China Sanjiang Fine Chemicals Co., Ltd. (2198) AI Stock Analysis

China Sanjiang Fine Chemicals Co., Ltd.

(HKEX:2198)

Select Model

Rating:56Neutral

Price Target:HKD 4.00▲(13.80% Upside)

Action:reiterated

Date:08/30/26

The overall score is held down by weak financial quality, as high leverage, thin margins, and negative free cash flow offset the recent recovery in revenue and profits. Supportive technicals, with the price in a clear uptrend and strong momentum, and a low earnings multiple that points to potential undervaluation, improve the outlook but do not fully counterbalance the underlying balance sheet and cash generation risks.

Positive Factors

Integrated PO and polyether polyol productionThe 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 compressionLower 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.

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

Market Cap: HKD 4.04B
Dividend Yield: 4.26%
Average Volume (3M): 2.34M
Price to Earnings (P/E): 4.6
Beta (1Y): 1.11
Revenue Growth: 0.90%
EPS Growth: 16.54%
Country: Hong Kong
Employees: 1,470
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals

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 ethy...

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 prod...

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

Summary

Revenue has more than doubled since 2022 and profitability has returned, but net margins remain very thin, leverage is high, and free cash flow is still deeply negative, keeping overall financial quality weak despite recent improvement.

Income Statement

45Neutral

Balance Sheet

35Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.83B	18.47B	19.59B	13.13B	8.82B	9.50B
Gross Profit	1.49B	898.20M	1.11B	168.77M	-70.38M	634.52M
EBITDA	2.32B	1.69B	1.90B	812.91M	371.89M	406.10M
Net Income	753.20M	407.26M	532.55M	91.48M	-307.88M	380.61M
Balance Sheet
Total Assets	21.53B	22.38B	22.11B	21.00B	18.26B	14.28B
Cash, Cash Equivalents and Short-Term Investments	1.93B	2.23B	888.79M	380.05M	368.44M	851.83M
Total Debt	11.05B	11.82B	11.00B	10.27B	10.52B	6.27B
Total Liabilities	15.72B	17.08B	17.21B	16.64B	13.93B	9.54B
Stockholders Equity	5.74B	5.32B	4.91B	4.38B	4.30B	4.67B
Cash Flow
Free Cash Flow	-773.11M	-677.70M	-398.88M	-1.29B	-3.52B	-834.29M
Operating Cash Flow	817.07M	912.48M	1.06B	-122.01M	-910.52M	1.63B
Investing Cash Flow	-836.77M	-1.55B	-1.39B	-790.28M	-1.97B	-3.29B
Financing Cash Flow	285.23M	717.35M	533.27M	1.06B	2.50B	1.48B

China Sanjiang Fine Chemicals Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3.52

Price Trends

50DMA3.74Negative

100DMA3.38Positive

200DMA3.90Negative

Market Momentum

MACD-0.04Positive

RSI43.14Neutral

STOCH43.06Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2198, the sentiment is Negative. The current price of 3.52 is below the 20-day moving average (MA) of 3.65, below the 50-day MA of 3.74, and below the 200-day MA of 3.90, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2198.

China Sanjiang Fine Chemicals Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:2198 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0746	77Outperform	HKD 3.56B	6.17	8.77%	8.10%	2.52%	2.16%
HK:0189	67Neutral	HKD 16.00B	7.45	12.67%	3.11%	7.79%	48.48%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:2198	56Neutral	HKD 4.12B	4.58	13.63%	4.26%	0.90%	16.54%
HK:6616	56Neutral	HKD 10.91B	-15.78	-18.41%	―	165.47%	-398.61%
HK:0609	53Neutral	HKD 860.85M	14.61	2.08%	3.05%	16.60%	-12.13%
HK:1907	42Neutral	HKD 6.86B	23.97	1.89%	1.23%	-1.88%	―

* Basic Materials Sector Average

Performance Comparison

HK:2198 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2198	China Sanjiang Fine Chemicals Co., Ltd.	3.52	1.20	51.51%
HK:1907	China Risun Group Ltd.	1.54	-0.79	-33.85%
HK:0609	Tiande Chemical Holdings Limited	0.98	-0.38	-28.10%
HK:0189	Dongyue Group Limited	9.66	-0.13	-1.36%
HK:6616	Global New Material International Holdings Limited	8.74	2.58	41.88%
HK:0746	Lee & Man Chemical Co. Ltd.	4.32	-0.15	-3.33%

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-valu...

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 interim d...

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 RM...

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

China Sanjiang Fine Chemicals Co., Ltd. AI Stock Analysis