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Zhejiang Wanfeng Chemical Co (603172) Fair Value & Analysis

Basic Materials · CN · Market cap 2.6B CNY

ZW Zhejiang Wanfeng Chemical Co 603172 · SHG
Price¥17.53
Fair Value¥6.15
Upside-64.9%
Quality38/100
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Weak Growth
Thin margins · 8.7% net margin
Low debt · negative free cash flow
0.37% dividend yield
Trails peers (4/13)
Narrow moat 38/100
Evidence: Medium Range ¥4.61 – ¥6.86 Share as image

Fair value as of: Jul 11, 2026

From 15 valuation models · updated 30 days ago

Fair value updated Jul 11, 2026, revised from ¥6.43 to ¥6.15 (−4.4%) since Jun 24, 2026. Share price +5.8% over the past month.

Below-average quality, and screening another 65% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥6.86). The favourable scenario is already priced in.
  • Weak quality (38/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (3 years)

¥31.02 ¥10.73 Fair Value ¥6.15 May 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

39‑month range ¥10.73 – ¥31.02 · fair‑value band ¥4.61 – ¥6.86 · the ¥17.53 price screens above the ¥6.15 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Zhejiang Wanfeng Chemical Co (603172) currently trades at ¥17.53, while our model-based Fair Value estimate is ¥6.15, implying the stock looks roughly 64.9% overvalued today. The Quality Score stands at 38/100 (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: medium).

Over the trailing twelve months, Zhejiang Wanfeng Chemical Co generated revenue of 598M CNY at a net margin of 8.7%. Revenue grew 37.7% year over year. It earns a return on equity of 4.8%. The stock trades on a trailing P/E of 50.6. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥4.61 (bear case) to ¥6.86 (bull case); at ¥17.53, 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 43% below its 52-week high and 22% 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 -65%, 603172 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ¥6.11 ¥6.07 ¥5.50 76
ROIC Compounder ¥5.88 ¥6.35 ¥6.76 72
Gordon GGM ¥1.04 ¥1.33 ¥1.61 70
All 15 models by family
DCF Models
Owner Earnings ¥3.57 ¥3.80 ¥4.22 31
Earnings-Based
Graham-Dodd ¥2.46 ¥4.34 ¥5.33 54
EPV ¥5.88 ¥6.35 ¥6.76 59
Dividend Discount
Gordon GGM ¥1.04 ¥1.33 ¥1.61 70
DDM Multi-Stage ¥1.04 ¥1.40 ¥1.81 61
Multiples
P/E Multiple ¥4.61 ¥6.15 ¥7.69 63
P/S Multiple ¥4.61 ¥6.15 ¥7.69 58
P/B Multiple ¥4.61 ¥6.15 ¥7.69 55
EV/EBIT ¥7.26 ¥8.72 ¥10.18 53
EV/EBITDA ¥8.01 ¥9.71 ¥11.42 54
EV/Revenue ¥6.68 ¥8.30 ¥9.93 43
Asset-Based
NCAV (Graham) ¥4.11 ¥5.51 ¥8.23 50
Economic Profit
Residual Income ¥6.11 ¥6.07 ¥5.50 76
ROIC Compounder ¥5.88 ¥6.35 ¥6.76 72
Growth Earnings
Growth-Adj P/E ¥3.29 ¥4.69 ¥6.10 68

Widest divergence: Multiples (¥6.15) versus Dividend Discount (¥1.33). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 598M CNY
Revenue growth (YoY) +37.7%
Net margin 8.7%
Return on equity 4.8%
Free cash flow −46.2M CNY FY2025
P/E ratio 50.6
More key figures
Operating margin 11.7%
EPS (TTM) ¥0.3800
Dividend yield 0.4%
EPS growth (YoY) +25.0%

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 38/100

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

Profitability 28
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 9
Earnings quality: real cash, not paper profit
Fin. Strength 95
Balance sheet, leverage, solvency risk
Investment 12
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 40
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

Zhejiang Wanfeng Chemical Co.,Ltd. engages in the research, development, production, and sale of disperse dyes and filter cakes in China and internationally. Zhejiang Wanfeng Chemical Co.,Ltd. was founded in 2003 and is based in Shaoxing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Wanfeng Chemical Co reported revenue of ¥552M in FY2025 versus ¥564M in FY2021, a compound −0.5%/yr. Reported net income was ¥48.3M in FY2025, compounding −10.5%/yr from FY2021.

Growth Quality 26/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
552M CNY
Latest YoY
+3.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.4%
Revenue −0.5%/yr
FY21 ¥564M
FY22 ¥545M
FY23 ¥504M
FY24 ¥535M
FY25 ¥552M
Net income −10.5%/yr
FY21 ¥75.1M
FY22 ¥67.6M
FY23 ¥40.5M
FY24 ¥38.3M
FY25 ¥48.3M

603172 screens 65% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Zhejiang Wanfeng Chemical Co Fair Value". https://www.fairvalue-calculator.com/stock/603172

Peer Group

Specialty Chemicals · 673 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 38 · Bottom 25%
Fair Value upside −65% · Bottom 25%
Return on equity (TTM) 5% · Below median
Return on assets 3% · Below median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 12% · Above median
Revenue growth 38% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.03× · Lower than median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 50.6× · Pricier than 75% of peers
P/B 2.34× · Pricier than median
P/S (TTM) 4.29× · Pricier than 75% of peers
EV/EBITDA 21.7× · 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 100 · sector 19
PAST 19 · sector 23
HEALTH 99 · sector 95
DIVIDEND 7 · 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

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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 Zhejiang Wanfeng Chemical Co (603172) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥6.15 versus a price of ¥17.53, about −65% (overvalued).
What is the fair value of 603172?
Our model-based fair value for Zhejiang Wanfeng Chemical Co is ¥6.15 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥17.53.
What is the quality score of 603172?
Zhejiang Wanfeng Chemical Co has a Quality Score of 38/100. 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 Zhejiang Wanfeng Chemical Co (603172)?
Zhejiang Wanfeng Chemical Co reported trailing-twelve-month revenue of about 598M CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603172?
The net profit margin of Zhejiang Wanfeng Chemical Co is about 8.7%, meaning it keeps roughly 8.7% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Wanfeng Chemical Co pay a dividend?
Zhejiang Wanfeng Chemical Co currently shows a dividend yield of about 0.37% relative to its recent price (as of Jul 11, 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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