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Shandong Hualu-Hengsheng Chemical Co (600426) Fair Value & Analysis

Basic Materials · CN · Market cap 59.9B CNY

SH Shandong Hualu-Hengsheng Chemical Co 600426 · SHG
Price¥21.23
Fair Value¥25.67
Upside+20.9%
Quality46/100
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Expensive Growth
Solidly profitable · 11.8% net margin
Low debt · generates free cash flow
1.87% dividend yield
Ranks above peers (10/15)
Moderate moat 53/100
Evidence: Medium Range ¥15.71 – ¥33.31 Share as image

Fair value as of: Jul 11, 2026

From 24 valuation models · updated 27 days ago

Share price −16.0% over the past month.

Below-average quality, screening 21% undervalued on our models.

What matters now

  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥15.71 to ¥33.31) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥41.41 ¥18.63 Fair Value ¥25.67 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range ¥18.63 – ¥41.41 · fair‑value band ¥15.71 – ¥33.31 · the ¥21.23 price screens below the ¥25.67 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Shandong Hualu-Hengsheng Chemical Co (600426) currently trades at ¥21.23, while our model-based Fair Value estimate is ¥25.67, implying the stock looks roughly 20.9% undervalued today. We read business quality at 46/100 (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, Shandong Hualu-Hengsheng Chemical Co generated revenue of 31.5B CNY at a net margin of 11.8%. Revenue grew 7.4% year over year. It earns a return on equity of 11.6%. Net debt stands at 6.8B CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥15.71 (bear case) to ¥33.31 (bull case); at ¥21.23, 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 52% below its 52-week high and 1% 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 21%, 600426 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 ¥0.7500 ¥4.52 ¥10.52 80
Residual Income ¥13.75 ¥15.31 ¥25.06 76
Rev-Margin DCF ¥12.35 ¥28.89 ¥52.15 74
All 24 models by family
DCF Models
FCF DCF ¥0.8600 ¥3.99 ¥11.95 38
Owner Earnings ¥16.52 ¥36.99 ¥76.59 31
5Y Revenue Exit ¥12.35 ¥29.98 ¥55.98 39
5Y EBITDA Exit ¥22.18 ¥51.88 ¥92.36 41
5Y P/E Exit ¥13.97 ¥33.58 ¥57.98 38
10Y Revenue Exit ¥7.97 ¥23.79 ¥52.18 36
10Y EBITDA Exit ¥15.45 ¥40.60 ¥85.09 37
10Y P/E Exit ¥9.82 ¥26.56 ¥53.99 35
Earnings-Based
Graham-Dodd ¥10.66 ¥63.23 ¥88.08 54
Lynch FV ¥17.97 ¥25.67 ¥33.38 50
PEG = 1.0 ¥17.97 ¥25.67 ¥33.38 46
EPV ¥13.98 ¥16.78 ¥19.24 59
Multiples
P/E Multiple ¥23.51 ¥31.35 ¥39.18 63
P/S Multiple ¥19.98 ¥26.65 ¥33.31 58
P/B Multiple ¥19.98 ¥26.65 ¥33.31 55
EV/EBIT ¥26.35 ¥36.08 ¥45.82 53
EV/EBITDA ¥32.92 ¥44.85 ¥56.78 54
EV/Revenue ¥16.83 ¥25.26 ¥33.70 43
Asset-Based
NCAV (Graham) ¥7.82 ¥10.48 ¥15.64 50
Growth DCF
Growth DCF ¥0.7500 ¥4.52 ¥10.52 80
Rev-Margin DCF ¥12.35 ¥28.89 ¥52.15 74
Economic Profit
Residual Income ¥13.75 ¥15.31 ¥25.06 76
ROIC Compounder ¥13.98 ¥18.47 ¥25.00 72
Growth Earnings
Growth-Adj P/E ¥25.67 ¥36.67 ¥47.67 68

Widest divergence: Growth Earnings (¥36.67) versus Growth DCF (¥4.52). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 31.5B CNY
Revenue growth (YoY) +7.4%
Net margin 11.8%
Return on equity 11.6%
Free cash flow 548M CNY FY2025
P/E ratio 16.2
More key figures
Operating margin 17.7%
EPS (TTM) ¥1.75
Dividend yield 1.9%
EPS growth (YoY) +57.5%
Net debt 6.8B CNY FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 53 · Market factors (momentum, volatility) 29

