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China Steel Chemical Corporation (1723) Fair Value & Analysis

Basic Materials · TW · Market cap 20.1B TWD

CS China Steel Chemical Corporation 1723 · TW
Price84.80 TWD
Fair Value48.50 TWD
Upside-42.8%
Quality56/100
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Weak Growth
Solidly profitable · 10.6% net margin
Low debt · generates free cash flow
2.10% dividend yield
Mixed vs. peers (8/15)
Moderate moat 47/100
Evidence: High Range 39.72 TWD – 63.05 TWD Share as image

Fair value as of: Jul 21, 2026

From 24 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from 34.42 TWD to 48.50 TWD (+40.9%) since Jul 7, 2026. Share price +5.0% over the past month.

A solid business, but screening 43% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (63.05 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

124.50 TWD 66.40 TWD Fair Value 48.50 TWD Mar 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 66.40 TWD – 124.50 TWD · fair‑value band 39.72 TWD – 63.05 TWD · the 84.80 TWD price screens above the 48.50 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

China Steel Chemical Corporation (1723) currently trades at 84.80 TWD, while our model-based Fair Value estimate is 48.50 TWD, implying the stock looks roughly 42.8% overvalued today. The Quality Score stands at 56/100 (solid 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, China Steel Chemical Corporation generated revenue of 5.4B TWD at a net margin of 10.6%. Revenue declined 24.5% year over year. It earns a return on equity of 7.0%. Net debt stands at 1.7B TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 39.72 TWD (bear case) to 63.05 TWD (bull case); at 84.80 TWD, 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 11% below its 52-week high and 28% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at -43%, 1723 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 BearBaseBull Evidence
Highest evidence
Growth DCF 22.27 TWD 30.21 TWD 43.77 TWD 80
Residual Income 28.25 TWD 30.32 TWD 33.57 TWD 76
Rev-Margin DCF 19.46 TWD 28.50 TWD 39.62 TWD 74
All 24 models by family
DCF Models
FCF DCF 21.30 TWD 29.48 TWD 44.61 TWD 38
Owner Earnings 22.14 TWD 30.63 TWD 46.37 TWD 31
5Y Revenue Exit 19.46 TWD 28.02 TWD 40.45 TWD 39
5Y EBITDA Exit 24.24 TWD 36.29 TWD 52.27 TWD 41
5Y P/E Exit 26.30 TWD 39.86 TWD 56.05 TWD 38
10Y Revenue Exit 19.51 TWD 25.96 TWD 32.86 TWD 36
10Y EBITDA Exit 22.92 TWD 31.08 TWD 39.79 TWD 37
10Y P/E Exit 24.17 TWD 33.28 TWD 42.02 TWD 35
Earnings-Based
Graham-Dodd 18.04 TWD 22.05 TWD 24.80 TWD 54
EPV 16.91 TWD 19.64 TWD 22.04 TWD 59
Dividend Discount
Gordon GGM 41.32 TWD 45.23 TWD 51.18 TWD 70
DDM Multi-Stage 41.32 TWD 51.84 TWD 66.59 TWD 61
Multiples
P/E Multiple 33.82 TWD 45.10 TWD 56.37 TWD 63
P/S Multiple 28.19 TWD 37.59 TWD 46.99 TWD 58
P/B Multiple 33.82 TWD 45.10 TWD 56.37 TWD 55
EV/EBIT 22.90 TWD 30.38 TWD 37.85 TWD 53
EV/EBITDA 30.39 TWD 40.36 TWD 50.33 TWD 54
EV/Revenue 19.92 TWD 28.24 TWD 36.57 TWD 43
Asset-Based
NCAV (Graham) 16.84 TWD 22.56 TWD 33.68 TWD 50
Growth DCF
Growth DCF 22.27 TWD 30.21 TWD 43.77 TWD 80
Rev-Margin DCF 19.46 TWD 28.50 TWD 39.62 TWD 74
Economic Profit
Residual Income 28.25 TWD 30.32 TWD 33.57 TWD 76
ROIC Compounder 16.91 TWD 19.64 TWD 22.04 TWD 72
Growth Earnings
Growth-Adj P/E 24.09 TWD 34.42 TWD 44.75 TWD 68

