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HeBei Jinniu Chemical Industry Co (600722) Fair Value & Analysis

Basic Materials · CN · Market cap 7.7B CNY

HJ HeBei Jinniu Chemical Industry Co 600722 · SHG
Price¥11.38
Fair Value¥1.20
Upside-89.5%
Quality70/100
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Mixed Growth
Solidly profitable · 10.5% net margin
Moderate debt · generates free cash flow
Trails peers (5/13)
Moderate moat 45/100
Evidence: Medium Range ¥0.9000 – ¥1.50 Share as image

Fair value as of: Aug 9, 2026

From 24 valuation models · updated yesterday

Share price +45.7% over the past month.

A solid business, but screening 89% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥1.50). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

¥19.30 ¥3.17 Fair Value ¥1.20 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 9, 2026.

How to read this chart

60‑month range ¥3.17 – ¥19.30 · fair‑value band ¥0.9000 – ¥1.50 · the ¥11.38 price screens above the ¥1.20 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

HeBei Jinniu Chemical Industry Co (600722) currently trades at ¥11.38, while our model-based Fair Value estimate is ¥1.20, implying the stock looks roughly 89.5% overvalued today. The Quality Score stands at 70/100 (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: medium).

Over the trailing twelve months, HeBei Jinniu Chemical Industry Co generated revenue of 454M CNY at a net margin of 10.5%. Revenue declined 13.9% year over year. It earns a return on equity of 6.8%. The balance sheet holds a net cash position of 1.1B CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥0.9000 (bear case) to ¥1.50 (bull case); at ¥11.38, 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 43% below its 52-week high and 100% 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 -89%, 600722 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 ¥1.75 ¥2.13 ¥2.77 80
Residual Income ¥1.33 ¥1.29 ¥1.11 76
Rev-Margin DCF ¥1.44 ¥1.79 ¥2.22 74
All 24 models by family
DCF Models
FCF DCF ¥1.70 ¥2.10 ¥2.81 38
Owner Earnings ¥1.49 ¥1.81 ¥2.39 31
5Y Revenue Exit ¥1.44 ¥1.76 ¥2.23 39
5Y EBITDA Exit ¥1.62 ¥2.07 ¥2.67 41
5Y P/E Exit ¥1.51 ¥1.87 ¥2.31 38
10Y Revenue Exit ¥1.52 ¥1.77 ¥2.03 36
10Y EBITDA Exit ¥1.65 ¥1.96 ¥2.29 37
10Y P/E Exit ¥1.58 ¥1.83 ¥2.08 35
Earnings-Based
Graham-Dodd ¥0.4800 ¥0.6000 ¥0.6800 54
EPV ¥1.60 ¥1.75 ¥1.89 59
Dividend Discount
Gordon GGM ¥0.0100 70
DDM Multi-Stage ¥0.0100 ¥0.0100 61
Multiples
P/E Multiple ¥0.9000 ¥1.20 ¥1.50 63
P/S Multiple ¥0.7800 ¥1.04 ¥1.29 58
P/B Multiple ¥0.9000 ¥1.20 ¥1.50 55
EV/EBIT ¥1.88 ¥2.30 ¥2.73 53
EV/EBITDA ¥1.73 ¥2.11 ¥2.48 54
EV/Revenue ¥1.33 ¥1.64 ¥1.95 43
Asset-Based
NCAV (Graham) ¥0.9200 ¥1.23 ¥1.83 50
Growth DCF
Growth DCF ¥1.75 ¥2.13 ¥2.77 80
Rev-Margin DCF ¥1.44 ¥1.79 ¥2.22 74
Economic Profit
Residual Income ¥1.33 ¥1.29 ¥1.11 76
ROIC Compounder ¥1.60 ¥1.75 ¥1.91 72
Growth Earnings
Growth-Adj P/E ¥0.6400 ¥0.9100 ¥1.19 68

Widest divergence: DCF Models (¥1.83) versus Dividend Discount (¥0.0100). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 454M CNY
Revenue growth (YoY) -13.9%
Net margin 10.5%
Return on equity 6.8%
Free cash flow 80.2M CNY FY2025
P/E ratio 162.6
More key figures
Operating margin 18.5%
EPS (TTM) ¥0.0700
EPS growth (YoY) -2.5%
Net cash 1.1B CNY FY2024

Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 70 · Market factors (momentum, volatility) 62

Profitability 28
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 94
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 70
Distance to the 52-week high (market factor)
Net Issuance 81
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

HeBei Jinniu Chemical Industry Co.,Ltd, together with its subsidiaries, engages in the production and operation of methanol products in China. It is involved in the coal chemical industry, emerging energy technology research and development, logistics, chemical, and wind power businesses.

Full company description

HeBei Jinniu Chemical Industry Co.,Ltd, together with its subsidiaries, engages in the production and operation of methanol products in China. It is involved in the coal chemical industry, emerging energy technology research and development, logistics, chemical, and wind power businesses. The company was formerly known as Changzhou Chemical Industry Co., Ltd and changed its name HeBei Jinniu Chemical Industry Co.,Ltd in May 2008. The company was founded in 1994 and is based in Shijiazhuang, China. HeBei Jinniu Chemical Industry Co.,Ltd operates as a subsidiary of Hebei Expressway Group Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HeBei Jinniu Chemical Industry Co reported revenue of ¥470M in FY2025 versus ¥568M in FY2021, a compound −4.6%/yr. Reported net income was ¥47.9M in FY2025, compounding −0.1%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
470M CNY
Latest YoY
−5.9%
Avg. growth/yr (3Y)
−10.7%
Avg. growth/yr (5Y)
+3.1%
Avg. growth/yr (32Y)
+1.8%
Revenue −4.6%/yr
FY21 ¥568M
FY22 ¥660M
FY23 ¥511M
FY24 ¥499M
FY25 ¥470M
Net income −0.1%/yr
FY21 ¥48.1M
FY22 ¥49.5M
FY23 ¥33.6M
FY24 ¥52.6M
FY25 ¥47.9M

600722 screens 89% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "HeBei Jinniu Chemical Industry Co Fair Value". https://www.fairvalue-calculator.com/stock/600722

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 70 · Top 25%
Fair Value upside −90% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 3% · Above median
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth -14% · Bottom 25%
Debt / equity 0.55× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 162.6× · Pricier than 75% of peers
P/B 6.20× · Pricier than 75% of peers
P/S (TTM) 17.07× · Pricier than 75% of peers
P/FCF 14.3× · Pricier than 75% of peers
EV/EBITDA 76.3× · 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 0
FUTURE 0 · sector 20
PAST 27 · sector 19
HEALTH 72 · sector 94
DIVIDEND 0 · 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 Aug 9, 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 HeBei Jinniu Chemical Industry Co (600722) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥1.20 versus a price of ¥11.38, about −89% (overvalued).
What is the fair value of 600722?
Our model-based fair value for HeBei Jinniu Chemical Industry Co is ¥1.20 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥11.38.
What is the quality score of 600722?
HeBei Jinniu Chemical Industry Co has a Quality Score of 70/100. 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 HeBei Jinniu Chemical Industry Co (600722)?
HeBei Jinniu Chemical Industry Co reported trailing-twelve-month revenue of about 454M CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600722?
The net profit margin of HeBei Jinniu Chemical Industry Co is about 10.5%, meaning it keeps roughly 10.5% of revenue as net income. 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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