requirements, quorum, minute-keeping and voting arrangements, and allow participation by teleconference, underscoring the company’s efforts to strengthen corporate governance and oversight of directors’ and senior management’s remuneration.

Tiande Chemical Strengthens Governance With New Nomination Committee Appointment

Tiande Chemical Holdings has appointed independent non-executive director Ms. Shan Honghong as a member of its nomination committee, effective 1 January 2026, expanding the committee to four members. The board stated that this move is intended to improve gender diversity within the nomination committee and strengthen overall corporate governance practices in line with Hong Kong’s Corporate Governance Code, underscoring the company’s efforts to enhance regulatory compliance and board oversight structures.

Tiande Chemical Reshapes Board as Co‑Founder Steps Back and Deputy GM Becomes Executive Director

Tiande Chemical Holdings Limited has announced board changes effective 1 January 2026, with co‑founder and long‑serving executive director Wang Zijiang to be re‑designated as a non‑executive director so he can devote more time to other affairs. Wang, who has over 29 years of experience in the chemical industry and holds a significant stake in the company, will remain on the board under a new three‑year service agreement, signaling continuity of strategic oversight despite his shift away from day‑to‑day management. At the same time, deputy general manager Dou Aobo will be promoted to executive director, reflecting the company’s ongoing management succession and the elevation of internal operational leadership as Tiande Chemical seeks to maintain stability and support its longer‑term development.