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China Sanjiang Fine Chemicals Co., Ltd. (HK:2198)
:2198
Hong Kong Market
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China Sanjiang Fine Chemicals Co., Ltd. (2198) AI Stock Analysis

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China Sanjiang Fine Chemicals Co., Ltd.

(2198)

Rating:56Neutral
Price Target:
HK$2.00
▲(11.11%Upside)
The overall score is driven by mixed financial performance, with significant risks from high leverage and weak cash flow. Technical analysis provides some optimism with positive price trends, while valuation indicates potential undervaluation. The absence of earnings call and corporate events data limits further insights.

China Sanjiang Fine Chemicals Co., Ltd. (2198) vs. iShares MSCI Hong Kong ETF (EWH)

China Sanjiang Fine Chemicals Co., Ltd. Business Overview & Revenue Model

Company DescriptionChina Sanjiang Fine Chemicals Co., Ltd. is a leading chemical manufacturer based in China. The company specializes in the production and sale of chemical products, including ethylene oxide, ethylene glycol, and related by-products. These chemicals are essential for various industrial applications, such as in the production of antifreeze, polyester fibers, and detergents. China Sanjiang Fine Chemicals is recognized for its strong production capabilities and commitment to high-quality standards, serving both domestic and international markets.
How the Company Makes MoneyChina Sanjiang Fine Chemicals Co., Ltd. generates revenue primarily through the production and sale of ethylene oxide and ethylene glycol, which serve as key raw materials in various industries. The company's revenue model is centered around large-scale manufacturing and distribution of these chemicals to industrial clients. Key revenue streams include contracts with manufacturers in the automotive, textile, and consumer goods sectors. Additionally, strategic partnerships with suppliers and distributors help optimize its supply chain and expand its market reach. The company's earnings are significantly influenced by global demand for its chemical products, price fluctuations in raw materials, and operational efficiencies in its production processes.

China Sanjiang Fine Chemicals Co., Ltd. Financial Statement Overview

Summary
Mixed financial health with strong revenue growth but weak profitability and cash flow. High leverage and decreasing equity ratios are significant risks. Improvement in net profit margin and ROE offers some positives.
Income Statement
45
Neutral
China Sanjiang Fine Chemicals shows volatile performance in terms of revenue and profit margins. The gross profit margin has decreased significantly from 19.58% in 2020 to 5.49% in 2024. The net profit margin improved to 2.72% in 2024 after negative results in 2022 and 2023. Revenue growth was strong at 49.18% from 2023 to 2024, indicating recovery. However, previous years showed inconsistent performance, with EBIT margins improving recently but still below average.
Balance Sheet
50
Neutral
The balance sheet reveals a concerning debt-to-equity ratio, which increased from 0.87 in 2020 to 2.24 in 2024, indicating high leverage. The equity ratio has decreased from 42.77% in 2020 to 22.22% in 2024, showing reduced financial stability. Return on Equity has improved to 10.84% in 2024, indicating better profitability compared to recent years.
Cash Flow
30
Negative
Cash flow analysis highlights challenges, with operating cash flow dropping to zero in 2024 after negative values in prior years. Free cash flow was consistently negative, indicating potential liquidity issues. The company needs to improve cash flow generation to support operations and growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.59B13.13B8.82B9.50B8.32B
Gross Profit1.11B168.77M-70.38M634.52M1.63B
EBITDA1.35B812.91M349.18M388.69M1.64B
Net Income532.55M91.48M-307.88M380.61M1.12B
Balance Sheet
Total Assets22.11B21.00B18.26B14.28B11.02B
Cash, Cash Equivalents and Short-Term Investments888.79M625.40M387.63M807.28M946.58M
Total Debt11.00B10.27B10.52B6.27B4.21B
Total Liabilities17.21B16.64B13.93B9.54B6.23B
Stockholders Equity4.91B4.38B4.30B4.67B4.71B
Cash Flow
Free Cash Flow-398.88M-1.29B-3.52B-834.29M-209.13M
Operating Cash Flow1.06B-122.01M-910.52M1.63B1.74B
Investing Cash Flow-1.39B-790.28M-1.97B-3.29B-1.07B
Financing Cash Flow533.27M1.06B2.50B1.48B-485.13M

China Sanjiang Fine Chemicals Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.80
Price Trends
50DMA
1.76
Positive
100DMA
1.76
Positive
200DMA
1.74
Positive
Market Momentum
MACD
0.01
Negative
RSI
56.66
Neutral
STOCH
70.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2198, the sentiment is Positive. The current price of 1.8 is above the 20-day moving average (MA) of 1.75, above the 50-day MA of 1.76, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 70.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2198.

