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China Sanjiang Fine Chemicals Co., Ltd. (HK:2198)
:2198
Hong Kong Market
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China Sanjiang Fine Chemicals Co., Ltd. (2198) AI Stock Analysis

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HK:2198

China Sanjiang Fine Chemicals Co., Ltd.

(2198)

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Neutral 60 (OpenAI - Gpt-5.6Sol)
Rating:60Neutral
Price Target:
HK$4.00
▲(27.80% Upside)
Action:Reiterated
Date:08/30/26
The score is held back primarily by weak cash conversion (persistent negative free cash flow) and high leverage despite the return to profitability. Offsetting these risks are constructive technical momentum (price above key moving averages with positive MACD) and an inexpensive valuation (low P/E), which together lift the overall score into the mid-range.
Positive Factors
Integrated PO and polyether polyol production
The linked PO and polyether polyol portfolio gives the company exposure to both an intermediate and downstream products. This production chain can support product mix flexibility and serve diverse polyurethane applications including foams, coatings, adhesives and sealants.
Negative Factors
Revenue decline and margin compression
Lower revenue and compressed gross and net margins point to a less favorable pricing or product-spread environment. If this persists, weaker earnings conversion could constrain internal funding and reduce the company’s ability to absorb higher feedstock, energy or logistics costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated PO and polyether polyol production
The linked PO and polyether polyol portfolio gives the company exposure to both an intermediate and downstream products. This production chain can support product mix flexibility and serve diverse polyurethane applications including foams, coatings, adhesives and sealants.
Read all positive factors

China Sanjiang Fine Chemicals Co., Ltd. (2198) vs. iShares MSCI Hong Kong ETF (EWH)

China Sanjiang Fine Chemicals Co., Ltd. Business Overview & Revenue Model

Company Description
China Sanjiang Fine Chemicals Company Limited functions as an investment holding enterprise within the People's Republic of China, focusing on the production and distribution of a diverse range of chemical products. Its primary offerings include e...
How the Company Makes Money
The company makes money primarily by manufacturing petrochemical and fine-chemical products and selling them to industrial customers. Its core revenue stream comes from (1) sales of propylene oxide (PO), which is an intermediate chemical used to p...

China Sanjiang Fine Chemicals Co., Ltd. Financial Statement Overview

Summary
Income statement is improving (return to profitability in 2024–2025), but 2025 revenue declined (-7.5%) with margin compression. Balance sheet leverage remains high (debt-to-equity consistently >~2x in 2022–2025), limiting flexibility. Cash flow is the main drag: free cash flow is negative every year and worsened in 2025, with low cash flow coverage versus debt.
Income Statement
58
Neutral
Balance Sheet
44
Neutral
Cash Flow
32
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue18.83B18.47B19.59B13.13B8.82B9.50B
Gross Profit1.49B898.20M1.11B168.77M-70.38M634.52M
EBITDA2.28B1.63B1.35B812.91M349.18M388.69M
Net Income753.20M407.26M532.55M91.48M-307.88M380.61M
Balance Sheet
Total Assets21.53B22.38B22.11B21.00B18.26B14.28B
Cash, Cash Equivalents and Short-Term Investments1.93B2.23B888.79M380.05M368.44M851.83M
Total Debt11.05B11.82B11.00B10.27B10.52B6.27B
Total Liabilities15.72B17.08B17.21B16.64B13.93B9.54B
Stockholders Equity5.74B5.32B4.91B4.38B4.30B4.67B
Cash Flow
Free Cash Flow-773.11M-677.70M-398.88M-1.29B-3.52B-834.29M
Operating Cash Flow817.07M912.48M1.06B-122.01M-910.52M1.63B
Investing Cash Flow-836.77M-1.55B-1.39B-790.28M-1.97B-3.29B
Financing Cash Flow285.23M717.35M533.27M1.06B2.50B1.48B

China Sanjiang Fine Chemicals Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.13
Price Trends
50DMA
3.23
Positive
100DMA
3.75
Positive
200DMA
3.82
Positive
Market Momentum
MACD
0.22
Negative
RSI
66.89
Neutral
STOCH
81.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2198, the sentiment is Positive. The current price of 3.13 is below the 20-day moving average (MA) of 3.61, below the 50-day MA of 3.23, and below the 200-day MA of 3.82, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 66.89 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2198.

China Sanjiang Fine Chemicals Co., 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
74
Outperform
HK$3.63B6.298.77%8.15%2.52%2.16%
70
Outperform
HK$21.56B10.1312.67%2.29%7.79%48.48%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
HK$4.80B5.3713.63%1.24%0.90%16.54%
51
Neutral
HK$922.34M15.802.08%2.84%16.60%-12.13%
50
Neutral
HK$12.61B-18.40-18.41%0.83%165.47%-398.61%
40
Underperform
HK$8.40B30.001.87%0.23%-1.80%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
4.04
2.32
135.00%
HK:1907
China Risun Group Ltd.
1.91
-0.59
-23.65%
HK:0609
Tiande Chemical Holdings Limited
1.05
-0.33
-24.02%
HK:0189
Dongyue Group Limited
13.11
0.62
4.95%
HK:6616
Global New Material International Holdings Limited
10.33
5.64
120.26%
HK:0746
Lee & Man Chemical Co. Ltd.
4.30
-0.64
-12.95%

China Sanjiang Fine Chemicals Co., Ltd. Corporate Events

China Sanjiang Fine Chemicals Doubles Interim Profit on Integrated Operations and High-Value Petrochemicals
Aug 26, 2026
China Sanjiang Fine Chemicals Company Limited, a Cayman Islands-incorporated petrochemical producer listed in Hong Kong, operates vertically integrated EO/EG and ethylene-propylene facilities. Its flexible feedstock strategy and emphasis on high-v...
China Sanjiang Fine Chemicals Sets Board Meeting to Review Interim Results and Dividend
Aug 7, 2026
China Sanjiang Fine Chemicals Company Limited has scheduled a board meeting for 26 August 2026 to review and approve the group’s interim results for the six months ended 30 June 2026. The board will also consider whether to declare an interi...
China Sanjiang Flags Doubling of Interim Profit on Optimised Procurement
Jul 13, 2026
China Sanjiang Fine Chemicals has issued a positive profit alert, indicating that net profit attributable to equity holders for the first half of 2026 is expected to reach between RMB600 million and RMB700 million. This compares with approximately...
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: Aug 30, 2026