Executive Summary
China Sanjiang Fine Chemicals Company Limited, an investment holding company, manufactures and supplies ethylene oxide, ethylene glycol, propylene, polypropylene, methyl tert-butyl ether, and surfactants in the People’s Republic of China.
Rewards
Risk Analysis
Snowflake Analysis
Second-rate dividend payer and slightly overvalued.
Share Price & News
How has China Sanjiang Fine Chemicals's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2198 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.6%
2198
-0.4%
HK Chemicals
1.6%
HK Market
1 Year Return
-18.1%
2198
-21.0%
HK Chemicals
6.0%
HK Market
Return vs Industry: 2198 exceeded the Hong Kong Chemicals industry which returned -20.8% over the past year.
Return vs Market: 2198 underperformed the Hong Kong Market which returned 6.4% over the past year.
Shareholder returns
| 2198 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | -0.4% | 1.6% |
| 30 Day | -6.0% | 2.5% | 4.5% |
| 90 Day | 0.6% | 2.0% | 8.8% |
| 1 Year | -10.5%-18.1% | -15.2%-21.0% | 9.9%6.0% |
| 3 Year | -16.8%-36.0% | -24.0%-36.0% | 27.7%14.7% |
| 5 Year | -3.7%-31.0% | -6.8%-22.9% | 21.7%1.4% |
Price Volatility Vs. Market
How volatile is China Sanjiang Fine Chemicals's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Zooming in on HKG:2198's 6.3% Dividend Yield2 weeks ago | Simply Wall St
Calculating The Fair Value Of China Sanjiang Fine Chemicals Company Limited (HKG:2198)1 month ago | Simply Wall St
We're Not So Sure You Should Rely on China Sanjiang Fine Chemicals's (HKG:2198) Statutory EarningsValuation
Is China Sanjiang Fine Chemicals undervalued compared to its fair value and its price relative to the market?
7.65x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 2198 (HK$1.58) is trading above our estimate of fair value (HK$1.39)
Significantly Below Fair Value: 2198 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 2198 is poor value based on its PE Ratio (7.7x) compared to the Chemicals industry average (6.8x).
PE vs Market: 2198 is good value based on its PE Ratio (7.7x) compared to the Hong Kong market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 2198's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 2198 is good value based on its PB Ratio (0.5x) compared to the HK Chemicals industry average (0.7x).
Next Steps
Future Growth
How is China Sanjiang Fine Chemicals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
20.0%
Forecasted Materials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Sanjiang Fine Chemicals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Take a look at our analysis of 2198’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- China Sanjiang Fine Chemicals competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has China Sanjiang Fine Chemicals performed over the past 5 years?
26.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2198 has high quality earnings.
Growing Profit Margin: 2198's current net profit margins (2.1%) are lower than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: 2198's earnings have grown significantly by 26.2% per year over the past 5 years.
Accelerating Growth: 2198's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 2198 had negative earnings growth (-75.2%) over the past year, making it difficult to compare to the Chemicals industry average (21.4%).
Return on Equity
High ROE: 2198's Return on Equity (3.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is China Sanjiang Fine Chemicals's financial position?
Financial Position Analysis
Short Term Liabilities: 2198's short term assets (CN¥4.0B) do not cover its short term liabilities (CN¥6.3B).
Long Term Liabilities: 2198's short term assets (CN¥4.0B) exceed its long term liabilities (CN¥9.6M).
Debt to Equity History and Analysis
Debt Level: 2198's debt to equity ratio (99%) is considered high.
Reducing Debt: 2198's debt to equity ratio has reduced from 231.9% to 99% over the past 5 years.
Debt Coverage: 2198's debt is not well covered by operating cash flow (12.3%).
Interest Coverage: Insufficient data to determine if 2198's interest payments on its debt are well covered by EBIT.
Balance Sheet
Inventory Level: 2198 has a high level of physical assets or inventory.
Debt Coverage by Assets: 2198's debt is covered by short term assets (assets are 1.2x debt).
Next Steps
Dividend
What is China Sanjiang Fine Chemicals's current dividend yield, its reliability and sustainability?
6.33%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 2198's dividend (6.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).
High Dividend: 2198's dividend (6.33%) is in the top 25% of dividend payers in the Hong Kong market (6.02%)
Stability and Growth of Payments
Stable Dividend: 2198 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 2198's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (74.2%), 2198's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
What is the CEO of China Sanjiang Fine Chemicals's salary, the management and board of directors tenure and is there insider trading?
7.5yrs
Average board tenure
CEO
China Sanjiang Fine Chemicals has no CEO, or we have no data on them.
