SEHK:2198

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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. More Details


Snowflake Analysis

Undervalued with solid track record and pays a dividend.

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

-12.4%

2198

-1.0%

HK Chemicals

-1.0%

HK Market


1 Year Return

34.6%

2198

-16.6%

HK Chemicals

0.4%

HK Market

Return vs Industry: 2198 exceeded the Hong Kong Chemicals industry which returned -17.7% over the past year.

Return vs Market: 2198 exceeded the Hong Kong Market which returned 1.4% over the past year.


Shareholder returns

2198IndustryMarket
7 Day-12.4%-1.0%-1.0%
30 Day-11.6%-8.5%-3.2%
90 Day-12.4%1.0%1.4%
1 Year61.0%34.6%-11.6%-16.6%4.5%0.4%
3 Year-1.6%-30.7%-37.5%-48.3%-3.9%-14.2%
5 Year113.8%28.0%-6.9%-27.9%22.7%2.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2198 (HK$1.83) is trading below our estimate of fair value (HK$5.77)

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 (2.3x) compared to the HK Chemicals industry average (7.8x).

PE vs Market: 2198 is good value based on its PE Ratio (2.3x) compared to the Hong Kong market (11.2x).


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 (0.6x).


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?

6.2%

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 (6.2% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 2198's revenue (6.2% 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 (13.7%).


Next Steps

Past Performance

How has China Sanjiang Fine Chemicals performed over the past 5 years?

29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2198 has high quality earnings.

Growing Profit Margin: 2198's current net profit margins (10.2%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 2198's earnings have grown significantly by 29.6% per year over the past 5 years.

Accelerating Growth: 2198's earnings growth over the past year (372.2%) exceeds its 5-year average (29.6% per year).

Earnings vs Industry: 2198 earnings growth over the past year (372.2%) exceeded the Chemicals industry -37.4%.


Return on Equity

High ROE: Whilst 2198's Return on Equity (22.85%) is high, this metric is skewed due to their high level of debt.


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¥6.0B) do not cover its short term liabilities (CN¥7.3B).

Long Term Liabilities: 2198's short term assets (CN¥6.0B) exceed its long term liabilities (CN¥1.3B).


Debt to Equity History and Analysis

Debt Level: 2198's debt to equity ratio (157%) is considered high.

Reducing Debt: 2198's debt to equity ratio has reduced from 230.3% to 157% over the past 5 years.

Debt Coverage: 2198's debt is well covered by operating cash flow (21.2%).

Interest Coverage: 2198's interest payments on its debt are well covered by EBIT (17.2x coverage).


Balance Sheet


Next Steps

Dividend

What is China Sanjiang Fine Chemicals's current dividend yield, its reliability and sustainability?

13.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2198's dividend (13.56%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2198's dividend (13.56%) is in the top 25% of dividend payers in the Hong Kong market (6.89%)


Stability and Growth of Payments

Stable Dividend: 2198's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2198's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), 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?

6.3yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Jianhong Han
Founder & Chairlady of the Boardno dataCN¥1.39mno data
Jianping Han
Executive Director10.08yrsCN¥322.00kno data
Huotao Rao
Executive Director3.5yrsCN¥1.07mno data
Kaijun Shen
Independent Non-Executive Director10.08yrsCN¥107.00kno data
Yu Pei
Independent Non-Executive Director6.25yrsCN¥107.00kno data
Liang Kong
Independent Non-Executive Director4.17yrsCN¥107.00kno data

6.3yrs

Average Tenure

49yo

Average Age

Experienced Board: 2198's board of directors are considered experienced (6.3 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$2.178b
  • 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 Analysis2020/09/21 19:05
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.