Rongsheng Petrochemical Co Ltd

Rongsheng Petrochemical maintains a highly leveraged capital structure, evidenced by a debt-to-equity ratio of 4.94 and total liabilities of 343.04 billion CNY against total equity of 43.59 billion CNY. The company faces significant liquidity constraints, with a current ratio of 0.39, indicating that current liabilities exceed current assets by a wide margin. Despite generating 45.41 billion CNY in operating cash flow, the company reports negative free cash flow of -29.38 billion CNY due to substantial capital expenditures of 42.68 billion CNY. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, highlighting the strain on the balance sheet.

Profitability metrics are compressed, with a return on equity of 1.95% and a return on assets of 0.22%. The company reports a net income of 848.31 million CNY on revenue of 308.62 billion CNY, resulting in a gross profit of 16.36 billion CNY and operating income of 3.31 billion CNY. These thin margins are reflected in the valuation multiples, with a price-to-earnings ratio of 144.49 and an EV/EBITDA of 101.21, suggesting the market prices in low current earnings power relative to the enterprise value. The price-to-book ratio stands at 2.81, implying a premium over tangible book value despite the high leverage.

The company’s revenue mix and geographic exposure are not detailed in the available segment or geography data, preventing a granular analysis of concentration risks. However, the sheer scale of revenue, exceeding 308 billion CNY, indicates a dominant market position within its integrated operations. The absence of specific segment data limits the ability to assess which business lines are driving the gross profit of 16.36 billion CNY.

Growth trajectory analysis is constrained by the absence of historical period data in the input, preventing a year-over-year or quarter-over-quarter trend assessment. The current financial snapshot shows a massive capital expenditure outlay of 42.68 billion CNY, which may indicate ongoing expansion or maintenance of integrated facilities, but the impact on future revenue growth cannot be quantified without historical context. The negative free cash flow suggests that current operations are not yet generating sufficient surplus to fund these investments without external financing or debt accumulation.

Risk factors are dominated by liquidity and leverage concerns. The medium liquidity risk rating and low dilution risk suggest that while the company is not currently issuing significant new equity, its ability to meet short-term obligations is strained. The key flag noting negative net cash after debt subtraction underscores the reliance on debt financing, with long-term debt standing at 215.54 billion CNY. The high debt-to-equity ratio of 4.94 amplifies financial risk, particularly in a volatile interest rate environment or if operating cash flows decline.

Recent events and analyst sentiment indicate a cautiously optimistic view from the market. The mean analyst price target is 13.75 CNY, with a median of 15.30 CNY, suggesting potential upside from the current market price of 12.27 CNY. The mean recommendation of 1.82, with 4 strong buys and 5 buys, reflects confidence in the company’s long-term prospects despite current financial pressures. Competitor context is limited to names such as Chevron, Shell, and BP, but no specific comparative metrics are provided to benchmark Rongsheng’s performance against these global peers.

Rongsheng Petrochemical Co Ltd (002493.SZ) has added a new asset to its portfolio, specifically the Rongsheng Petrochemical Plant located in China. This facility is classified as a chemical plant with a focus on producing benzene, toluene, and xylene. The addition was detected on June 30, 2026, and is categorized as a notable asset event. This expansion into specific chemical production capabilities highlights the company's operational footprint in the chemicals sector. The plant's focus on benzene, toluene, and xylene suggests a strategic emphasis on these key petrochemical derivatives. Despite this asset addition, there are no other material changes reported in the company's recent analysis. A review of 17 fields showed no significant shifts, with four fields excluded due to schema expansion. This indicates that the asset addition is the primary recent development for the company. The company currently has one analyst covering it, but there are no reported top holders, index memberships, or officers listed in the available data. This limited coverage and holder information provide a sparse context for the recent asset addition, leaving the broader market impact of the new plant to be determined by future developments.

Analysts project 13.7% upside to a mean price target of 13.75, reflecting a consensus buy recommendation from 11 analysts.

Operating income surged 65.3% year-over-year to 3.31 billion CNY, indicating significant improvement in core operational profitability.

Net income grew 17.1% year-over-year to 848 million CNY, demonstrating resilience in bottom-line earnings despite margin pressures.

Revenue maintained a strong 13.9% four-year CAGR, highlighting consistent top-line growth momentum over the long term.

Cash conversion ratio of 53.53 ranks best-in-class within the Integrated Oil & Gas cohort, suggesting superior cash generation efficiency.

Debt-to-equity ratio of 4.94 places the company in the bottom quartile, signaling extreme leverage and high credit risk.

Revenue ¥80.81B, −0,6% YoY; Operating income +296,5% YoY.

• ▍Revenue ¥80.81B, −0,6% YoY
• ▍Operating income +296,5% YoY
• ▍Net income +73,6% YoY
• ▍Net margin -0.0%

Revenue ¥79.19B, −5,7% YoY; Operating income +546,7% YoY.

• ▍Revenue ¥79.19B, −5,7% YoY
• ▍Operating income +546,7% YoY
• ▍Net income +1 427,9% YoY
• ▍Net margin 0.4%

Revenue ¥73.65B, −8,1% YoY; Operating income −28,3% YoY.

• ▍Revenue ¥73.65B, −8,1% YoY
• ▍Operating income −28,3% YoY
• ▍Net income −95,5% YoY
• ▍Net margin 0.0%

Revenue ¥74.98B; Operating income ¥1.36B.

• ▍Revenue ¥74.98B
• ▍Operating income ¥1.36B
• ▍Net margin 0.8%

Revenue ¥81.28B; Operating income -¥140.2M.

• ▍Revenue ¥81.28B
• ▍Operating income -¥140.2M
• ▍Net margin -0.2%

Revenue ¥83.95B; Operating income ¥187.0M.

• ▍Revenue ¥83.95B
• ▍Operating income ¥187.0M
• ▍Net margin 0.0%

Revenue ¥80.16B; Operating income ¥694.3M.

• ▍Revenue ¥80.16B
• ▍Operating income ¥694.3M
• ▍Net margin 0.4%

Revenue ¥308.62B, −5,5% YoY; Operating income +65,3% YoY.

• ▍Revenue ¥308.62B, −5,5% YoY
• ▍Operating income +65,3% YoY
• ▍Net income +17,1% YoY
• ▍Free cash flow −28,9% YoY
• ▍Net margin 0.3%

Revenue ¥326.48B, +0,4% YoY; Operating income +28,4% YoY.

• ▍Revenue ¥326.48B, +0,4% YoY
• ▍Operating income +28,4% YoY
• ▍Net income −37,4% YoY
• ▍Free cash flow +10,2% YoY
• ▍Net margin 0.2%

Revenue ¥325.11B, +12,5% YoY; Operating income −72,3% YoY.

• ▍Revenue ¥325.11B, +12,5% YoY
• ▍Operating income −72,3% YoY
• ▍Net income −65,3% YoY
• ▍Free cash flow −24,1% YoY
• ▍Net margin 0.4%

Revenue ¥289.09B, +57,9% YoY; Operating income −82,6% YoY.

• ▍Revenue ¥289.09B, +57,9% YoY
• ▍Operating income −82,6% YoY
• ▍Net income −74,8% YoY
• ▍Free cash flow +40,9% YoY
• ▍Net margin 1.2%

Revenue ¥183.07B; Operating income ¥32.30B.

• ▍Revenue ¥183.07B
• ▍Operating income ¥32.30B
• ▍Net margin 7.2%