Changmao Biochemical Engineering Co (HKSE:00954) Interest Coverage: 0.74 (As of Jun. 2026) — 99% Below Median

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HKSE:00954 Changmao Biochemical Engineering Co Ltd HKSE:00954
34 GF Score
Price HK$0.22
GF Value HK$0.36
Valuation Possible Value Trap
! 6 Warning Signs
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What is Changmao Biochemical Engineering Co Interest Coverage?

Changmao Biochemical Engineering Co HKSE:00954 34 Interest Coverage is 0.74 as of Jun. 2026, which is 99% below its 10-year median of 84.66. GuruFocus rates HKSE:00954 with a GF Score™ of 34/100 and a GF Value™ of HK$0.36 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,277 Chemicals companies, Changmao Biochemical Engineering Co ranks worse than 78308.46% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Changmao Biochemical Engineering Co's Operating Income for the six months ended in Jun. 2026 was HK$8.1 Mil. Changmao Biochemical Engineering Co's Interest Expense for the six months ended in Jun. 2026 was HK$-10.9 Mil. Changmao Biochemical Engineering Co's interest coverage for the quarter that ended in Jun. 2026 was 0.74. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Changmao Biochemical Engineering Co's Interest Coverage or its related term are showing as below:


HKSE:00954's Interest Coverage is not ranked *
in the Chemicals industry.
Industry Median: 11.33
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Changmao Biochemical Engineering Co  (HKSE:00954) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Changmao Biochemical Engineering Co Interest Coverage Related Terms


Changmao Biochemical Engineering Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Changmao Biochemical Engineering Co's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Changmao Biochemical Engineering Co Interest Coverage Chart

Changmao Biochemical Engineering Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 32.72 0.00 0.00 0.00

Changmao Biochemical Engineering Co Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.74

HKSE:00954 vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Changmao Biochemical Engineering Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.


Changmao Biochemical Engineering Co Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Changmao Biochemical Engineering Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Changmao Biochemical Engineering Co's Interest Coverage falls into.


HKSE:00954
34GF Score
Changmao Biochemical Engineering Co Ltd HKSE:00954
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Changmao Biochemical Engineering Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Changmao Biochemical Engineering Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Changmao Biochemical Engineering Co's Interest Expense was HK$-19.0 Mil. Its Operating Income was HK$-57.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$66.9 Mil.

Changmao Biochemical Engineering Co did not have earnings to cover the interest expense.

Changmao Biochemical Engineering Co's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the six months ended in Jun. 2026, Changmao Biochemical Engineering Co's Interest Expense was HK$-10.9 Mil. Its Operating Income was HK$8.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$60.6 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*8.063/-10.936
=0.74

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0.74 mean?
Changmao Biochemical Engineering Co (HKSE:00954) has a Interest Coverage of 0.74 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Changmao Biochemical Engineering Co and its competitors. This is 99% below median its historical median of 84.66. According to the industry distribution chart, Changmao Biochemical Engineering Co ranks #999999 out of 1277 companies in the Chemicals industry.
Is Changmao Biochemical Engineering Co's Interest Coverage too high?
Changmao Biochemical Engineering Co's current Interest Coverage of 0.74 is 99% below median its 10-year median of 84.66. The Chemicals industry median Interest Coverage is 11.33. Changmao Biochemical Engineering Co's value of 0.74 is 93.5% below this industry median. Based on the distribution chart, Changmao Biochemical Engineering Co ranks #999999 out of 1277 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Changmao Biochemical Engineering Co has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Changmao Biochemical Engineering Co's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Changmao Biochemical Engineering Co ranks #999999 out of 1277 companies for Interest Coverage. This places Changmao Biochemical Engineering Co in the lower half of its industry. The industry median Interest Coverage is 11.33. Changmao Biochemical Engineering Co's value of 0.74 is 93.5% below this benchmark. While the company's 10-year median is 84.66 vs. the industry median of 11.33, Changmao Biochemical Engineering Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 11.33, based on 1,277 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Changmao Biochemical Engineering Co's current Interest Coverage of 0.74 is 93.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Changmao Biochemical Engineering Co and its competitors. For the Chemicals industry, the median Interest Coverage is 11.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changmao Biochemical Engineering Co's current Interest Coverage is 0.74, which is 99% below median its own 10-year median of 84.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changmao Biochemical Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Changmao Biochemical Engineering Co (HKSE:00954) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.36, compared to a current price of HK$0.22 — trading 39.4% below its estimated fair value. The current Interest Coverage is 0.74, which is 99% below median its 10-year median of 84.66 and 93.5% below the Chemicals industry median of 11.33. Changmao Biochemical Engineering Co's overall GF Score™ is 34/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Changmao Biochemical Engineering Co (HKSE:00954), the current Interest Coverage is 0.74 as of Jun. 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 Changmao Biochemical Engineering Co (HKSE:00954) Overvalued in 2026?

Based on GuruFocus' analysis, Changmao Biochemical Engineering Co stock appears to be undervalued. The current stock price of HK$0.22 is trading 39.4% below its estimated GF Value™ of HK$0.36. GuruFocus considers Changmao Biochemical Engineering Co to be Possible Value Trap.

Key valuation signals for HKSE:00954:

  • Interest Coverage: 0.74 (99% below median its 10-year median of 84.66)
  • GF Value™: HK$0.36 vs. price of HK$0.22 (39.4% below fair value)
  • GF Score™: 34/100 with 6 warning signs
  • Industry Position: 93.5% below the Chemicals median (#999999 of 1277)

No single metric tells the full story. See the HKSE:00954 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Changmao Biochemical Engineering Co Business Description

Address No. 1228 Chang Jiang Bei Road, New North Zone, Jiangsu Province, Changzhou City, CHN, 213034
Changmao Biochemical Engineering Co Ltd is an organic acid producer in the PRC. It produces organic acids products for sale to the food additive, chemical, and pharmaceutical industries. Its products are organic acids and their derivatives with four carbons in their structures including fumaric acid, maleic acid, L-malic acid, D-malic acid, DL-malic acid, L(+)-tartaric acid, D(-)-tartaric acid, DL-tartaric acid, L-aspartic acid, and aspartame. These products are used as food additives or medical intermediaries. Its products are produced along vertical production chains. Its geographic locations include Mainland China, Europe includes Great Britain, Germany, Turkey, Spain, and Italy, Asia Pacific includes Hong Kong, Indonesia, Australia, India, Thailand and Japan, America, and Others.
34GF Score

Get the complete analysis for HKSE:00954

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.22
Price
HK$0.36
GF Value