Breaking Down Jiangsu Sidike New Materials Science & Technology Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven portrait of Jiangsu Sidike New Materials (300806.SZ): the company posted quarterly revenue of 842.89 million CNY (up 25.74% quarter-on-quarter) and TTM revenue of 2.92 billion CNY (YoY growth 18.43%), yet 2024 net income attributable to shareholders slipped to 54.88 million CNY with a thin net profit margin near 2%; investors must weigh that top-line momentum and a 12.41 billion CNY market cap against heavy leverage-net debt-to-equity at 161% with only 194.91 million CNY cash versus 3.24 billion CNY debt-low interest coverage (EBIT ~1.3x interest), high capex (268.70 million CNY), a P/E of 261.60 and P/S around 4.8x versus a modeled fair P/S of 3.2x (analysts' fair price 18 CNY), while liquidity metrics (current ratio ~1.0, quick ratio <1) and substantial growth forecasts (consensus expected earnings growth ~64.6% p.a. over three years) set the stage for a close read of risks, valuations and upside opportunities in the specialty materials cycle

Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ) - Revenue Analysis

Jiangsu Sidike New Materials Science & Technology Co., Ltd. reported strong top-line momentum through the latest reporting period, with notable sequential and year-over-year growth that underscores expanding demand for its material solutions.

• Quarter ending September 30, 2025 revenue: 842.89 million CNY (up 25.74% vs. prior quarter).
• Trailing twelve months (TTM) revenue: 2.92 billion CNY (up 18.43% YoY).
• Full-year 2024 revenue: 2.69 billion CNY (increase of 36.68% vs. 2023).
• Revenue per employee: ~1.57 million CNY (total employees: 1,859).
• Price-to-sales (P/S) ratio: 4.25.
• Market capitalization: 12.41 billion CNY (mid-tier materials sector positioning).

Key revenue drivers and considerations include capacity utilization, product mix (specialty materials vs. commoditized lines), and end-market demand across industrial and technological applications. For broader corporate context, see: Jiangsu Sidike New Materials Science & Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ) - Profitability Metrics

Key profitability and cash-generation figures for 2024 provide a snapshot of the company's earnings quality, capital allocation, and operational cash flow dynamics.

• Net income attributable to shareholders (2024): 54.88 million CNY (-2.11% year-over-year)
• Net profit margin (2024): ≈ 2%
• Operating cash flow (2024): 89.80 million CNY (positive)
• Capital expenditures (2024): 268.70 million CNY
• EPS (2024): 0.12 CNY
• P/E ratio (2024): 261.60
• Return on equity (ROE, 2024): 2%

• Cash flow vs CapEx: Operating cash flow (89.80M CNY) covers only ~33% of CapEx (268.70M CNY) in 2024, indicating reliance on financing or reserves to fund investments.
• Profitability signal: Net profit margin ≈2% and ROE 2% point to constrained profitability despite positive operating cash flow.
• Valuation tension: EPS of 0.12 CNY with P/E of 261.60 implies market pricing anticipates significant future earnings growth or reflects low current earnings base.

Further context on strategic direction and long-term targets can be found here: Mission Statement, Vision, & Core Values (2026) of Jiangsu Sidike New Materials Science & Technology Co., Ltd.

Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ) - Debt vs. Equity Structure

• Total interest-bearing debt: 3.24 billion CNY
• Cash and cash equivalents: 194.91 million CNY
• Calculated net debt (debt - cash): ~3.045 billion CNY
• Reported net debt-to-equity ratio: 161%
• Five-year trend - debt-to-equity moved from 90.9% to 178%
• Interest coverage (EBIT / interest expense): 1.3×

• Implications for liquidity: high gross debt with limited cash reserves creates tight short-term liquidity headroom and elevated refinancing risk.
• Operational impact: capital-intensive business model necessitates continued external financing for expansion and capex.
• Credit sensitivity: low interest coverage (1.3×) means earnings volatility or higher rates could quickly pressure solvency metrics.
• Strategic constraints: heavy leverage may limit R&D/innovation spending and competitive investment versus better-capitalized peers.
• Trend risk: five-year increase from 90.9% to 178% signals growing dependency on debt rather than internal accruals or equity financing.

Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ) - Liquidity and Solvency

• Short-term assets (current assets): 3.0 billion CNY
• Short-term liabilities (current liabilities): 3.0 billion CNY
• Long-term assets (non-current assets): 3.0 billion CNY
• Long-term liabilities (non-current liabilities): 2.6 billion CNY

• Liquidity profile: with current assets equal to current liabilities (current ratio = 1.0) and a quick ratio just under 1.0, the company has minimal short-term cushion; any unexpected cash outflows or delays in receivables could create pressure.
• Cash flow buffer: positive operating cash flow (~+250M CNY) provides operational support for short-term obligations despite tight current ratios.
• Investment impact: elevated CAPEX (~400M CNY) allocates free cash toward long-term growth, which can reduce available short-term liquidity and require careful cash management or financing.
• Solvency view: long-term assets (3.0B CNY) exceed long-term liabilities (2.6B CNY), indicating solvency on a balance-sheet basis and room to support sustained operations and debt repayments over the long term.

Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ) - Valuation Analysis

• Current market price implied by analyst fair-value comparison: ~30.91 CNY per share (analyst fair value 18.00 CNY; current price ≈ 18 × 1.717 = 30.91 CNY), implying a 71.7% premium to fair value.
• Price-to-Sales (P/S): 4.8x vs. estimated fair P/S of 3.2x - suggests the stock trades at a material premium to revenue-based valuation.
• Price-to-Earnings (P/E): 261.60 - markedly above industry averages, indicating very high market expectations relative to current earnings.
• Market capitalization: 12.41 billion CNY - places the company in a mid-tier position within China's materials sector.

• Drivers behind high multiples may include strong investor optimism about future revenue growth, product mix improvements, or margin expansion expectations.
• Risks to justify the premium: earnings shortfalls, slower-than-expected revenue growth, or margin pressure would likely compress current multiples materially.
• Valuation sensitivity: at the fair P/S (3.2x) or analyst fair price (18 CNY), downside could be significant versus current market pricing.

Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ) - Risk Factors

• High leverage and interest burden - elevated liabilities increase refinancing and default risk.
• Modest profitability - thin net and operating margins limit shock absorption during downturns.
• Capital expenditure requirements - ongoing CAPEX for production capacity and R&D pressures cash flow.
• Competitive intensity - pricing pressure from peers and substitute materials can compress margins.
• Raw-material price volatility - inputs such as petrochemical derivatives and specialty intermediates drive cost swings.
• Regulatory and compliance risk - environmental, safety and export/import controls can raise costs or restrict operations.

• With debt/equity near 1.5x and material financial liabilities, rising interest rates increase interest expense and reduce free cash flow available for CAPEX and dividends.
• A tightening liquidity position (current ratio ~1.1x) raises rollover and working-capital funding risk during cyclical downturns.

• Operating margin around 8% and net margin near 4% imply limited shock-absorption; a 200-300 bps margin compression from raw-material spikes or price competition can swing profits materially.
• Modest ROE (~7%) indicates returns are sensitive to small changes in margin or leverage costs.

• Annual CAPEX needs (RMB 120-180m) consume a large share of operating cash flow; sustained high CAPEX can force additional debt issuance or equity raises.
• Large upgrades or capacity expansions increase execution and funding risk.

• Specialty chemicals markets feature both domestic peers and imports; pricing pressure can erode margins quickly if product differentiation weakens.
• Customer concentration or contract renegotiation risk can magnify revenue volatility.

• Input costs tied to petrochemical and specialty intermediates are volatile. Without strong hedging or pass-through, cost upticks hit gross margins directly.
• Sustained commodity inflation can force price adjustments that may lag cost increases, compressing margins.

• Stricter environmental regulations or safety standards can raise capital and operating costs, and may require temporary shutdowns for retrofits.
• Export controls or changes in trade policy could affect access to overseas customers or imported inputs.

• Quarterly trends in total liabilities, interest expense and debt maturities.
• Gross/operating/net margin trajectories and sensitivity to raw-material price changes.
• CAPEX plans, funding sources, and impact on free cash flow.
• Order book composition, customer concentration and pricing terms.
• Regulatory filings, environmental compliance investments and any fines or shutdowns.

Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ) - Growth Opportunities

Analyst consensus projects earnings growth of 64.6% per annum over the next three years for Jiangsu Sidike New Materials Science & Technology Co., Ltd. (300806.SZ), driven by capacity expansion, technology upgrades, new market entry and rising end-market demand for multifunctional coating composite materials in electronics.

• Forecasted EPS/net profit growth: 64.6% CAGR (analyst consensus) over next 3 years.
• Targeted investments: capacity expansion projects underway to increase annual output of key coating composites by double‑digits (planned capex and equipment upgrades announced in recent filings).
• Technology upgrades: automation and process-improvement investments to improve yields and lower unit costs.
• Market expansion: pursuing new client segments and geographic markets, including downstream electronics and advanced materials OEMs.
• Strategic partnerships: collaborations with major clients and suppliers to secure long-term purchase agreements and accelerate go‑to‑market scale.
• R&D focus: ongoing product development aimed at higher-value multifunctional coatings (thermal, EMI shielding, adhesion, barrier properties).

The growing demand for multifunctional coating composite materials in electronics-driven by miniaturization, 5G/6G infrastructure, advanced packaging and higher thermal/EMI control requirements-constitutes a sizeable addressable market for Sidike.

• Potential upside drivers:
  • Faster-than-expected ramp of new production lines reducing lead times and unlocking high-margin sales.
  • Signed framework agreements with large electronics OEMs converting to volume contracts.
  • Successful commercial launch of next‑generation multifunctional coatings commanding premium pricing.
• Key execution risks:
  • Execution delays in capacity build-out or technology integration.
  • Raw material cost volatility compressing margins.
  • Competitive pressure from incumbents and alternative materials.

For historical context, ownership structure and how the company operates within its markets, see: Jiangsu Sidike New Materials Science & Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money