Jiangsu Innovative Ecological New Materials Ltd. (2116) AI Stock Analysis

• Market Cap: HK$237.60M
• Dividend Yield: 2%
• Average Volume (3M): 254.53K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.27
• Revenue Growth: 29.04%
• EPS Growth: -1.55%
• Country: HK
• Employees: 64
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 480,000,000
• 10 Day Avg. Volume: 35,200
• 30 Day Avg. Volume: 254,533
• PEG Ratio: -0.37
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 33.94
• 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: 62 Neutral
• Price Target: HK$0.53 ▲(6.20% Upside)

The score is driven primarily by strong financial stability (debt-free balance sheet) but is held back by weaker profitability versus earlier years and notably volatile/soft cash flow in 2024. Technicals add modest support due to a mild uptrend and positive MACD, while valuation is reasonable with a moderate P/E and ~2% yield.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability, reducing refinancing and interest-rate risks, and providing flexibility for future investments.

Revenue Growth

The rebound in revenue growth indicates strong market demand and potential for sustained business expansion, supporting long-term growth prospects.

Corporate Governance

Improved corporate governance practices can lead to better strategic decisions, aligning with industry best practices and potentially enhancing shareholder value.

Negative Factors

Profitability Decline

Declining profitability and compressed margins suggest challenges in cost management or pricing power, potentially affecting long-term earnings potential.

Cash Flow Volatility

Volatile cash flow raises concerns about financial consistency, impacting the company's ability to fund operations and investments sustainably.

Weak Cash Conversion

Weak cash conversion indicates that earnings are not well-supported by cash receipts, potentially undermining the quality of reported profits.

Jiangsu Innovative Ecological New Materials Ltd. Business Overview & Revenue Model

Company Description

Jiangsu Innovative Ecological New Materials Limited develops, manufactures, and markets oil refining agents and fuel additives in the People's Republic of China and Sudan. The company was founded in 2002 and is headquartered in Yixing, the People's Republic of China. Jiangsu Innovative Ecological New Materials Limited is a subsidiary of Innovative Green Holdings Limited.

How the Company Makes Money

Jiangsu Innovative Ecological New Materials Ltd. generates revenue primarily through the sale of its ecological materials products. The company's revenue model is based on manufacturing and supplying these innovative materials to various industries, including construction and packaging, which utilize them to meet sustainability standards and reduce environmental footprints. Key revenue streams include direct sales to businesses, partnerships with construction firms and packaging companies, and potential licensing of their technology for wider application. Factors contributing to its earnings include the growing demand for eco-friendly materials and the company's ability to innovate and meet the evolving needs of its clients.

Jiangsu Innovative Ecological New Materials Ltd. Financial Statement Overview

Summary

Jiangsu Innovative Ecological New Materials Ltd. demonstrates strong financial health with a robust balance sheet characterized by zero debt and a high equity ratio, which signifies stability. The company maintains reasonable profitability margins despite a slight revenue decline. However, the lack of recent cash flow data presents uncertainty in assessing its cash management and operational liquidity. Overall, the company appears financially stable but faces challenges in revenue growth.

Income Statement

The company shows a solid gross profit margin of 22.65% for the latest annual period, and a net profit margin of 7.67%, which reflects decent profitability. However, the revenue has decreased compared to the previous year, with a revenue growth rate of -2.08%, indicating some challenges in maintaining top-line growth. The EBIT and EBITDA margins are 9.59% and 11.13%, respectively, suggesting good operational efficiency. Despite the revenue decline, the profitability metrics are reasonably strong.

Balance Sheet

The company has a strong equity position with an equity ratio of 83.87%, indicating a solid capital structure with no debt, which minimizes financial risk. The return on equity is 6.02%, which, while modest, is consistent with the company's conservative financial strategy. The absence of debt showcases financial stability and low leverage risks.

Cash Flow

The cash flow analysis reveals that the operating and free cash flows are not reported for the most recent period, which limits a comprehensive analysis. Historically, the company has demonstrated positive free cash flow, which is a positive sign for cash generation capabilities. The absence of recent data creates uncertainty in evaluating the current cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	200.71M	182.20M	186.07M	257.18M	177.33M	159.93M
Gross Profit	47.11M	41.25M	48.70M	53.88M	36.49M	44.91M
EBITDA	27.25M	20.29M	24.03M	31.60M	14.53M	27.77M
Net Income	16.93M	13.98M	21.12M	11.46M	11.66M	22.05M
Balance Sheet
Total Assets	273.31M	276.62M	259.40M	347.48M	315.34M	305.61M
Cash, Cash Equivalents and Short-Term Investments	117.11M	95.25M	95.20M	146.48M	152.06M	144.76M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	36.56M	44.67M	33.64M	47.00M	25.85M	22.49M
Stockholders Equity	236.74M	231.96M	225.75M	300.48M	289.49M	283.12M
Cash Flow
Free Cash Flow	-5.27M	5.18M	39.58M	-8.15M	9.41M	2.61M
Operating Cash Flow	-5.26M	9.94M	46.88M	-4.72M	10.48M	7.45M
Investing Cash Flow	-8.83M	-11.93M	-2.41M	-484.00K	1.96M	-1.79M
Financing Cash Flow	0.00	-8.72M	-96.70M	-3.87M	-4.04M	-4.38M

Jiangsu Innovative Ecological New Materials Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2116, the sentiment is Positive. The current price of 0.5 is below the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.48, and above the 200-day MA of 0.47, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2116.

Jiangsu Innovative Ecological New Materials Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2116	62 Neutral	HK$237.60M	13.03	7.30%	2.00%	29.04%	-1.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1950	60 Neutral	HK$118.80M	4.70	3.61%	―	-12.19%	108.93%
0301	56 Neutral	HK$625.71M	-18.00	-14.53%	―	0.35%	-153.95%
1047	54 Neutral	HK$123.68M	372.22	0.07%	―	5.65%	―
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%

Jiangsu Innovative Ecological New Materials Ltd. Corporate Events

Jiangsu Innovative Ecological New Materials Ltd. Updates Nomination Committee Terms

Jiangsu Innovative Ecological New Materials Ltd. has updated the terms of reference for its Nomination Committee, a move that reflects its ongoing commitment to corporate governance. The amendments, effective from October 30, 2025, aim to ensure a diverse and independent composition of the committee, thereby enhancing decision-making processes and aligning with best practices in the industry.