Board Age and Tenure
7.5yrs
Average Tenure
48yo
Average Age
Experienced Board: 2198's board of directors are considered experienced (7.5 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 159,000 |
| Max Price | HK$1.62 |
| Entity | Company |
| Shares | 320,000 |
| Max Price | HK$1.62 |
| Entity | Company |
| Shares | 141,000 |
| Max Price | HK$1.62 |
| Entity | Company |
| Shares | 258,000 |
| Max Price | HK$1.61 |
| Entity | Company |
| Shares | 200,000 |
| Max Price | HK$1.59 |
| Entity | Company |
| Shares | 40,000 |
| Max Price | HK$1.55 |
| Entity | Company |
| Shares | 197,000 |
| Max Price | HK$1.58 |
| Entity | Company |
| Shares | 500,000 |
| Max Price | HK$1.50 |
| Entity | Company |
| Shares | 140,000 |
| Max Price | HK$1.51 |
| Entity | Company |
| Shares | 750,000 |
| Max Price | HK$1.49 |
| Entity | Company |
| Shares | 460,000 |
| Max Price | HK$1.50 |
| Entity | Company |
| Shares | 256,000 |
| Max Price | HK$1.47 |
| Entity | Company |
| Shares | 579,000 |
| Max Price | HK$1.45 |
| Entity | Company |
| Shares | 1,000,000 |
| Max Price | HK$1.41 |
| Entity | Company |
| Shares | 1,000,000 |
| Max Price | HK$1.39 |
| Entity | Company |
| Shares | 1,000,000 |
| Max Price | HK$1.39 |
| Entity | Company |
| Shares | 1,000,000 |
| Max Price | HK$1.38 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Chairman |
| Shares | 4,154,000 |
| Max Price | HK$1.66 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Chairman |
| Shares | 1,513,000 |
| Max Price | HK$1.54 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Chairman |
| Shares | 9,975,000 |
| Max Price | HK$1.49 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Jianzhong Guan (51yo)
Founder & Chairman
- Compensation: CN¥17.97m
Jianhong Han (45yo)
Founder & Executive Director
- Tenure: 9.8yrs
- Compensation: CN¥1.37m
Jianping Han (48yo)
Executive Director
- Tenure: 9.4yrs
- Compensation: CN¥572.00k
Xian Chen (45yo)
Chief Accountant & Secretary
Henry Yip (42yo)
Financial Controller
Rong Ding (43yo)
Head of Production Department
Huotao Rao (45yo)
Executive Director
- Tenure: 2.8yrs
- Compensation: CN¥798.00k
Chi Lung Yeung (36yo)
Company Secretary
- Tenure: 0.3yrs
Board Members
Jianzhong Guan (51yo)
Founder & Chairman
- Compensation: CN¥17.97m
Jianhong Han (45yo)
Founder & Executive Director
- Tenure: 9.8yrs
- Compensation: CN¥1.37m
Jianping Han (48yo)
Executive Director
- Tenure: 9.4yrs
- Compensation: CN¥572.00k
Kaijun Shen (51yo)
Independent Non-Executive Director
- Tenure: 9.4yrs
- Compensation: CN¥105.00k
Yu Pei (48yo)
Independent Non-Executive Director
- Tenure: 5.6yrs
- Compensation: CN¥105.00k
Liang Kong (53yo)
Independent Non-Executive Director
- Tenure: 3.5yrs
- Compensation: CN¥105.00k
Huotao Rao (45yo)
Executive Director
- Tenure: 2.8yrs
- Compensation: CN¥798.00k
Company Information
China Sanjiang Fine Chemicals Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Sanjiang Fine Chemicals Company Limited
- Ticker: 2198
- Exchange: SEHK
- Founded: 2009
- Industry: Commodity Chemicals
- Sector: Materials
- Market Cap: HK$1.880b
- Shares outstanding: 1.19b
- Website: https://www.chinasanjiang.com
Number of Employees
Location
- China Sanjiang Fine Chemicals Company Limited
- Pinghai Road
- Jiaxing Port Area
- Jiaxing
- Zhejiang Province
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2198 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Sep 2010 |
| 8C9 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Sep 2010 |
Biography
China Sanjiang Fine Chemicals Company Limited, an investment holding company, manufactures and supplies ethylene oxide, ethylene glycol, propylene, polypropylene, methyl tert-butyl ether, 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 and a range of surfactants; ethylene glycol is used to produce other bio-organic chemical products; propylene is used in the production of polypropylene, acrylonitrile, propylene oxide, acetone, etc.; polypropylene is a thermoplastic resin; methyl tert-butyl ether, 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 C4; crude pentene; and industrial gases, such as oxygen, nitrogen, and argon. In addition, it offers processing services for polypropylene, methyl tert-butyl ether, and surfactants; and lease and storage services. Further, the company engages in the construction and management of a pipe network at Jiaxing Port Chemical Industrial Park; and manufacture and sale of alcohol ethoxylate, nonylphenols, textile auxiliaries, and ethylene and polyethylene. The company was incorporated in 2009 and is headquartered in Jiaxing, the People’s Republic of China. China Sanjiang Fine Chemicals Company Limited is a subsidiary of Sure Capital Holdings Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/19 12:52 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.