Breaking Down Jiangsu SOPO Chemical Co. Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven look at Jiangsu SOPO Chemical Co. Ltd. (600746.SS): from a reported 2024 revenue of 6.40 billion CNY-an impressive 18.43% increase over 2023-to a TTM revenue of 6.12 billion CNY as of September 30, 2025 (a 4.90% YoY decline) and Q3 2025 quarterly revenue down 14.24% year-over-year; juxtapose a market capitalization of 7.83 billion CNY (Dec 11, 2025) with a high total debt-to-equity ratio of 3.24, modest profitability metrics (TTM net income 131.53 million CNY, profit margin 3.75%, ROE 4.59%, EPS 0.11 CNY) and mixed valuation signals (P/S ~1.32-1.42, trailing P/E 37.81 vs. forward P/E 3.71, EV/EBITDA 10.25); factor in liquidity and cash generation-total cash 860.13 million CNY and operating cash flow TTM of 971.87 million CNY-alongside a current ratio of 1.63, gross profit margin ~6.35% and book value per share of 4.73 CNY to weigh the trade-offs between leverage, cash strength, valuation volatility (52-week range 6.45-10.49 CNY) and growth signals such as quarterly earnings growth of 121.20% (as of Mar 31, 2025); read on for the detailed breakdown investors need to parse opportunities and risks.

Jiangsu SOPO Chemical Co. Ltd. (600746.SS) Revenue Analysis

• 2024 annual revenue: 6.40 billion CNY (+18.43% YoY)
• TTM revenue (as of 2025-09-30): 6.12 billion CNY (-4.90% YoY)
• Q3 2025 revenue: 1.50 billion CNY (-14.24% YoY)

• Revenue per employee: ~3.00 million CNY (2,039 employees)
• Price-to-Sales (P/S) ratio: 1.32
• Market capitalization (2025-12-11): 7.83 billion CNY (down 4.44% YoY)

Jiangsu SOPO Chemical Co. Ltd. (600746.SS) - Profitability Metrics

• Net income (TTM, to 2025-09-30): 131.53 million CNY - profit margin: 3.75%.
• Operating margin (TTM): 3.90% - indicates core-operating efficiency before non-operating items.
• Gross profit (TTM): 387.74 million CNY - gross margin: ~6.35%.
• Return on assets (ROA): 2.56%.
• Return on equity (ROE): 4.59%.
• Earnings per share (TTM): 0.11 CNY; Price-to-earnings (P/E): 59.56.
• Quarterly earnings growth (YoY as of 2025-03-31): +121.20% - signaling recent operational or cyclical improvement.

• The company operates with thin gross and operating margins typical of commodity chemical makers, but the large YoY quarterly earnings jump (121.20%) suggests recent margin recovery or one-off gains.
• ROA and ROE (2.56% and 4.59%) indicate moderate capital efficiency and shareholder returns; these are consistent with low-margin operations and moderate leverage.
• The high P/E (59.56) versus EPS of 0.11 CNY suggests the market is pricing in growth or expecting improvements in profitability; downside risk exists if earnings revert.

Jiangsu SOPO Chemical Co. Ltd. (600746.SS) - Debt vs. Equity Structure

• Total debt-to-equity ratio: 3.24 - high leverage, indicating CNY-denominated liabilities significantly exceed shareholders' equity.
• Current ratio: 1.63 - adequate short-term liquidity to cover current obligations.
• Book value per share: 4.73 CNY - baseline net asset value attributable to each outstanding share.
• Enterprise value / Revenue: 1.28 - market valuation is ~1.28x annual sales.
• Enterprise value / EBITDA: 10.25 - valuation equals roughly 10.25 times operating earnings (pre-IA/TA).
• Market capitalization (as of 2025-12-11): 7.83 billion CNY.

• High debt-to-equity (3.24) increases sensitivity to interest rate changes and earnings volatility.
• Current ratio (1.63) mitigates immediate rollover risk but does not offset structural leverage.
• EV/EBITDA at 10.25 suggests market pricing in moderate growth or stable cash flows relative to peers in the chemical sector.
• Book value per share (4.73 CNY) vs. market cap (7.83 billion CNY) can be used to gauge market-to-book positioning when combined with shares outstanding.

Jiangsu SOPO Chemical Co. Ltd. (600746.SS) - Liquidity and Solvency

• Total cash (as of 2025-03-31): 860.13 million CNY (cash per share: 0.75 CNY).
• Operating cash flow (TTM): 971.87 million CNY - strong cash generation from operations.
• Levered free cash flow (TTM): 268.10 million CNY - cash after debt servicing available to equity holders.
• Current ratio: 1.63 - sufficient short-term assets to meet liabilities.
• Total debt-to-equity ratio: 3.24 - high leverage relative to equity.
• Book value per share: 4.73 CNY - net asset value per share.