Widest divergence: Dividend Discount (45.23 TWD) versus Earnings-Based (19.64 TWD). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 5.4B TWD
Revenue growth (YoY) -24.5%
Net margin 10.6%
Return on equity 7.0%
Free cash flow 497M TWD FY2025
P/E ratio 32.7
More key figures
Operating margin 14.2%
EPS (TTM) 2.65 TWD
Dividend yield 2.1%
EPS growth (YoY) -18.1%
Net debt 1.7B TWD FY2025

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

Quality Score breakdown

Overall quality 56/100

Of which business quality 56 · Market factors (momentum, volatility) 59

Profitability 35
Margins and returns on capital today
Quality Growth 0
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 83
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

China Steel Chemical Corporation, together with its subsidiaries, engages in the production, processing, and sale of coal tar distillation, light oil, coke, and refined carbon material products in Taiwan, China, Australia, and internationally.

Full company description

China Steel Chemical Corporation, together with its subsidiaries, engages in the production, processing, and sale of coal tar distillation, light oil, coke, and refined carbon material products in Taiwan, China, Australia, and internationally. The company offers coal chemicals, including coal and special tar pitches; creosote oils and refined tars; refined naphthalene mothball and chemical grades; benzene and toluene aromatics; and metallurgical cokes and dehydrated coke fines. It also provides carbon materials, such as anode-material precursors; anode materials for lithium-ion battery; activated carbon for EDLC; and fine carbon materials comprising green mesophase powder, carbonized mesophase powder, mesophase graphite powder, and advanced carbon materials. In addition, the company engages in the trading of related upstream and downstream products; production and sale of blast furnace slag powder and cement, gas-cooled blast furnace slag and converter, magnetic materials, specialty chemicals, and iron oxide; resource recycling; and steel structure manufacturing and sale. Further, it is involved in solar energy generation; biotechnology consulting services; and general investment activities. The company was founded in 1978 and is headquartered in Kaohsiung, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Steel Chemical Corporation reported revenue of 5.8B TWD in FY2025 versus 8.0B TWD in FY2021, a compound −7.6%/yr. Reported net income was 616M TWD in FY2025, compounding −13.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
5.8B TWD
Latest YoY
−23.9%
Avg. growth/yr (3Y)
−17.8%
Avg. growth/yr (5Y)
+1.6%
Avg. growth/yr (25Y)
+2.8%
Revenue −7.6%/yr
FY21 8.0B TWD
FY22 10.5B TWD
FY23 8.3B TWD
FY24 7.6B TWD
FY25 5.8B TWD
Net income −13.5%/yr
FY21 1.1B TWD
FY22 1.7B TWD
FY23 1.4B TWD
FY24 1.2B TWD
FY25 616M TWD

1723 screens 43% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "China Steel Chemical Corporation Fair Value". https://www.fairvalue-calculator.com/stock/1723

Peer Group

Chemicals · 334 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 56 · Above median
Fair Value upside −43% · Below median
Return on equity (TTM) 7% · Above median
Return on assets 3% · Above median
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth -25% · Bottom 25%
Dividend yield (TTM) 2.1% · Above median
Debt / equity 0.13× · Lower than median

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 32.7× · Pricier than median
P/B 2.57× · Pricier than median
P/S (TTM) 3.69× · Pricier than 75% of peers
P/FCF 1.3× · Cheaper than median
EV/EBITDA 22.5× · Pricier than 75% of peers
PEG 1.22× · Pricier than median

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 20
PAST 28 · sector 19
HEALTH 94 · sector 94
DIVIDEND 42 · 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 China Steel Chemical Corporation (1723) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 48.50 TWD versus a price of 84.80 TWD, about −43% (overvalued).
What is the fair value of 1723?
Our model-based fair value for China Steel Chemical Corporation is 48.50 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 84.80 TWD.
What is the quality score of 1723?
China Steel Chemical Corporation has a Quality Score of 56/100. 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 China Steel Chemical Corporation (1723)?
China Steel Chemical Corporation reported trailing-twelve-month revenue of about 5.4B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 1723?
The net profit margin of China Steel Chemical Corporation is about 10.6%, meaning it keeps roughly 10.6% of revenue as net income. Based on the latest reported figures.
Does China Steel Chemical Corporation pay a dividend?
China Steel Chemical Corporation currently shows a dividend yield of about 2.10% relative to its recent price (as of Jul 21, 2026).

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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