Huarong Chemical Co (301256) Fair Value & Analysis
Basic Materials · CN · Market cap 5.8B CNY
Fair value as of: Jul 9, 2026
From 15 valuation models · updated 32 days ago
Fair value updated Jul 9, 2026, revised from ¥2.54 to ¥3.03 (+19.1%) since Jun 24, 2026. Share price −11.8% over the past month.
A solid business, but screening 71% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (¥3.79). The favourable scenario is already priced in.
- Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (4 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 9, 2026.
How to read this chart
53‑month range ¥5.11 – ¥18.66 · fair‑value band ¥2.28 – ¥3.79 · the ¥10.48 price screens above the ¥3.03 fair value. Dashed = 300-day average. As of Jul 9, 2026.
Analysis
Huarong Chemical Co (301256) currently trades at ¥10.48, while our model-based Fair Value estimate is ¥3.03, implying the stock looks roughly 71.1% overvalued today. The Quality Score stands at 54/100 (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, Huarong Chemical Co generated revenue of 1.8B CNY at a net margin of 4.1%. Revenue grew 26.2% year over year. It earns a return on equity of 4.2%. Net debt stands at 31.7M CNY. Fundamentals as of Jul 9, 2026
Our scenario range runs from ¥2.28 (bear case) to ¥3.79 (bull case); at ¥10.48, 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 46% below its 52-week high and 7% 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 -71%, 301256 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.
All 15 models by family
Widest divergence: DCF Models (¥5.03) versus Economic Profit (¥1.65). Highest evidence: Residual Income (76).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 9, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 51 · Market factors (momentum, volatility) 30
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
Huarong Chemical Co., Ltd. develops and sells potassium and chlorine products in China. The company offers potassium series, including potassium hydroxide flakes, food grade potassium hydroxide, reagent grade potassium hydroxide, electronic-grade potassium hydroxide, powdered potassium hydroxide, potassium fluorosilicate, and electronic chemicals.
Full company description
Huarong Chemical Co., Ltd. develops and sells potassium and chlorine products in China. The company offers potassium series, including potassium hydroxide flakes, food grade potassium hydroxide, reagent grade potassium hydroxide, electronic-grade potassium hydroxide, powdered potassium hydroxide, potassium fluorosilicate, and electronic chemicals. It also provides water treatment chemicals, such as sodium hypochlorite, industrial grade polyaluminum chloride, polyaluminum chloride for drinking water, liquid chlorine, dilute sulfuric acid, and sodium hydroxide. In addition, the company offers other chemicals, including SOP/potassium solphate, potassium chloride, potassium phosphate monobasic, potassium fluoride, potassium permanganate, potassium disphophate, potassium formate, potassium phosphate dibasic trihydrate, hydrofluoric acid, MAP/ammonium dihydrogen phosphate, DAP ammonium phosphate, propylene carbonate, EC/ethylene carbonate, urea phosphate, and phosphoric acid. Further, its products are used in the electronics, high-grade detergents and cosmetics industries. Huarong Chemical Co., Ltd. was founded in 2000 and is based in Pengzhou, China. Huarong Chemical Co., Ltd. operates as a subsidiary of Newhope Chemicals Investment Co., Ltd.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Huarong Chemical Co reported revenue of ¥1.7B in FY2025 versus ¥644M in FY2021, a compound +27.2%/yr. Reported net income was ¥71.8M in FY2025, compounding −8.4%/yr from FY2021.
301256 screens 71% overvalued. Compare with Linde plc →
Peer Group
Specialty Chemicals · 676 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.
Valuation Multiples vs Specialty Chemicals median · lower = cheaper
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: 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.
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 9, 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% |
Compare Huarong Chemical Co with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Basic Materials stocks →
Frequently asked questions
Is Huarong Chemical Co (301256) overvalued or undervalued?
What is the fair value of 301256?
What is the quality score of 301256?
What is the revenue of Huarong Chemical Co (301256)?
What is the net profit margin of 301256?
Does Huarong Chemical Co pay a dividend?
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.
Track Huarong Chemical Co and try Pro for 14 days
One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.
Zero risk: nothing is ever charged. After 14 days you decide whether to stay.