| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.53 | 113 |
| Intrinsic value (DCF) | 7.06 | -39 |
| Graham-Dodd Method | 5.44 | -53 |
| Graham Formula | 2.35 | -80 |
Jiang Su Suyan Jingshen Co., Ltd. is a leading Chinese salt and chemical producer headquartered in Huai'an, China. Operating as a subsidiary of Jiangsu Salt Industry Group, the company specializes in the research, production, distribution, and sale of salt and salt chemical products across Southeast Asia. Suyan Jingshen's diverse product portfolio includes industrial and edible salts, calcined soda, sodium sulfate, calcium chloride, and other chemical derivatives marketed under established brands like Huaiyan, Yinfei, Yunyun, Jingshen, and Sizhou. The company operates in the basic materials sector with a strategic focus on salt-based chemical processing, leveraging China's significant salt resources to serve both domestic and international markets. With its vertically integrated operations spanning from raw material extraction to finished product distribution, Suyan Jingshen has established itself as a key player in China's chemical industry. The company's strategic location in Jiangsu province provides access to major industrial centers and transportation networks, supporting its market position in one of China's most economically developed regions. As environmental regulations and industrial demand evolve, Suyan Jingshen's specialized expertise in salt chemistry positions it to capitalize on growing demand for industrial chemicals while maintaining its traditional salt business.
Jiang Su Suyan Jingshen presents a mixed investment profile with several attractive fundamentals offset by sector-specific challenges. The company demonstrates solid profitability with net income of CNY 769 million on revenue of CNY 5.34 billion, representing a healthy net margin of approximately 14.4%. Strong operating cash flow of CNY 1.28 billion and a substantial cash position of CNY 2.61 billion provide financial stability, while moderate debt levels (CNY 917 million) indicate conservative leverage. The company's beta of 0.537 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors. However, the salt and basic chemicals industry faces structural challenges including commodity price cyclicality, environmental regulation pressures, and intense competition. The dividend yield, while present, may not sufficiently compensate for growth limitations inherent in mature chemical subsectors. Investors should weigh the company's stable cash generation against limited growth prospects and exposure to industrial demand cycles.
Jiang Su Suyan Jingshen competes in the highly fragmented Chinese salt and chemical industry, where regional players dominate specific geographic markets. The company's competitive position is strengthened by its affiliation with Jiangsu Salt Industry Group, providing regulatory advantages and stable access to salt resources in a strategically important coastal province. Its vertical integration from raw salt production to specialty chemicals creates cost efficiencies and quality control benefits that smaller competitors may lack. The company's diverse product portfolio spanning edible salt, industrial salt, and derivative chemicals provides revenue diversification, though it faces competition from both specialized chemical producers and larger integrated chemical conglomerates. Suyan Jingshen's regional focus on Southeast Asia and particularly Eastern China gives it distribution advantages in densely populated industrial areas, but limits its scale compared to national champions. The company's brand portfolio, including Huaiyan and Jingshen, carries regional recognition but lacks the national prominence of market leaders. Competitive threats include potential oversupply in basic chemicals, price competition from lower-cost producers in inland regions, and regulatory changes affecting salt production quotas. The company's research capabilities in salt chemistry provide some differentiation, but technological advantages may be modest compared to global chemical leaders. Its competitive sustainability depends on maintaining cost efficiency, navigating environmental compliance costs, and potentially expanding into higher-value chemical derivatives.