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Zhejiang Jihua Group (603980) Fair Value & Analysis

Basic Materials · CN · Market cap 4.0B CNY

ZJ Zhejiang Jihua Group 603980 · SHG
Price¥6.81
Fair Value¥2.72
Upside-60.1%
Quality59/100
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Weak Growth
Thin margins · 5.9% net margin
Low debt · generates free cash flow
2.60% dividend yield
Mixed vs. peers (6/14)
Narrow moat 27/100
Evidence: High Range ¥2.04 – ¥3.40 Share as image

Fair value as of: Jul 12, 2026

From 24 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥1.56 to ¥2.72 (+74.4%) since Jun 24, 2026. Share price +14.5% 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 (¥3.40). The favourable scenario is already priced in.
  • Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥8.72 ¥2.95 Fair Value ¥2.72 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥2.95 – ¥8.72 · fair‑value band ¥2.04 – ¥3.40 · the ¥6.81 price screens above the ¥2.72 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Zhejiang Jihua Group (603980) currently trades at ¥6.81, while our model-based Fair Value estimate is ¥2.72, implying the stock looks roughly 60.1% overvalued today. The Quality Score stands at 59/100 (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 Jihua Group generated revenue of 1.6B CNY at a net margin of 5.9%. Revenue grew 20.9% year over year. It earns a return on equity of 2.3%. The balance sheet holds a net cash position of 862M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥2.04 (bear case) to ¥3.40 (bull case); at ¥6.81, 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 44% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -60%, 603980 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 ¥2.13 ¥2.30 ¥2.59 80
Residual Income ¥3.97 ¥3.76 ¥2.79 76
Rev-Margin DCF ¥1.92 ¥2.03 ¥2.16 74
All 24 models by family
DCF Models
FCF DCF ¥2.11 ¥2.29 ¥2.61 38
Owner Earnings ¥4.02 ¥4.89 ¥6.47 31
5Y Revenue Exit ¥1.92 ¥2.02 ¥2.15 39
5Y EBITDA Exit ¥2.66 ¥3.30 ¥4.14 41
5Y P/E Exit ¥2.34 ¥2.74 ¥3.21 38
10Y Revenue Exit ¥1.99 ¥2.06 ¥2.14 36
10Y EBITDA Exit ¥2.43 ¥2.84 ¥3.28 37
10Y P/E Exit ¥2.24 ¥2.50 ¥2.75 35
Earnings-Based
Graham-Dodd ¥0.5500 ¥0.6700 ¥0.7500 54
EPV ¥1.72 ¥1.73 ¥1.75 59
Dividend Discount
Gordon GGM ¥0.6200 ¥0.6800 ¥0.7600 70
DDM Multi-Stage ¥0.6200 ¥0.7700 ¥0.9700 61
Multiples
P/E Multiple ¥1.02 ¥1.36 ¥1.70 63
P/S Multiple ¥1.02 ¥1.36 ¥1.70 58
P/B Multiple ¥1.02 ¥1.36 ¥1.70 55
EV/EBIT ¥1.85 ¥1.92 ¥2.00 53
EV/EBITDA ¥3.27 ¥3.82 ¥4.37 54
EV/Revenue ¥1.82 ¥1.90 ¥1.99 43
Asset-Based
NCAV (Graham) ¥2.90 ¥3.88 ¥5.80 50
Growth DCF
Growth DCF ¥2.13 ¥2.30 ¥2.59 80
Rev-Margin DCF ¥1.92 ¥2.03 ¥2.16 74
Economic Profit
Residual Income ¥3.97 ¥3.76 ¥2.79 76
ROIC Compounder ¥1.72 ¥1.73 ¥1.75 72
Growth Earnings
Growth-Adj P/E ¥0.7300 ¥1.04 ¥1.35 68

Widest divergence: Asset-Based (¥3.88) versus Earnings-Based (¥0.6700). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.6B CNY
Revenue growth (YoY) +20.9%
Net margin 5.9%
Return on equity 2.3%
Free cash flow 35.8M CNY FY2025
P/E ratio 83.7
More key figures
Operating margin 2.3%
EPS (TTM) ¥0.0700
Dividend yield 2.6%
EPS growth (YoY) -63.3%
Net cash 862M CNY FY2024

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 57

Profitability 19
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 58
Price trend over the last 3–12 months (market factor)
52W Momentum 52
Distance to the 52-week high (market factor)
Net Issuance 90
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 Jihua Group Co., Ltd. operates in the dyestuff industry. The company produces and sells disperse, reactive, ECO series dyes, direct, and high sunlight HLF series dyes. It also provides kun, non-stick, ceramic, and high temperature resistant coatings; polyurethane products; and pharmaceutical health care products. It also exports its products.

Full company description

Zhejiang Jihua Group Co., Ltd. operates in the dyestuff industry. The company produces and sells disperse, reactive, ECO series dyes, direct, and high sunlight HLF series dyes. It also provides kun, non-stick, ceramic, and high temperature resistant coatings; polyurethane products; and pharmaceutical health care products. It also exports its products. The company was founded in 2003 and is headquartered in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Jihua Group reported revenue of ¥1.5B in FY2025 versus ¥2.3B in FY2021, a compound −9.3%/yr. Reported net income was ¥54.3M in FY2025, compounding −20.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.5B CNY
Latest YoY
−7.0%
Avg. growth/yr (3Y)
−7.6%
Avg. growth/yr (5Y)
−3.6%
Avg. growth/yr (13Y)
−1.4%
Revenue −9.3%/yr
FY21 ¥2.3B
FY22 ¥1.9B
FY23 ¥1.7B
FY24 ¥1.6B
FY25 ¥1.5B
Net income −20.6%/yr
FY21 ¥136M
FY22 −¥210M
FY23 −¥241M
FY24 ¥170M
FY25 ¥54.3M

603980 screens 60% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Zhejiang Jihua Group Fair Value". https://www.fairvalue-calculator.com/stock/603980

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 59 · Above median
Fair Value upside −60% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 6% · Above median
Operating margin (TTM) 2% · Below median
Revenue growth 21% · Top 25%
Dividend yield (TTM) 2.6% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 83.7× · Pricier than 75% of peers
P/B 1.01× · Cheaper than median
P/S (TTM) 2.49× · Pricier than median
P/FCF 16.5× · Pricier than 75% of peers
EV/EBITDA 19.4× · 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 100 · sector 19
PAST 9 · sector 23
HEALTH 100 · sector 95
DIVIDEND 52 · 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 Jul 12, 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 Zhejiang Jihua Group (603980) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥2.72 versus a price of ¥6.81, about −60% (overvalued).
What is the fair value of 603980?
Our model-based fair value for Zhejiang Jihua Group is ¥2.72 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥6.81.
What is the quality score of 603980?
Zhejiang Jihua Group has a Quality Score of 59/100. 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 Jihua Group (603980)?
Zhejiang Jihua Group reported trailing-twelve-month revenue of about 1.6B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 603980?
The net profit margin of Zhejiang Jihua Group is about 5.9%, meaning it keeps roughly 5.9% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Jihua Group pay a dividend?
Zhejiang Jihua Group currently shows a dividend yield of about 2.60% relative to its recent price (as of Jul 12, 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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