China Sanjiang Fine Chemicals Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$3.60B7.468.22%6.76%-2.46%20.39%
69
Neutral
HK$1.06B11.514.75%1.28%-13.75%-56.14%
59
Neutral
HK$16.60B4.49-5.52%3.69%-3.57%-61.41%
56
Neutral
HK$2.07B3.5511.49%47.32%492.76%
54
Neutral
HK$1.03B14.102.75%8.77%-11.89%-69.45%
50
Neutral
HK$1.53B98.642.19%17.98%374.19%
46
Neutral
€161.56M-10.94%-9.85%20.22%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.80
0.09
5.26%
HK:0746
Lee & Man Chemical Co. Ltd.
4.29
0.77
21.88%
HK:1702
Dongguang Chemical Ltd.
1.70
-0.16
-8.60%
HK:9933
GHW International
1.45
-0.35
-19.44%
HK:0954
Changmao Biochemical Engineering Co. Ltd. Class H
0.31
-0.10
-25.30%
HK:0609
Tiande Chemical Holdings Limited
1.18
0.11
10.28%

China Sanjiang Fine Chemicals Co., Ltd. Corporate Events

China Sanjiang Fine Chemicals Enhances Governance with New Nomination Committee
Jun 30, 2025

China Sanjiang Fine Chemicals Co., Ltd. has established a Nomination Committee as part of its Board of Directors. The committee is tasked with appointing members from the company’s directors, ensuring a majority of independent non-executive directors, and is led by the Board’s chairman or an independent non-executive director. This move is expected to enhance governance and strategic oversight within the company, potentially impacting its operational efficiency and stakeholder confidence.

China Sanjiang Fine Chemicals Successfully Concludes AGM with All Resolutions Passed
May 30, 2025

China Sanjiang Fine Chemicals Co., Ltd. held its annual general meeting on May 30, 2025, where all proposed resolutions were passed by shareholder vote. Key decisions included the re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase. This successful AGM reflects shareholder confidence and supports the company’s strategic governance and operational plans.

China Sanjiang Fine Chemicals Approves Key Shipping Agreements at EGM
May 30, 2025

China Sanjiang Fine Chemicals Co., Ltd. announced the successful passing of all resolutions at its Extraordinary General Meeting held on May 30, 2025. The resolutions, which included chartered agreements with Ocean Gold Shipping Limited and Ocean Tide Shipping Limited, were approved with an overwhelming majority of votes. This development signifies a strategic move to enhance the company’s operational capabilities and strengthen its market position in the chemical shipping sector.

China Sanjiang Fine Chemicals Secures Vessel Leasing Agreements
May 30, 2025

China Sanjiang Fine Chemicals Co., Ltd. announced the successful entry into Chartered Agreements for leasing vessels, following shareholder approval at the Extraordinary General Meeting. This acquisition aligns with previously disclosed terms and is expected to enhance the company’s operational capabilities and market positioning.

China Sanjiang Fine Chemicals Announces Extraordinary General Meeting for Strategic Agreements
May 13, 2025

China Sanjiang Fine Chemicals Co., Ltd. has announced an extraordinary general meeting scheduled for May 30, 2025, to approve two chartered agreements with Ocean Gold Shipping Limited and Ocean Tide Shipping Limited. These agreements are expected to enhance the company’s operational capabilities and strengthen its strategic partnerships, potentially impacting its market positioning and stakeholder interests.

China Sanjiang Fine Chemicals Announces 2025 Annual General Meeting
Apr 29, 2025

China Sanjiang Fine Chemicals Co., Ltd. has announced its upcoming annual general meeting scheduled for May 30, 2025, in Hong Kong. The meeting will address several key business items, including the approval of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize directors to issue new shares, potentially impacting the company’s capital structure and market positioning.

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: Jul 12, 2025