Wuhan Youji Holdings Ltd. (2881) AI Stock Analysis

• Market Cap: HK$477.70M
• Dividend Yield: 86.47%
• Average Volume (3M): 31.25K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 626
• Sector: General
• Sector Strength: N/A
• Industry: Chemicals
• EPS (TTM): N/A
• Shares Outstanding: 93,300,000
• 10 Day Avg. Volume: 55,300
• 30 Day Avg. Volume: 31,250
• PEG Ratio: 0.08
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 3.00
• 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: 60 Neutral
• Price Target: HK$5.50 ▲(4.17% Upside)

Wuhan Youji Holdings Ltd. scores a 60, driven by strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential for high returns. However, the stock faces significant technical challenges, with bearish momentum and oversold conditions. Financial performance shows solid revenue and cash flow growth, but profitability margins and leverage management remain concerns. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand and market expansion, which can lead to increased market share and long-term sustainability.

Cash Flow Generation

Improved cash flow generation enhances liquidity and supports operational needs and potential investments, contributing to financial stability and growth.

Product Portfolio Diversification

A diversified product portfolio reduces risk exposure and enhances resilience against market fluctuations, supporting long-term business stability.

Negative Factors

Profitability Margins

Low profitability margins indicate challenges in cost management and operational efficiency, which can impact long-term financial performance and competitiveness.

Leverage Management

High leverage can limit financial flexibility and increase risk, especially in volatile markets, potentially affecting the company's ability to invest in growth opportunities.

Equity Financing

A low equity ratio may constrain financial flexibility and increase reliance on debt, which could pose risks if market conditions deteriorate.

Wuhan Youji Holdings Ltd. Business Overview & Revenue Model

Company Description

Wuhan Youji Holdings Ltd., an investment holding company, manufactures and sells toluene derivative products in Mainland China, rest of Asia, the Americas, Europe, and internationally. The company offers toluene oxidation products, toluene chlorination products, benzoic acid ammonification products, and other fine chemical products, such as benzyl acetate and p-methyl chlorobenzyl, as well as trades in toluene. Its products are used in the food preservatives and oxidation, household chemicals, feed acidifiers, and agricultural and pharmaceutical intermediates. The company was founded in 1946 and is headquartered in Wuhan, the People's Republic of China. Wuhan Youji Holdings Ltd. operates as a subsidiary of Vastocean Capital Limited.

How the Company Makes Money

Wuhan Youji Holdings Ltd. generates revenue through multiple streams primarily focused on its core manufacturing operations. The company earns money by producing and selling specialty chemicals, agricultural inputs, and pharmaceutical intermediates to various sectors. Key revenue streams include direct sales of chemical products to manufacturers and distributors, as well as long-term contracts with clients in the agriculture and healthcare industries. Additionally, partnerships with research institutions and collaborations with other companies enhance its product offerings and market reach, contributing to sustained earnings. The company's commitment to research and development also allows it to innovate and meet evolving market demands, further bolstering its financial performance.

Wuhan Youji Holdings Ltd. Financial Statement Overview

Summary

Wuhan Youji Holdings Ltd. presents a mixed financial performance with solid revenue growth and cash flow generation, yet faces challenges in profitability margins and leverage management. The company demonstrates effective cash utilization and equity return, but its reliance on debt could pose potential risks. Continued focus on improving operational efficiency and maintaining financial stability will be crucial for future growth.

Income Statement

Wuhan Youji Holdings Ltd. shows a positive trajectory in revenue growth with a notable 18.66% increase from the previous year, reflecting strong demand or market expansion. The Gross Profit Margin stands at 12.06%, indicating moderate profitability. However, the Net Profit Margin of 3.74% suggests relatively low efficiency in converting revenue into profit. The EBIT Margin of 4.85% and EBITDA Margin of 7.01% are modest, pointing to limited operational profitability.

Balance Sheet

The company's Debt-to-Equity Ratio is 1.38, suggesting a moderate reliance on debt financing, which could pose risks if not managed properly. The Return on Equity (ROE) is 19.43%, indicating efficient use of equity capital to generate profit. However, the Equity Ratio of 28.64% reflects a lower proportion of equity financing, which may limit financial flexibility.

Cash Flow

The Free Cash Flow Growth Rate is 10.90%, showcasing an improvement in cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.00, signifying strong cash flow relative to net income, which enhances liquidity. The Free Cash Flow to Net Income Ratio of 1.18 indicates robust cash conversion, supporting operational needs and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.33B	3.49B	2.95B	3.55B	3.42B
Gross Profit	404.27M	421.64M	362.79M	791.40M	639.12M
EBITDA	228.79M	245.03M	247.90M	594.58M	616.14M
Net Income	123.40M	130.92M	80.20M	385.32M	379.26M
Balance Sheet
Total Assets	2.61B	2.35B	2.33B	2.44B	3.60B
Cash, Cash Equivalents and Short-Term Investments	194.41M	86.71M	98.55M	104.96M	98.27M
Total Debt	1.21B	929.54M	1.04B	781.13M	746.46M
Total Liabilities	1.94B	1.68B	1.75B	1.62B	1.74B
Stockholders Equity	667.51M	673.63M	582.65M	821.76M	1.87B
Cash Flow
Free Cash Flow	-73.85M	153.96M	128.25M	98.19M	89.46M
Operating Cash Flow	138.88M	262.51M	162.60M	167.91M	152.41M
Investing Cash Flow	-161.39M	-61.44M	-81.90M	53.90M	-290.42M
Financing Cash Flow	9.86M	-192.95M	-98.91M	-188.97M	171.41M

