Jiangsu Maysta Chemical Co Ltd

Jiangsu Maysta Chemical Co Ltd maintains a strong liquidity position with a current ratio of 3.59, indicating the company can cover its short-term obligations more than three times over. The company's liquidity is further supported by a low debt-to-equity ratio of 0.01, suggesting minimal reliance on debt financing. However, the company's net cash position is negative after subtracting total debt, which introduces a medium liquidity risk.

In terms of profitability, the company's return on equity (ROE) is 1.74%, and its return on assets (ROA) is 1.46%, both of which are below the typical thresholds for high-performing specialty chemical firms. The company's gross profit margin is 40.0%, and its operating margin is 20.0%, which are in line with the industry's median profitability metrics. However, the company's net income margin is 17.7%, which is slightly below the industry median, indicating some inefficiencies in cost management or pricing power.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the company's exposure to regional economic fluctuations and regulatory changes. The company's revenue is primarily derived from the sale of chemical products, with no significant diversification into other product lines or services.

Looking at the company's growth trajectory, the current fiscal year is expected to show a modest increase in revenue, with a projected growth rate of 2.0% year-over-year. The next fiscal year is expected to see a similar growth rate, with a projected increase of 2.0%. The company's capital expenditures are negative, indicating a reduction in investment in new projects or facilities, which may signal a focus on cost optimization rather than expansion.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which introduces a medium liquidity risk. The company's dilution risk is low, as there is no indication of significant share issuance or dilution potential. The company's financial structure is relatively stable, with a low debt-to-equity ratio and a strong current ratio.

Recent events and filings do not indicate any significant changes in the company's operations or financial strategy. The company's recent financial performance and capital structure suggest a conservative approach to growth and risk management. There are no recent regulatory changes or geopolitical events that have significantly impacted the company's operations.

Debt-to-equity ratio of 0.01 is well below the 0.23 cohort median, reflecting a conservative capital structure.

Cash conversion of 1.55 exceeds the 1.08 cohort median, demonstrating strong efficiency in generating cash from earnings.

Revenue grew 5.4% annually over four years, showing consistent top-line expansion despite recent net income volatility.

Return on equity of 1.7% falls below the 3.9% cohort median, indicating inefficient use of shareholder capital.

Free cash flow turned negative in three of the last five periods, raising concerns about cash generation stability.

Liquidity risk is rated as medium, indicating potential challenges in meeting short-term financial obligations.

Revenue ¥501.0M, +0,8% YoY; Operating income +43,5% YoY.

• ▍Revenue ¥501.0M, +0,8% YoY
• ▍Operating income +43,5% YoY
• ▍Net income +39,4% YoY
• ▍Free cash flow +15,2% YoY
• ▍Net margin 22.0%