Breaking Down Jilin Chemical Fibre Stock Co.,Ltd Financial Health: Key Insights for Investors

Curious how Jilin Chemical Fibre's numbers stack up for investors? The quarter to September 30, 2025 showed a strong top-line jump to 1.38 billion CNY (+35.35% YoY) and a trailing-twelve-month revenue of 5.10 billion CNY (+35.08% YoY), while market capitalization sat near 9.59 billion CNY (Nov 26, 2025) and earlier at 10.18 billion CNY (Nov 4, 2025), yet profitability paints a mixed picture with a TTM gross margin of just 10.14% and net profit for the first three quarters of 2025 down 47.41% to 32.65 million CNY; balance-sheet metrics show total liabilities of 3.5 billion CNY against assets of 5.5 billion CNY (debt-to-equity ~0.64), cash and equivalents of 951.83 million CNY (Mar 2025), a current ratio of 1.2 and quick ratio of 0.9, while valuation multiples are stretched (TTM P/E 320.30, forward P/E 82.80, EV/EBITDA 14.5) - read on to weigh these facts against debt, liquidity, risks like a declining net margin and potential overvaluation, and growth moves such as a 1.5 billion CNY eco-tech investment and a 30% carbon-emission cut target by 2025.

Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) - Revenue Analysis

Jilin Chemical Fibre reported strong top-line momentum through September 2025, driven by higher volumes and price improvements across core product lines. Key headline figures and ratios provide a snapshot of revenue scale, growth trajectory and investor valuation.

• Quarter (Q3 2025) revenue: 1.38 billion CNY - +35.35% YoY
• Trailing twelve months (TTM) revenue as of Sep 2025: 5.10 billion CNY - +35.08% YoY
• Full-year 2024 revenue: 3.88 billion CNY - +3.93% YoY (2024 vs 2023)
• Revenue per employee: ~949,470 CNY (5,376 employees)
• Price-to-Sales (P/S) ratio: 1.88
• Market capitalization (as of 2025-11-26): 9.59 billion CNY

Implications for valuation and investor sentiment:

• At a P/S of 1.88 and market cap 9.59 billion CNY, the market is pricing the company with expectations that current revenue growth can be sustained or converted into higher margins.
• Revenue per employee (~949k CNY) indicates operational scale; productivity gains or headcount changes will meaningfully affect margins.
• TTM growth of ~35% signals a material acceleration from 2024's modest ~3.9% rise, suggesting recent strategic or market drivers are significant.

For deeper context on shareholder composition and investor activity, see: Exploring Jilin Chemical Fibre Stock Co.,Ltd Investor Profile: Who's Buying and Why?

Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) - Profitability Metrics

Key profitability indicators for Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) through the most recent reported periods show compression in margins and lower bottom-line returns despite gross-profit generation. Relevant figures below quantify the trend.

• Gross profit (TTM ending Sep 2025): 517.21 million CNY
• Gross margin (TTM ending Sep 2025): ~10.14%
• Net profit attributable to shareholders (1-3Q 2025): 32.65 million CNY (down 47.41% YoY)
• Net profit margin (1-3Q 2025): ~0.80% (versus 1.53% in 1-3Q 2024)
• ROE (TTM ending Sep 2025): -0.04%
• ROA (TTM ending Sep 2025): 0.56%
• EPS (1-3Q 2025): 0.0133 CNY (down from 0.0253 CNY in 1-3Q 2024)

For context on corporate background and how the business generates revenue, see Jilin Chemical Fibre Stock Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) - Debt vs. Equity Structure

Key balance-sheet figures as of March 2025 and corporate events through November 2025 shape the current capital structure of Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ). The company shows a moderate leverage profile supported by a substantial equity infusion from its controlling shareholder later in 2025.

• Total assets: 5.5 billion CNY (Mar 2025).
• Total liabilities: 3.5 billion CNY (Mar 2025).
• Total equity: 2.0 billion CNY (implied; Assets - Liabilities = 5.5 - 3.5 = 2.0 billion CNY).

• A debt-to-equity of ~0.64 and leverage of ~1.53 point to a capital structure tilted toward equity financing relative to high-leverage peers.
• An equity ratio of 36% means over one-third of assets are financed by shareholders' equity, reducing solvency risk versus asset-heavy, debt-funded firms.
• The November 2025 capital increase (809M → 2.508B CNY) materially strengthened the equity base and concentrated control (SASAC 67.09%), improving financial flexibility and potential access to state-backed support.
• An interest coverage ratio of 3.2 suggests EBIT covers interest expense by a comfortable margin but leaves limited buffer against sharper earnings shocks.

For context on corporate purpose and strategic direction that interact with capital decisions, see Mission Statement, Vision, & Core Values (2026) of Jilin Chemical Fibre Stock Co.,Ltd.

Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) - Liquidity and Solvency

• Cash and cash equivalents (Mar 2025): 951.83 million CNY (↑27.90% YoY)
• Current ratio: 1.2 - adequate short-term liquidity
• Quick ratio: 0.9 - potential difficulty meeting obligations without converting inventory to cash
• Operating cash flow (TTM ending Sep 2025): 551.96 million CNY - strong operational cash generation
• Solvency ratio (Total equity / Total assets): 0.36 - moderate financial leverage
• Net working capital: 200 million CNY - a buffer for day-to-day operations

• Investor considerations:
  • Positive: rising cash balances and robust operating cash flow strengthen near-term liquidity and operational resilience.
  • Watch: quick ratio < 1 and reliance on inventory indicate potential stress if inventory cannot be converted quickly.
  • Capital structure: a solvency ratio of 0.36 suggests moderate leverage-sufficient equity cushion but limited room for large debt increases without altering risk profile.

Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) - Valuation Analysis

• P/E (TTM, Sep 2025): 320.30 - extremely high, reflecting low trailing earnings or one-off earnings weakness versus the price level.
• Forward P/E (projected earnings): 82.80 - materially lower than trailing P/E, implying market anticipation of earnings recovery.
• EV/EBITDA: 14.5 - valuation relative to operating cash-profitability, indicating moderate premium versus peers in commodity/industrial sectors.
• Market capitalization (4 Nov 2025): 10.18 billion CNY; share price: 4.14 CNY.
• Book value per share: 1.20 CNY - provides a conservative floor for net-asset-based valuation.
• Dividend yield: 1.5% - modest cash return to shareholders.

• A very high trailing P/E signals either transitory earnings weakness or market over-optimism; reconcile with recent EPS trend and one-off items.
• The lower forward P/E suggests forecasted recovery-verify projections' drivers (volumes, prices, cost reductions).
• EV/EBITDA at 14.5 implies the market pays a premium for operating cash-profitability; compare to direct fiber/textile peers for context.
• Book value per share of 1.20 CNY vs. market price of 4.14 CNY shows a price-to-book ~3.45x, indicating market values intangibles or future earning power above net assets.
• Dividend yield (1.5%) is supplemental but not a primary return driver given valuation levels.

Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) - Risk Factors

• Declining profitability: net profit margin fell from 1.53% (first three quarters 2024) to 0.80% (first three quarters 2025), signaling margin compression and potential earnings pressure.
• Leverage: debt-to-equity ratio at 0.64 reflects moderate financial leverage that can exacerbate stress during economic downturns or demand shocks.
• Liquidity constraints: quick ratio of 0.9 suggests limited ability to cover short-term liabilities without relying on inventory liquidation.
• Valuation risk: trailing P/E of 320.30 implies the market is pricing high growth or low risk into the stock; failing to meet expectations could trigger sharp re-pricing.
• Shareholder action risk: Shanghai Fangda Investment Management Co., Ltd. (holding 6.95%) plans a share reduction, which may increase supply, depress price, and raise volatility.
• Sector concentration: heavy reliance on the chemical fiber industry exposes the firm to raw material price swings, demand cyclicality, and regulatory or environmental policy shifts.

• Investor implications: tight margins + elevated valuation raise sensitivity to small earnings misses; liquidity and leverage metrics increase downside risk in stress scenarios.
• Monitoring checklist: quarterly margin trends, working capital/quick ratio movements, debt maturities, execution on cost controls, raw material price trends, and any updates to Shanghai Fangda's disposal plan.

Jilin Chemical Fibre Stock Co.,Ltd (000420.SZ) - Growth Opportunities

Jilin Chemical Fibre (000420.SZ) outlines targeted initiatives and measurable goals designed to drive sustainable growth, operational efficiency, market expansion, and brand reputation over the next 1-3 years. Key strategic levers include environmental investment, R&D expansion, customer-centric improvements, strategic partnerships, and compliance enhancements.

• Carbon reduction target: 30% reduction in carbon emissions by 2025, positioning the company for regulatory alignment and potential cost savings on energy and carbon-related fees.
• Eco-capex commitment: invest 1.5 billion CNY in eco-friendly production technologies aimed at improving production efficiency and product appeal to sustainability-conscious buyers.
• R&D and IP growth: expand patent portfolio by 25% within two years, focusing on advanced fiber technologies (functional fibers, recycled-content processes, biodegradable blends).
• Customer experience goals: reach a 95% customer satisfaction rate by 2025 through improved service, customization, and quality-control investments.
• Global partnerships: form at least five new key partnerships with global textile brands by 2026 to extend market reach and diversify product applications.
• Labor and ESG compliance: achieve 100% compliance with international labor laws by 2025, strengthening appeal to ethically conscious buyers and institutional purchasers.

Priority actions that translate these goals into investable outcomes include targeted capex deployment, measurable R&D milestones, partner pipeline development, and ESG-compliance audits to validate progress. For context on corporate direction, see: Mission Statement, Vision, & Core Values (2026) of Jilin Chemical Fibre Stock Co.,Ltd.