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Hengli Petrochemical Co (600346) Fair Value & Analysis

Basic Materials · CN · Market cap 106B CNY

HP Hengli Petrochemical Co 600346 · SHG
Price¥17.45
Fair Value¥17.09
Upside-2.1%
Quality51/100
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Healthy Growth
Thin margins · 4.6% net margin
Moderate debt · generates free cash flow
2.46% dividend yield
Ranks above peers (12/15)
Narrow moat 44/100
Evidence: High Range ¥12.81 – ¥21.36 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Share price +2.6% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ¥12.81 (bear) to ¥21.36 (bull), base ¥17.09. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 51/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥39.11 ¥11.45 Fair Value ¥17.09 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ¥11.45 – ¥39.11 · fair‑value band ¥12.81 – ¥21.36 · the ¥17.45 price screens above the ¥17.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Hengli Petrochemical Co (600346) currently trades at ¥17.45, while our model-based Fair Value estimate is ¥17.09, implying the stock looks roughly 2.1% fairly valued today. We read business quality at 51/100 (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, Hengli Petrochemical Co generated revenue of 193B CNY at a net margin of 4.6%. Revenue declined 13.7% year over year. It earns a return on equity of 13.1%. Net debt stands at 103B CNY. Fundamentals as of Jul 18, 2026

Our scenario range runs from ¥12.81 (bear case) to ¥21.36 (bull case); at ¥17.45, the current price sits within 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 36% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at -2%, 600346 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 ¥49.47 ¥102.65 ¥189.79 80
Residual Income ¥8.54 ¥9.53 ¥14.47 76
Rev-Margin DCF ¥30.18 ¥53.60 ¥102.91 74
All 26 models by family
DCF Models
FCF DCF ¥52.88 ¥85.81 ¥190.66 38
Owner Earnings ¥21.53 ¥54.76 ¥124.54 31
5Y Revenue Exit ¥27.13 ¥46.22 ¥85.85 39
5Y EBITDA Exit ¥39.39 ¥71.02 ¥132.95 41
5Y P/E Exit ¥22.57 ¥46.22 ¥76.76 38
10Y Revenue Exit ¥34.28 ¥71.28 ¥91.87 36
10Y EBITDA Exit ¥44.12 ¥97.68 ¥189.09 37
10Y P/E Exit ¥31.85 ¥61.47 ¥106.27 35
Earnings-Based
Graham-Dodd ¥6.83 ¥47.66 ¥66.89 54
Lynch FV ¥24.62 ¥35.18 ¥45.73 50
PEG = 1.0 ¥24.62 ¥35.18 ¥45.73 46
EPV ¥13.70 ¥16.74 ¥19.40 59
Dividend Discount
Gordon GGM ¥10.90 ¥22.65 ¥35.94 70
DDM Multi-Stage ¥10.90 ¥19.10 ¥23.78 61
Multiples
P/E Multiple ¥15.08 ¥20.10 ¥25.13 63
P/S Multiple ¥12.81 ¥17.09 ¥21.36 58
P/B Multiple ¥12.81 ¥17.09 ¥21.36 55
EV/EBIT ¥24.70 ¥34.44 ¥44.18 53
EV/EBITDA ¥32.81 ¥45.26 ¥57.71 54
EV/Revenue ¥15.17 ¥23.62 ¥32.06 43
Asset-Based
NCAV (Graham) ¥4.74 ¥6.36 ¥9.49 50
Growth DCF
Growth DCF ¥49.47 ¥102.65 ¥189.79 80
Rev-Margin DCF ¥30.18 ¥53.60 ¥102.91 74
Economic Profit
Residual Income ¥8.54 ¥9.53 ¥14.47 76
ROIC Compounder ¥18.69 ¥28.49 ¥37.23 72
Growth Earnings
Growth-Adj P/E ¥31.73 ¥45.33 ¥58.93 68

Widest divergence: DCF Models (¥61.47) versus Asset-Based (¥6.36). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 193B CNY
Revenue growth (YoY) -13.7%
Net margin 4.6%
Return on equity 13.1%
Free cash flow 24.0B CNY FY2025
P/E ratio 13.3
More key figures
Operating margin 9.7%
EPS (TTM) ¥1.28
Dividend yield 2.2%
EPS growth (YoY) +93.1%
Net debt 103B CNY FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 51 · Market factors (momentum, volatility) 43

Profitability 35
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 19
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 43
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

Hengli Petrochemical Co.,Ltd. engages in petrochemical industry in China and internationally. The company operates through Petrochemical Business and Polyester Fiber Business segments.

