Breaking Down Anhui Jiangnan Chemical Industry Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven profile of Anhui Jiangnan Chemical Industry Co., Ltd. where the latest figures tell a nuanced story: operating revenue of CNY 6.885 billion in the first three quarters of 2025 and TTM revenue of CNY 9.67 billion as of September 30, 2025; profitability that includes net profit of CNY 660 million for 1-3Q2025 and a trailing net margin near 9.4%; valuation metrics showing a market cap of CNY 15.66 billion with a trailing P/E of 18.34 and a modeled fair price of CNY 7.73 (implying ~12.2% upside); a conservative balance sheet with debt-to-equity at 0.45, cash and equivalents of CNY 2.34 billion, an Altman Z‑Score of 2.42 and free cash flow of CNY 650.43 million-plus strategic moves like a planned CNY 170 million acquisition and a CNY 1.0 billion deal that could reshape growth prospects-read on to explore revenue trends, margins, liquidity, leverage and valuation signals that investors need to weigh.

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Revenue Analysis

Anhui Jiangnan Chemical Industry Co., Ltd. reported steady top-line growth through recent reporting periods, supported by modest year-on-year gains and a TTM expansion. Key headline figures and context follow.

• Operating revenue (Q1-Q3 2025): CNY 6.885 billion - +2.78% YoY.
• TTM revenue as of 30 Sep 2025: CNY 9.67 billion - +6.00% vs. prior 12 months.
• Full-year 2024 revenue: CNY 9.48 billion - +6.59% YoY.
• Revenue per employee (based on 11,611 employees): ~CNY 832,570.
• Market capitalization: CNY 15.66 billion; P/S ratio: 1.73.
• 52-week price range: CNY 4.99-7.61 (moderate volatility).

Investor-oriented implications and tactical observations:

• Growth profile: Revenue growth has been consistent but moderate (mid-single digits), with TTM and 2024 figures aligned around +6%.
• Operational efficiency: Revenue/employee near CNY 833k suggests reasonable productivity for a chemical manufacturer, though benchmarking vs. peers is required for context.
• Valuation context: P/S of 1.73 with market cap CNY 15.66 billion positions the stock in a valuation band that rewards modest growth; investors should compare margins and cash flow to peers to assess fairness.
• Volatility and price discovery: 52-week range CNY 4.99-7.61 signals room for price movements; monitor earnings cadence and commodity/raw-material cost drivers common in the chemicals sector.

For deeper ownership and investor behavior context, see: Exploring Anhui Jiangnan Chemical Industry Co., Ltd. Investor Profile: Who's Buying and Why?

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Profitability Metrics

Key profitability indicators for Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) highlight current earnings power, operational efficiency and shareholder returns based on the latest reported periods.

• Net profit attributable to shareholders (first three quarters 2025): CNY 660 million (YoY -11.40%).
• Trailing twelve months (TTM) net income: CNY 891 million on revenue of CNY 9.48 billion → TTM net profit margin ≈ 9.4%.
• Basic EPS (H1 2025): CNY 0.1611 vs CNY 0.1577 (H1 2024).
• TTM operating income: CNY 1.43 billion on revenue of CNY 9.51 billion → operating margin 14.99%.
• Return on equity (ROE): 10.70%.
• Dividend: CNY 0.08 per share annually → dividend yield 1.19%.

• Profitability profile: operating margin (14.99%) exceeds net margin (≈9.4%), indicating meaningful non-operating costs, taxes or financing impacts between operating profit and net income.
• Earnings trend: EPS increased slightly H1 2025 vs H1 2024 while attributable net profit through three quarters declined YoY, suggesting seasonal or single-event effects concentrated in later periods.
• Shareholder return: ROE of 10.70% and a modest dividend yield (1.19%) point to moderate capital efficiency and a conservative cash return policy.
• Investor considerations: monitor full-year net profit drivers, cost of goods sold and finance/tax items that compress operating profit to net income, and dividend sustainability relative to free cash flow.

For context on the company's longer-term direction, see Mission Statement, Vision, & Core Values (2026) of Anhui Jiangnan Chemical Industry Co., Ltd.

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Debt vs. Equity Structure

• Leverage: Debt-to-equity of 0.45 indicates conservative use of borrowings relative to shareholders' equity.
• Liquidity: Current ratio of 2.00 and quick ratio of 1.68 signal comfortable short-term coverage, even excluding inventories.
• Interest burden: Interest coverage at 10.80 demonstrates a strong buffer to meet interest obligations from operating earnings.
• Valuation context: Enterprise value of CNY 20.62 billion and P/E of 18.34 place the company in a mid-range valuation band versus peers (see company disclosures for peer comparison).
• Cash position: Reported net cash of CNY -2.73 billion highlights a net indebtedness position despite manageable leverage ratios.

