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Hubei Zhenhua Chemical Co (603067) Fair Value & Analysis

Basic Materials · CN · Market cap 24.9B CNY

HZ Hubei Zhenhua Chemical Co 603067 · SHG
Price¥33.00
Fair Value¥10.34
Upside-68.7%
Quality41/100
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Expensive Growth
Solidly profitable · 14.1% net margin
Low debt · negative free cash flow
0.48% dividend yield
Trails peers (5/13)
Moderate moat 59/100
Evidence: High Range ¥6.02 – ¥13.12 Share as image

Fair value as of: Aug 10, 2026

From 17 valuation models · updated today

Share price −20.7% over the past month.

Below-average quality, and screening another 69% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥13.12). The favourable scenario is already priced in.
  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (¥6.02 to ¥13.12) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥49.50 ¥4.59 Fair Value ¥10.34 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 ¥4.59 – ¥49.50 · fair‑value band ¥6.02 – ¥13.12 · the ¥33.00 price screens above the ¥10.34 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

Hubei Zhenhua Chemical Co (603067) currently trades at ¥33.00, while our model-based Fair Value estimate is ¥10.34, implying the stock looks roughly 68.7% overvalued today. The Quality Score stands at 41/100 (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, Hubei Zhenhua Chemical Co generated revenue of 4.7B CNY at a net margin of 14.1%. Revenue grew 17.1% year over year. It earns a return on equity of 18.4%. Net debt stands at 697M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥6.02 (bear case) to ¥13.12 (bull case); at ¥33.00, 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 32% below its 52-week high and 140% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at -69%, 603067 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 ¥5.81 ¥7.88 ¥31.51 76
ROIC Compounder ¥8.91 ¥13.35 ¥17.96 72
Gordon GGM ¥1.47 ¥3.05 ¥4.84 70
All 17 models by family
DCF Models
Owner Earnings ¥8.98 ¥19.48 ¥40.15 31
Earnings-Based
Graham-Dodd ¥5.93 ¥36.45 ¥50.87 54
Lynch FV ¥10.45 ¥14.93 ¥19.41 50
PEG = 1.0 ¥10.45 ¥14.93 ¥19.41 46
EPV ¥7.44 ¥8.78 ¥9.94 59
Dividend Discount
Gordon GGM ¥1.47 ¥3.05 ¥4.84 70
DDM Multi-Stage ¥1.47 ¥2.57 ¥3.20 61
Multiples
P/E Multiple ¥11.12 ¥14.83 ¥18.54 63
P/S Multiple ¥6.75 ¥9.00 ¥11.26 58
P/B Multiple ¥11.10 ¥14.80 ¥18.50 55
EV/EBIT ¥9.24 ¥12.51 ¥15.79 53
EV/EBITDA ¥8.87 ¥12.01 ¥15.16 54
EV/Revenue ¥5.73 ¥8.43 ¥11.13 43
Asset-Based
NCAV (Graham) ¥2.47 ¥3.31 ¥4.93 50
Economic Profit
Residual Income ¥5.81 ¥7.88 ¥31.51 76
ROIC Compounder ¥8.91 ¥13.35 ¥17.96 72
Growth Earnings
Growth-Adj P/E ¥13.73 ¥19.61 ¥25.49 68

Widest divergence: Growth Earnings (¥19.61) versus Dividend Discount (¥2.57). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 4.7B CNY
Revenue growth (YoY) +17.1%
Net margin 14.1%
Return on equity 18.4%
Free cash flow −81.0M CNY FY2025
P/E ratio 36.0
More key figures
Operating margin 13.9%
EPS (TTM) ¥0.8900
Dividend yield 0.5%
Net debt 697M CNY FY2025

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

Quality Score breakdown

Overall quality 41/100

Of which business quality 42 · Market factors (momentum, volatility) 53

Profitability 57
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 38
Disciplined investing over empire-building
Low Volatility 37
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 75
Distance to the 52-week high (market factor)
Net Issuance 0
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

Hubei Zhenhua Chemical Co.,Ltd. engages in the research, development, manufacture, and sale of chromium salt and other related products primarily in China.

Full company description

Hubei Zhenhua Chemical Co.,Ltd. engages in the research, development, manufacture, and sale of chromium salt and other related products primarily in China. The company provides sodium bichromate and Dichromate, Chromic Trioxide, chromic acid anhydride, crystal chromic acid anhydride, liquid chromic anhydride, chrome oxide green, potassium dichromate, chrome sulphate, vitamin K3, sodium sulphate, aluminium hydroxide, and other products, as well as metal chrome. It also exports its products to various countries and regions in Europe, the United States, Africa, and Southeast Asia. The company was formerly known as Huanghsi Zhenhua Chemical Industry Co., Ltd. Hubei Zhenhua Chemical Co.,Ltd. was founded in 2003 and is headquartered in Huangshi, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hubei Zhenhua Chemical Co reported revenue of ¥4.5B in FY2025 versus ¥3.0B in FY2021, a compound +10.9%/yr. Reported net income was ¥659M in FY2025, compounding +20.7%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
4.5B CNY
Latest YoY
+11.5%
Avg. growth/yr (3Y)
+8.7%
Avg. growth/yr (5Y)
+28.8%
Avg. growth/yr (14Y)
+16.8%
Revenue +10.9%/yr
FY21 ¥3.0B
FY22 ¥3.5B
FY23 ¥3.7B
FY24 ¥4.1B
FY25 ¥4.5B
Net income +20.7%/yr
FY21 ¥311M
FY22 ¥417M
FY23 ¥371M
FY24 ¥473M
FY25 ¥659M

603067 screens 69% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "Hubei Zhenhua Chemical Co Fair Value". https://www.fairvalue-calculator.com/stock/603067

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 41 · Bottom 25%
Fair Value upside −69% · Bottom 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth 17% · Above median
Dividend yield (TTM) 0.5% · Below median
Debt / equity 0.19× · Higher than median

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 37.1× · Pricier than median
P/B 6.69× · Pricier than 75% of peers
P/S (TTM) 5.29× · Pricier than 75% of peers
EV/EBITDA 27.4× · 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 86 · sector 20
PAST 74 · sector 19
HEALTH 91 · sector 94
DIVIDEND 10 · 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 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%

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Frequently asked questions

Is Hubei Zhenhua Chemical Co (603067) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥10.34 versus a price of ¥33.00, about −69% (overvalued).
What is the fair value of 603067?
Our model-based fair value for Hubei Zhenhua Chemical Co is ¥10.34 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥33.00.
What is the quality score of 603067?
Hubei Zhenhua Chemical Co has a Quality Score of 41/100. 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 Hubei Zhenhua Chemical Co (603067)?
Hubei Zhenhua Chemical Co reported trailing-twelve-month revenue of about 4.7B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603067?
The net profit margin of Hubei Zhenhua Chemical Co is about 14.1%, meaning it keeps roughly 14.1% of revenue as net income. Based on the latest reported figures.
Does Hubei Zhenhua Chemical Co pay a dividend?
Hubei Zhenhua Chemical Co currently shows a dividend yield of about 0.50% 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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