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Jiangsu Innovative Ecological New Materials Ltd (2116) Fair Value & Analysis

Basic Materials · HK · Market cap HK$326M

JI Jiangsu Innovative Ecological New Materials Ltd 2116 · HK
PriceHK$0.7100
Fair ValueHK$0.7623
Upside+7.4%
Quality76/100
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Healthy Growth
Thin margins · 7.7% net margin
generates free cash flow
Ranks above peers (9/13)
Narrow moat 40/100
Evidence: High Range HK$0.5629 – HK$0.9499 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.6500 to HK$0.7623 (+17.3%) since Aug 5, 2026. Share price +1.4% over the past month.

A strong business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from HK$0.5629 (bear) to HK$0.9499 (bull), base HK$0.7623. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 76/100 (high quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

HK$0.8000 HK$0.1159 Fair Value HK$0.7623 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.1159 – HK$0.8000 · fair‑value band HK$0.5629 – HK$0.9499 · the HK$0.7100 price screens below the HK$0.7623 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Jiangsu Innovative Ecological New Materials Ltd (2116) currently trades at HK$0.7100, while our model-based Fair Value estimate is HK$0.7623, implying the stock looks roughly 7.4% fairly valued today. The Quality Score stands at 76/100 (high quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Jiangsu Innovative Ecological New Materials Ltd generated revenue of HK$204M at a net margin of 7.7%. Revenue grew 2.8% year over year. It earns a return on equity of 6.6%. The balance sheet holds a net cash position of HK$117M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.5629 (bear case) to HK$0.9499 (bull case); at HK$0.7100, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 87% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -68% fair-value upside, at 7%, 2116 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$0.3800 HK$0.3800 HK$0.3700 76
Growth DCF HK$0.9300 HK$1.12 HK$1.36 72
Gordon GGM HK$0.0700 HK$0.1000 HK$0.1200 70
All 24 models by family
DCF Models
FCF DCF HK$0.9200 HK$1.12 HK$1.39 38
Owner Earnings HK$0.5400 HK$0.6300 HK$0.7500 31
5Y Revenue Exit HK$0.7300 HK$0.9000 HK$1.10 39
5Y EBITDA Exit HK$0.7200 HK$0.8900 HK$1.08 41
5Y P/E Exit HK$0.7400 HK$0.9100 HK$1.08 38
10Y Revenue Exit HK$0.7900 HK$0.9500 HK$1.12 36
10Y EBITDA Exit HK$0.8000 HK$0.9500 HK$1.11 37
10Y P/E Exit HK$0.8100 HK$0.9600 HK$1.11 35
Earnings-Based
Graham-Dodd HK$0.2200 HK$0.4600 HK$0.5800 54
EPV HK$0.5000 HK$0.5400 HK$0.5700 59
Dividend Discount
Gordon GGM HK$0.0700 HK$0.1000 HK$0.1200 70
DDM Multi-Stage HK$0.0700 HK$0.1000 HK$0.1200 61
Multiples
P/E Multiple HK$0.4200 HK$0.5600 HK$0.6900 63
P/S Multiple HK$0.4200 HK$0.5600 HK$0.6900 58
P/B Multiple HK$0.4200 HK$0.5600 HK$0.6900 55
EV/EBIT HK$0.6700 HK$0.8200 HK$0.9600 53
EV/EBITDA HK$0.6400 HK$0.7700 HK$0.9000 54
EV/Revenue HK$0.6200 HK$0.7800 HK$0.9400 43
Asset-Based
NCAV (Graham) HK$0.2500 HK$0.3400 HK$0.5000 50
Growth DCF
Growth DCF HK$0.9300 HK$1.12 HK$1.36 72
Rev-Margin DCF HK$0.7300 HK$0.9100 HK$1.11 67
Economic Profit
Residual Income HK$0.3800 HK$0.3800 HK$0.3700 76
ROIC Compounder HK$0.5000 HK$0.5500 HK$0.5900 67
Growth Earnings
Growth-Adj P/E HK$0.3100 HK$0.4400 HK$0.5700 68

Widest divergence: DCF Models (HK$0.9100) versus Dividend Discount (HK$0.1000). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$204M
Revenue growth (YoY) +2.8%
Net margin 7.7%
Return on equity 6.6%
Free cash flow HK$37.3M FY2025
P/E ratio 17.0 as of Jul 2, 2026
More key figures
Operating margin 6.2%
EPS (TTM) HK$0.0200
EPS growth (YoY) -17.4%
Net cash HK$117M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 76/100

Of which business quality 76 · Market factors (momentum, volatility) 68

Profitability 39
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 85
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Jiangsu Innovative Ecological New Materials Limited engages in the development, manufacture, and marketing of oil refining agents and fuel additives in Mainland China and internationally.

Full company description

Jiangsu Innovative Ecological New Materials Limited engages in the development, manufacture, and marketing of oil refining agents and fuel additives in Mainland China and internationally. It offers oil refining aid products, which includes desulfurizers, metal passivators, corrosion inhibitors, anti-scaling agents, and other refining aids; and fuel additives, such as diesel lubricity improvers, gasoline stability additives, and others. The company was founded in 2002 and is headquartered in Yixing, the People's Republic of China. Jiangsu Innovative Ecological New Materials Limited is a subsidiary of Innovative Green Holdings Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangsu Innovative Ecological New Materials Ltd reported revenue of HK$204M in FY2025 versus HK$177M in FY2021, a compound +3.5%/yr. Reported net income was HK$15.7M in FY2025, compounding +7.7%/yr from FY2021.

Growth Quality 69/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$204M
Latest YoY
+11.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.0%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.2%
Revenue +3.5%/yr
FY21 HK$177M
FY22 HK$257M
FY23 HK$186M
FY24 HK$182M
FY25 HK$204M
Net income +7.7%/yr
FY21 HK$11.7M
FY22 HK$11.5M
FY23 HK$21.1M
FY24 HK$14.0M
FY25 HK$15.7M
Character of growth · EPS growth decomposed (2014-2025) −3.6 % p.a.
Revenue per share +5.9 pp

of which total revenue +5.4 pp · buybacks/dilution +0.4 pp

EBIT margin −8.5 pp
Tax rate −0.4 pp
Residual (interest, one-offs) −0.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Jiangsu Innovative Ecological New Materials Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2116

Peer Group

Specialty Chemicals · 670 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 76 · Top 25%
Fair Value upside +7% · Above median
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 6% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 1.4% · Below median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 17.0× · Cheaper than median
P/B 1.35× · Cheaper than median
P/S (TTM) 1.60× · Pricier than median
P/FCF 1.1× · Cheaper than median
EV/EBITDA 9.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 43 · sector 0
FUTURE 14 · sector 19
PAST 26 · sector 23
HEALTH 0 · sector 95
DIVIDEND 27 · sector 32

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Berger Paints India Limited BERGEPAINT ₹559.80 ₹154.46 -72%
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Frequently asked questions

Is Jiangsu Innovative Ecological New Materials Ltd (2116) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.7623 versus a price of HK$0.7100, about +7% (fairly valued).
What is the fair value of 2116?
Our model-based fair value for Jiangsu Innovative Ecological New Materials Ltd is HK$0.7623 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.7100.
What is the quality score of 2116?
Jiangsu Innovative Ecological New Materials Ltd has a Quality Score of 76/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Jiangsu Innovative Ecological New Materials Ltd (2116)?
Jiangsu Innovative Ecological New Materials Ltd reported trailing-twelve-month revenue of about HK$204M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2116?
The net profit margin of Jiangsu Innovative Ecological New Materials Ltd is about 7.7%, meaning it keeps roughly 7.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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