Guangxi Hechi Chemical Co Ltd
Guangxi Hechi Chemical Co Ltd has a debt-to-equity ratio of 0.3 and a current ratio of 1.26, indicating a relatively balanced capital structure and moderate liquidity. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints. The company's return on equity (ROE) is 4.26%, and its return on assets (ROA) is 2.45%, both below the typical thresholds for strong profitability in the Agricultural Chemicals industry. These figures suggest that the company is not generating returns at a level that is significantly above the industry median. The company's revenue is derived from pharmaceutical intermediates and urea, with a focus on domestic and overseas markets. However, the input data does not provide specific revenue concentration by segment or geography, making it difficult to assess the extent of geographic or product diversification. The company's revenue for the latest period is reported at 179,678,880 CNY, but the input data does not include historical revenue figures or forward-looking guidance to assess growth trajectory. Analyst estimates suggest a recent actual revenue of 609,684,000 CNY, but this appears to be a discrepancy or a different reporting period. The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt suggests that the company may need to manage its liquidity carefully. There is no indication of dilution pressure in the near term, and no specific dilution sources are identified in the input data. Recent events include the latest actual EPS of -0.43 CNY, indicating a loss per share for the most recent reporting period. This suggests a challenging earnings environment for the company, but the input data does not provide additional context or recent filings or transcripts to explain the performance.
Business. Guangxi Hechi Chemical Co Ltd produces and sells pharmaceutical intermediates, including antimalarial, progesterone, and nutritional supplement products, as well as urea under the Qunshan brand, primarily in domestic and overseas markets.
Classification. The company is classified under the Basic Materials economic sector, Chemicals business sector, and Agricultural Chemicals industry with a confidence level of 0.92.
- Guangxi Hechi Chemical Co Ltd has a balanced capital structure with a debt-to-equity ratio of 0.3.
- The company's ROE and ROA are below typical thresholds for strong profitability in the Agricultural Chemicals industry.
- The company's liquidity position is moderate, with a current ratio of 1.26, but it has a negative net cash position after subtracting total debt.
- The company's recent actual EPS is negative, indicating a loss per share for the most recent reporting period.
- The company's revenue is reported at 179,678,880 CNY, but the input data does not provide historical or forward-looking guidance to assess growth trajectory.
- # RATIONALES
- **margin_outlook_rationale**: The company's gross margin is 16.0% (28,718,460 CNY gross profit / 179,678,880 CNY revenue), which is below the industry median for Agricultural Chemicals, suggesting potential margin compression.
- **rd_outlook_rationale**: The input data does not provide specific R&D spending figures, so the outlook for R&D is not determinable from the available information.
- Net cash is negative after subtracting total debt.