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China XLX Fertiliser Ltd. (HK:1866)
:1866
Hong Kong Market

China XLX Fertiliser Ltd. (1866) AI Stock Analysis

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HK

China XLX Fertiliser Ltd.

(1866)

75Outperform
China XLX Fertiliser Ltd. demonstrates robust financial performance with strong revenue growth and stable profitability, despite some net profit margin volatility and cash flow challenges. The technical analysis indicates positive momentum, while the stock's low P/E ratio and high dividend yield suggest it is undervalued, making it an attractive option for both growth and income investors.

China XLX Fertiliser Ltd. (1866) vs. S&P 500 (SPY)

China XLX Fertiliser Ltd. Business Overview & Revenue Model

Company DescriptionChina XLX Fertiliser Ltd., an investment holding company, engages in the development, manufacture, sale, and trade of urea primarily in Mainland China and internationally. It also offers compound fertilizers, methanol, liquid ammonia, dimethyl ether, melamine, furfuryl alcohol, furfural, humic acid, 2-methylfuran, vehicles urea solutions, and related differentiated products, as well as pharmaceutical intermediates. In addition, it mines and sells coal; and distributes and sells electricity. Further, the company is involved in the manufacture and trading of gas, testing equipment, and intelligent equipment; and agricultural production, international business and trading, technological development, and consulting activities. China XLX Fertiliser Ltd. was founded in 1969 and is headquartered in Xinxiang, the People's Republic of China.
How the Company Makes MoneyChina XLX Fertiliser Ltd. generates revenue primarily through the manufacture and sale of its chemical fertilizer products. The company capitalizes on the high demand for fertilizers driven by the agricultural sector's need to increase crop productivity. It operates large-scale production facilities that enable efficient manufacturing processes and cost advantages. Key revenue streams include domestic sales within China and exports to international markets. Additionally, the company benefits from strategic partnerships with distributors and agricultural enterprises, which help expand its market reach. The production and sale of methanol, a by-product of its fertilizer manufacturing process, also contribute to its revenue, offering diversification in its income sources.

China XLX Fertiliser Ltd. Financial Statement Overview

Summary
China XLX Fertiliser Ltd. shows strong revenue growth and stable profitability, although net profit margin volatility and mixed cash flow performance suggest areas for improvement. The balance sheet indicates reliance on debt, necessitating prudent financial management.
Income Statement
The company demonstrates consistent revenue growth over the years, with a notable increase from 2019 to 2024. Gross profit margins have been stable, indicating efficient cost management. However, the net profit margin shows some volatility, which might be due to fluctuating operational costs or external market factors. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.
Balance Sheet
65
The balance sheet shows a moderate debt-to-equity ratio, highlighting some reliance on debt financing, which could pose risks if not managed well. Return on Equity (ROE) is relatively strong, indicating good profitability relative to shareholder equity. The equity ratio suggests a balanced approach to financing with a reasonable proportion of assets financed by equity.
Cash Flow
The cash flow analysis reveals challenges in generating consistent free cash flow, with some years showing negative values. However, operating cash flow has generally been positive, indicating the company’s operations are generating cash. The Free Cash Flow to Net Income ratio suggests potential areas of improvement in cash management strategies.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
23.48B23.07B16.82B10.44B8.93B
Gross Profit
4.17B4.35B4.39B2.21B1.94B
EBIT
2.25B2.85B2.77B1.01B884.23M
EBITDA
3.75B4.27B3.83B1.82B1.63B
Net Income Common Stockholders
1.19B1.81B1.77B524.15M316.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.25B1.48B906.19M698.13M905.35M
Total Assets
29.13B27.87B25.51B20.96B16.49B
Total Debt
11.76B12.71B11.93B9.94B7.62B
Net Debt
10.60B11.24B11.04B9.25B6.74B
Total Liabilities
18.62B18.30B17.55B14.53B10.77B
Stockholders Equity
7.69B6.89B5.69B4.53B4.24B
Cash FlowFree Cash Flow
1.86B612.63M-1.11B-2.23B-571.18M
Operating Cash Flow
5.33B4.38B2.75B1.70B2.30B
Investing Cash Flow
-3.47B-3.72B-3.73B-3.90B-3.29B
Financing Cash Flow
-2.16B-82.18M1.19B2.00B1.52B

