Breaking Down Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. Financial Health: Key Insights for Investors

Curious whether Nantong Jiangshan Agrochemical & Chemicals (600389.SS) is a stable compound in your portfolio or a volatile reaction? Dive into hard numbers: H1 2025 revenue of CNY 3.167 billion (up 18.50% YoY) and TTM revenue of CNY 5.62 billion, net income for nine months to Sept 30, 2025 of CNY 425.2 million (vs CNY 171.52m a year earlier), a market cap near CNY 11.46 billion with a P/E around 19.8 and TTM EPS of CNY 1.11, alongside a balanced debt-to-equity of 0.51 but troubling free cash flow of CNY -889.42 million and an Altman Z-Score of 2.24; add a +42.76% 52-week price gain, a dividend yield of 0.91% (CNY 0.20/share), and forecasts for earnings and revenue growth of 39.1% and 18.7% per annum-read on to unpack valuation (P/S 2.04, P/B 2.19, EV/EBITDA 15.89), liquidity (current ratio 1.16, quick ratio 0.62), capital expenditure of CNY -1.42 billion TTM, exposure across 40 export markets, and the strategic drivers behind its multi-product growth story.

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) Revenue Analysis

• H1 2025 revenue: CNY 3.167 billion (up 18.50% YoY)
• 2024 annual revenue: CNY 5.43 billion (up 6.80% vs. 2023)
• TTM revenue: CNY 5.62 billion (up 0.78% YoY)
• Revenue per employee: ~CNY 2.07 million (2,721 employees)
• Market capitalization: CNY 11.46 billion; P/S ratio: 2.04

• Stable revenue growth trend supports consistent demand for core products
• H1 spike lifts short-term momentum; TTM shows slower sequential growth
• Valuation (P/S ~2.04) implies market pricing that balances growth and sector risk

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) - Profitability Metrics

• Net income (9 months ending Sep 30, 2025): CNY 425.2 million (vs CNY 171.52 million in same period 2024).
• Trailing twelve months (TTM) EPS: CNY 1.11; P/E ratio: 19.76.
• Return on equity (ROE): 11.43% - indicates efficient use of shareholders' equity.
• Net profit margin: 8.45% - solid profitability for the sector.
• Operating income (TTM): CNY 459.67 million; operating margin: 8.13%.
• Dividend: CNY 0.20 per share annually; dividend yield: 0.91%.

• Profit growth driver: sharp increase in net income YTD through Sep 30, 2025, signaling improved demand or better cost control.
• Valuation context: P/E ~19.8 suggests market prices expected continued earnings stability; compare to peers for relative value.
• Cash returns: modest dividend yield indicates priority may be on reinvestment or balance-sheet strength over high shareholder payouts.

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) - Debt vs. Equity Structure

• Debt-to-equity ratio: 0.51 - indicates a balanced financing mix between debt and equity.
• Total debt: CNY 2.20 billion.
• Cash and cash equivalents: CNY 1.46 billion.
• Net cash position (net debt): CNY -742.39 million (i.e., net debt of CNY 742.39 million).
• Interest coverage ratio: 18.07 - strong ability to service interest expense.
• Total assets: CNY 9.44 billion; total liabilities: CNY 3.28 billion.
• Equity (book value): CNY 4.37 billion; book value per share: CNY 9.51.
• Capital expenditures (TTM): CNY -1.42 billion - sizeable investment activity.

• Liquidity profile: with CNY 1.46B in cash against CNY 2.20B debt, near-term liquidity is adequate given high interest coverage.
• Leverage stance: 0.51 debt-to-equity points to conservative-to-moderate leverage for a chemicals manufacturer.
• Investment activity: negative CNY 1.42B capex (TTM) signals growth and capacity spending - monitor cash flow impact.
• Balance sheet strength: equity of CNY 4.37B and total assets of CNY 9.44B provide a solid asset base to support operations and borrowing.

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) - Liquidity and Solvency

• Current ratio: 1.16 - suggests the company has slightly more current assets than current liabilities to cover short-term obligations.
• Quick ratio: 0.62 - indicates limited immediate liquidity once inventories are excluded, raising concerns about meeting very short-term liabilities without liquidating inventory.
• Operating cash flow (TTM or latest period): CNY 533.85 million - positive cash from operations supports ongoing operations.
• Free cash flow: CNY -889.42 million - significant negative FCF, implying heavy investment spending, debt servicing, or working-capital strain.
• Net income (nine months ending Sep 30, 2025): CNY 425.2 million - profitable on the income-statement basis for the period.
• Altman Z-Score: 2.24 - places the company in a zone of moderate bankruptcy risk (gray zone), not safe but not in imminent distress.
• Piotroski F-Score: 5 - a neutral score indicating mixed fundamental signals (neither strongly healthy nor clearly deteriorating).

