China XLX Fertiliser Ltd. (1866) AI Stock Analysis

• Market Cap: HK$10.10B
• Dividend Yield: 3.01%
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.48
• Revenue Growth: 0.82%
• EPS Growth: 2.99%
• Country: HK
• Employees: 11,787
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): N/A
• Shares Outstanding: 1,283,241,000
• 10 Day Avg. Volume: 2,461,100
• 30 Day Avg. Volume: 2,602,280
• PEG Ratio: 0.14
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -3.07
• 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): 7.7
• Revenue Forecast (FY): HK$197.54B

• Rating: 76 Outperform
• Price Target: HK$10.00 ▲(9.53% Upside)

China XLX Fertiliser Ltd. receives a strong overall score driven by robust technical analysis indicators and attractive valuation metrics. The financial performance is stable but hindered by high leverage and negative free cash flow, which slightly dampens the overall score. The absence of earnings call data and corporate events does not impact the score calculation.

Positive Factors

Revenue Growth

The stable revenue growth indicates a consistent demand for the company's products, supporting long-term business sustainability and market presence.

Operational Efficiency

Consistent gross profit margins reflect effective cost control, which is crucial for maintaining profitability and competitive pricing in the market.

Market Position

A strong market position in the Chinese agricultural sector provides a solid foundation for growth and resilience against market fluctuations.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Negative free cash flow suggests liquidity issues, which could hinder the company's ability to fund operations and invest in future growth without additional financing.

Profit Margin Pressure

A decrease in net profit margin indicates pressure on profitability, which could affect the company's ability to generate returns for shareholders over time.

China XLX Fertiliser Ltd. Business Overview & Revenue Model

Company Description

China XLX Fertiliser Ltd. (1866) is a leading manufacturer and supplier of chemical fertilizers, primarily operating within the agricultural sector. The company specializes in the production of urea, ammonium nitrate, and other nitrogen-based fertilizers, which are essential for enhancing crop yield and quality. With a robust presence in the Chinese market, China XLX Fertiliser Ltd. focuses on meeting the growing demand for agricultural products driven by the country's increasing food production needs.

How the Company Makes Money

China XLX Fertiliser Ltd. generates revenue primarily through the sale of its chemical fertilizers, which are marketed to agricultural producers and distributors across China and potentially in other regions. The company benefits from economies of scale due to its large production capacity, enabling it to offer competitive pricing. Key revenue streams include direct sales of urea and ammonium nitrate, as well as potential value-added products or services related to fertilizer application and agricultural consultancy. Additionally, strategic partnerships with agricultural cooperatives and distribution networks enhance market penetration and customer reach, contributing significantly to the company's overall earnings.

China XLX Fertiliser Ltd. Financial Statement Overview

Summary

China XLX Fertiliser Ltd. demonstrates stable revenue growth and operational efficiency, but faces challenges with high leverage and negative free cash flow. The company should focus on improving cash flow management and reducing debt levels to enhance financial stability.

Income Statement

China XLX Fertiliser Ltd. shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.29%. The gross profit margin remains consistent at around 17%, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.31% in the TTM, reflecting some pressure on profitability. EBIT and EBITDA margins are healthy, suggesting strong operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 1.46, indicating significant leverage, which could pose financial risks. However, the return on equity is robust at 14.82%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly provided, but the balance sheet shows a solid equity base relative to assets.

