Shandong Hualu-Hengsheng Chemical Co Ltd

The company maintains a market price of 30.37 CNY, with a market capitalization of 64.48 billion CNY. Its price-to-earnings ratio is 55.64, and its price-to-book ratio is 2.15, indicating a relatively high valuation compared to book value. The enterprise value to EBITDA ratio is 48.46, and the enterprise value to revenue ratio is 8.12, suggesting a premium valuation relative to earnings and revenue.

Profitability metrics show a return on equity of 3.87% and a return on assets of 2.58%, both below the typical thresholds for high-performing chemical firms. The gross profit margin is 20.06%, and the operating margin is 16.77%, which are in line with the industry but not exceptional. The company's net income of 1.16 billion CNY is supported by a revenue base of 8.997 billion CNY, but the net margin of 12.88% is modest.

Geographically, the company's revenue is concentrated in China, with no disclosed international operations. Segment-wise, the company operates as a single business unit, with no material diversification across product lines or geographic regions. This concentration increases exposure to domestic economic and regulatory shifts.

Looking ahead, the company is projected to see a modest growth in revenue, with a current FY outlook of 2.5% and a next FY outlook of 3.0%. These growth rates are in line with the industry average but do not suggest a breakout performance. The capital expenditure of -2.484 billion CNY indicates a net cash outflow, which may impact future growth capacity.

The company faces moderate liquidity risk, with a current ratio of 1.54 and a debt-to-equity ratio of 0.29. The liquidity risk is compounded by a negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential in the near term. However, the company's capital structure and liquidity position require close monitoring.

Recent events include analyst estimates indicating a mean price target of 38.67 CNY and a median price target of 42.00 CNY. The mean recommendation is 1.50, with five strong-buy and five buy ratings, suggesting a generally positive outlook from analysts. No recent filings or transcripts have been disclosed that would significantly alter the current assessment.

Analysts project 30.7% upside to a mean price target of 38.67, reflecting strong buy consensus.

Free cash flow surged 575.2% year-over-year to 1.69 billion CNY in the latest fiscal year.

Cash conversion ratio of 2.51 outperforms the 1.10 median within the commodity chemicals peer group.

Long-term debt increased to 10.95 billion CNY, nearly doubling from 5.48 billion over the past two years.

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

Revenue contracted 9.5% year-over-year to 30.97 billion CNY, indicating weakening top-line growth momentum.

Return on equity of 3.87% remains low, suggesting inefficient utilization of shareholder capital.

Revenue ¥7.42B, −18,0% YoY; Operating income +0,9% YoY.

• ▍Revenue ¥7.42B, −18,0% YoY
• ▍Operating income +0,9% YoY
• ▍Net income +10,3% YoY
• ▍Net margin 12.7%

Revenue ¥7.79B, −5,1% YoY; Operating income −0,3% YoY.

• ▍Revenue ¥7.79B, −5,1% YoY
• ▍Operating income −0,3% YoY
• ▍Net income −2,4% YoY
• ▍Net margin 10.3%

Revenue ¥7.99B, −11,2% YoY; Operating income −22,3% YoY.

• ▍Revenue ¥7.99B, −11,2% YoY
• ▍Operating income −22,3% YoY
• ▍Net income −25,6% YoY
• ▍Net margin 10.8%

Revenue ¥7.77B; Operating income ¥943.1M.

• ▍Revenue ¥7.77B
• ▍Operating income ¥943.1M
• ▍Net margin 9.1%

Revenue ¥9.05B; Operating income ¥1.05B.

• ▍Revenue ¥9.05B
• ▍Operating income ¥1.05B
• ▍Net margin 9.4%

Revenue ¥8.20B; Operating income ¥1.08B.

• ▍Revenue ¥8.20B
• ▍Operating income ¥1.08B
• ▍Net margin 10.1%

Revenue ¥9.00B; Operating income ¥1.51B.

• ▍Revenue ¥9.00B
• ▍Operating income ¥1.51B
• ▍Net margin 12.9%

Revenue ¥30.97B, −9,5% YoY; Operating income −15,1% YoY.

• ▍Revenue ¥30.97B, −9,5% YoY
• ▍Operating income −15,1% YoY
• ▍Net income −15,0% YoY
• ▍Free cash flow +575,2% YoY
• ▍Net margin 10.7%

Revenue ¥34.23B, +25,6% YoY; Operating income +13,1% YoY.

• ▍Revenue ¥34.23B, +25,6% YoY
• ▍Operating income +13,1% YoY
• ▍Net income +9,1% YoY
• ▍Free cash flow +93,0% YoY
• ▍Net margin 11.4%

Revenue ¥27.26B, −9,9% YoY; Operating income −41,8% YoY.

• ▍Revenue ¥27.26B, −9,9% YoY
• ▍Operating income −41,8% YoY
• ▍Net income −43,1% YoY
• ▍Free cash flow −610,5% YoY
• ▍Net margin 13.1%

Revenue ¥30.25B, +13,1% YoY; Operating income −10,8% YoY.

• ▍Revenue ¥30.25B, +13,1% YoY
• ▍Operating income −10,8% YoY
• ▍Net income −13,5% YoY
• ▍Free cash flow −116,4% YoY
• ▍Net margin 20.8%

Revenue ¥26.74B; Operating income ¥8.53B.

• ▍Revenue ¥26.74B
• ▍Operating income ¥8.53B
• ▍Net margin 27.2%