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Shenyang Chemical Co (000698) Fair Value & Analysis

Basic Materials · CN · Market cap 2.7B CNY

SC Shenyang Chemical Co 000698 · SHE
Price¥3.47
Fair Value¥2.40
Upside-30.8%
Quality47/100
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Weak Growth
Loss-making · -0.6% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/11)
Narrow moat 20/100
Evidence: Low Range ¥1.38 – ¥3.42 Share as image

Fair value as of: Jul 21, 2026

From 6 valuation models · updated 21 days ago

Fair value updated Jul 21, 2026, revised from ¥3.38 to ¥2.40 (−29.0%) since Jun 25, 2026. Share price +10.9% over the past month.

Below-average quality, and screening another 31% overvalued on our models.

What matters now

  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥1.38 to ¥3.42) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥8.62 ¥2.53 Fair Value ¥2.40 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range ¥2.53 – ¥8.62 · fair‑value band ¥1.38 – ¥3.42 · the ¥3.47 price screens above the ¥2.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Shenyang Chemical Co (000698) currently trades at ¥3.47, while our model-based Fair Value estimate is ¥2.40, implying the stock looks roughly 30.8% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Shenyang Chemical Co generated revenue of 5.9B CNY at a net margin of -0.6%. Revenue grew 24.3% year over year. It earns a return on equity of -2.5%. Net debt stands at 698M CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥1.38 (bear case) to ¥3.42 (bull case); at ¥3.47, the current price sits above 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 26% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at -31%, 000698 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
ROIC Compounder ¥1.36 ¥1.55 ¥1.73 72
EPV ¥1.36 ¥1.55 ¥1.72 59
EV/EBITDA ¥3.33 ¥4.39 ¥5.45 54
All 6 models by family
Earnings-Based
EPV ¥1.36 ¥1.55 ¥1.72 59
Multiples
EV/EBIT ¥1.70 ¥2.22 ¥2.73 53
EV/EBITDA ¥3.33 ¥4.39 ¥5.45 54
EV/Revenue ¥1.50 ¥2.07 ¥2.64 43
Asset-Based
NCAV (Graham) ¥0.8400 ¥1.13 ¥1.68 50
Economic Profit
ROIC Compounder ¥1.36 ¥1.55 ¥1.73 72

Widest divergence: Multiples (¥2.22) versus Asset-Based (¥1.13). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) 5.9B CNY
Revenue growth (YoY) +24.3%
Net margin -0.6%
Return on equity -2.5%
Free cash flow −62.5M CNY FY2025
Operating margin 1.6%
More key figures
EPS (TTM) ¥-0.0400
EPS growth (YoY) -74.7%
Net debt 698M CNY FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 44 · Market factors (momentum, volatility) 39

Profitability 28
Margins and returns on capital today
Quality Growth 73
Are margins and returns improving?
Cashflow 14
Earnings quality: real cash, not paper profit
Fin. Strength 28
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 69
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

Shenyang Chemical Co., Ltd provides chlor-alkali chemicals, deep oil processing and new chemical materials in China and internationally. The company offers chlorine and alkali chemicals, including diaphragm and membrane process sodium hydroxide, sodium hypochlorite, industrial liquid chlorine, and industrial synthetic hydrochloric acid.

Full company description

Shenyang Chemical Co., Ltd provides chlor-alkali chemicals, deep oil processing and new chemical materials in China and internationally. The company offers chlorine and alkali chemicals, including diaphragm and membrane process sodium hydroxide, sodium hypochlorite, industrial liquid chlorine, and industrial synthetic hydrochloric acid. It also provides petrochemical products, such as liquefied petroleum gas, toluene, mixed C4, mixed benzol, industrial propylene, industrial 1-butylene, benzene, and heavy liquid paraffin. In addition, the company offers various chemical materials comprising paste polyvinyl chloride resin, vinyl chloride-vinyl acetate copolymer paste resin, polyether, propylene oxide, methyl tertiary butyl ether, polyethylene resin, acrylic acid and ester, and fumed silica. Its products are used in the chemical sectors of metallurgy, light industry, textiles, medical care, cars and electronics industry, agriculture, construction, and other fields. Shenyang Chemical Industry Co., Ltd. was founded in 1938 and is based in Shenyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shenyang Chemical Co reported revenue of ¥5.6B in FY2025 versus ¥10.1B in FY2021, a compound −13.7%/yr. Reported net income was −¥10.9M in FY2025.

Growth Quality 6/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
5.6B CNY
Latest YoY
+11.8%
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.
−1.9%
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.
−10.1%
Avg. growth/yr (32Y) 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.
+7.8%
Revenue −13.7%/yr
FY21 ¥10.1B
FY22 ¥5.9B
FY23 ¥5.3B
FY24 ¥5.0B
FY25 ¥5.6B
Net income
FY21 ¥106M
FY22 −¥1.7B
FY23 −¥458M
FY24 −¥168M
FY25 −¥10.9M

000698 screens 31% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "Shenyang Chemical Co Fair Value". https://www.fairvalue-calculator.com/stock/000698

Peer Group

Chemicals · 333 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 47 · Below median
Fair Value upside −31% · Above median
Return on assets 1% · Below median
Net margin (TTM) -1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 24% · Top 25%
Debt / equity 0.42× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 0.07× · Cheaper than 75% of peers
EV/EBITDA 0.9× · Cheaper than 75% of peers

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 0 · sector 0
FUTURE 100 · sector 20
PAST 0 · sector 19
HEALTH 79 · sector 94
DIVIDEND 0 · sector 27

VALUE 0: the price sits above our fair-value range.

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.

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
BASF SE BASN 1,034 MXN 532.13 MXN -49%
Ningxia Baofeng Energy Group 600989 ¥20.32 ¥20.17 -1%
Zhejiang Juhua Co 600160 ¥42.85 ¥23.35 -46%
PT Barito Pacific Tbk, BRPT 1,690 IDR 1,628 IDR -4%
LG Chem, Ltd 051910 260,500 KRW 587,755 KRW +126%
Formosa Chemicals & Fibre Corporation 1326 66.10 TWD 6.79 TWD -90%
PTT Global Chemical Public Company PTTGC 35.50 THB 18.21 THB -49%
542812 542812 ₹4,369 ₹791.05 -82%
Indorama Ventures Public Company IVL 24.50 THB 17.95 THB -27%
Navin Fluorine International Limited NAVINFLUOR ₹8,650 ₹2,146 -75%

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Frequently asked questions

Is Shenyang Chemical Co (000698) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥2.40 versus a price of ¥3.47, about −31% (overvalued).
What is the fair value of 000698?
Our model-based fair value for Shenyang Chemical Co is ¥2.40 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥3.47.
What is the quality score of 000698?
Shenyang Chemical Co has a Quality Score of 47/100. 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 Shenyang Chemical Co (000698)?
Shenyang Chemical Co reported trailing-twelve-month revenue of about 5.9B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000698?
The net profit margin of Shenyang Chemical Co is about -0.6%, meaning it is currently running at a net loss. 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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