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

• Market Cap: HK$230.40M
• Dividend Yield: 4.34%
• Average Volume (3M): 61.73K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.30
• Revenue Growth: -4.13%
• EPS Growth: -35.11%
• Country: HK
• Employees: 64
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 0.02
• Shares Outstanding: 480,000,000
• 10 Day Avg. Volume: 70,600
• 30 Day Avg. Volume: 61,733
• PEG Ratio: -1.51
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.55
• 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

• Rating: 68 Neutral
• Price Target: ―

Jiangsu Innovative Ecological New Materials Ltd. shows strong financial stability with a high equity ratio and no debt, indicating low financial risk. Profitability remains reasonable despite a decline in revenue, but the absence of recent cash flow data introduces some uncertainty. The technical indicators suggest a short-term downtrend, but the stock is approaching oversold territory, which could present a buying opportunity. Valuation metrics, including a reasonable P/E ratio and attractive dividend yield, indicate a fairly valued stock with good income potential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	182.20M	186.07M	257.18M	177.33M	159.93M
Gross Profit	41.25M	48.70M	53.88M	36.49M	44.91M
EBITDA	20.29M	24.03M	31.60M	12.92M	27.77M
Net Income	13.98M	21.12M	11.46M	11.66M	22.05M
Balance Sheet
Total Assets	276.62M	259.40M	347.48M	315.34M	305.61M
Cash, Cash Equivalents and Short-Term Investments	95.25M	95.20M	146.48M	152.06M	144.76M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	44.67M	33.64M	47.00M	25.85M	22.49M
Stockholders Equity	231.96M	225.75M	300.48M	289.49M	283.12M
Cash Flow
Free Cash Flow	5.18M	39.58M	-8.15M	9.41M	2.61M
Operating Cash Flow	9.94M	46.88M	-4.72M	10.48M	7.45M
Investing Cash Flow	-11.93M	-2.41M	-484.00K	1.96M	-1.79M
Financing Cash Flow	-8.72M	-96.70M	-3.87M	-4.04M	-4.38M

Jiangsu Innovative Ecological New Materials Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2116, the sentiment is Negative. The current price of 0.48 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.47, and above the 200-day MA of 0.45, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	71 Outperform	¥184.85B	11.11	6.29%	3.19%	3.93%	3.23%
2116	68 Neutral	HK$230.40M	15.19	6.12%	4.34%	-4.13%	-35.11%
1950	66 Neutral	HK$190.80M	5.86	4.78%	―	-2.38%	-54.44%
1047	56 Neutral	HK$119.99M	―	-1.32%	―	12.01%	82.32%
0301	56 Neutral	HK$635.12M	―	-8.95%	―	-3.09%	-480.17%
0701	52 Neutral	HK$407.39M	―	-6.09%	―	-30.21%	-12.78%
1932	41 Neutral	HK$154.00M	―	-11.66%	―	-31.49%	28.61%

Jiangsu Innovative Ecological New Materials Ltd. Corporate Events

Jiangsu Innovative Ecological New Materials Ltd. Announces 2025 AGM and Key Resolutions

Jiangsu Innovative Ecological New Materials Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for May 23, 2025, at its headquarters in Yixing City, Jiangsu Province, China. During the AGM, shareholders will consider resolutions including the adoption of the company’s financial statements for 2024, re-election of directors, re-appointment of KPMG as auditors, and granting a mandate to the board to issue additional shares. These resolutions are set to impact the company’s governance and capital structure, potentially influencing its market positioning and shareholder value.

Jiangsu Innovative Ecological New Materials Ltd. Reports 2024 Annual Results

Jiangsu Innovative Ecological New Materials Ltd. announced its audited annual results for the year ended December 31, 2024, showing a decrease in revenue from RMB 186,071,000 in 2023 to RMB 182,200,000 in 2024. The company’s profit for the year also declined from RMB 21,121,000 in 2023 to RMB 13,982,000 in 2024, reflecting challenges in maintaining previous profit margins despite efforts in sales, marketing, and research and development.

Jiangsu Innovative Ecological New Materials Ltd. Announces Final Dividend for 2024

Jiangsu Innovative Ecological New Materials Ltd. announced a final ordinary cash dividend of HKD 0.01 per share for the financial year ending December 31, 2024. The dividend reflects the company’s financial performance and commitment to returning value to shareholders, with key dates including shareholder approval on May 23, 2025, and payment on June 12, 2025.

Jiangsu Innovative Ecological New Materials Ltd. Schedules Board Meeting to Approve Annual Results

Jiangsu Innovative Ecological New Materials Ltd. has announced a board meeting scheduled for March 26, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024, and to consider the recommendation of a final dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns to shareholders, impacting its market positioning and stakeholder interests.