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China XLX Fertiliser Ltd. (HK:1866)
:1866
Hong Kong Market
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China XLX Fertiliser Ltd. (1866) AI Stock Analysis

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HK:1866

China XLX Fertiliser Ltd.

(1866)

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Neutral 59 (OpenAI - Gpt-5.6Sol)
Rating:59Neutral
Price Target:
HK$9.50
▲(12.03% Upside)
Action:Reiterated
Date:09/29/26
The score is held back primarily by weakening fundamentals—margin compression, higher leverage, and sharply negative free cash flow in 2024–2025 despite positive operating cash flow. Offsetting this, price action is technically constructive with the stock trading above key moving averages and neutral-to-positive momentum readings. Valuation is a relative positive with a low P/E and a moderate dividend yield.
Positive Factors
Revenue Growth
Material revenue expansion versus 2020 indicates that China XLX has increased the scale of its fertiliser business over time. A larger revenue base can support operating leverage, broader customer reach, and continued investment in production and distribution capabilities.
Negative Factors
Margin Compression
The sustained decline in gross margin indicates that profitability has become less resilient, reflecting weaker pricing or mix and/or higher input costs. Lower margins reduce the earnings buffer available to absorb further cost pressure and make future profit growth more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Material revenue expansion versus 2020 indicates that China XLX has increased the scale of its fertiliser business over time. A larger revenue base can support operating leverage, broader customer reach, and continued investment in production and distribution capabilities.
Read all positive factors

China XLX Fertiliser Ltd. (1866) vs. iShares MSCI Hong Kong ETF (EWH)

China XLX Fertiliser Ltd. Business Overview & Revenue Model

Company Description
China XLX Fertiliser Ltd. operates as an investment holding company, primarily focusing on the development, production, and global sale of urea, with a significant presence in Mainland China. Beyond its core fertilizer offerings, the company's div...
How the Company Makes Money
China XLX Fertiliser primarily makes money by selling fertiliser products it manufactures, with revenue largely driven by sales volumes and realised selling prices of its nitrogen fertiliser portfolio (notably urea). Its earnings are influenced by...

China XLX Fertiliser Ltd. Financial Statement Overview

Summary
Profitability and cash quality have weakened: gross margin has fallen materially (from ~26% in 2021 to ~15% in 2025) and net income declined notably in 2025 vs 2024. Leverage is meaningful and rising (debt-to-equity ~1.81 in 2025), reducing balance-sheet flexibility. While operating cash flow remains consistently positive, free cash flow turned sharply negative in both 2024 and 2025, signaling heavy investment and/or working-capital pressure.
Income Statement
62
Positive
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue28.21B25.35B23.13B23.48B23.07B16.98B
Gross Profit4.75B3.80B3.93B4.17B4.35B4.39B
EBITDA4.43B3.58B3.55B3.78B4.13B3.83B
Net Income1.24B932.02M1.46B1.19B1.33B1.30B
Balance Sheet
Total Assets44.05B38.78B32.52B29.13B27.87B25.51B
Cash, Cash Equivalents and Short-Term Investments2.99B1.55B895.06M1.17B1.48B906.19M
Total Debt20.58B17.61B13.07B11.76B12.71B11.93B
Total Liabilities29.87B25.30B20.00B18.62B18.30B17.55B
Stockholders Equity10.66B9.75B8.96B7.69B6.89B5.69B
Cash Flow
Free Cash Flow-3.20B-2.64B-1.52B1.86B612.63M-1.11B
Operating Cash Flow2.91B3.38B3.35B5.33B4.38B2.75B
Investing Cash Flow-6.41B-5.41B-4.29B-3.47B-3.72B-3.73B
Financing Cash Flow3.74B2.35B665.77M-2.16B-82.18M1.19B

China XLX Fertiliser Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.48
Price Trends
50DMA
10.30
Negative
100DMA
9.71
Negative
200DMA
10.11
Negative
Market Momentum
MACD
-0.28
Positive
RSI
40.85
Neutral
STOCH
47.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1866, the sentiment is Negative. The current price of 8.48 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 10.30, and below the 200-day MA of 10.11, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1866.

China XLX Fertiliser Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$8.50B5.6411.35%7.76%16.17%26.33%
65
Neutral
HK$8.54B19.9412.69%1.02%27.03%24.60%
62
Neutral
HK$8.37B8.444.47%7.07%3.52%-14.56%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
HK$12.02B7.9512.16%3.95%24.29%-7.52%
41
Neutral
HK$6.86B24.021.89%1.23%-1.88%―
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1866
China XLX Fertiliser Ltd.
9.37
2.40
34.52%
HK:3983
China BlueChemical
1.82
-0.42
-18.86%
HK:0297
Sinofert Holdings
1.21
-0.26
-17.69%
HK:0509
Century Sunshine Group Holdings Limited
0.17
0.00
0.00%
HK:1907
China Risun Group Ltd.
1.54
-0.79
-33.85%
HK:9879
Migao Group Holdings Limited
9.40
2.82
42.86%

China XLX Fertiliser Ltd. Corporate Events

China XLX Fertiliser Launches 10-Year Share Incentive Scheme Using Existing Shares
Oct 26, 2026
China XLX Fertiliser Ltd. has adopted a ten-year share incentive scheme funded entirely by existing shares, aimed at rewarding and retaining directors, senior management, and core employees who contribute to the group’s long-term development...
China XLX boosts profits on expansion, higher-value fertilisers and chemicals
Oct 26, 2026
China XLX Fertiliser Ltd. reported strong operating performance for the nine months ended 30 September 2026, driven by an integrated fertiliser and chemical strategy and ongoing product mix optimisation. The Jiangxi Phase II and New Chemical Mater...
China XLX Fertiliser Sets Board Meeting to Approve Q3 Results
Oct 12, 2026
China XLX Fertiliser Ltd., a Singapore-incorporated fertiliser producer listed in Hong Kong, operates through multiple subsidiaries and maintains a structured board with executive, non-executive and independent directors. The governance setup unde...
China XLX Fertiliser Delivers Strong 1H2026 Profit on Scale and Product Upgrades
Aug 28, 2026
China XLX Fertiliser reported unaudited interim results for the six months ended 30 June 2026, highlighting strong top- and bottom-line growth driven by expanded production capacity and efficiency gains. Revenue rose 24% year-on-year to RMB15.7 bi...
China XLX Fertiliser Sets Board Meeting to Approve Interim Results
Aug 14, 2026
China XLX Fertiliser Ltd. has scheduled a board meeting for 28 August 2026 to review and approve the consolidated interim results for the six months ended 30 June 2026. The forthcoming publication of these figures on the Hong Kong Stock Exchange w...
China XLX Fertiliser Signals Profit Surge on Scale Gains and Strong Coal-Chemical Prices
Jul 31, 2026
China XLX Fertiliser Ltd. has issued a positive profit alert for the six months ended 30 June 2026, projecting net profit of RMB1.15 billion to RMB1.23 billion, up 52% to 62% year on year. Profit attributable to shareholders is expected at RMB850 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 29, 2026