Ningxia Baofeng Energy Group Co., Ltd. (600989.SS) stock analysis

In our weekly check, Ningxia Baofeng Energy Group Co., Ltd. is graded A (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 5, red flags: 0.

About Ningxia Baofeng Energy Group Co., Ltd.

Ningxia Baofeng Energy Group Co., Ltd. is a Basic Materials company (Chemicals) based in China, listed on SHH as 600989.SS.

What our checks show for 600989.SS

Warning signs

• The net margin fell by 2.3 points over 5 years, to 28.1%: the company keeps less of each sale as profit.
• The gross margin fell by 1.8 points, to 40.4%: costs are rising faster than prices.
• Analysts expect only about 3.2% a year of growth in revenue.
• The price swings a lot: 44.2% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 53% from a peak. Would you have held through that?

Strengths

• Net debt is only 1x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 25.7 times over.
• Operating cash flow is 1.32x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 2.2 points from today's 28.1%.
• Revenue grew 28% a year over the last 3 years.
• Earnings per share grew 38.8% a year over the last 3 years.

Similar companies

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Questions

What grade does Ningxia Baofeng Energy Group Co., Ltd. (600989.SS) have?

In our weekly check, Ningxia Baofeng Energy Group Co., Ltd. is graded A (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 5, red flags: 0. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600989.SS stock?

This week's biggest flags for Ningxia Baofeng Energy Group Co., Ltd.: Margins falling, Gross margin falling, Weak revenue forecast. In total 5 of 25 checks show a warning or a red flag.

What does Ningxia Baofeng Energy Group Co., Ltd. do?

Ningxia Baofeng Energy Group Co., Ltd. is a Basic Materials company (Chemicals) based in China, listed on SHH as 600989.SS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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