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Changmao Biochemical Engineering Company (0954) Fair Value & Analysis

Basic Materials · HK · Market cap HK$154M

CB Changmao Biochemical Engineering Company 0954 · HK
PriceHK$0.2460
Fair ValueHK$0.3936
Upside+60.0%
Quality44/100
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Mixed Growth
Loss-making · -12.0% net margin
Low debt · generates free cash flow
Trails peers (4/11)
Narrow moat 1/100
Evidence: Medium Range HK$0.2991 – HK$0.4881 Share as image

Fair value as of: Aug 13, 2026

From 10 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$0.2500 to HK$0.3936 (+57.4%) since Aug 5, 2026. Share price −10.5% over the past month.

Below-average quality, screening 60% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$0.2991). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$1.04 HK$0.2460 Fair Value HK$0.3936 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.2460 – HK$1.04 · fair‑value band HK$0.2991 – HK$0.4881 · the HK$0.2460 price screens below the HK$0.3936 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Changmao Biochemical Engineering Company (0954) currently trades at HK$0.2460, while our model-based Fair Value estimate is HK$0.3936, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Changmao Biochemical Engineering Company generated revenue of HK$557M at a net margin of -12.0%. Revenue grew 5.0% year over year. It earns a return on equity of -12.2%. Net debt stands at HK$471M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.2991 (bear case) to HK$0.4881 (bull case); at HK$0.2460, the current price sits below 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 32% below its 52-week high, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -68% fair-value upside, at 60%, 0954 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
Growth DCF HK$0.1600 HK$0.2000 HK$0.2400 80
Rev-Margin DCF HK$0.1700 HK$0.2400 HK$0.3200 74
EV/EBITDA HK$0.0600 HK$0.0800 HK$0.0900 54
All 10 models by family
DCF Models
FCF DCF HK$0.1600 HK$0.2000 HK$0.2500 38
5Y Revenue Exit HK$0.1700 HK$0.2400 HK$0.3200 39
5Y EBITDA Exit HK$0.1000 HK$0.1200 HK$0.1500 41
10Y Revenue Exit HK$0.1600 HK$0.2200 HK$0.2800 36
10Y EBITDA Exit HK$0.1300 HK$0.1500 HK$0.1700 37
Multiples
EV/EBITDA HK$0.0600 HK$0.0800 HK$0.0900 54
EV/Revenue HK$0.1900 HK$0.2600 HK$0.3300 43
Asset-Based
NCAV (Graham) HK$0.4900 HK$0.6500 HK$0.9800 50
Growth DCF
Growth DCF HK$0.1600 HK$0.2000 HK$0.2400 80
Rev-Margin DCF HK$0.1700 HK$0.2400 HK$0.3200 74

Widest divergence: Asset-Based (HK$0.6500) versus Multiples (HK$0.0800). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$557M
Revenue growth (YoY) +5.0%
Net margin -12.0%
Return on equity -12.2%
Free cash flow HK$9.9M FY2025
Operating margin -6.1%
More key figures
EPS (TTM) HK$-0.0500
EPS growth (YoY) -89.8%
Net debt HK$471M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 43 · Market factors (momentum, volatility) 30

Profitability 7
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 26
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 82
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

Changmao Biochemical Engineering Company Limited, together with its subsidiaries, produces and sells organic acids for food additive, chemical, and pharmaceutical industries in Mainland China, Europe, the Asia Pacific, the United States, and internationally.

Full company description

Changmao Biochemical Engineering Company Limited, together with its subsidiaries, produces and sells organic acids for food additive, chemical, and pharmaceutical industries in Mainland China, Europe, the Asia Pacific, the United States, and internationally. The company offers maleic anhydride, 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 that are used as food additives, medical intermediaries, pharmaceutical adjuvant, active pharmaceutical ingredients, etc. It is also involved in the research and development of medicine and nutraceutical products; manufacture, sale, and trading of organic acid products; general trading; and property holding activities. Changmao Biochemical Engineering Company Limited was founded in 1992 and is headquartered in Changzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Changmao Biochemical Engineering Company reported revenue of HK$557M in FY2025 versus HK$548M in FY2021, a compound +0.4%/yr. Reported net income was −HK$66.8M in FY2025.

Growth Quality 34/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$557M
Latest YoY
−4.8%
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.
−8.6%
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.
+4.6%
Avg. growth/yr (23Y) 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.
+7.9%
Revenue +0.4%/yr
FY21 HK$548M
FY22 HK$730M
FY23 HK$637M
FY24 HK$585M
FY25 HK$557M
Net income
FY21 HK$58.3M
FY22 HK$81.4M
FY23 −HK$86.1M
FY24 −HK$68.2M
FY25 −HK$66.8M

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Cite: Fair Value Calculator (2026). "Changmao Biochemical Engineering Company Fair Value". https://www.fairvalue-calculator.com/stock/0954

Peer Group

Specialty Chemicals · 672 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 44 · Below median
Fair Value upside +60% · Top 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -12% · Bottom 25%
Operating margin (TTM) -6% · Bottom 25%
Revenue growth 5% · Above median
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/S (TTM) 0.04× · Cheaper than 75% of peers
P/FCF 2.0× · Pricier than median
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 100 · sector 0
FUTURE 25 · sector 19
PAST 0 · sector 23
HEALTH 94 · sector 95
DIVIDEND 0 · sector 32

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 Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $479.43 $222.03 -54%
Wanhua Chemical Group 600309 ¥75.06 ¥68.03 -9%
Novozymes A/S NSISB kr 416.10 kr 170.02 -59%
Asian Paints Limited ASIANPAINT ₹2,756 ₹664.51 -76%
Solar Industries India Limited SOLARINDS ₹18,730 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,702 ₹351.84 -79%
PT Chandra Asri Pacific Tbk TPIA 2,160 IDR 2,322 IDR +8%
Berger Paints India Limited BERGEPAINT ₹559.80 ₹154.46 -72%
Gujarat Fluorochemicals Limited FLUOROCHEM ₹4,566 ₹836.47 -82%
Himadri Speciality Chemical Limited HSCL ₹778.15 ₹248.63 -68%

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Frequently asked questions

Is Changmao Biochemical Engineering Company (0954) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.3936 versus a price of HK$0.2460, about +60% (undervalued).
What is the fair value of 0954?
Our model-based fair value for Changmao Biochemical Engineering Company is HK$0.3936 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.2460.
What is the quality score of 0954?
Changmao Biochemical Engineering Company has a Quality Score of 44/100. 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 Changmao Biochemical Engineering Company (0954)?
Changmao Biochemical Engineering Company reported trailing-twelve-month revenue of about HK$557M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0954?
The net profit margin of Changmao Biochemical Engineering Company is about -12.0%, 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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