Breaking Down Jiang Su Suyan Jingshen Co.,Ltd. Financial Health: Key Insights for Investors

Jiang Su Suyan Jingshen Co., Ltd. (603299.SS) presents a mixed financial picture that demands a closer look: revenue fell to CNY 3.357 billion in the first three quarters of 2025 (a 17.04% YoY decline) after 2024 operating income of CNY 5.344 billion (down 5.95%); profitability weakened with net profit attributable to the parent at CNY 410 million (a 37.46% YoY drop) and net profit excluding non-recurring items of CNY 304 million (down 51.11%), while 2024 margins still showed a 33.80% gross margin and operating/profit margins of 9.86% and 11.25% respectively; operationally, salt production rose slightly to 7.5554 million tons in 2024 and sales were 7.7422 million tons, the company advanced packaging and gas-injection projects and plans to add 1.2 million tons of alkali capacity with a brine salt project due by end-2026, and its balance sheet shows a market cap of CNY 8.70 billion, enterprise value CNY 9.03 billion, net cash of CNY 83.73 million (total debt CNY 2.17 billion, cash CNY 2.26 billion), conservative leverage (debt/equity 0.33), solid interest coverage (182.00), but negative free cash flow of -CNY 597.25 million despite operating cash flow of CNY 428.62 million-valuation metrics include trailing P/E 16.72, forward P/E 12.37, P/S 1.87, P/B 1.33, EV/EBITDA 10.86 and a dividend yield of 3.94%-risks around raw salt competition, energy price swings and limited international exposure contrast with growth levers in salt cave utilization and a projected EPS CAGR of 3%; explore the detailed chapter for the full numerical breakdown and what these figures mean for investors

Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) Revenue Analysis

• Operating revenue (first three quarters 2025): CNY 3.357 billion (-17.04% YoY)
• Operating income (full year 2024): CNY 5.344 billion (-5.95% YoY)
• Main driver of decline: reduction in product sales prices

• Completed relocation and construction of a leading integrated intelligent salt packaging line (annual composite flexible packaging 6,000 t).
• Comprehensive commercialization of gas injection technology expected to improve product quality/cost structure and margin recovery.
• Intelligent layout from the relocation project anticipated to raise operational efficiency and support performance growth as market prices stabilize.

Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) - Profitability Metrics

Key profitability indicators for Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) show notable year‑on‑year pressure in 2025 YTD versus a relatively stable 2024 performance. Below are the headline figures and immediate implications for investors.

• Net profit attributable to parent (first three quarters of 2025): CNY 410 million (‑37.46% YoY).
• Net profit excluding non‑recurring items (first three quarters of 2025): CNY 304 million (‑51.11% YoY).
• Basic earnings per share (first three quarters of 2025): CNY 0.5244.
• Full‑year 2024 net profit: CNY 769 million (+4.15% YoY).
• Gross margin (2024): 33.80%.
• Operating margin (2024): 9.86%.
• Profit margin (2024): 11.25%.
• Equity beta: 0.48 (lower volatility vs. market).

Interpretation highlights:

• The sharp declines in 2025 YTD net profit and core net profit indicate margin compression and/or one‑off impacts; core earnings fell more steeply (‑51.11%), signaling underlying operational weakness beyond non‑recurring items.
• 2024 margins (gross 33.80%, operating 9.86%, profit 11.25%) reflect historically solid gross profitability but relatively modest conversion to operating profit, leaving sensitivity to cost or volume shocks.
• EPS of CNY 0.5244 for the first three quarters of 2025 provides a near‑term per‑share earnings anchor; investors should compare to full‑year 2024 EPS run‑rate when assessing valuation.
• Low beta (0.48) suggests the stock may offer defensive characteristics in volatile markets, though recent earnings weakness could pressure sentiment regardless of volatility profile.

For broader context on company background, ownership and business model see: Jiang Su Suyan Jingshen Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) Debt vs. Equity Structure

• Total debt: CNY 2.17 billion
• Cash and cash equivalents: CNY 2.26 billion
• Net cash position: CNY 83.73 million
• Debt-to-equity ratio: 0.33
• Interest coverage ratio: 182.00
• Equity (book value): CNY 6.57 billion
• Book value per share: CNY 7.87
• Piotroski F‑Score: 3

Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) - Liquidity and Solvency

• Current ratio: 1.50 - adequate short-term liquidity, showing 1.50 CNY of current assets per 1.00 CNY of current liabilities.
• Quick ratio: 1.21 - suggests liquid assets (excluding inventory) remain sufficient to cover immediate liabilities.
• Net cash position: CNY 83.73 million - a modest cash buffer against obligations and working capital needs.

