Inner Mongolia Berun Chemical Co Ltd

The company maintains a debt-to-equity ratio of 0.68, indicating a moderate reliance on debt financing, while its current ratio of 0.81 suggests potential liquidity constraints in the short term. Operating cash flow of 1.36 billion CNY supports ongoing operations, but capital expenditures of -528.33 million CNY indicate a reduction in investment in physical assets. The return on equity of 4.64% and return on assets of 1.94% suggest that the company is generating modest returns relative to its equity and asset base.

Profitability metrics show a gross profit of 1.62 billion CNY and operating income of 1.18 billion CNY, translating to a net income of 640 million CNY. These figures suggest a relatively healthy margin structure for a commodity chemicals firm, though the return on equity remains below the industry median for similar firms. The company's operating margin is 31.3%, which is in line with the industry average for commodity chemicals producers.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic and regulatory risks. The company's revenue is primarily derived from the sale of chemical products, with no material contribution from other business lines.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the next fiscal year. The current fiscal year revenue of 3.79 billion CNY is expected to remain relatively flat in the coming year. Analysts have assigned a mean price target of 10.50 CNY, with a mean recommendation of 1.50, indicating a generally positive outlook.

The company faces moderate liquidity risk due to a current ratio below 1.0 and a negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible debt. However, the company's capital structure includes 9.38 billion CNY in long-term debt, which could become a concern if interest rates rise or cash flow declines.

Recent filings and transcripts do not indicate any material events or strategic shifts. The company has not disclosed any major capital projects or restructuring plans in the latest available reports. Analysts have not issued any strong buy or sell recommendations, with all recommendations leaning toward buy or hold.

Inner Mongolia Berun Chemical Co Ltd (000683.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 fundamental operational context for the company, aligning its market identity with the broader basic materials industry. Concurrently, the company’s risk assessment framework has been initialized with specific metrics. Dilution risk is now rated as low, indicating a stable capital structure with minimal threat of share value erosion from new issuances. This low severity rating suggests that existing shareholders face limited immediate pressure from equity dilution. Liquidity risk, however, has been assessed at a medium level. This classification highlights a moderate concern regarding the company's ability to meet short-term financial obligations, contrasting with the low dilution risk. Investors should monitor this metric as it reflects the operational cash flow dynamics inherent to the chemical manufacturing sector. These updates provide a clearer baseline for analyzing Inner Mongolia Berun Chemical’s financial health and industry positioning. With no analyst coverage or index membership currently recorded, these internal risk and taxonomy classifications serve as primary indicators for stakeholders evaluating the company's stability and sector alignment.

Analysts assign a strong buy rating with a mean price target of 10.5, implying 27.7% upside from the current price.

Return on equity of 4.6% and return on assets of 1.9% exceed the cohort medians for profitability metrics.

Cash conversion ratio of 2.13 is above the cohort median of 1.1, indicating superior cash generation relative to earnings.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value from share issuance.

Long-term debt surged to 12.5 billion CNY in FY2026, while free cash flow turned negative at -1.65 billion CNY.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or refinancing debt.

Debt-to-equity ratio of 0.68 is below the cohort median, indicating higher leverage than the typical commodity chemical peer.

Revenue declined 9% year-over-year in FY2026, and the four-year revenue CAGR is negative at -0.2%.

Revenue ¥12.07B, −9,0% YoY; Operating income −44,2% YoY.

• ▍Revenue ¥12.07B, −9,0% YoY
• ▍Operating income −44,2% YoY
• ▍Net income −48,0% YoY
• ▍Free cash flow −196,4% YoY
• ▍Net margin 7.8%

Revenue ¥13.26B, +10,1% YoY; Operating income −1,8% YoY.

• ▍Revenue ¥13.26B, +10,1% YoY
• ▍Operating income −1,8% YoY
• ▍Net income +28,5% YoY
• ▍Free cash flow +232,1% YoY
• ▍Net margin 13.7%

Revenue ¥12.04B, +9,6% YoY; Operating income +0,2% YoY.

• ▍Revenue ¥12.04B, +9,6% YoY
• ▍Operating income +0,2% YoY
• ▍Net income −47,0% YoY
• ▍Free cash flow −842,3% YoY
• ▍Net margin 11.7%

Revenue ¥10.99B, −9,6% YoY; Operating income −42,3% YoY.

• ▍Revenue ¥10.99B, −9,6% YoY
• ▍Operating income −42,3% YoY
• ▍Net income −46,3% YoY
• ▍Free cash flow −97,0% YoY
• ▍Net margin 24.2%

Revenue ¥12.15B; Operating income ¥6.35B.

• ▍Revenue ¥12.15B
• ▍Operating income ¥6.35B
• ▍Net margin 40.8%