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Shan Dong Lu Bei Chemical Co (600727) Fair Value & Analysis

Basic Materials · CN · Market cap 4.0B CNY

SD Shan Dong Lu Bei Chemical Co 600727 · SHG
Price¥7.53
Fair Value¥2.24
Upside-70.3%
Quality44/100
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Expensive Growth
Thin margins · 2.4% net margin
Low debt · negative free cash flow
0.65% dividend yield
Mixed vs. peers (6/13)
Narrow moat 34/100
Evidence: Medium Range ¥1.56 – ¥2.91 Share as image

Fair value as of: Aug 9, 2026

From 16 valuation models · updated yesterday

Fair value updated Aug 9, 2026, revised from ¥1.49 to ¥2.24 (+50.1%) since Jul 11, 2026. Share price +16.6% over the past month.

Below-average quality, and screening another 70% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥2.91). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (¥1.56 to ¥2.91) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥16.57 ¥4.07 Fair Value ¥2.24 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 ¥4.07 – ¥16.57 · fair‑value band ¥1.56 – ¥2.91 · the ¥7.53 price screens above the ¥2.24 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Shan Dong Lu Bei Chemical Co (600727) currently trades at ¥7.53, while our model-based Fair Value estimate is ¥2.24, implying the stock looks roughly 70.3% overvalued today. The Quality Score stands at 44/100 (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, Shan Dong Lu Bei Chemical Co generated revenue of 5.1B CNY at a net margin of 1.2%. Revenue grew 0.1% year over year. It earns a return on equity of 3.2%. Net debt stands at 859M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥1.56 (bear case) to ¥2.91 (bull case); at ¥7.53, 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 18% below its 52-week high and 14% 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 -70%, 600727 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
Residual Income ¥4.12 ¥3.89 ¥2.83 76
ROIC Compounder ¥5.72 ¥6.07 ¥6.80 72
Gordon GGM ¥2.26 ¥4.51 ¥6.82 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥0.4900 ¥2.73 ¥3.79 54
Lynch FV ¥0.7600 ¥1.09 ¥1.41 50
PEG = 1.0 ¥0.7600 ¥1.09 ¥1.41 46
EPV ¥5.72 ¥6.06 ¥6.34 59
Dividend Discount
Gordon GGM ¥2.26 ¥4.51 ¥6.82 70
DDM Multi-Stage ¥2.26 ¥3.89 ¥4.76 61
Multiples
P/E Multiple ¥0.9200 ¥1.23 ¥1.54 63
P/S Multiple ¥0.9200 ¥1.23 ¥1.54 58
P/B Multiple ¥0.9200 ¥1.23 ¥1.54 55
EV/EBIT ¥7.34 ¥8.57 ¥9.81 53
EV/EBITDA ¥10.08 ¥12.24 ¥14.39 54
EV/Revenue ¥6.84 ¥8.22 ¥9.60 43
Asset-Based
NCAV (Graham) ¥3.02 ¥4.05 ¥6.05 50
Economic Profit
Residual Income ¥4.12 ¥3.89 ¥2.83 76
ROIC Compounder ¥5.72 ¥6.07 ¥6.80 72
Growth Earnings
Growth-Adj P/E ¥1.04 ¥1.49 ¥1.94 68

Widest divergence: Asset-Based (¥4.05) versus Earnings-Based (¥1.09). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 5.5B CNY
Revenue growth (YoY) +38.0%
Net margin 2.4%
Return on equity 5.0%
Free cash flow −410M CNY FY2025
P/E ratio 31.4
More key figures
Operating margin 10.7%
EPS (TTM) ¥0.2400
Dividend yield 0.7%
EPS growth (YoY) +158%
Net debt 859M CNY FY2025

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

Quality Score breakdown

Overall quality 44/100

Of which business quality 42 · Market factors (momentum, volatility) 44

Profitability 20
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 27
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 34
Distance to the 52-week high (market factor)
Net Issuance 83
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

Shan Dong Lu Bei Chemical Co.,Ltd, together with its subsidiaries, produces and sells various fertilizers and chemicals in China.

Full company description

Shan Dong Lu Bei Chemical Co.,Ltd, together with its subsidiaries, produces and sells various fertilizers and chemicals in China. The company offers titanium dioxide, methane chloride, industrial chloroform, industrial bromine, industrial dichloromethane, industrial chloromethane, trichloromethane, industrial bromine, industrial salt, diammonium phosphate, compound fertilizer, cement, and sulfuric acid. Its products are used in chemical, agriculture, construction, medical, production, life, and other industries. The company also provides wholesale, and construction and installation services. Shan Dong Lu Bei Chemical Co.,Ltd was founded in 1996 and is based in Binzhou, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shan Dong Lu Bei Chemical Co reported revenue of ¥5.1B in FY2025 versus ¥4.5B in FY2021, a compound +3.0%/yr. Reported net income was ¥38.3M in FY2025, compounding −47.2%/yr from FY2021.

Growth Quality 47/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
5.1B CNY
Latest YoY
−11.4%
Avg. growth/yr (3Y)
+1.3%
Avg. growth/yr (5Y)
+11.7%
Avg. growth/yr (31Y)
+12.3%
Revenue +3.0%/yr
FY21 ¥4.5B
FY22 ¥4.9B
FY23 ¥5.0B
FY24 ¥5.7B
FY25 ¥5.1B
Net income −47.2%/yr
FY21 ¥493M
FY22 −¥88.3M
FY23 ¥101M
FY24 ¥261M
FY25 ¥38.3M

600727 screens 70% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "Shan Dong Lu Bei Chemical Co Fair Value". https://www.fairvalue-calculator.com/stock/600727

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 44 · Below median
Fair Value upside −70% · Bottom 25%
Return on equity (TTM) 5% · Above median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 11% · Above median
Revenue growth 38% · Top 25%
Dividend yield (TTM) 0.7% · Below median
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 31.4× · Pricier than median
P/B 1.24× · Cheaper than median
P/S (TTM) 0.72× · Cheaper than median
EV/EBITDA 4.0× · Cheaper 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 100 · sector 20
PAST 20 · sector 19
HEALTH 90 · sector 94
DIVIDEND 13 · 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 Shan Dong Lu Bei Chemical Co (600727) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥2.24 versus a price of ¥7.53, about −70% (overvalued).
What is the fair value of 600727?
Our model-based fair value for Shan Dong Lu Bei Chemical Co is ¥2.24 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥7.53.
What is the quality score of 600727?
Shan Dong Lu Bei Chemical Co has a Quality Score of 44/100. 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 Shan Dong Lu Bei Chemical Co (600727)?
Shan Dong Lu Bei Chemical Co reported trailing-twelve-month revenue of about 5.1B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600727?
The net profit margin of Shan Dong Lu Bei Chemical Co is about 1.2%, meaning it keeps roughly 1.2% of revenue as net income. Based on the latest reported figures.
Does Shan Dong Lu Bei Chemical Co pay a dividend?
Shan Dong Lu Bei Chemical Co currently shows a dividend yield of about 0.65% relative to its recent price (as of Aug 9, 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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