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Guizhou Chitianhua Co (600227) Fair Value & Analysis

Basic Materials · CN · Market cap 5.3B CNY

GC Guizhou Chitianhua Co 600227 · SHG
Price¥3.34
Fair Value¥0.4000
Upside-88.0%
Quality48/100
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Mixed Growth
Loss-making · -11.8% net margin
Low debt · generates free cash flow
Trails peers (2/12)
Narrow moat 8/100
Evidence: Medium Range ¥0.2000 – ¥0.6200 Share as image

Fair value as of: Aug 7, 2026

From 12 valuation models · updated 3 days ago

Share price +39.2% over the past month.

Below-average quality, and screening another 88% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥0.6200). The favourable scenario is already priced in.
  • The model range is unusually wide (¥0.2000 to ¥0.6200). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • 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)

¥5.29 ¥1.13 Fair Value ¥0.4000 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 7, 2026.

How to read this chart

60‑month range ¥1.13 – ¥5.29 · fair‑value band ¥0.2000 – ¥0.6200 · the ¥3.34 price screens above the ¥0.4000 fair value. Dashed = 300-day average. As of Aug 7, 2026.

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Analysis

Guizhou Chitianhua Co (600227) currently trades at ¥3.34, while our model-based Fair Value estimate is ¥0.4000, implying the stock looks roughly 88.0% 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: medium).

Over the trailing twelve months, Guizhou Chitianhua Co generated revenue of 2.2B CNY at a net margin of -11.8%. Revenue grew 5.7% year over year. It earns a return on equity of -10.9%. Net debt stands at 835M CNY. Fundamentals as of Aug 7, 2026

Our scenario range runs from ¥0.2000 (bear case) to ¥0.6200 (bull case); at ¥3.34, 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 38% below its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -13% fair-value upside, at -88%, 600227 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥1.36 ¥1.88 ¥2.55 80
Rev-Margin DCF ¥1.19 ¥1.82 ¥2.49 74
Gordon GGM ¥0.2200 ¥0.3300 ¥0.4400 70
All 12 models by family
DCF Models
FCF DCF ¥1.32 ¥1.87 ¥2.62 38
5Y Revenue Exit ¥1.19 ¥1.80 ¥2.55 39
5Y EBITDA Exit ¥0.7900 ¥1.10 ¥1.43 41
10Y Revenue Exit ¥1.19 ¥1.74 ¥2.39 36
10Y EBITDA Exit ¥0.9800 ¥1.27 ¥1.60 37
Dividend Discount
Gordon GGM ¥0.2200 ¥0.3300 ¥0.4400 70
DDM Multi-Stage ¥0.2200 ¥0.3100 ¥0.4100 61
Multiples
EV/EBITDA ¥0.5400 ¥0.7700 ¥0.9900 54
EV/Revenue ¥1.20 ¥1.76 ¥2.33 43
Asset-Based
NCAV (Graham) ¥0.6700 ¥0.9000 ¥1.34 50
Growth DCF
Growth DCF ¥1.36 ¥1.88 ¥2.55 80
Rev-Margin DCF ¥1.19 ¥1.82 ¥2.49 74

Widest divergence: Growth DCF (¥1.82) versus Dividend Discount (¥0.3100). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 2.2B CNY
Revenue growth (YoY) +5.7%
Net margin -11.8%
Return on equity -10.9%
Free cash flow 245M CNY FY2025
Operating margin -1.7%
More key figures
EPS (TTM) ¥-0.1500
EPS growth (YoY) +33.6%
Net debt 835M CNY FY2025

Figures from reported company fundamentals · as of Aug 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 48 · Market factors (momentum, volatility) 48

Profitability 7
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 53
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

Guizhou Chitianhua Co.,Ltd. engages in the chemical and pharmaceutical businesses in China. The company offers urea fertilizers; synthetic ammonia and ammonium sulfate; and sulfuric acid, industrial nitrogen, industrial ammonia, and industrial hydrogen, as well as basic chemical products and their deep-processed and by-products.

