Jiangsu Yangnong Chemical Co Ltd

Jiangsu Yangnong Chemical Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.08, indicating minimal leverage relative to shareholder equity. The company holds total equity of 11.47 billion CNY against total liabilities of 6.72 billion CNY, resulting in a current ratio of 1.38. Despite the low leverage, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on operating cash flows for liquidity management. Operating cash flow stands at 2.22 billion CNY, significantly higher than free cash flow of 748.6 million CNY, driven by capital expenditures of 961.3 million CNY.

Profitability metrics show a return on equity of 11.21% and a return on assets of 7.07%, reflecting efficient use of capital. The company generated net income of 1.29 billion CNY on revenue of 11.87 billion CNY, yielding a net margin of approximately 10.8%. Gross profit was 2.61 billion CNY, indicating a gross margin of roughly 22%, while operating income reached 1.51 billion CNY. Without cohort median data for direct comparison, these returns appear stable for a chemicals manufacturer, supported by a price-to-earnings ratio of 16.76 and an EV/EBITDA of 14.85.

Segment and geographic revenue mix data is not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s business activity is broadly classified under chemicals, but specific product lines or customer concentrations are not disclosed in the current dataset.

Growth trajectory analysis is limited due to the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, but no year-over-year or quarterly trends are available to assess momentum or cyclicality.

Risk factors include medium liquidity risk and low dilution risk, with the primary concern being negative net cash position. The company has no significant dilution pressure, as basic and diluted shares outstanding are identical at 404.1 million shares. The key flag regarding negative net cash suggests that while the balance sheet is leveraged lightly, cash reserves may be constrained relative to total debt obligations.

Recent events are reflected in analyst estimates, with a mean price target of 81.01 CNY and a median target of 77.76 CNY, implying significant upside from the current market price of 53.33 CNY. The mean recommendation is 1.55, driven by 5 strong buy and 6 buy ratings, with no hold ratings, indicating strong analyst confidence in the company’s prospects.

Analysts project 35.9% upside to a mean price target of 81.01, reflecting strong market confidence in the stock.

Net margin of 10.8% is well above the cohort median of 5.3%, demonstrating robust profitability compared to industry standards.

Return on equity of 11.2% outperforms the cohort median of 7.9%, highlighting effective capital utilization for shareholders.

Debt-to-equity ratio of 0.08 is in the top quartile for low leverage, suggesting a conservative and stable capital structure.

Free cash flow turned negative to -285 million CNY in FY2025, raising concerns about short-term liquidity generation capabilities.

The company faces a medium level of liquidity risk, which could constrain financial flexibility during market stress.

Revenue ¥2.71B, +12,2% YoY; Operating income +17,9% YoY.

• ▍Revenue ¥2.71B, +12,2% YoY
• ▍Operating income +17,9% YoY
• ▍Net income +30,8% YoY
• ▍Net margin 8.5%

Revenue ¥2.92B, +26,1% YoY; Operating income −1,7% YoY.

• ▍Revenue ¥2.92B, +26,1% YoY
• ▍Operating income −1,7% YoY
• ▍Net income −5,0% YoY
• ▍Net margin 8.5%

Revenue ¥2.99B, +18,6% YoY; Operating income +12,6% YoY.

• ▍Revenue ¥2.99B, +18,6% YoY
• ▍Operating income +12,6% YoY
• ▍Net income +11,1% YoY
• ▍Net margin 12.4%

Revenue ¥3.24B; Operating income ¥518.2M.

• ▍Revenue ¥3.24B
• ▍Operating income ¥518.2M
• ▍Net margin 13.4%

Revenue ¥2.42B; Operating income ¥225.9M.

• ▍Revenue ¥2.42B
• ▍Operating income ¥225.9M
• ▍Net margin 7.3%

Revenue ¥2.32B; Operating income ¥298.7M.

• ▍Revenue ¥2.32B
• ▍Operating income ¥298.7M
• ▍Net margin 11.3%

Revenue ¥2.52B; Operating income ¥388.3M.

• ▍Revenue ¥2.52B
• ▍Operating income ¥388.3M
• ▍Net margin 13.2%

Revenue ¥11.87B, +13,8% YoY; Operating income +7,9% YoY.

• ▍Revenue ¥11.87B, +13,8% YoY
• ▍Operating income +7,9% YoY
• ▍Net income +7,0% YoY
• ▍Free cash flow +362,9% YoY
• ▍Net margin 10.8%

Revenue ¥10.43B, −9,1% YoY; Operating income −24,8% YoY.

• ▍Revenue ¥10.43B, −9,1% YoY
• ▍Operating income −24,8% YoY
• ▍Net income −23,2% YoY
• ▍Free cash flow −175,0% YoY
• ▍Net margin 11.5%

Revenue ¥11.48B, −27,4% YoY; Operating income −12,5% YoY.

• ▍Revenue ¥11.48B, −27,4% YoY
• ▍Operating income −12,5% YoY
• ▍Net income −12,8% YoY
• ▍Free cash flow −63,0% YoY
• ▍Net margin 13.6%

Revenue ¥15.81B, +33,5% YoY; Operating income +47,7% YoY.

• ▍Revenue ¥15.81B, +33,5% YoY
• ▍Operating income +47,7% YoY
• ▍Net income +46,8% YoY
• ▍Free cash flow +349,6% YoY
• ▍Net margin 11.3%

Revenue ¥11.84B; Operating income ¥1.44B.

• ▍Revenue ¥11.84B
• ▍Operating income ¥1.44B
• ▍Net margin 10.3%