| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.45 | -16 |
| Intrinsic value (DCF) | 10.07 | -68 |
| Graham-Dodd Method | 4.17 | -87 |
| Graham Formula | n/a |
Zhejiang Jianye Chemical Co., Ltd. is a prominent Chinese chemical manufacturer headquartered in Hangzhou, specializing in the production and global distribution of essential chemical intermediates. The company's core product portfolio includes low carbon fatty amines, plasticizers, acetates, and liquid sulfur dioxide, serving diverse industrial applications across multiple sectors. Operating within China's vast Basic Materials sector, Zhejiang Jianye Chemical leverages its strategic location in one of the world's largest chemical markets while maintaining significant export operations worldwide. The company's manufacturing expertise positions it as a key supplier in the global chemical value chain, catering to industries requiring specialized chemical compounds for their production processes. With a focus on chemical innovation and quality control, Zhejiang Jianye Chemical has established itself as a reliable partner for businesses requiring consistent, high-purity chemical products. The company's operations reflect China's growing dominance in the global chemical industry, combining manufacturing scale with technical capabilities to serve both domestic and international markets effectively.
Zhejiang Jianye Chemical presents a mixed investment profile with several notable strengths and risks. The company demonstrates solid financial health with a strong cash position of CNY 1.13 billion against manageable total debt of CNY 278 million, indicating low financial leverage. Profitability metrics are respectable with net income of CNY 209 million on revenue of CNY 2.39 billion, translating to healthy margins. The company's beta of 0.564 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors. However, concerns include modest operating cash flow of CNY 292 million relative to market capitalization, and capital expenditures of only CNY -31 million may indicate limited growth investments. The chemical manufacturing sector faces cyclical demand patterns and regulatory pressures, particularly in China's evolving environmental compliance landscape. The generous dividend payout of CNY 1 per share provides income appeal but warrants monitoring for sustainability given the company's growth investment needs.
Zhejiang Jianye Chemical operates in a highly competitive segment of China's chemical industry, where scale, technological capability, and cost efficiency determine market positioning. The company's competitive advantage appears rooted in its specialized focus on specific chemical intermediates rather than commodity chemicals, allowing for better pricing power and customer relationships. Its product portfolio targeting low carbon fatty amines and plasticizers suggests niche expertise that may provide some insulation from pure price competition. The company's export capabilities indicate international quality standards and competitive production costs, essential for competing in global markets. However, as a mid-sized chemical producer with revenue under CNY 2.4 billion, Zhejiang Jianye likely faces significant pressure from larger integrated chemical conglomerates that benefit from economies of scale and broader product portfolios. The company's location in Zhejiang province provides access to China's eastern industrial corridor but also places it in direct competition with numerous chemical manufacturers in this densely industrialized region. Its competitive positioning depends heavily on maintaining technological edge in its specialty segments while managing cost structures effectively against both domestic giants and international chemical producers. The relatively modest capital expenditures suggest a conservative growth strategy that may limit market share expansion against more aggressive competitors.