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China Hainan Rubber Industry Group (601118) Fair Value & Analysis

Basic Materials · CN · Market cap 23.5B CNY

CH China Hainan Rubber Industry Group 601118 · SHG
Price¥5.48
Fair Value¥7.78
Upside+42.0%
Quality46/100
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Mixed Growth
Loss-making · -0.3% net margin
Moderate debt · generates free cash flow
Trails peers (3/13)
Narrow moat 20/100
Evidence: Medium Range ¥4.34 – ¥7.78 Share as image

Fair value as of: Aug 8, 2026

From 11 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥3.89 to ¥7.78 (+100.0%) since Jul 11, 2026. Share price +12.8% over the past month.

Below-average quality, screening 42% 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.
  • Our model range runs from ¥4.34 (bear) to ¥7.78 (bull), base ¥7.78. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 46/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥8.34 ¥3.92 Fair Value ¥7.78 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ¥3.92 – ¥8.34 · fair‑value band ¥4.34 – ¥7.78 · the ¥5.48 price screens below the ¥7.78 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 8, 2026.

Full chart & analysis →

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Analysis

China Hainan Rubber Industry Group (601118) currently trades at ¥5.48, while our model-based Fair Value estimate is ¥7.78, implying the stock looks roughly 42.0% undervalued today. The Quality Score stands 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, China Hainan Rubber Industry Group generated revenue of 40.5B CNY at a net margin of -0.3%. Revenue declined 20.8% year over year. It earns a return on equity of -3.8%. Net debt stands at 7.9B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥4.34 (bear case) to ¥7.78 (bull case); at ¥5.48, 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 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at 42%, 601118 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 ¥5.89 ¥10.69 ¥19.08 80
Rev-Margin DCF ¥4.66 ¥8.08 ¥12.66 74
EV/EBITDA ¥1.37 ¥1.81 ¥2.25 54
All 11 models by family
DCF Models
FCF DCF ¥5.98 ¥11.36 ¥21.14 38
Owner Earnings ¥0.2800 ¥0.5000 ¥0.9100 31
5Y Revenue Exit ¥4.66 ¥8.17 ¥13.00 39
5Y EBITDA Exit ¥2.74 ¥4.10 ¥5.71 41
10Y Revenue Exit ¥4.90 ¥8.45 ¥14.04 36
10Y EBITDA Exit ¥3.76 ¥5.41 ¥7.75 37
Multiples
EV/EBITDA ¥1.37 ¥1.81 ¥2.25 54
EV/Revenue ¥4.05 ¥5.78 ¥7.50 43
Asset-Based
NCAV (Graham) ¥1.18 ¥1.58 ¥2.36 50
Growth DCF
Growth DCF ¥5.89 ¥10.69 ¥19.08 80
Rev-Margin DCF ¥4.66 ¥8.08 ¥12.66 74

Widest divergence: Growth DCF (¥8.08) versus Asset-Based (¥1.58). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 40.5B CNY
Revenue growth (YoY) -20.8%
Net margin -0.3%
Return on equity -3.8%
Free cash flow 1.9B CNY FY2025
Operating margin -2.3%
More key figures
EPS (TTM) ¥-0.0300
EPS growth (YoY) -54.5%
Net debt 7.9B CNY FY2025

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 46 · Market factors (momentum, volatility) 30

Profitability 29
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 28
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

China Hainan Rubber Industry Group Co.,Ltd. researches, develops, plants, processes, trades in, and finances rubber wood in China.

Full company description

China Hainan Rubber Industry Group Co.,Ltd. researches, develops, plants, processes, trades in, and finances rubber wood in China. The company offers plantation service, including seeds and seedlings; preliminary processing products; deep processing products, such as latex larn, natural latex pillow, natural latex sheet, natural latex mattress, and latex mattress; wood processing comprising household, and wood products; sales and trade; technology; and industry layout services, as well as offers tropical fruits. It is also involved in trading, processing, and rubber planting business, as well as engages in e-commerce and agriculture related services. In addition, the company focuses on warehousing and logistics activities. It serves agriculture, forestry, animal husbandry, and fishery industries. The company was founded in 2005 and is based in Haikou, China. China Hainan Rubber Industry Group Co.,Ltd. operates as a subsidiary of Hainan Agricultural Reclamation Investment Holding Group Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Hainan Rubber Industry Group reported revenue of ¥42.2B in FY2025 versus ¥15.3B in FY2021, a compound +28.8%/yr. Reported net income was −¥103M in FY2025.

Growth Quality 56/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
42.2B CNY
Latest YoY
−15.0%
Avg. growth/yr (3Y)
+40.1%
Avg. growth/yr (5Y)
+21.8%
Avg. growth/yr (22Y)
+13.3%
Revenue +28.8%/yr
FY21 ¥15.3B
FY22 ¥15.4B
FY23 ¥37.7B
FY24 ¥49.7B
FY25 ¥42.2B
Net income
FY21 ¥151M
FY22 ¥76.4M
FY23 ¥297M
FY24 ¥103M
FY25 −¥103M

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Cite: Fair Value Calculator (2026). "China Hainan Rubber Industry Group Fair Value". https://www.fairvalue-calculator.com/stock/601118

Peer Group

Specialty Chemicals · 676 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 +42% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -0% · Bottom 25%
Operating margin (TTM) -2% · Bottom 25%
Revenue growth -21% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.51× · Higher than 75% of peers

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/B 0.34× · Cheaper than 75% of peers
P/S (TTM) 0.09× · Cheaper than 75% of peers
P/FCF 1.8× · Pricier than median
EV/EBITDA 18.9× · Pricier 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 89 · sector 0
FUTURE 0 · sector 19
PAST 0 · sector 23
HEALTH 75 · sector 95
DIVIDEND 0 · sector 25

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is China Hainan Rubber Industry Group (601118) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥7.78 versus a price of ¥5.48, about +42% (undervalued).
What is the fair value of 601118?
Our model-based fair value for China Hainan Rubber Industry Group is ¥7.78 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥5.48.
What is the quality score of 601118?
China Hainan Rubber Industry Group has a Quality Score of 46/100. 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 China Hainan Rubber Industry Group (601118)?
China Hainan Rubber Industry Group reported trailing-twelve-month revenue of about 40.5B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 601118?
The net profit margin of China Hainan Rubber Industry Group is about -0.3%, 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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