Wuhan Youji Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2881, the sentiment is Negative. The current price of 5.28 is below the 20-day moving average (MA) of 5.34, above the 50-day MA of 5.20, and below the 200-day MA of 6.08, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 45.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2881.

Wuhan Youji Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0609	61 Neutral	HK$1.30B	20.16	2.46%	3.52%	-5.29%	-32.47%
2881	60 Neutral	HK$477.70M	3.89	17.29%	86.47%	―	―
1702	59 Neutral	HK$1.18B	16.45	3.61%	2.20%	-8.51%	-68.34%
2198	56 Neutral	HK$4.20B	5.57	13.87%	―	9.20%	213.87%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
0827	46 Neutral	HK$224.90M	-0.32	-112.79%	―	-22.72%	-212.73%

Wuhan Youji Holdings Ltd. Corporate Events

Wuhan Youji Forms New Photochemical Subsidiary for 15,000-Tonne Aromatic Aldehyde/Ester Replacement Project

Wuhan Youji Holdings Ltd. has announced that its wholly owned PRC subsidiary, Wuhan Youji, will form a new non-wholly owned joint stock company, Wuhan Youji Photochemical Technology Co., Ltd., together with Wuhan Guangyao, Wuhan Shengyu and several individual partners. The new entity will focus on research, development, industrialisation and commercial production of photochemical oxidation technologies and products that replace aromatic aldehyde/ester series, along with broader new materials development and import-export activities, and will construct and operate a 15,000-tonne-per-year aromatic aldehyde/ester replacement project in Wuhan. This move represents a significant strategic investment and connected transaction for the group, positioning Wuhan Youji to expand its technological capabilities, scale up high-value specialty chemicals production and potentially strengthen its competitive standing in the advanced materials and chemical technology market.

The most recent analyst rating on (HK:2881) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Wuhan Youji Holdings Ltd. stock, see the HK:2881 Stock Forecast page.

Wuhan Youji Wins Shareholder Approval to Re-Domicile From Cayman Islands to Hong Kong

Wuhan Youji Holdings Ltd. has secured shareholder approval at an extraordinary general meeting to change its place of incorporation from the Cayman Islands to Hong Kong under the Companies Ordinance, contingent on obtaining the necessary governmental and regulatory consents and a certificate of re-domiciliation from the Hong Kong Companies Registry. As part of the move, the company will adopt new articles of association to replace its existing constitutional documents, and the board has been authorised to carry out all actions, registrations and filings required in both the Cayman Islands and Hong Kong to complete the re-domiciliation, signaling a strategic shift in its corporate governance and regulatory alignment.

The most recent analyst rating on (HK:2881) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Wuhan Youji Holdings Ltd. stock, see the HK:2881 Stock Forecast page.

Wuhan Youji Holdings Proposes Domicile Change to Hong Kong

Wuhan Youji Holdings Ltd. has announced an extraordinary general meeting to consider a special resolution for changing its domicile from the Cayman Islands to Hong Kong. This move, subject to necessary governmental and regulatory approvals, aims to adopt new articles of association in line with Hong Kong’s Companies Ordinance, potentially impacting the company’s legal and operational framework.

The most recent analyst rating on (HK:2881) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Wuhan Youji Holdings Ltd. stock, see the HK:2881 Stock Forecast page.

Wuhan Youji Holdings Ltd. Proposes Domicile Change to Hong Kong

Wuhan Youji Holdings Ltd. has announced a proposed change of domicile from the Cayman Islands to Hong Kong, along with the adoption of new articles in compliance with Hong Kong laws. This move is intended to streamline the company’s legal framework without affecting its assets, management, or shareholder interests. The change will not impact the company’s listing status on the Stock Exchange, and existing share certificates will remain valid.

The most recent analyst rating on (HK:2881) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Wuhan Youji Holdings Ltd. stock, see the HK:2881 Stock Forecast page.

Wuhan Youji Holdings Updates on Malaysian Land Acquisition

Wuhan Youji Holdings Ltd. has announced a supplemental update on its acquisition of land in Malaysia. The purchase price of RM36,465,905.71 was determined through arm’s length negotiations and based on a valuation report by PPC International Sdn Bhd. The valuation used the comparison method, considering factors such as location, market conditions, and land characteristics. The acquisition is expected to align with the company’s strategic goals and reflects a fair market value, potentially impacting its operations and market positioning positively.

The most recent analyst rating on (HK:2881) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Wuhan Youji Holdings Ltd. stock, see the HK:2881 Stock Forecast page.