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Apple Flavor & Fragrance Group (603020) Fair Value & Analysis

Basic Materials · CN · Market cap 3.8B CNY

AF Apple Flavor & Fragrance Group 603020 · SHG
Price¥10.01
Fair Value¥3.99
Upside-60.2%
Quality51/100
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Weak Growth
Thin margins · 3.5% net margin
Low debt · negative free cash flow
0.99% dividend yield
Trails peers (2/13)
Narrow moat 27/100
Evidence: Medium Range ¥2.94 – ¥5.18 Share as image

Fair value as of: Aug 10, 2026

From 15 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥3.00 to ¥3.99 (+32.9%) since Jul 11, 2026. Share price −24.5% over the past month.

A solid business, but screening 60% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥5.18). The favourable scenario is already priced in.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥23.26 ¥5.82 Fair Value ¥3.99 Mar 2021 Aug 2026

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

60‑month range ¥5.82 – ¥23.26 · fair‑value band ¥2.94 – ¥5.18 · the ¥10.01 price screens above the ¥3.99 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

Apple Flavor & Fragrance Group (603020) currently trades at ¥10.01, while our model-based Fair Value estimate is ¥3.99, implying the stock looks roughly 60.2% overvalued today. The Quality Score stands at 51/100 (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, Apple Flavor & Fragrance Group generated revenue of 2.5B CNY at a net margin of 3.5%. Revenue grew 3.2% year over year. It earns a return on equity of 3.4%. The balance sheet holds a net cash position of 203M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥2.94 (bear case) to ¥5.18 (bull case); at ¥10.01, 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 24% below its 52-week high and 15% 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 -60%, 603020 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 ¥6.22 ¥6.05 ¥4.97 76
ROIC Compounder ¥2.15 ¥2.41 ¥2.64 72
Gordon GGM ¥1.58 ¥1.83 ¥2.11 70
All 15 models by family
DCF Models
Owner Earnings ¥3.58 ¥4.62 ¥6.60 31
Earnings-Based
Graham-Dodd ¥1.57 ¥2.38 ¥2.84 54
EPV ¥2.15 ¥2.41 ¥2.64 59
Dividend Discount
Gordon GGM ¥1.58 ¥1.83 ¥2.11 70
DDM Multi-Stage ¥1.58 ¥2.04 ¥2.61 61
Multiples
P/E Multiple ¥2.94 ¥3.93 ¥4.91 63
P/S Multiple ¥2.94 ¥3.93 ¥4.91 58
P/B Multiple ¥2.94 ¥3.93 ¥4.91 55
EV/EBIT ¥3.95 ¥5.10 ¥6.26 53
EV/EBITDA ¥4.41 ¥5.72 ¥7.02 54
EV/Revenue ¥3.49 ¥4.78 ¥6.06 43
Asset-Based
NCAV (Graham) ¥4.37 ¥5.85 ¥8.73 50
Economic Profit
Residual Income ¥6.22 ¥6.05 ¥4.97 76
ROIC Compounder ¥2.15 ¥2.41 ¥2.64 72
Growth Earnings
Growth-Adj P/E ¥2.10 ¥3.00 ¥3.90 68

Widest divergence: Asset-Based (¥5.85) versus Dividend Discount (¥1.83). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.5B CNY
Revenue growth (YoY) +3.2%
Net margin 3.5%
Return on equity 3.4%
Free cash flow −3.4M CNY FY2025
P/E ratio 56.7
More key figures
Operating margin 6.9%
EPS (TTM) ¥0.2300
Dividend yield 0.8%
EPS growth (YoY) +2.4%
Net cash 203M CNY FY2024

Figures from reported company fundamentals · as of Aug 10, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 50 · Market factors (momentum, volatility) 44

Profitability 28
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 9
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 70
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

Apple Flavor & Fragrance Group Co.,Ltd., together with its subsidiaries, engages in the manufacture and sale of flavors, fragrances, and food ingredients in China.

Full company description

Apple Flavor & Fragrance Group Co.,Ltd., together with its subsidiaries, engages in the manufacture and sale of flavors, fragrances, and food ingredients in China. It offers food flavors, including dairy, ice cream, beverage, confectionery, savory, bakery, and snack related flavors, as well as fragrances for perfumes, personal care, oral care, home care, and candle and air care products. The company also manufactures aroma ingredients, such as synthetic aroma chemicals, natural extracts, and fermentation natural chemicals. In addition, it offers food ingredients, such as dairy products, chocolate and cocoa products, fruit products, flavors and fragrances, breads, desserts, and other products. Apple Flavor & Fragrance Group Co.,Ltd. was founded in 1995 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Apple Flavor & Fragrance Group reported revenue of ¥2.5B in FY2025 versus ¥3.3B in FY2021, a compound −7.3%/yr. Reported net income was ¥86.7M in FY2025, compounding −19.1%/yr from FY2021.

Growth Quality 15/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
2.5B CNY
Latest YoY
−8.0%
Avg. growth/yr (3Y)
−8.3%
Avg. growth/yr (5Y)
−1.5%
Avg. growth/yr (14Y)
+5.0%
Revenue −7.3%/yr
FY21 ¥3.3B
FY22 ¥3.2B
FY23 ¥2.8B
FY24 ¥2.7B
FY25 ¥2.5B
Net income −19.1%/yr
FY21 ¥203M
FY22 ¥110M
FY23 ¥90.8M
FY24 ¥159M
FY25 ¥86.7M

603020 screens 60% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Apple Flavor & Fragrance Group Fair Value". https://www.fairvalue-calculator.com/stock/603020

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 51 · Below median
Fair Value upside −60% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 1.0% · Below median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 43.5× · Pricier than median
P/B 1.15× · Cheaper than median
P/S (TTM) 1.51× · Pricier than median
EV/EBITDA 23.9× · 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 16 · sector 19
PAST 13 · sector 23
HEALTH 100 · sector 95
DIVIDEND 20 · sector 25

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 10, 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 Apple Flavor & Fragrance Group (603020) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥3.99 versus a price of ¥10.01, about −60% (overvalued).
What is the fair value of 603020?
Our model-based fair value for Apple Flavor & Fragrance Group is ¥3.99 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥10.01.
What is the quality score of 603020?
Apple Flavor & Fragrance Group has a Quality Score of 51/100. 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 Apple Flavor & Fragrance Group (603020)?
Apple Flavor & Fragrance Group reported trailing-twelve-month revenue of about 2.5B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603020?
The net profit margin of Apple Flavor & Fragrance Group is about 3.5%, meaning it keeps roughly 3.5% of revenue as net income. Based on the latest reported figures.
Does Apple Flavor & Fragrance Group pay a dividend?
Apple Flavor & Fragrance Group currently shows a dividend yield of about 0.84% relative to its recent price (as of Aug 10, 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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