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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%).

Market Outlook

Short Term

< 1 year
Positive
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 years
Neutral
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 years
Positive
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

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.