Wuhan Youji Holdings Ltd. (2881) AI Stock Analysis

Wuhan Youji Holdings Ltd.

(HKEX:2881)

Select Model

Rating:58Neutral

Price Target:HKD 9.50▼(-2.06% Downside)

Action:reiterated

Date:09/06/26

Mixed financial performance due to profitability gains offset by balance sheet and cash flow weaknesses is the primary factor, supported by strong valuation metrics and neutral-to-positive technical signals.

Positive Factors

Revenue RecoveryThe strong TTM revenue rebound indicates renewed demand and improved business activity after the prior annual period. If sustained, this larger revenue base can support operating leverage, strengthen market presence, and provide a foundation for rebuilding earnings over the next several quarters.

Negative Factors

Elevated LeverageDebt remains high relative to equity, limiting financial flexibility if operating conditions weaken. Elevated leverage can increase balance-sheet risk and constrain funding choices, while the reliance on debt also means that the healthy reported return on equity is not entirely supported by conservative capitalization.

Wuhan Youji Holdings Ltd. (2881) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 863.02M
Dividend Yield: 3.79%
Average Volume (3M): 13.48K
Price to Earnings (P/E): 4.9
Beta (1Y): 0.05
Revenue Growth: -11.48%
EPS Growth: 2.45%
Country: Hong Kong
Employees: 638
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Wuhan Youji Holdings Ltd. Business Overview & Revenue Model

Company Description

Wuhan Youji Holdings Ltd. functions as an investment holding enterprise primarily involved in the creation and global distribution of chemical products derived from toluene. The company's diverse offerings include toluene oxidation products, toluene...

Wuhan Youji Holdings Ltd. Financial Statement Overview

Summary

TTM revenue grew 25% with expanding margins, but high debt-to-equity of 1.89, declining equity, and negative free cash flow of -258 million raise concerns.

Income Statement

68Positive

Balance Sheet

39Negative

Cash Flow

31Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.31B	2.66B	3.28B	2.67B	3.11B	2.79B
Gross Profit	544.80M	319.42M	396.00M	328.53M	694.92M	639.12M
EBITDA	435.54M	203.34M	248.08M	245.23M	541.80M	512.92M
Net Income	154.07M	62.47M	122.96M	72.63M	338.35M	309.48M
Balance Sheet
Total Assets	2.74B	2.64B	2.35B	2.33B	2.16B	2.94B
Cash, Cash Equivalents and Short-Term Investments	192.60M	211.38M	86.71M	98.55M	92.74M	80.10M
Total Debt	1.42B	1.36B	929.54M	1.04B	781.13M	746.46M
Total Liabilities	1.99B	1.95B	1.68B	1.75B	1.43B	1.42B
Stockholders Equity	748.36M	691.73M	673.63M	582.65M	821.76M	1.87B
Cash Flow
Free Cash Flow	-258.05M	-295.16M	153.96M	128.25M	65.18M	89.46M
Operating Cash Flow	135.36M	17.35M	262.51M	162.60M	148.36M	152.41M
Investing Cash Flow	-428.52M	-320.89M	-61.44M	-81.90M	53.90M	-290.42M
Financing Cash Flow	230.21M	355.83M	-192.95M	-98.91M	-188.97M	171.41M

Wuhan Youji Holdings Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price9.70

Price Trends

50DMA9.86Negative

100DMA10.31Negative

200DMA8.58Positive

Market Momentum

MACD-0.03Negative

RSI50.83Neutral

STOCH83.60Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2881, the sentiment is Positive. The current price of 9.70 is above the 20-day moving average (MA) of 9.61, below the 50-day MA of 9.86, and above the 200-day MA of 8.58, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 83.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2881.

Wuhan Youji Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

HK:2881 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%
HK:2198	59Neutral	HKD 4.12B	4.58	13.63%	4.26%	0.90%	16.54%
HK:2881	58Neutral	HKD 905.01M	4.95	21.40%	3.79%	-11.48%	2.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
HK:0609	53Neutral	HKD 860.85M	14.61	2.08%	3.05%	16.60%	-12.13%
HK:0827	42Neutral	HKD 217.87M	-0.24	214.56%	―	1.56%	-21.85%

* General Sector Average

Performance Comparison

HK:2881 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2881	Wuhan Youji Holdings Ltd.	9.70	5.06	108.96%
HK:0827	Ko Yo Chemical (Group) Limited	0.03	0.00	14.81%
HK:0609	Tiande Chemical Holdings Limited	0.98	-0.38	-28.10%
HK:0189	Dongyue Group Limited	9.66	-0.13	-1.36%
HK:2198	China Sanjiang Fine Chemicals Co., Ltd.	3.52	1.20	51.51%
HK:0746	Lee & Man Chemical Co. Ltd.	4.32	-0.15	-3.33%

Wuhan Youji Holdings Ltd. Corporate Events

Wuhan Youji to Sell Resin Workshop Assets and End Lease with Twin Tigers Coatings

Oct 22, 2026

Wuhan Youji Holdings Limited has agreed to sell a set of resin workshop assets to Twin Tigers Coatings for RMB50.37 million, in a move that reshapes its manufacturing footprint in Wuhan Chemical Industrial Park. The disposal covers 107 pieces of mach...

Wuhan Youji Holdings Appoints New Company Secretary and Authorised Representative

Oct 14, 2026

Wuhan Youji Holdings Limited has announced the resignation of company secretary and authorised representative Ms. Lai Ho Yan, effective 14 October 2026, with the outgoing officer confirming no disagreement with the board or issues requiring attention...

Wuhan Youji Finalizes Re‑Domiciliation to Hong Kong and Consolidates Share Registration

Sep 24, 2026

Wuhan Youji Holdings Limited has completed its corporate re-domiciliation from the Cayman Islands to Hong Kong, culminating in a de-registration certificate issued by the Cayman Islands Registrar of Companies confirming its status change as of 21 Aug...

Wuhan Youji commits up to RM85m for Phase I civil works at new Malaysia factory

Sep 23, 2026

Wuhan Youji Holdings Limited has entered into a construction contract via its wholly owned subsidiary Benzoplus Chemicals (M) Sdn. Bhd. for Phase I civil works of its new Malaysia factory in Johor. The project, to be executed by CCIE Engineering (M)...

Wuhan Youji engages related party for Malaysia plant project management

Sep 23, 2026

Wuhan Youji Holdings’ Malaysian subsidiary has appointed Shandong Linuo Smart Park Technology to provide project management and consultancy services for Phase I civil works at its Malaysia factory, under a fixed-fee agreement of RMB4 million. T...

Wuhan Youji boosts interim profit as margins surge despite revenue dip

Aug 26, 2026

Wuhan Youji Holdings Limited reported interim unaudited results for the six months ended 30 June 2026 showing revenue of about RMB1,408.1 million, a 2.2% decline year on year, as higher cost efficiencies and product mix improvements lifted profitabil...

Wuhan Youji Schedules Board Meeting to Approve Interim Results and Consider Dividend

Aug 14, 2026

Wuhan Youji Holdings Limited has scheduled a board meeting for 26 August 2026 to review and approve the group’s unaudited consolidated interim results for the six months ended 30 June 2026. At the same meeting, directors will also consider decl...

Wuhan Youji Completes Move of Legal Domicile and Registered Office to Hong Kong

Aug 5, 2026

Wuhan Youji Holdings Limited has completed its re-domiciliation from the Cayman Islands to Hong Kong, with the change and adoption of new articles of association becoming effective on 5 August 2026. The move does not create a new legal entity and pre...

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 06, 2026

Wuhan Youji Holdings Ltd. AI Stock Analysis