Jiangsu Fengshan Group Co.,Ltd, together with its subsidiaries, engages in the production, sale, import, and export of agricultural chemicals in China. The company offers herbicide, insecticide, bactericide, and plant growth regulator products. The company was founded in 1988 and is headquartered in Yancheng, China.

China

Jiangsu Fengshan Group Co.,Ltd

Basic Materials

The company tries to pay dividends regularly but only sometimes does so. It has paid dividends in roughly half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

603810.SS reported revenue of CNY 1 102mn in the last 12 months, up 6% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 71% from FY24 to CNY -0.07.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 51ppts over past six months and grown 15ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is positive. Usually, this means that a fairly valued or slightly undervalued stock has become more 'expensive', indicating that the market, in general, may have gained short-term confidence in the stock.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 2.1% in the last 12 months, a decline from 3.6% in FY23. 

Historically, 603810.SS has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -1.0%, a growth from -3.3% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -0.4% in the last 12 months, an increase from -1.5% in FY23. 

Jiangsu Fengshan Group Co.,Ltd reported a return on equity (RoE) of -0.7% in the last 12 months, up from -2.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -0.5%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.1 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

603810.SS has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note low margin volatility, adequate interest coverage, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, and negligible return on capital.

In highly turbulent market conditions, 603810.SS is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, 603810.SS is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to substantial. We would also like to highlight the substantial intraday volatility of the instrument. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. Specifically, the stock is overvalued on EV/EBITDA. 

Jiangsu Fengshan Group Co.,Ltd

CN¥ 14.27

4

Jiangsu Fengshan Group Co.,Ltd

CN¥ 14.27

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 14.27

About

About

About

About