North Chemical Industries Co Ltd
North Chemical Industries Co Ltd operates in the chemicals sector within the materials industry, generating revenue through its disclosed business activities.
Business. North Chemical Industries Co Ltd operates in the chemicals sector within the materials industry, generating revenue through its disclosed business activities.
Analyst recommendations
1 analysts · consensus BuyAt a glance
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
North Chemical Industries Co Ltd operates in the chemicals sector within the materials industry, generating revenue through its disclosed business activities.
North Chemical Industries maintains a conservative capital structure with a debt-to-equity ratio of 0.08 and a current ratio of 2.06, indicating strong short-term liquidity coverage. The company holds total equity of CNY 3.05 billion against total liabilities of CNY 2.12 billion, with long-term debt limited to CNY 231.7 million. Despite these solid balance sheet metrics, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting potential constraints in immediate cash availability despite the high current ratio.
Profitability metrics reveal significant inefficiencies relative to the company's valuation. The return on equity stands at a minimal 0.4% and return on assets at 0.24%, indicating poor capital deployment efficiency. The company generated a gross profit of CNY 792.7 million on revenue of CNY 2.75 billion, resulting in a gross margin of approximately 28.8%. Operating income was CNY 296.4 million, leading to a net income of CNY 263.0 million. These low returns are starkly contrasted by the valuation multiples, highlighting a disconnect between earnings power and market price.
- The company exhibits extremely high valuation multiples (P/E of 828.66, EV/EBITDA of 1965.81) relative to its current profitability (ROE of 0.4%).
- Balance sheet strength is evident with a low debt-to-equity ratio of 0.08 and a current ratio of 2.06, though net cash is negative.
- Analyst sentiment is cautiously positive with a mean recommendation of 2.00 and expected EPS growth from 0.48 CNY to 0.77 CNY.
- Profitability is weak with ROA at 0.24%, indicating inefficient use of assets to generate earnings.
- Data gaps in historical trends, segments, and geography limit the depth of growth and concentration analysis.
Bull / Bear case
Generated · model-assistedNet income surged 30.6% year-over-year to 263 million CNY, demonstrating strong recent profitability recovery.
Cash conversion ratio of 29.63 ranks best-in-class, significantly outperforming the cohort median of 1.2.
Debt-to-equity ratio of 0.08 is well below the cohort median of 0.4, indicating a conservative capital structure.
Gross profit expanded to 792.7 million CNY, reflecting improved top-line efficiency in the latest fiscal period.
Operating income turned positive at 296.4 million CNY, reversing the previous year's operating loss of 44.7 million CNY.
Revenue CAGR of -1.1% over four years indicates a long-term decline in top-line growth trajectory.
High credit risk flag suggests potential vulnerabilities in the company's financial stability or counterparty exposure.
In focus — financials by report
Revenue ¥2.75B, +41,3% YoY; Operating income +763,8% YoY.
- ▍Revenue ¥2.75B, +41,3% YoY
- ▍Operating income +763,8% YoY
- ▍Net income +1 029,2% YoY
- ▍Free cash flow +6 293,0% YoY
- ▍Net margin 9.6%
Valuation FY
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 0,77 |
| Revenue | —no estimate | —no estimate | 3,3B CNY |
| Operating income | —no estimate | —no estimate | —no estimate |
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
Actions
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- Reference data
- Price To Earningsmarket_price / (net_income / shares_outstanding_diluted)
- Net Cashcash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
- Enterprise Valuemarket_cap - net_cash
- Return On Assetsnet_income / total_assets
- Market Priceinput from market-data provider (delayed close or quote-shim mid)
- Market Capmarket_price * shares_outstanding_diluted
- North Chemical Industries Co Ltd Market data — financials · 2026-07-07
- North Chemical Industries Co Ltd Market data — analyst estimates · 2026-07-07