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Liquidity and Solvency

• Operating cash flow (TTM): CNY 1.16 billion
• Capital expenditures (TTM): CNY 512.16 million
• Free cash flow (TTM): CNY 650.43 million
• Cash and cash equivalents: CNY 2.34 billion
• Quick ratio: 1.68
• Interest coverage ratio: 10.80
• Altman Z-Score: 2.42

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Valuation Analysis

• Trailing P/E: 18.34 - current price relative to last 12 months' earnings.
• Forward P/E: 15.26 - market pricing using consensus next-12-months earnings, indicating expected earnings growth or re-rating.
• P/S: 1.72 - valuation relative to revenue, implying reasonable sales coverage of market cap.
• P/B: 1.47 - trading at a modest premium to book value.
• EV/EBITDA: 9.86 - enterprise-value multiple suggesting moderate operating profitability valuation.
• EV/FCF: 31.71 - price relative to free cash flow, signaling a higher premium on cash generation than on operating earnings.
• Relative fair price: CNY 7.73 per share - model-implied fair value; implied upside: 12.2%.

• Implication for investors: the forward P/E below the trailing P/E flags expected earnings improvement or market re-rating, while EV/FCF at 31.71 cautions that free cash flow conversion may be a constraining factor for valuation upside.
• Risk considerations: P/B >1 and P/S ~1.7 mean the market already prices some growth; any earnings or cash shortfalls could compress multiples.
• Opportunities: if operating margins expand or FCF improves (capex normalization, working capital recovery), the 12.2% modeled upside could be realized or exceeded.

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Risk Factors

Anhui Jiangnan Chemical Industry Co., Ltd. operates under multiple risk vectors that investors should weigh alongside its financial metrics and strategic initiatives.

• Regulatory exposure: the company manufactures chemical products in a highly regulated sector-environmental, safety, and export controls can restrict operations or force capital-intensive compliance upgrades.
• Cyclical demand risk: a large share of product demand is tied to China's construction and mining activity; downturns in these sectors can reduce volumes and margins.
• Strategy execution: management's push into renewable energy and downstream diversification faces execution risk (capex allocation, technology adoption, project timelines).

Key quantitative indicators highlighting financial and solvency risk:

• Debt and funding risk: negative net cash of CNY -2.73 billion implies reliance on external financing; refinancing or higher interest rates could strain cash flows.
• Profitability sensitivity: cyclical revenue drops can weaken margins and deteriorate the Piotroski components (ROA, operating cash flow, gross margin trends).
• Balance-sheet leverage: an Altman Z-Score of 2.42 places the firm near the 'grey' zone-stronger than distressed peers but not in the safe zone, meaning shocks could materialize into solvency stress.
• Execution and capital allocation: pivoting toward renewables requires capital and time; underperformance or cost overruns would magnify leverage and compress returns.

For investor due diligence, compare these risk metrics against peers, review recent covenant schedules and maturities, and monitor regulatory developments affecting chemical production and environmental compliance. See also company strategic framing here: Mission Statement, Vision, & Core Values (2026) of Anhui Jiangnan Chemical Industry Co., Ltd.

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Growth Opportunities

• Planned acquisition of 51% of Sichuan Ebian Guochang Chemical Co., Ltd. for CNY 170 million - expands regional footprint and product reach in specialty chemicals and downstream explosives inputs.
• Proposed acquisition of Chongqing Shun'an Explosives Co., Ltd. for CNY 1.0 billion - a larger-scale consolidation move likely to increase market share in blasting services and industrial explosives supply chains.
• Diversification into renewable energy via wind and photovoltaic power plant operations - intended to create recurring, asset-backed cash flow streams and reduce exposure to cyclical chemical markets.
• Operational leverage from being an established player since 1985 - technical know‑how and longstanding customer relationships can accelerate integration of acquired assets and energy projects.
• Integrated business model spanning chemical production, blasting services, and energy development - provides cross-segment optimisation opportunities (feedstock synergies, captive power, bundled service offerings).

• Revenue mix improvement: acquisitions of manufacturing and blasting assets can shift revenue toward higher-margin industrial services and away from commodity chemical volatility.
• Cash‑flow diversification: renewables and captive power reduce single-industry cyclicality and can provide long-duration contracted or merchant power sales.
• Scale and bargaining power: aggregated procurement and centralized R&D across legacy chemistry and newly acquired units can lower unit input costs.
• ESG and capital access: renewable investments and lower carbon intensity support financing options and potential inclusion in sustainability-linked credit facilities.