Jiangxi Hungpai New Material Co (SHSE:605366) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Jiangxi Hungpai New Material Co Cash Conversion Cycle Related Terms
Jiangxi Hungpai New Material Co Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Jiangxi Hungpai New Material Co Cash Conversion Cycle Chart
SHSE:605366 vs DOW: Cash Conversion Cycle Comparison
For the Chemicals subindustry, Jiangxi Hungpai New Material Co's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Jiangxi Hungpai New Material Co Cash Conversion Cycle vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Jiangxi Hungpai New Material Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Jiangxi Hungpai New Material Co's Cash Conversion Cycle falls into.
Jiangxi Hungpai New Material Co Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Jiangxi Hungpai New Material Co (SHSE:605366) has a Cash Conversion Cycle of 59.45 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Jiangxi Hungpai New Material Co and its competitors.
Is Jiangxi Hungpai New Material Co's Cash Conversion Cycle too high?
Jiangxi Hungpai New Material Co's current Cash Conversion Cycle is 59.45. The Chemicals industry median Cash Conversion Cycle is 89.33. Jiangxi Hungpai New Material Co's value of 59.45 is 33.4% below this industry median. Overall, Jiangxi Hungpai New Material Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Hungpai New Material Co's Cash Conversion Cycle compare to DOW?
Jiangxi Hungpai New Material Co's Cash Conversion Cycle of 59.45 can be compared against companies in the Chemicals industry. The industry median Cash Conversion Cycle is 89.33. Jiangxi Hungpai New Material Co's value of 59.45 is 33.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Chemicals company?
The median Cash Conversion Cycle among Chemicals companies is 89.33, based on 1,575 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jiangxi Hungpai New Material Co's current Cash Conversion Cycle of 59.45 is 33.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Jiangxi Hungpai New Material Co and its competitors. For the Chemicals industry, the median Cash Conversion Cycle is 89.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Hungpai New Material Co's current Cash Conversion Cycle is 59.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Hungpai New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Hungpai New Material Co (SHSE:605366) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥8.14, compared to a current price of ¥10.88 — trading 33.7% above its estimated fair value. The current Cash Conversion Cycle is 59.45 and 33.4% below the Chemicals industry median of 89.33. Jiangxi Hungpai New Material Co's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Jiangxi Hungpai New Material Co (SHSE:605366), the current Cash Conversion Cycle is 59.45 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Jiangxi Hungpai New Material Co (SHSE:605366) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangxi Hungpai New Material Co stock appears to be overvalued.
The current stock price of ¥10.88 is trading 33.7% above its estimated GF Value™ of ¥8.14.
GuruFocus considers Jiangxi Hungpai New Material Co to be Significantly Overvalued.
Key valuation signals for SHSE:605366:
Cash Conversion Cycle: 59.45
GF Value™: ¥8.14 vs. price of ¥10.88 (33.7% above fair value)
Industry Position: 33.4% below the Chemicals median
No single metric tells the full story. See the SHSE:605366 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangxi Hungpai New Material Co Business Description
Jiangxi Hungpai New Material Co Ltd is engaged in research and development, production and sales of new silicon-based materials such as functional silanes, nano-silicon materials and other chemical additives. The company's products include Silane Coupling Agent, Anti-Reversion Agent, Antioxidant Agent, Manufacturing Additive Agent, Prevent Blooming Agent, Raw Chemical Material, Silicone Products Series, Fumed Silica, Anti-Adherent Agent, and Silane coupling agent series.
71GF Score
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