SEHK:2198

Stock Analysis Report

China Sanjiang Fine Chemicals

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

PE ratio (8.2x) is below the Hong Kong market (10.2x)

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (2.1%) are lower than last year (8%)



Snowflake Analysis

Slightly overvalued with questionable 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.4%

2198

1.0%

HK Chemicals

2.5%

HK Market


1 Year Return

-15.7%

2198

-28.7%

HK Chemicals

-1.2%

HK Market

Return vs Industry: 2198 exceeded the Hong Kong Chemicals industry which returned -28.7% over the past year.

Return vs Market: 2198 underperformed the Hong Kong Market which returned -1.2% over the past year.


Shareholder returns

2198IndustryMarket
7 Day18.4%1.0%2.5%
30 Day7.7%-1.9%-0.3%
90 Day13.6%-10.3%-0.9%
1 Year-7.8%-15.7%-23.6%-28.7%2.4%-1.2%
3 Year21.3%-6.7%-22.3%-34.3%22.8%10.3%
5 Year-4.1%-31.3%-10.2%-26.1%21.0%0.7%

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

Valuation

Is China Sanjiang Fine Chemicals undervalued compared to its fair value and its price relative to the market?

8.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2198 (HK$1.67) is trading above our estimate of fair value (HK$1.38)

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 (8.2x) compared to the Chemicals industry average (6.5x).

PE vs Market: 2198 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (10.2x).


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?

18.6%

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

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 (13.7%).


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?

5.94%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.2%markettop25%6.1%industryaverage9.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 2198's dividend (5.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 2198's dividend (5.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.14%).


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 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?

7.4yrs

Average board tenure


CEO

China Sanjiang Fine Chemicals has no CEO, or we have no data on them.


Board Age and Tenure

7.4yrs

Average Tenure

48yo

Average Age

Experienced Board: 2198's board of directors are considered experienced (7.4 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

BuyHK$256,96030 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares159,000
Max PriceHK$1.62
BuyHK$518,72130 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares320,000
Max PriceHK$1.62
BuyHK$229,09728 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares141,000
Max PriceHK$1.62
BuyHK$415,19925 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares258,000
Max PriceHK$1.61
BuyHK$317,48024 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares200,000
Max PriceHK$1.59
BuyHK$62,00023 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares40,000
Max PriceHK$1.55
BuyHK$310,41323 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares197,000
Max PriceHK$1.58
BuyHK$749,20021 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares500,000
Max PriceHK$1.50
BuyHK$211,94621 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares140,000
Max PriceHK$1.51
BuyHK$1,119,52717 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares750,000
Max PriceHK$1.49
BuyHK$688,62016 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares460,000
Max PriceHK$1.50
BuyHK$375,19415 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares256,000
Max PriceHK$1.47
BuyHK$838,39114 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares579,000
Max PriceHK$1.45
BuyHK$1,414,30311 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares1,000,000
Max PriceHK$1.41
BuyHK$1,391,89810 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares1,000,000
Max PriceHK$1.39
BuyHK$1,388,39810 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares1,000,000
Max PriceHK$1.39
BuyHK$1,383,49708 Oct 19
Sure Capital Holdings Limited
EntityCompany
Shares1,000,000
Max PriceHK$1.38
BuyHK$6,888,98125 Jul 19
Jianzhong Guan
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares4,154,000
Max PriceHK$1.66
BuyHK$2,335,46622 Jul 19
Jianzhong Guan
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,513,000
Max PriceHK$1.54
BuyHK$14,871,73215 Jul 19
Jianzhong Guan
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares9,975,000
Max PriceHK$1.49

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jianzhong Guan (51yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥17.97m
  • Jianhong Han (45yo)

    Founder & Executive Director

    • Tenure: 9.8yrs
    • Compensation: CN¥1.37m
  • Jianping Han (48yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥572.00k
  • Xian Chen (45yo)

    Chief Accountant & Secretary

    • Tenure: 0yrs
  • Henry Yip (42yo)

    Financial Controller

    • Tenure: 0yrs
  • Rong Ding (43yo)

    Head of Production Department

    • Tenure: 0yrs
  • 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

    • Tenure: 0yrs
    • Compensation: CN¥17.97m
  • Jianhong Han (45yo)

    Founder & Executive Director

    • Tenure: 9.8yrs
    • Compensation: CN¥1.37m
  • Jianping Han (48yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥572.00k
  • Kaijun Shen (51yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥105.00k
  • Yu Pei (48yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CN¥105.00k
  • Liang Kong (53yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • 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$1.845b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2198SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2010
8C9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 13:04
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.