China XLX Fertiliser Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.35
Price Trends
50DMA
4.13
Positive
100DMA
4.07
Positive
200DMA
3.95
Positive
Market Momentum
MACD
0.03
Negative
RSI
54.96
Neutral
STOCH
70.86
Neutral
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 4.35 is above the 20-day moving average (MA) of 4.11, above the 50-day MA of 4.13, and above the 200-day MA of 3.95, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.86 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$67.30B14.6113.20%5.99%-9.60%-27.18%
75
Outperform
HK$5.48B3.3417.58%6.07%-3.45%20.63%
62
Neutral
€31.16B8.47
5.60%
49
Neutral
$1.96B-1.23-21.20%3.72%0.95%-28.96%
32
Underperform
$22.22B-11.91%-56.32%-272.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1866
China XLX Fertiliser Ltd.
4.33
0.66
17.98%
HK:3800
GCL-Poly Energy Holdings
0.80
-0.52
-39.35%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.95
-0.37
-6.97%
HK:1093
CSPC Pharmaceutical Group
5.73
-0.72
-11.12%

China XLX Fertiliser Ltd. Corporate Events

China XLX Fertiliser Ltd. Schedules Board Meeting for Quarterly Results
Apr 30, 2025

China XLX Fertiliser Ltd. has announced that its board of directors will meet on May 16, 2025, to consider and approve the unaudited first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

China XLX Fertiliser Ltd. Announces Final Dividend for 2024
Apr 29, 2025

China XLX Fertiliser Ltd. has announced a final cash dividend of RMB 0.26 per share for the financial year ending December 31, 2024, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0569. This announcement reflects the company’s commitment to returning value to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder confidence.

China XLX Fertiliser Ltd. Announces Final Dividend for 2024
Apr 28, 2025

China XLX Fertiliser Ltd. has announced an update regarding its final cash dividend for the year ending December 31, 2024. The dividend is set at RMB 0.26 per share, with payment to be made in Hong Kong dollars at a rate of HKD 0.275 per share. The shareholders’ approval is scheduled for June 20, 2025, with the payment date on July 11, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially impacting investor confidence and market positioning.

China XLX Fertiliser Ltd. Proposes Constitutional Amendments for Virtual Meetings
Apr 28, 2025

China XLX Fertiliser Ltd. has announced proposed amendments to its constitution to allow for virtual and hybrid general meetings and electronic voting, aligning with regulatory changes in Hong Kong and Singapore. These amendments are considered beneficial for the company and its shareholders and will be subject to approval at the 2025 annual general meeting.

China XLX Fertiliser Announces 2025 AGM and Strategic Share Buyback Plan
Apr 28, 2025

China XLX Fertiliser Ltd. has announced its 2025 Annual General Meeting, scheduled for June 20, 2025, in Henan Province, China. The meeting will cover key resolutions including the adoption of financial statements, declaration of dividends, approval of directors’ fees, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be considered to authorize the company to repurchase up to 10% of its issued shares, highlighting a strategic move to potentially enhance shareholder value and manage capital structure.

China XLX Fertiliser Ltd. Declares Final Dividend for 2024
Mar 28, 2025

China XLX Fertiliser Ltd. has announced a final cash dividend of RMB 0.26 per share for the financial year ending December 31, 2024. The announcement reflects the company’s financial performance and commitment to returning value to its shareholders. Specific details regarding the Hong Kong dollar equivalent, ex-dividend date, and other related information are yet to be disclosed, indicating ongoing procedural steps before finalizing shareholder entitlements.

China XLX Fertiliser Ltd. Reports Increased Profitability Despite Revenue Dip in 2024
Mar 28, 2025

China XLX Fertiliser Ltd. reported its financial results for the year ended December 31, 2024, showing a slight decrease in revenue from RMB 23.48 billion in 2023 to RMB 23.13 billion in 2024. Despite the revenue drop, the company achieved a significant increase in profit before tax, rising from RMB 1.94 billion in 2023 to RMB 2.38 billion in 2024, attributed to higher other income and gains. This performance reflects the company’s ability to manage costs and improve profitability, which could positively impact its market position and stakeholder confidence.

China XLX Fertiliser Ltd. Schedules Board Meeting to Approve Annual Results
Mar 14, 2025

China XLX Fertiliser Ltd. has announced that its board of directors will meet on March 28, 2025, to discuss and approve the consolidated annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact shareholders and the company’s financial outlook.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.