600352:SSEZhejiang Longsheng Group Co. Ltd. Class A Analysis

Zhejiang Longsheng’s share price sits well below its discounted cash‑flow estimate, making the stock appear markedly cheap on a valuation basis. The price‑earnings multiple sits in the high‑twenties while the forward multiple is in the high‑teens, and the dividend yield exceeds three percent, but the payout ratio is above one, raising questions about dividend sustainability. Revenue has been contracting and gross margins are modest, yet operating cash flow remains robust and the company holds a sizable cash balance, offset by a debt load that is high relative to equity.
On the technical side, the price is above its fifty‑day moving average but below the twenty‑day average, and the SMA hierarchy (20 > 50 > 200) points to a bullish medium‑term trend. However, the MACD shows bearish momentum and the RSI hovers near the midpoint, while volume has been slipping and recent volatility is elevated. Beta is low, suggesting limited sensitivity to broader market moves, but sector‑specific and regulatory risks in specialty chemicals, combined with concentration in China, add a moderate‑to‑high risk overlay.