China Sanjiang Fine Chemicals Co., Ltd. (2198) AI Stock Analysis

• Market Cap: HK$2.02B
• Dividend Yield: N/A
• Average Volume (3M): 213.60K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.48
• Revenue Growth: 47.32%
• EPS Growth: 492.76%
• Country: HK
• Employees: 1,430
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Chemicals
• EPS (TTM): 0.51
• Shares Outstanding: 1,190,000,000
• 10 Day Avg. Volume: 210,700
• 30 Day Avg. Volume: 213,600
• PEG Ratio: 0.02
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.22
• 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: 49 Neutral
• Price Target: HK$1.50 ▼(-12.79%Downside)

The overall score reflects a mixed financial outlook with weak profitability and cash flow performance. Technical indicators suggest limited positive momentum, while the low P/E ratio indicates potential undervaluation. High leverage and financial instability are significant risks.

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

Company Description

China Sanjiang Fine Chemicals Company Limited, an investment holding company, manufactures and supplies ethylene oxide and glycol, propylene, polypropylene, methyl tert-butyl ether (MTBE), and surfactants in the People's Republic of China. Its ethylene oxide is used as an intermediary component for the production of ethylene derivative products that include ethanolamines and glycol ethers, and a range of surfactants; ethylene glycol is used to produce other bio-organic chemical products that comprise mono ethylene glycol; propylene is used in the production of polypropylene, acrylonitrile, propylene oxide, acetone, etc.; polypropylene is a thermoplastic resin used in knitting, injection molding, film, fiber, and pipe products; MTBE, a gasoline additive used as an oxygenate to raise the octane number and used as a fuel component in fuel for gasoline engines; and surfactants are applied in various industries as scouring agents, moisturizing agents, emulsifiers, and solubilisers. The company also produces and supplies other chemical products, such as carbon four; crude pentene; and industrial gases, such as oxygen, nitrogen, and argon. In addition, it offers processing services for polypropylene, MTBE, and surfactants; and lease and storage services, as well as provides asset management and supply chain management services. Further, the company is involved in the construction and management of a pipe network at Jiaxing Port Chemical Industrial Park; manufacture and sale of fertilisers, plastics, alcohol ethoxylate, nonylphenols, textile auxiliaries, and polyethylene; and equipment rental. China Sanjiang Fine Chemicals Company Limited was incorporated in 2009 and is headquartered in Jiaxing, the People's Republic of China.

How the Company Makes Money

China Sanjiang Fine Chemicals Co., Ltd. generates revenue through the production and sale of chemical products, with a primary focus on ethylene oxide, a key raw material for various industrial processes. The company's revenue streams include direct sales to manufacturers in industries such as textiles, detergents, and pharmaceuticals that require ethylene derivatives for their production processes. Additionally, the company benefits from long-term supply agreements and strategic partnerships with industry players, ensuring a stable demand for its products. The efficient production processes and strategic geographic location also contribute to the company's profitability by optimizing costs and ensuring timely delivery to its customers.

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

Summary

China Sanjiang Fine Chemicals exhibits mixed financial health. Revenue growth is positive, but profitability and cash flow generation remain weak. High leverage and diminishing equity ratios pose risks to financial stability.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.59B	13.13B	8.82B	9.50B	8.32B
Gross Profit	1.11B	168.77M	-70.38M	634.52M	1.63B
EBITDA	1.35B	812.91M	349.18M	388.69M	1.64B
Net Income	532.55M	91.48M	-307.88M	380.61M	1.12B
Balance Sheet
Total Assets	22.11B	21.00B	18.26B	14.28B	11.02B
Cash, Cash Equivalents and Short-Term Investments	888.79M	625.40M	387.63M	807.28M	946.58M
Total Debt	11.00B	10.27B	10.52B	6.27B	4.21B
Total Liabilities	17.21B	16.64B	13.93B	9.54B	6.23B
Stockholders Equity	4.91B	4.38B	4.30B	4.67B	4.71B
Cash Flow
Free Cash Flow	-398.88M	-1.29B	-3.52B	-834.29M	-209.13M
Operating Cash Flow	1.06B	-122.01M	-910.52M	1.63B	1.74B
Investing Cash Flow	-1.39B	-790.28M	-1.97B	-3.29B	-1.07B
Financing Cash Flow	533.27M	1.06B	2.50B	1.48B	-485.13M

China Sanjiang Fine Chemicals Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.72
• 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:2198, the sentiment is Negative. The current price of 1.72 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.76, and below the 200-day MA of 1.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 32.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2198.

China Sanjiang Fine Chemicals Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	73 Outperform	HK$3.13B	6.48	8.22%	7.92%	-2.46%	20.39%
2198	49 Neutral	HK$2.02B	3.41	11.49%	―	47.32%	492.76%
Sector *	44 Neutral	C$956.42M	-6.69	-13.35%	2.79%	17.55%	-32.18%
CZB		€16.61M	―	-10.94%	―	―	―
1702	69 Neutral	HK$1.06B	11.51	4.75%	2.12%	-13.75%	-56.14%
0609	54 Neutral	HK$1.02B	13.98	2.75%	3.45%	-11.89%	-69.45%
9933	51 Neutral	HK$1.55B	104.76	2.19%	―	17.98%	374.19%

China Sanjiang Fine Chemicals Co., Ltd. Corporate Events

China Sanjiang Fine Chemicals Successfully Concludes AGM with All Resolutions Passed

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

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

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

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

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.

China Sanjiang Fine Chemicals Terminates Management Agreement Amid Tariff Concerns

China Sanjiang Fine Chemicals Co., Ltd. has announced the termination of its Management Agreement with Grand Novel due to logistical uncertainties stemming from recent tariffs imposed by the USA and counter-tariffs by China. The company believes this decision is in the best interest of its shareholders and will consider new management agreements if necessary.