Guizhou Chanhen Chemical Corp

Guizhou Chanhen Chemical Corp maintains a debt-to-equity ratio of 0.73, indicating a moderate reliance on debt financing, and a current ratio of 1.49, suggesting reasonable short-term liquidity. The company's operating cash flow of CNY 148.02 million is positive, but capital expenditures of CNY -196.34 million indicate ongoing investment in infrastructure or maintenance. The liquidity risk is assessed as medium, with a key flag noting that net cash is negative after subtracting total debt.

The company's profitability metrics show a return on equity (ROE) of 3.93% and a return on assets (ROA) of 1.93%, both below the typical thresholds for high-performing chemical firms. Gross profit of CNY 430.98 million and operating income of CNY 282.63 million suggest a relatively narrow margin structure, which may be typical for the commodity chemicals industry. Net income of CNY 219.03 million reflects a healthy bottom-line result, but the ROE and ROA figures indicate that asset efficiency and equity returns are not particularly strong.

Geographic and segment exposure is not explicitly detailed in the available data, but the company's revenue of CNY 1.44 billion is likely concentrated in China, given its domestic listing and operational base. The absence of disclosed international operations or segment breakdowns suggests a high degree of revenue concentration in a single market, which could pose a concentration risk.

The company's growth trajectory is not explicitly outlined in the data, but the current FY outlook and next FY direction are not provided. Analysts have assigned a mean price target of CNY 45.87 and a median of CNY 47.34, with a mean recommendation of 1.60 (leaning toward strong buy). The absence of a detailed growth outlook and the reliance on a single market may limit the visibility of future revenue expansion.

Risk factors include a medium liquidity risk and a low dilution risk, with no immediate pressure for equity issuance. The company's capital structure is supported by total assets of CNY 11.37 billion and total equity of CNY 5.57 billion, but the long-term debt of CNY 4.05 billion represents a significant portion of its liabilities. The risk assessment does not indicate any major regulatory or geopolitical exposures, but the company's domestic focus may expose it to local economic or policy shifts.

Recent events or filings are not detailed in the available data, but the company's financials suggest a stable, albeit modest, performance in the current reporting period. Analysts have not issued any strong sell recommendations, and the overall sentiment appears cautiously optimistic.

Guizhou Chanhen Chemical Corp (002895.SZ) has been formally classified within the Chemicals activity and Basic Materials economic sector, marking a significant structural update to its corporate profile. This taxonomy classification, identified as a medium-severity change, establishes the company’s operational identity within the broader industrial landscape, providing a clearer framework for sector-specific analysis and peer comparison. Alongside this sectoral definition, the company’s risk assessment profile has been initialized with specific metrics. Dilution risk is now assessed as low, indicating a stable capital structure with minimal immediate threat of share value erosion from new issuances. This low-severity assessment suggests that existing shareholders face limited pressure from equity dilution in the near term. Conversely, liquidity risk has been flagged as medium, also at a low severity level. This designation highlights potential constraints or variability in the company’s ability to meet short-term financial obligations, warranting attention from investors monitoring cash flow stability and working capital management. The contrast between low dilution risk and medium liquidity risk paints a nuanced picture of the firm’s financial health. These updates collectively refine the understanding of Guizhou Chanhen Chemical Corp’s operational and financial standing. By anchoring the company in the Basic Materials sector and defining its key risk parameters, stakeholders can better evaluate its position relative to industry norms and assess the interplay between its capital stability and liquidity conditions.

Revenue grew 34.7% CAGR over four years, demonstrating strong top-line expansion momentum.

Net income CAGR of 36.1% indicates robust profitability growth outpacing revenue expansion.

Analysts project 34.2% upside to the mean price target of 45.87 CNY.

Free cash flow turned positive in FY1, reaching 271 million CNY.

High credit risk flag signals significant potential for financial distress or default.

Debt-to-equity ratio of 0.73 is in the bottom quartile, indicating high leverage.

Return on equity of 3.9% is only slightly above the cohort median of 3.6%.

Cash conversion of 0.68 is below the cohort median of 1.1.

Medium liquidity risk suggests potential challenges in meeting short-term obligations.

Revenue ¥8.33B, +41,0% YoY; Operating income +33,9% YoY.

• ▍Revenue ¥8.33B, +41,0% YoY
• ▍Operating income +33,9% YoY
• ▍Net income +31,8% YoY
• ▍Free cash flow +91,8% YoY
• ▍Net margin 15.1%

Revenue ¥5.91B, +36,7% YoY; Operating income +22,1% YoY.

• ▍Revenue ¥5.91B, +36,7% YoY
• ▍Operating income +22,1% YoY
• ▍Net income +24,8% YoY
• ▍Free cash flow +247,8% YoY
• ▍Net margin 16.2%

Revenue ¥4.32B, +25,3% YoY; Operating income +0,3% YoY.

• ▍Revenue ¥4.32B, +25,3% YoY
• ▍Operating income +0,3% YoY
• ▍Net income +1,0% YoY
• ▍Free cash flow +82,3% YoY
• ▍Net margin 17.7%

Revenue ¥3.45B, +36,3% YoY; Operating income +120,4% YoY.

• ▍Revenue ¥3.45B, +36,3% YoY
• ▍Operating income +120,4% YoY
• ▍Net income +106,3% YoY
• ▍Free cash flow +28,9% YoY
• ▍Net margin 22.0%

Revenue ¥2.53B; Operating income ¥437.8M.

• ▍Revenue ¥2.53B
• ▍Operating income ¥437.8M
• ▍Net margin 14.5%