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Chinese state-linked chemical group: world's top nitrocellulose maker, plus specialty industrial pumps and defense protective gear.
Chinese state-linked chemical group: world's top nitrocellulose maker, plus specialty industrial pumps and defense protective gear.
Nitrocellulose, used in coatings, inks and as a base for propellants, is the main earner and priced like an industrial chemical, while pumps and protective gear serve smaller, more specialised markets. The group belongs to a state defence conglomerate, which gives it a defence-linked customer base.
Moat: narrow (scale, regulatory licence). World's largest nitrocellulose producer since 2004; defense gear needs state qualification.
Headquarters: Beijing, China · Employees: 2,891
Size North Chemical Industries (002246.SZ) is a China Consumer Discretionary company (Textiles) with a market value of $1.80B, the 1391st largest of 4,839 China companies the cockpit tracks. Shares closed at CN¥21.90 on 6 Nov 2026.
Performance Over six months the shares fell 10.1%, against -7.5% for the median peer and -16.4% for the China market (cap-weighted) — 10th lowest of 21 in its peer set.
Growth Revenue grew 16.6% over the last twelve months (peer median +4.0%); the operating margin is 14.8% (peer median 9.0%).
Valuation It trades at 28.4× forward earnings against a peer median of 13.3× (2nd most expensive of 15).
Price implies For today's price to make sense, revenue must grow about 8% a year for seven years (Req g). Recent delivered growth is +3%, so the hurdle is +5 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 9.2 points above its cost of capital (6.1% WACC).
Next results Next results expected around 29 Apr 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | CN¥2.89B | CN¥2.74B | CN¥1.93B | CN¥2.15B | CN¥2.55B |
| Revenue growth | — | +41% | -10% | -16% | — |
| Gross profit | CN¥1.06B | CN¥770M | CN¥331M | CN¥424M | CN¥449M |
| EBITDA | n/a | CN¥375M | CN¥12.7M | CN¥98.1M | CN¥134M |
| Net income | CN¥382M | CN¥263M | -CN¥28.3M | CN¥55.5M | CN¥93.3M |
| Free cash flow | CN¥287M | CN¥226M | CN¥26.6M | -CN¥153M | -CN¥16.9M |
| Capital expenditure | CN¥262M | CN¥145M | CN¥58.0M | CN¥47.3M | CN¥137M |
| Total debt | CN¥592M | CN¥745M | CN¥491M | CN¥390M | CN¥613M |
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Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 002246.SZ | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -10.7% | -7.0% | 8th lowest of 21 |
| 6-month return | -10.1% | -7.5% | 10th lowest of 21 |
| Distance from 52-week high | -22.6% | -21.5% | 11th highest of 21 |
| Revenue growth (TTM) | +16.6% | +4.0% | 4th highest of 21 |
| Operating margin | 14.8% | 9.0% | 4th highest of 21 |
| Forward P/E | 28.4× | 13.3× | 2nd most expensive of 15 |
| Growth the price implies (Req g, 7 yrs) | 8.3% | 1.0% | 7th most demanding of 18 |
| Growth delivered (Del g) | +3.0% | +4.1% | 7th lowest of 18 |
| Hurdle (Req g minus delivered) | +5.3 pp | +2.9 pp | 7th most demanding of 18 |
| ROIC minus cost of capital | +9.2 pp | +0.4 pp | 4th highest of 21 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| North Chemical Industries 002246.SZ | China | $1.80B | -10% | +17% | 15% | 28.4× | 8.3% | +3.0% |
| Tangshan Sanyou Chemical Industries 600409.SS | China | $1.72B | -28% | +1% | 1% | 24.0× | 4.5% | +1.3% |
| Ruentex Industries 2915.TW | Taiwan | $1.72B | +23% | -25% | 10% | 6.9× | 48.3% | -2.4% |
| Bros Eastern 601339.SS | China | $1.72B | -16% | +11% | 11% | 11.8× | -8.3% | +5.2% |
| Albany International AIN | United States | $1.91B | +8% | +14% | 13% | 22.5× | 8.5% | +5.6% |
| OC Oerlikon OERL.SW | Switzerland | $1.99B | +41% | -21% | 8% | 15.8× | 1.0% | -7.0% |
| Luolai Lifestyle Technology 002293.SZ | China | $1.55B | +10% | +6% | 14% | 16.4× | -2.6% | -0.2% |
| Coats COA.L | United Kingdom | $2.14B | +2% | +5% | 15% | 11.2× | 11.6% | +4.1% |
| HMT (Xiamen) New Technical Materials 603306.SS | China | $2.18B | -56% | -1% | 0% | 57.4× | 50.6% | +21.4% |
| Billion Industrial 2299.HK | Hong Kong | $1.48B | +136% | +13% | 6% | n/a | -8.7% | +15.6% |
| Xinxiang Chemical Fiber 000949.SZ | China | $1.46B | -27% | +19% | 8% | 12.5× | -3.3% | +12.2% |
| Sunvim 002083.SZ | China | $1.16B | -20% | +19% | 17% | 9.8× | -12.1% | +3.3% |
| Nitto Boseki 3110.T | Japan | $2.85B | -58% | +12% | 20% | 19.3× | n/a | n/a |
| Kurabo Industries 3106.T | Japan | $1.10B | +33% | -3% | 7% | n/a | 8.2% | +3.3% |
| Zhejiang Taihua New Material 603055.SS | China | $1.09B | -9% | +3% | 10% | 10.2× | -5.0% | +20.7% |
| Shanghai Haixin 600851.SS | China | $1.08B | +4% | -15% | 7% | n/a | n/a | n/a |
| Seiren 3569.T | Japan | $1.07B | -1% | +12% | 12% | 10.7× | -4.9% | +11.7% |
| Huafon Microfibre (Shanghai) 300180.SZ | China | $1.06B | -24% | -6% | -1% | n/a | 16.2% | +4.4% |
| Nanjing Chemical Fibre 600889.SS | China | $1.03B | -24% | +115% | 5% | n/a | 35.4% | -3.9% |
| Zhejiang Hangmin 600987.SS | China | $1.02B | -6% | -23% | 8% | n/a | n/a | n/a |
| Shenzhen Fuanna Bedding & Furnishing 002327.SZ | China | $951M | -26% | -5% | 12% | 14.0× | -1.3% | -2.1% |