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Guangzhou Lushan New Materials Co (603051) Fair Value & Analysis

Basic Materials · CN · Market cap 3.3B CNY

GL Guangzhou Lushan New Materials Co 603051 · SHG
Price¥20.66
Fair Value¥4.19
Upside-79.7%
Quality44/100
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Mixed Growth
Loss-making · -4.5% net margin
Low debt · generates free cash flow
Trails peers (4/12)
Narrow moat 19/100
Evidence: High Range ¥4.10 – ¥4.27 Share as image

Fair value as of: Aug 10, 2026

From 16 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥4.25 to ¥4.19 (−1.4%) since Jul 11, 2026. Share price −5.2% over the past month.

Below-average quality, and screening another 80% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥4.27). 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.
  • The models converge in a tight band (¥4.10 to ¥4.27), unusually little disagreement for a valuation.
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Price vs Fair Value (4 years)

¥70.46 ¥13.95 Fair Value ¥4.19 Mar 2022 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

52‑month range ¥13.95 – ¥70.46 · fair‑value band ¥4.10 – ¥4.27 · the ¥20.66 price screens above the ¥4.19 fair value. Dashed = 300-day average. As of Aug 10, 2026.

Full chart & analysis →

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Analysis

Guangzhou Lushan New Materials Co (603051) currently trades at ¥20.66, while our model-based Fair Value estimate is ¥4.19, implying the stock looks roughly 79.7% 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: high).

Over the trailing twelve months, Guangzhou Lushan New Materials Co generated revenue of 1.5B CNY at a net margin of -4.5%. Revenue declined 4.0% year over year. It earns a return on equity of -4.1%. Net debt stands at 667M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥4.10 (bear case) to ¥4.27 (bull case); at ¥20.66, 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 31% below its 52-week high and 17% 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 -80%, 603051 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 ¥19.79 ¥24.50 ¥32.23 80
Rev-Margin DCF ¥10.14 ¥11.20 ¥12.75 74
ROIC Compounder ¥4.09 ¥4.17 ¥4.24 72
All 16 models by family
DCF Models
FCF DCF ¥19.13 ¥24.82 ¥35.02 38
Owner Earnings ¥4.05 ¥4.22 ¥4.54 31
5Y Revenue Exit ¥10.14 ¥10.83 ¥11.78 39
5Y EBITDA Exit ¥12.28 ¥14.53 ¥17.51 41
10Y Revenue Exit ¥13.66 ¥14.49 ¥15.17 36
10Y EBITDA Exit ¥14.95 ¥16.73 ¥18.46 37
Earnings-Based
EPV ¥4.09 ¥4.17 ¥4.24 59
Dividend Discount
Gordon GGM ¥2.79 ¥3.04 ¥3.42 70
DDM Multi-Stage ¥2.79 ¥3.45 ¥4.34 61
Multiples
EV/EBIT ¥4.33 ¥4.58 ¥4.82 53
EV/EBITDA ¥8.43 ¥10.04 ¥11.66 54
EV/Revenue ¥4.23 ¥4.50 ¥4.78 43
Asset-Based
NCAV (Graham) ¥5.21 ¥6.98 ¥10.42 50
Growth DCF
Growth DCF ¥19.79 ¥24.50 ¥32.23 80
Rev-Margin DCF ¥10.14 ¥11.20 ¥12.75 74
Economic Profit
ROIC Compounder ¥4.09 ¥4.17 ¥4.24 72

Widest divergence: DCF Models (¥14.49) versus Dividend Discount (¥3.04). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.5B CNY
Revenue growth (YoY) -4.0%
Net margin -4.5%
Return on equity -4.1%
Free cash flow 271M CNY FY2025
Operating margin 7.3%
More key figures
EPS (TTM) ¥-0.4700
EPS growth (YoY) +20.0%
Net debt 667M CNY FY2023

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

Quality Score breakdown

Overall quality 44/100

Of which business quality 48 · Market factors (momentum, volatility) 41

Profitability 13
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 34
Distance to the 52-week high (market factor)
Net Issuance 2
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

Guangzhou Lushan New Materials Co., Ltd. manufactures and sells functional polymer materials worldwide. The company offers functional polyolefin hot melt adhesive materials, solar cell encapsulation films, functional hot melt adhesive films, and thermoplastic optically transparent films.

Full company description

Guangzhou Lushan New Materials Co., Ltd. manufactures and sells functional polymer materials worldwide. The company offers functional polyolefin hot melt adhesive materials, solar cell encapsulation films, functional hot melt adhesive films, and thermoplastic optically transparent films. Its products are used in new energy, optoelectronic displays, home furnishings & building materials, composite pipes, packaging, and other fields. The company was founded in 1998 and is based in Guangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guangzhou Lushan New Materials Co reported revenue of ¥1.5B in FY2025 versus ¥1.7B in FY2021, a compound −2.7%/yr. Reported net income was −¥73.2M in FY2025.

Growth Quality 48/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.5B CNY
Latest YoY
−26.5%
Avg. growth/yr (3Y)
−16.6%
Avg. growth/yr (5Y)
+8.5%
Avg. growth/yr (6Y)
+11.4%
Revenue −2.7%/yr
FY21 ¥1.7B
FY22 ¥2.6B
FY23 ¥3.0B
FY24 ¥2.1B
FY25 ¥1.5B
Net income
FY21 ¥113M
FY22 ¥74.8M
FY23 −¥86.3M
FY24 ¥16.9M
FY25 −¥73.2M

603051 screens 80% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Guangzhou Lushan New Materials Co Fair Value". https://www.fairvalue-calculator.com/stock/603051

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 44 · Bottom 25%
Fair Value upside −80% · Bottom 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -4% · Bottom 25%
Operating margin (TTM) 7% · Above median
Revenue growth -4% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 0.33× · Cheaper than 75% of peers
P/FCF 1.8× · 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 0 · sector 0
FUTURE 0 · sector 19
PAST 0 · sector 23
HEALTH 99 · sector 95
DIVIDEND 0 · 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 Guangzhou Lushan New Materials Co (603051) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥4.19 versus a price of ¥20.66, about −80% (overvalued).
What is the fair value of 603051?
Our model-based fair value for Guangzhou Lushan New Materials Co is ¥4.19 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥20.66.
What is the quality score of 603051?
Guangzhou Lushan New Materials 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 Guangzhou Lushan New Materials Co (603051)?
Guangzhou Lushan New Materials Co reported trailing-twelve-month revenue of about 1.5B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603051?
The net profit margin of Guangzhou Lushan New Materials Co is about -4.5%, 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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