Full company description

Hengli Petrochemical Co.,Ltd. engages in petrochemical industry in China and internationally. The company operates through Petrochemical Business and Polyester Fiber Business segments. It offers oil refining products, chemical products, purified terephthalic acid, polyester chips, and polyester fibers; and engineering plastics, functional films, and biodegradable materials. The company also provides civilian and industrial polyester filament; and polyester filament. In addition, it engages in wholesale and retail activities; transportation industry; and industrial investment activities, as well as other financial services. Further, the company is involved in sale of petroleum, synthetic materials, rubber products, metal chains, metal materials, metal mines, textiles and raw materials, coal, and non-metallic minerals; wholesale of hardware; business management consulting; non-residential real estate leasing; domestic trade agency; and offshore trade operations. The company was formerly known as Dalian Rubber and Plastic Machinery Co., Ltd and changed its name to Hengli Petrochemical Co.,Ltd. in May 2016. The company was founded in 1999 and is based in Dalian, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengli Petrochemical Co reported revenue of ¥201B in FY2025 versus ¥198B in FY2021, a compound +0.4%/yr. Reported net income was ¥7.1B in FY2025, compounding −17.8%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
201B CNY
Avg. growth/yr (3Y)
+6.1%
Avg. growth/yr (5Y)
+18.6%
Avg. growth/yr (26Y)
+31.2%
Revenue +0.4%/yr
FY21 ¥198B
FY22 ¥222B
FY23 ¥235B
FY24 ¥236B
FY25 ¥201B
Net income −17.8%/yr
FY21 ¥15.5B
FY22 ¥2.3B
FY23 ¥6.9B
FY24 ¥7.0B
FY25 ¥7.1B

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Cite: Fair Value Calculator (2026). "Hengli Petrochemical Co Fair Value". https://www.fairvalue-calculator.com/stock/600346

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 51 · Above median
Fair Value upside −2% · Above median
Return on equity (TTM) 13% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth -14% · Bottom 25%
Dividend yield (TTM) 2.5% · Above median
Debt / equity 0.92× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 11.8× · Cheaper than 75% of peers
P/B 1.59× · Pricier than median
P/S (TTM) 0.55× · Cheaper than median
P/FCF 0.7× · Cheaper than median
EV/EBITDA 5.5× · Cheaper than 75% of peers
PEG 1.01× · Cheaper 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 31 · sector 0
FUTURE 0 · sector 19
PAST 53 · sector 19
HEALTH 54 · sector 93
DIVIDEND 49 · sector 27

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 18, 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 ₹7,647 ₹2,200 -71%

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Frequently asked questions

Is Hengli Petrochemical Co (600346) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ¥17.09 versus a price of ¥17.45, about −2% (fairly valued).
What is the fair value of 600346?
Our model-based fair value for Hengli Petrochemical Co is ¥17.09 (as of Jul 18, 2026), built from audited fundamentals. The current price is ¥17.45.
What is the quality score of 600346?
Hengli Petrochemical Co has a Quality Score of 51/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Hengli Petrochemical Co (600346)?
Hengli Petrochemical Co reported trailing-twelve-month revenue of about 193B CNY (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 600346?
The net profit margin of Hengli Petrochemical Co is about 4.6%, meaning it keeps roughly 4.6% of revenue as net income. Based on the latest reported figures.
Does Hengli Petrochemical Co pay a dividend?
Hengli Petrochemical Co currently shows a dividend yield of about 2.21% relative to its recent price (as of Jul 18, 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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