600309:SSEWanhua Chemical Group Co. Ltd. Class A Analysis
Data as of 2026-06-19 - not real-time
CN¥69.05
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Wanhua Chemical (600309) is trading at ¥69.05, well under its DCF‑derived fair value of ¥285.8, indicating a substantial valuation gap. The stock sits below its 20‑day SMA (¥72.68) and 50‑day SMA (¥80.78), with an RSI of 36 pointing to oversold conditions, while the MACD histogram is positive and the signal line is bullish, suggesting short‑term technical upside.
Fundamentally, the company posted 25.5% revenue growth and a forward PE of 9.46, but carries a high debt‑to‑equity ratio of 118.7 and negative free cash flow, offset by a modest 1.78% dividend yield and a low payout ratio (≈17%).
Fundamentally, the company posted 25.5% revenue growth and a forward PE of 9.46, but carries a high debt‑to‑equity ratio of 118.7 and negative free cash flow, offset by a modest 1.78% dividend yield and a low payout ratio (≈17%).
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Technical oversold signal (RSI 36) and bullish MACD
- Large valuation discount to DCF fair value
- Increasing volume supporting price support
Medium Term
1–3 yearsNeutral
Model confidence: 6/10
Key Factors
- Strong revenue growth but high leverage (debt‑to‑equity 118.7)
- Sustained dividend yield with low payout ratio
- Moderate sector and regulatory exposure
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Fundamental growth upside in specialty chemicals and battery materials
- Significant undervaluation relative to intrinsic value
- Low beta (0.23) indicating limited market volatility
Key Metrics & Analysis
Financial Health
Revenue Growth25.50%
Profit Margin6.14%
P/E Ratio16.4
ROE12.98%
ROA3.50%
Debt/Equity118.68
P/B Ratio1.9
Op. Cash FlowCN¥39.4B
Free Cash FlowCN¥-1518247168
Technical Analysis
TrendNeutral
RSI36.4
SupportCN¥65.90
ResistanceCN¥79.40
MA 20CN¥72.68
MA 50CN¥80.78
MA 200CN¥75.41
MACDBullish
VolumeIncreasing
Fear & Greed Index92.14
Valuation
Fair ValueCN¥285.84
GradeUndervalued
TypeBlend
Dividend Yield1.78%
Risk Assessment
Beta0.23
Volatility34.59%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.