Chemical Industries Far East Ltd. (C05) AI Stock Analysis

• Market Cap: S$37.97M
• Dividend Yield: 0.92%
• Average Volume (3M): 8.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -7.45%
• EPS Growth: -480.22%
• Country: SG
• Employees: 150
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.03
• Shares Outstanding: 75,945,400
• 10 Day Avg. Volume: 9,380
• 30 Day Avg. Volume: 8,503
• PEG Ratio: <0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -61.15
• 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: 52 Neutral
• Price Target: S$0.51 ▼(-2.88% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily held back by weak financial performance (declining revenue, negative operating and net margins, and negative ROE), only partly offset by a strong, low-leverage balance sheet. Technicals add slight pressure with negative MACD and price below longer-term moving averages, while valuation is modestly supported by a ~1% dividend but constrained by losses reflected in the negative P/E.

Positive Factors

Conservative capital structure

The extremely low debt-to-equity ratio (0.015) indicates a conservative capital structure that materially reduces refinancing and interest rate risk. Over 2-6 months this provides durable financial flexibility to fund operations, absorb shocks, and prioritize strategic investments or dividends without urgent debt servicing pressure.

Positive operating cash flow

Reported positive operating cash flow, alongside materially improved free cash flow, signals the company still generates core cash from operations. This stronger cash generation supports working capital, modest capex and resilience through cyclical troughs, improving prospects for sustained operations and potential cash-return policy.

Healthy equity base

A healthy equity ratio implies a solid asset cushion and higher solvency: the firm can absorb losses without immediate capital raises. Structurally this supports creditor confidence, preserves strategic optionality for investments or restructurings, and reduces bankruptcy risk over a multi-month horizon.

Negative Factors

Declining revenue trend

Ongoing revenue decline weakens the business’s scale and bargaining power, limiting the ability to cover fixed costs and invest in growth. If revenue contraction persists over several quarters it will structurally pressure margins, cash generation and the capacity to reaccelerate growth without strategic change.

Negative operating and net margins

Sustained negative EBIT and net margins indicate the company is not covering operating costs with current sales levels. This structural profitability shortfall reduces retained earnings, constrains reinvestment, and makes the firm reliant on its equity buffer or external funding to maintain operations if margins do not recover.

Severe earnings deterioration

Extremely negative EPS growth points to material earnings collapse that undermines return on equity and shareholder returns. Over months this erodes investor confidence, limits capacity to pay sustainable dividends, and restricts strategic options like M&A or capex without balance sheet or operational repair.

Chemical Industries Far East Ltd. Business Overview & Revenue Model

Company Description

Chemical Industries (Far East) Limited, an investment holding company, manufactures and sells chemicals in Singapore and Myanmar. The company operates in two segments, Industrial Chemicals and Properties. It offers sodium hypochlorite, chlorine, hydrochloric acid, and calcium hydroxide for water treatment chemicals and electronics; and distribution and transportation services. The company also manages and rents commercial properties. In addition, it operates as a general merchant, importer, and exporter of chemicals. The company was incorporated in 1962 and is based in Singapore.

How the Company Makes Money

The company generates revenue primarily through the sale of its specialty chemicals and industrial products to various sectors. Key revenue streams include direct sales to end-users, distribution partnerships with local and regional suppliers, and long-term contracts with major industrial clients. Additionally, Chemical Industries Far East Ltd. benefits from strategic partnerships with research institutions and technology providers, allowing them to innovate and introduce new products that meet emerging market demands. The company's focus on sustainability and regulatory compliance also attracts clients looking for eco-friendly solutions, further contributing to its revenue growth.

Chemical Industries Far East Ltd. Financial Statement Overview

Summary

Financials are pressured by declining revenue (-1.3%) and negative EBIT and net profit margins, pointing to weak operating performance. The balance sheet is a stabilizer with very low leverage (debt-to-equity 0.015) and a healthy equity base, but ROE turning negative and negative free cash flow (despite improvement) keep the score subdued.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The company experienced a negative revenue growth rate of -1.3% in the latest period, and both EBIT and net profit margins are negative, indicating operational challenges. Historically, the company had positive margins, but recent performance has deteriorated significantly.

Balance Sheet

The balance sheet remains relatively stable with a low debt-to-equity ratio of 0.015, suggesting conservative leverage. However, the return on equity has turned negative, reflecting the company's recent losses. The equity ratio is healthy, indicating a strong equity base relative to assets.

Cash Flow

Cash flow analysis reveals mixed results. While operating cash flow is positive, free cash flow remains negative, although it has improved significantly. The operating cash flow to net income ratio is below 1, indicating potential cash flow challenges relative to earnings.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	65.37M	72.58M	100.03M	85.00M	63.00M
Gross Profit	3.84M	5.63M	6.93M	22.07M	19.31M
EBITDA	-15.09M	11.73M	8.91M	11.06M	14.08M
Net Income	-21.46M	4.87M	3.55M	6.80M	5.57M
Balance Sheet
Total Assets	138.13M	147.52M	146.41M	152.65M	145.41M
Cash, Cash Equivalents and Short-Term Investments	23.47M	21.44M	29.44M	44.98M	41.74M
Total Debt	6.71M	2.60M	3.59M	4.69M	5.53M
Total Liabilities	31.95M	18.31M	21.04M	22.26M	20.68M
Stockholders Equity	106.18M	129.21M	125.37M	130.39M	124.74M
Cash Flow
Free Cash Flow	-621.00K	-7.05M	-14.39M	4.21M	12.00M
Operating Cash Flow	9.13M	4.81M	-8.63M	6.07M	14.77M
Investing Cash Flow	-9.74M	-11.84M	-5.73M	-1.87M	-2.61M
Financing Cash Flow	3.07M	-1.08M	-1.05M	-990.00K	-2.16M

Chemical Industries Far East Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:C05, the sentiment is Positive. The current price of 0.52 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.51, and above the 200-day MA of 0.52, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:C05.

Chemical Industries Far East Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
C05	52 Neutral	S$37.97M	-1.64	-19.55%	0.92%	-7.45%	-480.22%
C8R	43 Neutral	S$45.73M	-1.51	-20.85%	―	-2.43%	52.80%