Cash Flow

Operating cash flow remains positive, but free cash flow is negative, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.18, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is low at 0.09, highlighting the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.73B	23.13B	23.48B	23.07B	16.98B	10.44B
Gross Profit	3.62B	3.93B	4.17B	4.35B	4.39B	2.21B
EBITDA	3.24B	3.38B	3.75B	4.13B	3.83B	1.82B
Net Income	1.37B	1.46B	1.19B	1.33B	1.30B	347.66M
Balance Sheet
Total Assets	36.04B	32.52B	29.13B	27.87B	25.51B	20.96B
Cash, Cash Equivalents and Short-Term Investments	2.37B	895.06M	1.17B	1.48B	906.19M	698.13M
Total Debt	15.75B	13.07B	11.76B	12.71B	11.93B	9.94B
Total Liabilities	22.90B	20.00B	18.62B	18.30B	17.55B	14.53B
Stockholders Equity	9.55B	8.96B	7.69B	6.89B	5.69B	4.53B
Cash Flow
Free Cash Flow	-2.99B	-1.52B	1.86B	612.63M	-1.11B	-2.23B
Operating Cash Flow	2.52B	3.35B	5.33B	4.38B	2.75B	1.70B
Investing Cash Flow	-5.12B	-4.29B	-3.47B	-3.72B	-3.73B	-3.90B
Financing Cash Flow	2.94B	665.77M	-2.16B	-82.18M	1.19B	2.00B

China XLX Fertiliser Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1866, the sentiment is Positive. The current price of 9.13 is above the 20-day moving average (MA) of 8.00, above the 50-day MA of 7.72, and above the 200-day MA of 5.88, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 86.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1866.

China XLX Fertiliser Ltd. 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%
2198	58 Neutral	HK$2.78B	3.69	13.87%	―	9.20%	213.87%
0609	54 Neutral	HK$1.26B	19.62	2.46%	3.47%	-5.29%	-32.47%

China XLX Fertiliser Ltd. Corporate Events

China XLX Fertiliser Granted Waiver for Joint Company Secretary Compliance

China XLX Fertiliser Ltd., listed on the Hong Kong Stock Exchange, has been granted a new waiver from strict compliance with certain listing rules due to a change in joint company secretary. This waiver, effective until June 2028, allows Ms. Cheok Hui Yee to be assisted by Ms. Kam Mei Ha Wendy, ensuring compliance with corporate governance standards. The waiver could be revoked if there are material breaches of the listing rules, and the company must demonstrate Ms. Cheok’s capability to independently fulfill her role by the end of the waiver period.

China XLX Fertiliser Ltd. Announces Key Corporate Secretarial Changes

China XLX Fertiliser Ltd. announced a change in its corporate secretarial team, with Mr. Man Yun Wah resigning and Ms. Kam Mei Ha Wendy taking over as Joint Company Secretary, Authorised Representative, and Process Agent. The company also received a waiver from strict compliance with certain Hong Kong Listing Rules, which will remain in effect for three years, contingent on specific conditions.

China XLX Fertiliser Ltd. Reports Temporary Output Decline Amid Strategic Maintenance

China XLX Fertiliser Ltd. announced a temporary decline in product output due to planned maintenance at its production bases, which impacted its sales volume and reduced total profit by approximately RMB226 million in the third quarter of 2025. Despite these challenges, the maintenance improved the operating efficiency of core production equipment, laying a foundation for future stable production and performance recovery. The company also reported a decrease in net profit for the first three quarters of 2025 due to low urea prices and increased production costs, but managed to reduce its SG&A expense-to-revenue ratio and financial expenses, enhancing its long-term market competitiveness.

China XLX Fertiliser Schedules Board Meeting for Q3 Results

China XLX Fertiliser Ltd. announced that its Board of Directors will meet on October 24, 2025, to review and approve the unaudited third quarterly results for the period ending September 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming quarters.

China XLX Fertiliser Reports Decreased Profits Amid Strategic Maintenance

China XLX Fertiliser Ltd. announced a significant decrease in its financial results for the nine months ending September 30, 2025, primarily due to planned maintenance activities at its three major production bases. Despite the short-term impact on production and profits, the maintenance has improved operational efficiency and capacity, setting the stage for stable future production and enhanced market competitiveness.

China XLX Fertiliser Ltd. Launches Phase I of Industrial Chain Extension Project

China XLX Fertiliser Ltd. announced the successful commissioning of Phase I of its Industrial Chain Extension Project at its Jiangxi Base, with a production capacity of 600,000 tons of synthetic ammonia and 1,200,000 tons of slow and controlled-release fertilizer annually. This development is expected to enhance capacity utilization, consolidate cost leadership, and contribute to high-quality, sustainable growth, thereby strengthening the company’s market share and overall competitiveness.