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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)

Rating:79Outperform
Price Target:
HK$6.50
▲(17.33%Upside)
The company's attractive valuation and strong technical performance are the most significant factors contributing to its high overall stock score. While financial performance shows promise, the reliance on debt and mixed cash flow are areas for potential improvement. The absence of earnings call insights and corporate events does not detract from the overall positive outlook.

China XLX Fertiliser Ltd. (1866) vs. iShares MSCI Hong Kong ETF (EWH)

China XLX Fertiliser Ltd. Business Overview & Revenue Model

Company DescriptionChina XLX Fertiliser Ltd. (1866) is a leading Chinese company specializing in the production and sale of chemical fertilizers. The company operates primarily in the agriculture sector, providing essential nutrients and solutions to enhance crop yields. Its core products include urea, compound fertilizers, and methanol, which are crucial for maintaining soil fertility and supporting sustainable agricultural practices.
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 margins. The reliance on debt and mixed cash flow performance indicate areas for financial management improvement. Overall, the company has a solid operational foundation with room to enhance cash flow stability.
Income Statement
75
Positive
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
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.13B23.48B23.07B16.82B10.44B
Gross Profit3.93B4.17B4.35B4.39B2.21B
EBITDA3.38B3.75B4.27B3.83B1.82B
Net Income1.46B1.19B1.81B1.77B524.15M
Balance Sheet
Total Assets32.52B29.13B27.87B25.51B20.96B
Cash, Cash Equivalents and Short-Term Investments895.06M1.25B1.48B906.19M698.13M
Total Debt13.07B11.76B12.71B11.93B9.94B
Total Liabilities20.00B18.62B18.30B17.55B14.53B
Stockholders Equity8.96B7.69B6.89B5.69B4.53B
Cash Flow
Free Cash Flow-1.52B1.86B612.63M-1.11B-2.23B
Operating Cash Flow3.35B5.33B4.38B2.75B1.70B
Investing Cash Flow-4.29B-3.47B-3.72B-3.73B-3.90B
Financing Cash Flow665.77M-2.16B-82.18M1.19B2.00B

China XLX Fertiliser Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.54
Price Trends
50DMA
4.74
Positive
100DMA
4.32
Positive
200DMA
4.08
Positive
Market Momentum
MACD
0.25
Positive
RSI
62.18
Neutral
STOCH
46.87
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 5.54 is above the 20-day moving average (MA) of 5.47, above the 50-day MA of 4.74, and above the 200-day MA of 4.08, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 46.87 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$9.13B7.9410.52%4.39%-4.50%58.32%
79
Outperform
HK$7.11B4.2617.58%4.96%-3.45%20.63%
73
Outperform
HK$9.68B8.335.83%6.27%-9.71%-56.34%
69
Neutral
HK$1.06B11.514.75%2.12%-13.75%-56.14%
58
Neutral
HK$16.58B4.52-5.52%5.28%-3.57%-61.41%
54
Neutral
HK$1.03B14.102.75%3.42%-11.89%-69.45%
49
Neutral
HK$2.03B3.4111.49%47.32%492.76%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1866
China XLX Fertiliser Ltd.
5.51
1.99
56.53%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.73
0.20
13.07%
HK:1702
Dongguang Chemical Ltd.
1.70
-0.16
-8.60%
HK:3983
China BlueChemical
2.10
-0.10
-4.42%
HK:0609
Tiande Chemical Holdings Limited
1.20
0.12
11.11%
HK:0297
Sinofert Holdings
1.29
0.33
34.66%

China XLX Fertiliser Ltd. Corporate Events

China XLX Fertiliser Ltd. Successfully Passes All AGM Resolutions
Jun 20, 2025

China XLX Fertiliser Ltd. announced that all resolutions proposed at their Annual General Meeting on June 20, 2025, were passed. Key resolutions included the adoption of financial statements, declaration of a dividend, re-election of directors, re-appointment of auditors, and approval of share repurchase and issue mandates. These decisions are expected to strengthen the company’s governance and financial strategies, potentially enhancing shareholder value.

China XLX Fertiliser Ltd. Announces Key Leadership Changes
Jun 16, 2025

China XLX Fertiliser Ltd. announced changes in its joint company secretaries, authorised representative, and process agent in Hong Kong, effective from June 16, 2025. Ms. Leung Kwan Wai and Ms. Lin Moi Heyang have resigned from their roles, and Mr. Man Yun Wah and Ms. Cheok Hui Yee have been appointed in their places. These changes are part of the company’s compliance with Singaporean and Hong Kong regulations, ensuring continuity and effective communication within the company’s operations.

China XLX Fertiliser Ltd. Updates Nomination Committee to Enhance Governance
Jun 13, 2025

China XLX Fertiliser Ltd. has announced a change in the composition of its nomination committee, appointing Ms. Yan Yunhua as a member. This change aligns with amendments to the Listing Rules and Corporate Governance Code, effective 1 July 2025, and aims to enhance the board’s effectiveness and diversity, thereby improving the company’s corporate governance standards.

China XLX Fertiliser Ltd. Announces Board Roles and Functions
Jun 13, 2025

China XLX Fertiliser Ltd. has announced the roles and functions of its board of directors, highlighting the strategic and operational responsibilities of each member. This announcement underscores the company’s commitment to structured governance and may influence its strategic direction and operational efficiency.

China XLX Fertiliser Ltd. Establishes New Nomination Committee Guidelines
Jun 13, 2025

China XLX Fertiliser Ltd. has announced the terms of reference for its Nomination Committee, effective from June 13, 2025. The committee will be composed mainly of independent non-executive directors, with a focus on diversity by including at least one member of a different gender. This move is expected to enhance corporate governance and ensure a balanced representation in the company’s decision-making processes.

China XLX Fertiliser Ltd. Sees Market Rebound and Financial Improvement in Q1 2025
May 16, 2025

In the first quarter of 2025, China XLX Fertiliser Ltd. experienced a fluctuating market with initial declines in fertiliser prices followed by a rebound driven by seasonal demand and export expectations. Despite a year-on-year decrease in gross profit margin, the company saw a quarter-on-quarter improvement, indicating recovery. Revenue increased slightly due to new production capacity and effective expense control, including a reduction in finance costs. The company managed to enhance working capital efficiency and profit potential by replacing high-interest loans.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 24, 2025