JIANGSU ZHONGSHENG GAOKE ENVIRONMENTAL CO.,LTD. (002778.SZ)

Saturday

1:35 PM

Thesis: Recent declines in crude oil prices have raised concerns about margin compression, impacting investor sentiment negatively.

Revenue Outlook

Metric	FY2024	FY2025
Revenue	$493M	$194M
Rev. Growth	-20.1%	-60.6%
EPS	$-1.36	$0.59
EPS Growth	-9.7%	+143%
P/E	—	26.7×

What Moves the Stock

1Fluctuations in WTI and Brent crude oil prices, impacting revenue and margins
2Changes in regulatory policies regarding environmental standards
3Market demand for refined products in China, particularly in Jiangsu province
4Technological advancements in refining processes that could enhance margins
5Refined oil products - 70%
6Petrochemical sales - 20%
7Environmental services - 10%
8Transition to environmentally sustainable energy practices

FY2025 Snapshot

Revenue: $194M
Rev. Growth: -60.6%
Gross Margin: 24.5%
Op. Margin: -3.2%
Net Margin: 38.0%
Net Income: $74M
NI Growth: +143%
EPS: $0.59
1Y Return: -13.5%

002778.SZ Chart

My Notes

"Management noted, 'We are facing significant headwinds from fluctuating crude prices, which could pressure our margins in the near term.'"
Moat: The company's proprietary refining technology provides a moderate barrier to entry, but competition is intensifying.
value - Investors may be drawn to the company due to its low valuation metrics despite recent operational challenges.
Interest rates affect the company's financing costs for capital expenditures and can influence overall demand for refined products…
Watch on earnings: WTI crude oil price (DCOILWTICO), Brent crude oil price (DCOILBRENTEU), Operating cash flow.

One Sentence Summary:

Jiangsu Zhongsheng Gaoke Environmental Co.,Ltd.: the story is balanced — fluctuations in wti and brent crude oil prices, impacting revenue and margins.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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