• Working-capital context: a current ratio near 1.2 but quick ratio below 1 highlights inventory reliance; inventory management and receivables collection are key operational levers.
• Cash-flow dynamics: positive operating cash flow juxtaposed with deep negative free cash flow suggests high capital expenditures or cash used in investing/financing activities - monitor capex plans and financing terms.
• Solvency monitoring: Altman Z-Score of 2.24 warrants tracking leverage, interest coverage, and profitability trends to detect any deterioration toward distress.
• Fundamental signal mix: Piotroski F-Score of 5 implies investors should seek trend data (quarter-on-quarter) across profitability, leverage, liquidity, and operating efficiency to form a clearer stance.

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) - Valuation Analysis

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) presents a mixed valuation profile: market metrics show a premium to book value and moderate earnings multiples, while enterprise-value measures highlight relatively higher valuation versus cash generation.

• Market capitalization: CNY 9.58 billion
• Enterprise value (EV): CNY 10.59 billion
• Trailing P/E: 20.10
• Forward P/E: 18.77
• Price-to-book (P/B): 2.19
• EV/EBITDA: 15.89
• EV/FCF: -11.91
• Beta: 0.58
• 52-week price change: +42.76%

Key valuation takeaways:

• The P/E band (20.10 trailing vs. 18.77 forward) implies moderate valuation with mild upside expectations priced in.
• P/B of 2.19 signals investors pay a premium over book value - likely reflecting expected profitability or intangible assets.
• EV/EBITDA at 15.89 is on the higher side for industrial/chemical names; investors should compare to sector medians for context.
• Negative EV/FCF (-11.91) requires scrutiny of recent capex, working capital swings or one-off items that depressed free cash flow.
• Beta 0.58 combined with +42.76% 52-week return suggests the stock delivered strong risk-adjusted gains with lower volatility.

For deeper ownership, shareholder trends and positioning context, see: Exploring Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. Investor Profile: Who's Buying and Why?

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) - Risk Factors

• Highly competitive global agrochemical market: pressure from multinationals and domestic producers can compress margins and force higher marketing or R&D spend.
• Concentration risk: heavy reliance on the Chinese market exposes revenue and margins to regional economic slowdowns, commodity cycles and domestic regulatory changes.
• Leverage considerations: debt-to-equity ratio of 0.51 reflects moderate financial leverage that can amplify stress during revenue declines or rising interest rates.
• Cash generation challenges: negative free cash flow of CNY -889.42 million signals the company is not currently generating sufficient cash from operations to cover investing and financing needs.
• Bankruptcy risk profile: an Altman Z-Score of 2.24 places the company in a borderline zone (moderate risk), meaning deteriorating operating performance could rapidly increase default probability.
• Mixed profitability/quality signals: a Piotroski F-Score of 5 suggests neutral/average financial health - some fundamentals are sound while others raise caution.

• Interest rate and refinancing risk: with existing leverage, higher rates or impaired access to capital markets could raise financing costs or constrain operations.
• Commodity and input-cost volatility: feedstock and raw material price swings can erode gross margins if not passed to customers.
• Regulatory and environmental compliance risk: stricter environmental rules in China or export markets may require capital expenditure or limit production.
• Operational disruption risk: production or supply-chain interruptions (e.g., logistics, raw-material shortages) could magnify the cash flow shortfall.
• M&A / competitive dynamics risk: consolidation by larger chemical groups or aggressive pricing by domestic peers may reduce pricing power.

Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (600389.SS) - Growth Opportunities

• Forecasted earnings growth: 39.1% per annum.
• Forecasted revenue growth: 18.7% per annum.
• Forecasted EPS growth: 22.4% per annum.
• Return on equity (ROE) target: 15.2% within three years.

• International footprint: Exports to 40 countries.
• Product segments: Intermediate chemicals, advanced materials, flame retardants, microporous insulating boards.
• Revenue model: Multiple streams from commodity intermediates and higher‑margin specialty advanced materials.

• Revenue diversification: commodity + specialty products reduces single‑market reliance.
• Margin expansion levers: shift to advanced materials and operational efficiency gains.
• Risk mitigation: stronger HSE lowers incident risk and potential regulatory friction.