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
Undervalued with solid track record.
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
-3.8%
2198
2.9%
HK Chemicals
5.0%
HK Market
1 Year Return
-5.6%
2198
-32.4%
HK Chemicals
-5.3%
HK Market
Return vs Industry: 2198 exceeded the Hong Kong Chemicals industry which returned -34% over the past year.
Return vs Market: 2198 matched the Hong Kong Market which returned -5.2% over the past year.
Shareholder returns
| 2198 | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.8% | 2.9% | 5.0% |
| 30 Day | -13.1% | -0.8% | 4.0% |
| 90 Day | 3.4% | -10.3% | -4.0% |
| 1 Year | 10.0%-5.6% | -28.0%-32.4% | -1.9%-5.3% |
| 3 Year | -4.7%-31.5% | -31.9%-43.1% | -0.5%-10.9% |
| 5 Year | -4.1%-39.0% | -42.3%-52.7% | -9.0%-23.5% |
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
1 week ago | Simply Wall St
Read This Before You Buy China Sanjiang Fine Chemicals Company Limited (HKG:2198) Because Of Its P/E Ratio3 weeks ago | Simply Wall St
Is Now The Time To Look At Buying China Sanjiang Fine Chemicals Company Limited (HKG:2198)?1 month ago | Simply Wall St
Are China Sanjiang Fine Chemicals's (HKG:2198) Statutory Earnings A Good Reflection Of Its Earnings Potential?Valuation
Is China Sanjiang Fine Chemicals undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2198 (HK$1.52) is trading below our estimate of fair value (HK$7.65)
Significantly Below Fair Value: 2198 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2198 is good value based on its PE Ratio (3x) compared to the Chemicals industry average (6.6x).
PE vs Market: 2198 is good value based on its PE Ratio (3x) compared to the Hong Kong market (9.4x).
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 (0.4x) 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 1 analyst?
3.8%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if 2198's forecast earnings growth is above the savings rate (1.6%).
Earnings vs Market: Insufficient data to determine if 2198's earnings are forecast to grow faster than the Hong Kong market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2198's revenue (3.8% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).
High Growth Revenue: 2198's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2198's Return on Equity is forecast to be low in 3 years time (11.9%).
Next Steps
Past Performance
How has China Sanjiang Fine Chemicals performed over the past 5 years?
28.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2198 has high quality earnings.
Growing Profit Margin: 2198's current net profit margins (6%) are higher than last year (4.2%).
Past Earnings Growth Analysis
Earnings Trend: 2198's earnings have grown significantly by 28.9% per year over the past 5 years.
Accelerating Growth: 2198's earnings growth over the past year (38%) exceeds its 5-year average (28.9% per year).
Earnings vs Industry: 2198 earnings growth over the past year (38%) exceeded the Chemicals industry -9.9%.
Return on Equity
High ROE: 2198's Return on Equity (14.4%) is considered low.
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¥4.5B) do not cover its short term liabilities (CN¥6.3B).
Long Term Liabilities: 2198's short term assets (CN¥4.5B) exceed its long term liabilities (CN¥28.5M).
Debt to Equity History and Analysis
Debt Level: 2198's debt to equity ratio (101.9%) is considered high.
Reducing Debt: 2198's debt to equity ratio has reduced from 228.5% to 101.9% over the past 5 years.
Debt Coverage: 2198's debt is well covered by operating cash flow (30.5%).
Interest Coverage: 2198's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Next Steps
Dividend
What is China Sanjiang Fine Chemicals's current dividend yield, its reliability and sustainability?
16.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2198's dividend (16.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.44%).
High Dividend: 2198's dividend (16.41%) is in the top 25% of dividend payers in the Hong Kong market (7.14%)
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 reasonably low payout ratio (48%), 2198's dividend payments are well 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
How experienced are the management team and are they aligned to shareholders interests?
7.9yrs
Average board tenure
CEO
China Sanjiang Fine Chemicals has no CEO, or we have no data on them.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | no data | CN¥30.53m | 1.4% CN¥25.3m | |
| Founder & Executive Director | 10.25yrs | CN¥1.39m | no data | |
| Executive Director | 9.83yrs | CN¥322.00k | no data | |
| Executive Director | 3.25yrs | CN¥1.07m | no data | |
| Independent Non-Executive Director | 9.83yrs | CN¥107.00k | no data | |
| Independent Non-Executive Director | 6yrs | CN¥107.00k | no data | |
| Independent Non-Executive Director | 3.92yrs | CN¥107.00k | no data |
7.9yrs
Average Tenure
48yo
Average Age
Experienced Board: 2198's board of directors are considered experienced (7.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$1.809b
- 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; manufacture and sale of alcohol ethoxylate, nonylphenols, textile auxiliaries, and ethylene and polyethylene; and equipment rental. 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 | 2020/06/04 13:17 |
| End of Day Share Price | 2020/06/04 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.