Full company description

Guizhou Chitianhua Co.,Ltd. engages in the chemical and pharmaceutical businesses in China. The company offers urea fertilizers; synthetic ammonia and ammonium sulfate; and sulfuric acid, industrial nitrogen, industrial ammonia, and industrial hydrogen, as well as basic chemical products and their deep-processed and by-products. It also produces and sells pharmaceuticals; medical equipment; and drugs for diabetes, cardiovascular, dermatology, gynecological, digestive system, endocrine, and psychotropic diseases. In addition, the company engages in the production of Chinese and western patent medicines; class II clinical laboratory analysis instruments; and sanitary products, as well as sales of self-produced products. Further, it is involved in the manufacture and sales of special and daily chemical products; provision of technical development, consultation, exchanges, and services; technology transfer and promotion; coal washing; sales of coal products; import and export of technology and goods; motor vehicle repair and maintenance; health care products; retailing of prepackaged foods; software technology development and services; data processing services; health consultation; production and sales of cosmetics; planting of Chinese herbal medicines; sales and storage services of cells; research on stem cell biotechnology and gene technology; production of biological products; investment in coal construction projects; and sales of industrial and mining products, mining equipment and spare parts. Guizhou Chitianhua Co.,Ltd. was formerly known as Guizhou Salvage Pharmaceutical Co.,Ltd. and changed its name to Guizhou Chitianhua Co.,Ltd. in May 2023. The company was founded in 1998 and is based in Guiyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guizhou Chitianhua Co reported revenue of ¥2.2B in FY2025 versus ¥2.2B in FY2021, a compound −0.2%/yr. Reported net income was −¥276M in FY2025.

Growth Quality 33/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
2.2B CNY
Latest YoY
−9.1%
Avg. growth/yr (3Y)
−4.9%
Avg. growth/yr (5Y)
+2.3%
Avg. growth/yr (29Y)
+4.8%
Revenue −0.2%/yr
FY21 ¥2.2B
FY22 ¥2.5B
FY23 ¥2.2B
FY24 ¥2.4B
FY25 ¥2.2B
Net income
FY21 −¥51.9M
FY22 −¥367M
FY23 −¥119M
FY24 −¥86.7M
FY25 −¥276M

600227 screens 88% overvalued. Compare with Corteva, Inc →

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Cite: Fair Value Calculator (2026). "Guizhou Chitianhua Co Fair Value". https://www.fairvalue-calculator.com/stock/600227

Peer Group

Agricultural Inputs · 179 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 −88% · Bottom 25%
Return on assets -3% · Bottom 25%
Net margin (TTM) -12% · Bottom 25%
Operating margin (TTM) -2% · Bottom 25%
Revenue growth 6% · Below median
Debt / equity 0.21× · Higher than median

Valuation Multiples vs Agricultural Inputs median · lower = cheaper

P/B 0.35× · Cheaper than 75% of peers
P/S (TTM) 0.36× · Cheaper than 75% of peers
P/FCF 3.2× · Pricier than median
EV/EBITDA 18.0× · 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 22
FUTURE 29 · sector 37
PAST 0 · sector 24
HEALTH 90 · sector 97
DIVIDEND 0 · sector 33

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 Agricultural Inputs stocks, each showing price versus our Fair Value estimate (as of Aug 7, 2026).

Stock Price Fair Value vs Fair Value
Corteva, Inc CTVA $86.07 $27.81 -68%
Nutrien Ltd NTR C$94.23 C$81.69 -13%
Qinghai Salt Lake Industry Co 000792 ¥24.93 ¥21.26 -15%
CF Industries Holdings CF $119.19 $161.00 +35%
SABIC Agri-Nutrients Company 2020 122.90 SAR 127.31 SAR +4%
Yara International ASA YAR kr 451.30 kr 67.25 -85%
Yunnan Yuntianhua Co 600096 ¥30.17 ¥42.12 +40%
Asia-potash International Investment (Guangzhou)Co.,Ltd., 000893 ¥42.59 ¥38.01 -11%
Coromandel International Limited COROMANDEL ₹2,034 ₹1,129 -44%
UPL Limited UPL ₹594.75 ₹387.06 -35%

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Frequently asked questions

Is Guizhou Chitianhua Co (600227) overvalued or undervalued?
As of Aug 7, 2026, our model estimates a fair value of ¥0.4000 versus a price of ¥3.34, about −88% (overvalued).
What is the fair value of 600227?
Our model-based fair value for Guizhou Chitianhua Co is ¥0.4000 (as of Aug 7, 2026), built from audited fundamentals. The current price is ¥3.34.
What is the quality score of 600227?
Guizhou Chitianhua Co 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 Guizhou Chitianhua Co (600227)?
Guizhou Chitianhua Co reported trailing-twelve-month revenue of about 2.2B CNY (latest available figure, as of Aug 7, 2026).
What is the net profit margin of 600227?
The net profit margin of Guizhou Chitianhua Co is about -11.8%, 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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