Risk factor
Good trading liquidity
Profitability factor
Modest dividends
About
Sichuan Yahua Industrial Group Co., Ltd., established in 1952 and headquartered in Chengdu, China, is a prominent enterprise focused on the development, manufacturing, and distribution of commercial explosive materials. The company serves both domestic and international clients. Its extensive product line in explosives includes a variety of initiation systems: electronic, coal mine permissible electric detonators (both millisecond and instantaneous), and average delay electric detonators. Complementing these are essential blasting accessories such as detonating tubes, plastic nonels, and standard detonating cords. For industrial applications, Sichuan Yahua produces a range of high explosives, including rock expanded ammonium nitrate, various rock and permissible emulsion explosives (including a Level 3 coal mine variant), and powder emulsion explosives. Beyond its core explosive offerings, the company also manufactures specialty chemicals like powder and emulsion composite oil phases, emulsifier-1, and emulsifying agent S-80. Sichuan Yahua Industrial Group extends its services to include engineering blasting, specialized transportation of hazardous materials, and general explosion-related work. Demonstrating a move towards diversification, the company has also entered the lithium market, providing lithium hydroxide monohydrate (including a clean variant) and battery-grade lithium carbonate. These crucial products and services find application across a broad spectrum of industries and projects, encompassing mining operations, major infrastructure developments (such as hydraulic engineering, hydropower stations, and road construction), urban regeneration, geological exploration, specialized blasting techniques, and national defense initiatives.
Company Valuation
Considering past and projected metrics, the stock is neither 'expensive' nor 'cheap' compared to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV
Target Price
The average target price of 002497.SZ is 21 and suggests 8% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to d