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Longxing Technology Group (002442) Fair Value & Analysis

Basic Materials · CN · Market cap 2.6B CNY

LT Longxing Technology Group 002442 · SHE
Price¥5.13
Fair Value¥1.34
Upside-73.9%
Quality48/100
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Mixed Growth
Thin margins · 0.5% net margin
Moderate debt · generates free cash flow
Trails peers (2/14)
Narrow moat 26/100
Evidence: High Range ¥1.00 – ¥1.67 Share as image

Fair value as of: Jul 22, 2026

From 21 valuation models · updated 19 days ago

Share price +4.7% over the past month.

Below-average quality, and screening another 74% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.67). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥9.16 ¥3.31 Fair Value ¥1.34 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥3.31 – ¥9.16 · fair‑value band ¥1.00 – ¥1.67 · the ¥5.13 price screens above the ¥1.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Longxing Technology Group (002442) currently trades at ¥5.13, while our model-based Fair Value estimate is ¥1.34, implying the stock looks roughly 73.9% overvalued today. The Quality Score stands at 48/100 (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: high).

Over the trailing twelve months, Longxing Technology Group generated revenue of 4.3B CNY at a net margin of 0.5%. Revenue declined 2.4% year over year. It earns a return on equity of 1.1%. Net debt stands at 1.4B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥1.00 (bear case) to ¥1.67 (bull case); at ¥5.13, 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 42% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -74%, 002442 screens richer 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
Growth DCF ¥0.0300 80
Residual Income ¥2.56 ¥2.47 ¥1.95 76
Rev-Margin DCF ¥0.4500 ¥1.59 74
All 21 models by family
DCF Models
FCF DCF ¥0.2000 38
5Y Revenue Exit ¥0.4600 ¥1.77 39
5Y EBITDA Exit ¥0.4500 ¥2.33 ¥4.53 41
10Y Revenue Exit ¥0.0700 ¥1.24 36
10Y EBITDA Exit ¥1.33 ¥3.31 37
Earnings-Based
Graham-Dodd ¥0.5300 ¥1.66 ¥2.20 54
Lynch FV ¥0.3600 ¥0.5100 ¥0.6700 50
PEG = 1.0 ¥0.3600 ¥0.5100 ¥0.6700 46
Dividend Discount
Gordon GGM ¥1.74 ¥3.48 ¥5.27 70
DDM Multi-Stage ¥1.74 ¥2.83 ¥3.67 61
Multiples
P/E Multiple ¥1.00 ¥1.34 ¥1.67 63
P/S Multiple ¥1.00 ¥1.34 ¥1.67 58
P/B Multiple ¥1.00 ¥1.34 ¥1.67 55
EV/EBIT ¥0.1100 ¥0.8100 ¥1.52 53
EV/EBITDA ¥1.71 ¥2.96 ¥4.20 54
EV/Revenue ¥0.6100 ¥1.40 43
Asset-Based
NCAV (Graham) ¥1.82 ¥2.44 ¥3.64 50
Growth DCF
Growth DCF ¥0.0300 80
Rev-Margin DCF ¥0.4500 ¥1.59 74
Economic Profit
Residual Income ¥2.56 ¥2.47 ¥1.95 76
Growth Earnings
Growth-Adj P/E ¥0.8500 ¥1.21 ¥1.58 68

Widest divergence: Dividend Discount (¥2.83) versus Growth DCF (¥0.4500). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 4.3B CNY
Revenue growth (YoY) -2.4%
Net margin 0.5%
Return on equity 1.1%
Free cash flow 45.3M CNY FY2025
P/E ratio 129.5
More key figures
Operating margin 1.4%
EPS (TTM) ¥0.0400
EPS growth (YoY) -67.5%
Net debt 1.4B CNY FY2025

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 47 · Market factors (momentum, volatility) 32

Profitability 30
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 37
Earnings quality: real cash, not paper profit
Fin. Strength 41
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 84
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

Longxing Technology Group Co., Ltd. produces and sells carbon black products under the Longxing brand in China. The company offers carbon black, silica, and coal tar products.

Full company description

Longxing Technology Group Co., Ltd. produces and sells carbon black products under the Longxing brand in China. The company offers carbon black, silica, and coal tar products. Its carbon black is used for the production of steel and semi-steel radial tires and inner tubes; and used in door and window sealing strips, oil pipes, shock absorbers, brake pads, and other auto parts, as well as rubbers, building materials, electronics, paper, plastics, color master batches, paint, fuel, chemical fibers, coloring of fiber, ink, wash painting, and papermaking. The company's white carbon black is used in tires and product industries for reinforcement and filling; and feed-grade silica is used in the feed additive industry to act as a carrier, glidant, and anti-caking. It also engages in the energy business. The company was formerly known as Longxing Chemical Stock Co., Ltd. and changed its name to Longxing Technology Group Co., Ltd. in January 2025. Longxing Technology Group Co., Ltd. was founded in 1994 and is headquartered in Shahe, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Longxing Technology Group reported revenue of ¥4.3B in FY2025 versus ¥3.4B in FY2021, a compound +5.7%/yr. Reported net income was ¥39.6M in FY2025, compounding −30.7%/yr from FY2021.

Growth Quality 78/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
4.3B CNY
Latest YoY
−1.4%
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.
−2.0%
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.
+13.4%
Avg. growth/yr (18Y) 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.
+11.3%
Revenue +5.7%/yr
FY21 ¥3.4B
FY22 ¥4.6B
FY23 ¥4.3B
FY24 ¥4.4B
FY25 ¥4.3B
Net income −30.7%/yr
FY21 ¥172M
FY22 ¥104M
FY23 ¥110M
FY24 ¥142M
FY25 ¥39.6M

002442 screens 74% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Longxing Technology Group Fair Value". https://www.fairvalue-calculator.com/stock/002442

Peer Group

Specialty Chemicals · 673 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 48 · Below median
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 1% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 0% · Below median
Operating margin (TTM) 1% · Bottom 25%
Revenue growth -2% · Below median
Debt / equity 0.65× · Higher than 75% of peers

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 129.5× · Pricier than 75% of peers
P/B 1.42× · Cheaper than median
P/S (TTM) 0.61× · Cheaper than median
P/FCF 8.5× · Pricier than median
EV/EBITDA 17.8× · Pricier than median
PEG 10.44× · Pricier 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 0 · sector 19
PAST 4 · sector 23
HEALTH 68 · sector 95
DIVIDEND 0 · sector 25

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is Longxing Technology Group (002442) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥1.34 versus a price of ¥5.13, about −74% (overvalued).
What is the fair value of 002442?
Our model-based fair value for Longxing Technology Group is ¥1.34 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥5.13.
What is the quality score of 002442?
Longxing Technology Group has a Quality Score of 48/100. 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 Longxing Technology Group (002442)?
Longxing Technology Group reported trailing-twelve-month revenue of about 4.3B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002442?
The net profit margin of Longxing Technology Group is about 0.5%, meaning it keeps roughly 0.5% 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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