Zhejiang Dragon Technology Co (603004) Fair Value & Analysis
Basic Materials · CN · Market cap 4.9B CNY
Fair value as of: Aug 10, 2026
From 24 valuation models · updated today
Fair value updated Aug 10, 2026, revised from ¥12.67 to ¥12.00 (−5.3%) since Jul 11, 2026. Share price −3.9% over the past month.
A solid business, but screening 43% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (¥15.83). The favourable scenario is already priced in.
- Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (3 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 10, 2026.
How to read this chart
31‑month range ¥14.75 – ¥40.73 · fair‑value band ¥9.29 – ¥15.83 · the ¥20.93 price screens above the ¥12.00 fair value. Dashed = 300-day average. As of Aug 10, 2026.
Analysis
Zhejiang Dragon Technology Co (603004) currently trades at ¥20.93, while our model-based Fair Value estimate is ¥12.00, implying the stock looks roughly 42.7% overvalued today. The Quality Score stands at 54/100 (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, Zhejiang Dragon Technology Co generated revenue of 735M CNY at a net margin of 19.3%. Revenue grew 21.5% year over year. It earns a return on equity of 7.0%. The balance sheet holds a net cash position of 627M CNY. Fundamentals as of Aug 10, 2026
Our scenario range runs from ¥9.29 (bear case) to ¥15.83 (bull case); at ¥20.93, 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 20% below its 52-week high and 16% 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 -43%, 603004 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.
All 24 models by family
Widest divergence: DCF Models (¥11.65) versus Dividend Discount (¥2.03). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 10, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 43
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
Zhejiang Dragon Technology Co., Ltd., together with its subsidiaries, engages in the research, development, production, and sale of chemical products in China and internationally. It offers cosmetic raw materials, special engineering materials, and other functional chemicals. The company is also involved in trading activities; and technical testing.
Full company description
Zhejiang Dragon Technology Co., Ltd., together with its subsidiaries, engages in the research, development, production, and sale of chemical products in China and internationally. It offers cosmetic raw materials, special engineering materials, and other functional chemicals. The company is also involved in trading activities; and technical testing. It exports its products. The company was founded in 1989 and is headquartered in Hangzhou, China. Zhejiang Dragon Technology Co., Ltd. operates as a subsidiary of Zhejiang Dinglong New Materials Co., Ltd.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Zhejiang Dragon Technology Co reported revenue of ¥702M in FY2025 versus ¥701M in FY2021, a compound +0.0%/yr. Reported net income was ¥149M in FY2025, compounding +11.9%/yr from FY2021.
603004 screens 43% overvalued. Compare with BASF SE →
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.
Valuation Multiples vs Chemicals median · lower = cheaper
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: 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.
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 10, 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% |
Compare Zhejiang Dragon Technology Co with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Basic Materials stocks →
Frequently asked questions
Is Zhejiang Dragon Technology Co (603004) overvalued or undervalued?
What is the fair value of 603004?
What is the quality score of 603004?
What is the revenue of Zhejiang Dragon Technology Co (603004)?
What is the net profit margin of 603004?
Does Zhejiang Dragon Technology Co pay a dividend?
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.
Track Zhejiang Dragon Technology Co and try Pro for 14 days
One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.
Zero risk: nothing is ever charged. After 14 days you decide whether to stay.