| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.13 | 200 |
| Intrinsic value (DCF) | 11.31 | 41 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Weifang Yaxing Chemical Co., Ltd. is a specialized chemical manufacturer headquartered in Weifang, China, with operations spanning domestic and international markets. Founded in 1994 and publicly traded on the Shanghai Stock Exchange, the company focuses on the research, development, production, and distribution of key chemical materials including chlorinated polyethylene (CPE), azodicarbonamide foaming agents, industrial hydrazine hydrate, sodium hydroxide, liquid chlorine, and hydrochloric acid. Operating within China's massive basic materials sector, Weifang Yaxing serves diverse industrial applications from plastics modification to water treatment and foam manufacturing. The company's strategic location in Shandong province, a major chemical industry hub, provides advantages in supply chain integration and market access. As a mid-tier chemical producer, Weifang Yaxing plays a role in China's chemical value chain, though it faces intense competition and cyclical industry pressures that impact its financial performance and market positioning.
Weifang Yaxing Chemical presents a high-risk investment profile with concerning financial metrics. The company reported a net loss of CNY 97 million on revenue of CNY 910 million for the period, reflecting operational challenges and potential margin compression in China's competitive chemical sector. With negative EPS of -0.25 CNY and a dividend suspension, income investors will find limited appeal. The company maintains moderate liquidity with CNY 162.5 million in cash, but carries significant debt of CNY 799.6 million, creating financial leverage concerns. Positive operating cash flow of CNY 31.2 million suggests some operational viability, though substantial capital expenditures of CNY 81.1 million indicate ongoing investment needs. The beta of 0.873 suggests slightly less volatility than the broader market, but the combination of losses, high debt, and intense industry competition makes this a speculative investment suitable only for risk-tolerant investors familiar with China's chemical sector dynamics.
Weifang Yaxing Chemical operates in a highly competitive segment of China's chemical industry with limited apparent competitive advantages. The company's product portfolio, while diversified across several specialty chemicals, faces intense competition from both larger integrated chemical conglomerates and more focused specialty chemical producers. Its primary product, chlorinated polyethylene (CPE), is produced by multiple competitors in China, creating price pressure and margin compression. The company's mid-tier scale prevents it from achieving the economies of scale enjoyed by larger competitors, while its negative profitability suggests it may lack cost advantages or technological differentiation. Its location in Shandong province provides some regional advantages given the concentration of chemical manufacturing in the area, but this also means competing with numerous established players in the same region. The company's negative net income and EPS indicate it may be losing ground to more efficient competitors. Without clear technological leadership, cost advantages, or strong customer relationships, Weifang Yaxing appears positioned as a price-taker in competitive markets rather than a differentiated specialty chemical producer with sustainable competitive advantages.