• The company generates robust operating cash, with operating cash flow (971.87 million CNY) exceeding total cash on hand-evidence of recurring operational liquidity.
• Levered FCF of 268.10 million CNY indicates remaining cash after interest and principal payments, but the high debt-to-equity (3.24) suggests continued sensitivity to interest costs and refinancing risk.
• Current ratio of 1.63 and 860.13 million CNY in cash provide a buffer for short-term obligations; however, the capital structure implies solvency depends on sustained cash generation.
• Book value per share (4.73 CNY) versus cash per share (0.75 CNY) offers perspective on tangible equity backing and liquid resources available to shareholders.

Jiangsu SOPO Chemical Co. Ltd. (600746.SS) - Valuation Analysis

• Trailing P/E: 37.81 - reflects recent earnings base and/or one-time items depressing trailing EPS.
• Forward P/E: 3.71 - market expects materially higher earnings or recurring improvement; implies potential undervaluation versus near-term profit outlook.
• Price-to-Sales (P/S): 1.42 - market values each yuan of sales at 1.42 CNY.
• Price-to-Book (P/B): 1.68 - equity valued at 1.68x net assets.
• Enterprise Value / Revenue: 1.28 - EV about 1.28× annual revenue, indicating modest revenue multiple.
• Enterprise Value / EBITDA: 10.25 - valuation about 10.25× EBITDA, in-line with mid-market industrial/chemical peers.
• Market Capitalization (as of 2025-07-01): 9.27 billion CNY.

• Interpretive notes: the wide gap between trailing and forward P/E signals either expected earnings recovery, analyst revisions, or non-recurring items in trailing results - a key area for investor due diligence.
• Relative stance: EV/EBITDA ~10.25 places the company near typical industrial valuation ranges; P/S 1.42 and P/B 1.68 point to modest premium over book and sales.
• Risks to probe: earnings sustainability, capex and working capital trends that affect forward multiple realization, and sector cyclicality that can compress multiples.

Jiangsu SOPO Chemical Co. Ltd. (600746.SS) - Risk Factors

• High leverage: total debt-to-equity ratio 3.24 - indicates significant financial leverage and greater sensitivity to interest-rate moves.
• Valuation: trailing P/E of 37.81 - suggests the stock may be priced richly relative to earnings and peers.
• Price volatility: 52-week range CNY 6.45-10.49 - implies notable share-price fluctuation over the last year.
• Industry exposure: chemical sector - subject to regulatory changes, environmental compliance costs, and potential liability.
• Market size: market capitalization CNY 7.83 billion (as of 2025-12-11) - places the company in the small-to-mid cap segment with corresponding liquidity considerations.

• Liquidity & refinancing risk: with debt-to-equity at 3.24, near-term maturities or rising rates could strain cashflow and require asset sales or equity issuance.
• Regulatory/environmental risk: stricter emissions, hazardous-waste rules, or remediation orders could materially increase operating costs.
• Market/valuation risk: P/E of 37.81 increases downside if earnings disappoint or sector multiples compress.
• Share-price risk: 52-week volatility underscores potential short-term downside for trading investors and margin calls for leveraged positions.

Jiangsu SOPO Chemical Co. Ltd. (600746.SS) - Growth Opportunities

Jiangsu SOPO Chemical's recent operating metrics point to a company balancing moderate top-line growth with capital structure pressures. Key figures to frame growth potential:

• Organic growth: 7.40% quarterly revenue expansion suggests underlying demand or pricing power in its product lines, which can compound if maintained through successive quarters.
• Scale and market visibility: a 7.83 billion CNY market cap positions the firm to pursue acquisitions or strategic partnerships that accelerate market share.
• Liquidity buffer: a current ratio of 1.63 indicates sufficient short-term assets to support working capital needs during growth initiatives.

• Capital structure-driven risks: a 3.24 debt-to-equity ratio signals elevated financial leverage; managing interest costs and refinancing risk is critical to funding expansion without diluting returns.
• Asset base and valuation: a book value per share of 4.73 CNY provides a baseline for assessing upside potential versus market price and informs capital allocation decisions.

Strategic levers to convert these metrics into sustainable growth include improving working capital efficiency to reduce funding needs, deleveraging through retained earnings or asset sales, and targeting higher-margin product segments or downstream integration to lift overall profitability. For broader corporate context and historical strategy, see Jiangsu SOPO Chemical Co. Ltd.: History, Ownership, Mission, How It Works & Makes Money