• The positive current and quick ratios indicate Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) can meet short-term obligations without immediate liquidity distress.
• Negative free cash flow (-CNY 597.25 million) driven by CNY 1.03 billion in CapEx signals substantial reinvestment; monitor whether CapEx is growth- or maintenance-driven and its ROI.
• Net cash of CNY 83.73 million provides a limited cushion, but sustained negative FCF or unexpected shocks could strain liquidity unless funding sources (debt/equity) are available.
• Profitability metrics (ROE 8.30%, ROA 2.74%, ROIC 3.37%, ROCE 5.75%) show positive but modest returns - compare these to industry peers and WACC to assess value creation.
• Absence of an Altman Z-Score restricts a standardized bankruptcy-risk read; consider qualitative factors and alternative distress indicators (interest coverage, debt maturities).

Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) - Valuation Analysis

Key valuation metrics for Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) paint a picture of moderate market valuation with defensive characteristics and an income-oriented shareholder return profile.

• Valuation level: Trailing P/E of 16.72 versus forward P/E of 12.37 implies expected earnings growth or margin improvement priced in by the market.
• Relative value: P/S of 1.87 and P/B of 1.33 place the company in a moderate valuation band - not deeply discounted but below many high-growth peers.
• Cash-flow signal: EV/EBITDA at 10.86 is reasonable for a stable business; negative EV/FCF (-15.11) signals recent free-cash-flow weakness or timing differences in capex and working capital.
• Shareholder returns: A 3.94% dividend yield with a 74.31% payout ratio indicates a generous current yield but limited cushion for rising payouts if earnings decline.
• Risk/volatility: Beta of 0.48 suggests lower market sensitivity - defensive profile that may appeal to income-focused or lower-risk investors.
• Market momentum: Market cap down 7.27% over the past year reflects moderate share-price pressure despite dividend support.

Contextual reference and company background are available here: Jiang Su Suyan Jingshen Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) - Risk Factors

• Raw material competition: The company is exposed to competitive pressure for raw salt procurement, which can drive up input costs and compress margins.
• Salt-cave gas storage utilization: Planned storage projects carry execution and demand risk; utilization rates may fall short of management targets, reducing expected revenue from gas storage operations.
• Energy-price sensitivity: Fluctuations in coal, LNG and electricity prices materially affect production costs and gross margins, given the energy intensity of salt and chemical processing.
• Limited international reach: International sales were below 10% of total revenues in 2022, constraining foreign-currency diversification and leaving the company reliant on domestic demand cycles.
• China-centric revenue profile: Approximately 85% of FY2022 revenues derived from the Chinese market, amplifying regulatory, macroeconomic and demand risks concentrated in one geography.
• Higher operating costs: Operating margin was 12% in 2022-below the industry average range of 15%-20%-indicating cost structure pressure that limits resilience to revenue volatility.

• Investor considerations: monitor quarterly utilization rates for gas storage assets, procurement contracts or hedges for raw salt, disclosures on energy-cost management, and any strategic moves to expand overseas sales beyond the sub-10% baseline.
• Quantitative triggers to watch: a sustained operating margin <12% or a rise in energy costs leading to a >5% hit to gross margin; international sales remaining <10% after two fiscal years; gas-storage utilization consistently below budgeted levels for consecutive quarters.

Jiang Su Suyan Jingshen Co.,Ltd. (603299.SS) Growth Opportunities

• Planned alkali capacity expansion: +1.2 million tonnes (new alkali production capacity to be added).
• Brine salt production ramp: current project under construction expected online by end-2026, pushing total salinity production capacity to >10 million tonnes.
• Integrated industry-chain development: saline-alkali-calcium recycling model aimed at lowering per-unit costs and improving margin resilience.
• Salt-cave strategic initiatives: feasibility and development for multi-use storage - Henry Hub-style natural gas storage, compressed air energy storage (CAES), and small-molecule gas storage - leveraging geological salt cave advantages.
• Policy and location tailwinds: positioned to benefit from national energy security policies; resource endowment and proximity advantages support salt-cave gas storage economics and logistics.
• Profitability outlook: management and analysts expect ~3% CAGR in EPS over the coming years, driven by capacity additions and downstream integration.

• Key strategic advantages:
  • Resource base: large proven brine and salt reserves enabling scale production.
  • Location: logistical proximity to major chemical and energy markets reduces distribution cost.
  • Policy alignment: energy security initiatives favor underground storage and domestic supply stability.
• Potential risks to monitor:
  • Commodity price volatility for salt and alkali products.
  • Execution risk on construction timelines (notably the end-2026 brine project).
  • Technical and regulatory hurdles for commercial salt-cave gas storage and CAES projects.