EN DE

Jinan Shengquan Group (605589) Fair Value & Analysis

Basic Materials · CN · Market cap 49.4B CNY

JS Jinan Shengquan Group 605589 · SHG
Price¥42.38
Fair Value¥17.95
Upside-57.7%
Quality47/100
Watch Jinan Shengquan Group for free, get notified when fair value or trend changes. Watch for free
Expensive Growth
Thin margins · 8.8% net margin
Low debt · negative free cash flow
1.08% dividend yield
Mixed vs. peers (6/13)
Narrow moat 40/100
Evidence: Medium Range ¥12.57 – ¥23.34 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 29 days ago

Share price −21.5% over the past month.

Below-average quality, and screening another 58% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥23.34). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥12.57 to ¥23.34) leaves room in how you read the outcome.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

¥73.52 ¥14.92 Fair Value ¥17.95 Aug 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 ¥14.92 – ¥73.52 · fair‑value band ¥12.57 – ¥23.34 · the ¥42.38 price screens above the ¥17.95 fair value. Dashed = 300-day average. As of Jul 12, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Jinan Shengquan Group (605589) currently trades at ¥42.38, while our model-based Fair Value estimate is ¥17.95, implying the stock looks roughly 57.7% overvalued today. The Quality Score stands at 47/100 (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, Jinan Shengquan Group generated revenue of 11.1B CNY at a net margin of 8.8%. Revenue grew 8.6% year over year. It earns a return on equity of 9.1%. Net debt stands at 1.4B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥12.57 (bear case) to ¥23.34 (bull case); at ¥42.38, 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 34% below its 52-week high and 67% 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 -58%, 605589 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 ¥10.93 ¥12.03 ¥16.94 76
ROIC Compounder ¥13.84 ¥18.22 ¥24.41 72
Gordon GGM ¥5.34 ¥11.11 ¥17.63 70
All 17 models by family
DCF Models
Owner Earnings ¥10.31 ¥17.29 ¥28.80 31
Earnings-Based
Graham-Dodd ¥8.09 ¥32.42 ¥44.08 54
Lynch FV ¥8.07 ¥11.52 ¥14.98 50
PEG = 1.0 ¥8.07 ¥11.52 ¥14.98 46
EPV ¥13.46 ¥15.64 ¥17.55 59
Dividend Discount
Gordon GGM ¥5.34 ¥11.11 ¥17.63 70
DDM Multi-Stage ¥5.34 ¥9.37 ¥11.66 61
Multiples
P/E Multiple ¥15.16 ¥20.22 ¥25.27 63
P/S Multiple ¥14.54 ¥19.38 ¥24.23 58
P/B Multiple ¥15.16 ¥20.22 ¥25.27 55
EV/EBIT ¥16.41 ¥21.75 ¥27.10 53
EV/EBITDA ¥16.81 ¥22.29 ¥27.77 54
EV/Revenue ¥13.93 ¥19.75 ¥25.56 43
Asset-Based
NCAV (Graham) ¥6.28 ¥8.42 ¥12.57 50
Economic Profit
Residual Income ¥10.93 ¥12.03 ¥16.94 76
ROIC Compounder ¥13.84 ¥18.22 ¥24.41 72
Growth Earnings
Growth-Adj P/E ¥12.57 ¥17.95 ¥23.34 68

Widest divergence: Multiples (¥20.22) versus Asset-Based (¥8.42). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 11.1B CNY
Revenue growth (YoY) +8.6%
Net margin 8.8%
Return on equity 9.1%
Free cash flow −574M CNY FY2025
P/E ratio 50.7
More key figures
Operating margin 9.4%
EPS (TTM) ¥1.15
Dividend yield 1.1%
EPS growth (YoY) -16.0%
Net debt 1.4B CNY FY2025

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

Quality Score breakdown

Overall quality 47/100

Of which business quality 47 · Market factors (momentum, volatility) 61

Profitability 41
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 15
Calm price path (market factor)
Momentum 88
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 54
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

Jinan Shengquan Group Share Holding Co., Ltd. engages in the research, development, production, and sales of synthetic resins and composite materials, and biomass chemical materials and related products in China and internationally.

Full company description

Jinan Shengquan Group Share Holding Co., Ltd. engages in the research, development, production, and sales of synthetic resins and composite materials, and biomass chemical materials and related products in China and internationally. The company offers biomass refining, such as cellulose, hemicellulose, and lignin; new energy products, including porous carbon, hard carbon, lithium titanate battery, modules, forklift power system, and portable energy storage power supply; and electronic chemicals comprising benzoxazine resin, bismaleimide, electronic grade phenolic resin, electronic grade epoxy resin, photoresist, and electrical insulating epoxy resin. It also provides casting materials, such as adhesive, coating, filter, riser, and other products; and health and medicines products. Jinan Shengquan Group Share Holding Co., Ltd. was founded in 1979 and is headquartered in Jinan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jinan Shengquan Group reported revenue of ¥10.9B in FY2025 versus ¥8.8B in FY2021, a compound +5.5%/yr. Reported net income was ¥1.0B in FY2025, compounding +10.0%/yr from FY2021.

Growth Quality 38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
10.9B CNY
Latest YoY
+9.1%
Avg. growth/yr (3Y)
+4.4%
Avg. growth/yr (5Y)
+5.6%
Avg. growth/yr (15Y)
+8.9%
Revenue +5.5%/yr
FY21 ¥8.8B
FY22 ¥9.6B
FY23 ¥9.1B
FY24 ¥10.0B
FY25 ¥10.9B
Net income +10.0%/yr
FY21 ¥688M
FY22 ¥703M
FY23 ¥789M
FY24 ¥868M
FY25 ¥1.0B

605589 screens 58% overvalued. Compare with BASF SE →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Jinan Shengquan Group Fair Value". https://www.fairvalue-calculator.com/stock/605589

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 47 · Below median
Fair Value upside −58% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.09× · Lower than median

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 50.7× · Pricier than 75% of peers
P/B 4.64× · Pricier than 75% of peers
P/S (TTM) 4.43× · Pricier than 75% of peers
EV/EBITDA 28.5× · 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 43 · sector 20
PAST 36 · sector 19
HEALTH 96 · sector 94
DIVIDEND 22 · 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 Jul 12, 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%

Compare Jinan Shengquan Group with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Basic Materials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Jinan Shengquan Group (605589) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥17.95 versus a price of ¥42.38, about −58% (overvalued).
What is the fair value of 605589?
Our model-based fair value for Jinan Shengquan Group is ¥17.95 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥42.38.
What is the quality score of 605589?
Jinan Shengquan Group has a Quality Score of 47/100. 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 Jinan Shengquan Group (605589)?
Jinan Shengquan Group reported trailing-twelve-month revenue of about 11.1B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605589?
The net profit margin of Jinan Shengquan Group is about 8.8%, meaning it keeps roughly 8.8% of revenue as net income. Based on the latest reported figures.
Does Jinan Shengquan Group pay a dividend?
Jinan Shengquan Group currently shows a dividend yield of about 1.08% 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.

14 days Pro free · no card

Track Jinan Shengquan Group and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.