| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.92 | 105 |
| Intrinsic value (DCF) | 6.73 | -49 |
| Graham-Dodd Method | 6.85 | -48 |
| Graham Formula | 9.54 | -27 |
Jiangsu Maysta Chemical Co., Ltd. is a specialized chemical manufacturer headquartered in Nanjing, China, focusing on the research, development, production, and sale of organosilicon surfactants and polyurethane (PU) catalysts. Founded in 2000 and operating as a subsidiary of Foshan Shunde District Demei Chemical Group, Maysta Chemical serves critical industrial sectors including home appliances, furniture, construction, automotive, and footwear. The company's core product portfolio includes PU foam stabilizers for rigid foams, slab stock foams, high-resilience (HR) foams, shoe soles, and one-component foam (OCF), along with specialized catalysts that enhance foam production efficiency. As a key player in China's specialty chemicals sector, Maysta Chemical leverages its technical expertise to address complex manufacturing requirements while expanding its international market presence. The company's strategic positioning within the basic materials industry underscores its importance in supply chains that depend on high-performance chemical additives for product quality and innovation.
Jiangsu Maysta Chemical presents a mixed investment profile with several positive indicators offset by notable challenges. The company demonstrates solid profitability with net income of ¥64.1 million on revenue of ¥601.2 million, translating to a healthy net margin of approximately 10.7%. Financial stability is supported by strong liquidity, with cash and equivalents of ¥278.3 million significantly exceeding total debt of ¥35.7 million, and positive operating cash flow of ¥78.2 million. The beta of 0.511 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors. However, the company's modest market capitalization of ¥2.25 billion and relatively small revenue base indicate limited scale compared to global specialty chemical peers. The dividend yield, while present, may not be sufficiently attractive to income-focused investors given the company's growth stage. Primary investment risks include exposure to cyclical end-markets like construction and automotive, competitive pressures in the organosilicon specialty chemicals space, and dependence on the Chinese manufacturing ecosystem.
Jiangsu Maysta Chemical operates in the highly competitive organosilicon surfactants and PU chemicals market, where it maintains a niche position focused on specific applications within China's manufacturing sector. The company's competitive advantage stems from its specialized technical expertise in organosilicon chemistry and deep understanding of PU foam production processes. This specialization allows Maysta to develop tailored solutions for specific customer requirements in various foam applications, from rigid insulation foams to flexible furniture foams. However, the company faces significant scale disadvantages compared to global chemical giants that benefit from broader product portfolios, extensive R&D capabilities, and global distribution networks. Maysta's positioning as a subsidiary of Demei Chemical Group provides some vertical integration benefits and stability, but also limits its strategic autonomy. The company's domestic focus in China exposes it to regional economic cycles and regulatory changes, while international expansion remains challenging against established multinational competitors. Technological innovation and customer service are critical differentiators in this market, where product performance and technical support often determine supplier selection. Maysta's ability to maintain competitive pricing while investing in R&D will be crucial for sustaining its market position against both domestic Chinese competitors and international chemical companies expanding their presence in Asia.