Profitability 41
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 32
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 79
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

Shandong Hualu-Hengsheng Chemical Co., Ltd. manufactures and sells chemical products and raw materials worldwide. The company provides granular urea, power plant grade ammonium sulfate, caprolactam grade ammonium sulfate, and ammonium bicarbonate for agricultural use; and dimethyl carbonate, methyl ethyl carbonate, diethyl carbonate, and oxalic acid.

Full company description

Shandong Hualu-Hengsheng Chemical Co., Ltd. manufactures and sells chemical products and raw materials worldwide. The company provides granular urea, power plant grade ammonium sulfate, caprolactam grade ammonium sulfate, and ammonium bicarbonate for agricultural use; and dimethyl carbonate, methyl ethyl carbonate, diethyl carbonate, and oxalic acid. It also offers glossy nylon 6 slices, caprolactam, adipic acid, melamine, N-butanol, isooctanol, N-butyraldehyde, isobutyraldehyde, ethylene glycol; dimethylformamide, monomethylamine, dimethylamine, trimethylamine, acetic acid, acetic anhydride, and methanol; autoclaved fly ash brick; nitrous oxide; and mixed diacids products. In addition, the company provides industrialization services, such as development planning, engineering design, project management, and equipment manufacturing. Shandong Hualu-Hengsheng Chemical Co., Ltd. was founded in 2000 and is based in Dezhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shandong Hualu-Hengsheng Chemical Co reported revenue of ¥31.0B in FY2025 versus ¥26.7B in FY2021, a compound +3.7%/yr. Reported net income was ¥3.3B in FY2025, compounding −17.8%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
31.0B CNY
Latest YoY
−9.5%
Avg. growth/yr (3Y)
+0.8%
Avg. growth/yr (5Y)
+18.7%
Avg. growth/yr (26Y)
+18.2%
Revenue +3.7%/yr
FY21 ¥26.7B
FY22 ¥30.2B
FY23 ¥27.3B
FY24 ¥34.2B
FY25 ¥31.0B
Net income −17.8%/yr
FY21 ¥7.3B
FY22 ¥6.3B
FY23 ¥3.6B
FY24 ¥3.9B
FY25 ¥3.3B

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Cite: Fair Value Calculator (2026). "Shandong Hualu-Hengsheng Chemical Co Fair Value". https://www.fairvalue-calculator.com/stock/600426

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 46 · Below median
Fair Value upside +21% · Top 25%
Return on equity (TTM) 12% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 1.9% · Above median
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 16.2× · Cheaper than median
P/B 1.81× · Pricier than median
P/S (TTM) 1.90× · Pricier than median
P/FCF 16.2× · Pricier than 75% of peers
EV/EBITDA 8.0× · Cheaper than median
PEG 0.64× · 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 61 · sector 0
FUTURE 37 · sector 19
PAST 46 · sector 19
HEALTH 88 · sector 93
DIVIDEND 37 · 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 11, 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 Shandong Hualu-Hengsheng Chemical Co (600426) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥25.67 versus a price of ¥21.23, about +21% (undervalued).
What is the fair value of 600426?
Our model-based fair value for Shandong Hualu-Hengsheng Chemical Co is ¥25.67 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥21.23.
What is the quality score of 600426?
Shandong Hualu-Hengsheng Chemical Co has a Quality Score of 46/100. 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 Shandong Hualu-Hengsheng Chemical Co (600426)?
Shandong Hualu-Hengsheng Chemical Co reported trailing-twelve-month revenue of about 31.5B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 600426?
The net profit margin of Shandong Hualu-Hengsheng Chemical Co is about 11.8%, meaning it keeps roughly 11.8% of revenue as net income. Based on the latest reported figures.
Does Shandong Hualu-Hengsheng Chemical Co pay a dividend?
Shandong Hualu-Hengsheng Chemical Co currently shows a dividend yield of about 1.87% relative to its recent price (as of Jul 11, 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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