Jiangsu Eastern Shenghong Co Ltd

The company's capital structure is highly leveraged, with a debt-to-equity ratio of 4.11, indicating a significant reliance on debt financing. Liquidity is constrained, as evidenced by a current ratio of 0.47, which is below 1 and suggests the company may struggle to meet short-term obligations without additional financing. Operating cash flow of 2.02 billion CNY is positive, but capital expenditures of -6.81 billion CNY indicate substantial reinvestment in the business.

Profitability is weak, with a return on equity of 0.2% and a return on assets of 0.04%, both of which are below the typical thresholds for healthy performance in the commodity chemicals industry. The company reported a net income of 71.69 million CNY despite an operating loss of -68.09 million CNY, suggesting non-operating income or gains may have offset operational underperformance.

Geographic and segment exposure is not explicitly detailed in the available data, but the company's revenue concentration is likely tied to domestic Chinese markets given its listing and operational base. No specific segments are disclosed, but the company operates in a single business line focused on commodity chemicals.

Growth trajectory is uncertain, as the company reported a revenue of 36.09 billion CNY in the latest period. Analysts have not provided forward-looking revenue growth estimates, and the company's operating income is negative, which may limit its ability to scale operations organically. The lack of segment-level growth data further obscures the company's expansion potential.

Risk factors include high leverage and liquidity constraints, with a debt-to-equity ratio of 4.11 and a current ratio of 0.47. The risk assessment indicates a medium liquidity risk and a low dilution risk, but the company's net cash position is negative after subtracting total debt, signaling potential refinancing challenges. No recent dilutive events are reported, and the company's shares outstanding have not changed between basic and diluted counts.

Recent events include analyst price targets that are uniformly set at 14.80 CNY, with a mean recommendation of 1.33, indicating a generally positive outlook from analysts. However, the lack of variance in price targets and the absence of strong buy or hold ratings suggest limited consensus or confidence in the stock's upside potential.

Jiangsu Eastern Shenghong Co Ltd (000301.SZ) has been formally classified within the Chemicals activity and Basic Materials economic sector, marking a significant update to its corporate taxonomy. This classification provides a clearer framework for understanding the company's operational focus and its position within the broader industrial landscape. In terms of risk profile, the company now exhibits a low dilution risk, suggesting stability in its capital structure and shareholder equity. This assessment indicates that there is currently minimal threat of share value erosion through new issuances, which is a positive signal for existing investors regarding the preservation of ownership stakes. Conversely, the liquidity risk has been assessed as medium, highlighting a moderate level of concern regarding the company's ability to meet short-term financial obligations. This rating suggests that while the company is not in immediate distress, investors should monitor its cash flow management and working capital dynamics closely to ensure continued operational flexibility. These updates to the company's risk and classification metrics provide a more defined picture of Jiangsu Eastern Shenghong's financial health and sector alignment. The combination of low dilution risk and medium liquidity risk, alongside its confirmed placement in the Basic Materials sector, offers stakeholders a nuanced view of the company's current standing and potential vulnerabilities.

Analysts project 19.5% upside to a consensus target price of 14.8 CNY, rating the stock a strong buy.

Free cash flow improved significantly by 58.8% year-over-year to -13.1 billion CNY in fiscal 2026.

Net income surged 105.8% year-over-year to 133.7 million CNY, marking a recovery from prior losses.

Cash conversion ratio of 28.18 ranks as best-in-class compared to the commodity chemicals cohort median.

The company carries a high credit risk flag, indicating significant potential for default or financial distress.

Debt-to-equity ratio of 4.11 places the company in the bottom quartile of its commodity chemicals cohort.

Long-term debt increased to 143.2 billion CNY in fiscal 2026, reflecting a heavy and growing leverage burden.

Return on equity of 0.2% is well below the cohort median of 3.6%, indicating poor capital efficiency.

Revenue ¥30.31B; Operating income ¥322.3M.

• ▍Revenue ¥30.31B
• ▍Operating income ¥322.3M
• ▍Net margin 1.1%

Revenue ¥29.37B; Operating income -¥1.45B.

• ▍Revenue ¥29.37B
• ▍Operating income -¥1.45B
• ▍Net margin -3.0%

Revenue ¥35.47B; Operating income -¥2.02B.

• ▍Revenue ¥35.47B
• ▍Operating income -¥2.02B
• ▍Net margin -4.9%

Revenue ¥36.09B; Operating income -¥68.1M.

• ▍Revenue ¥36.09B
• ▍Operating income -¥68.1M
• ▍Net margin 0.2%

Revenue ¥125.59B, −8,8% YoY; Operating income +91,8% YoY.

• ▍Revenue ¥125.59B, −8,8% YoY
• ▍Operating income +91,8% YoY
• ▍Net income +105,8% YoY
• ▍Free cash flow +58,8% YoY
• ▍Net margin 0.1%

Revenue ¥137.67B, −2,0% YoY; Operating income −1 689,6% YoY.

• ▍Revenue ¥137.67B, −2,0% YoY
• ▍Operating income −1 689,6% YoY
• ▍Net income −420,3% YoY
• ▍Free cash flow +43,5% YoY
• ▍Net margin -1.7%

Revenue ¥140.44B, +119,9% YoY; Operating income −55,9% YoY.

• ▍Revenue ¥140.44B, +119,9% YoY
• ▍Operating income −55,9% YoY
• ▍Net income +17,4% YoY
• ▍Free cash flow +32,6% YoY
• ▍Net margin 0.5%

Revenue ¥63.87B, +21,2% YoY; Operating income −91,8% YoY.

• ▍Revenue ¥63.87B, +21,2% YoY
• ▍Operating income −91,8% YoY
• ▍Net income −86,6% YoY
• ▍Free cash flow +10,0% YoY
• ▍Net margin 1.0%

Revenue ¥52.69B; Operating income ¥6.04B.

• ▍Revenue ¥52.69B
• ▍Operating income ¥6.04B
• ▍Net margin 8.7%