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

Data as of 2026-05-28 - not real-time

CN¥11.27

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Zhejiang Longsheng is trading below its short‑term moving averages, indicating a bearish technical bias, yet the Relative Strength Index sits in the oversold zone, hinting at a possible short‑term rebound. The MACD histogram remains negative, reinforcing current downside momentum, while price hovers just above a key support level that has held in recent sessions. Volatility is elevated, but the beta figure is low, suggesting the stock’s moves are more company‑specific than market‑driven. On the fundamentals side, the firm delivers solid double‑digit revenue growth and respectable profit margins, underpinning a healthy earnings profile. Debt levels are elevated relative to equity, but the company’s cash reserves and free cash flow are robust, cushioning leverage concerns. A dividend yield that stands out in the sector, combined with a payout ratio comfortably below the typical ceiling, points to a sustainable income stream. The discounted cash‑flow analysis signals a fair value substantially above the current market price, implying a sizable upside potential. Forward earnings multiples are markedly cheaper than trailing figures, further emphasizing valuation attractiveness. The market sentiment index is in the extreme greed zone, which may be inflating prices elsewhere but has yet to lift this stock. Overall, the convergence of undervaluation, strong cash generation, and a generous dividend makes the stock a compelling candidate for value‑oriented investors.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • price near technical support
  • oversold RSI signal
  • bearish MACD alignment

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • significant valuation gap to DCF fair value
  • strong earnings growth trajectory
  • attractive dividend yield

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • robust cash generation and balance sheet strength
  • potential sector recovery in specialty chemicals
  • long‑term upside implied by forward earnings multiples

Key Metrics & Analysis

Financial Health

Revenue Growth11.80%
Profit Margin14.39%
P/E Ratio18.8
ROE6.18%
ROA1.74%
Debt/Equity79.44
P/B Ratio1.1
Op. Cash FlowCN¥3.7B
Free Cash FlowCN¥4.2B

Technical Analysis

TrendNeutral
RSI31.2
SupportCN¥11.09
ResistanceCN¥13.60
MA 20CN¥12.15
MA 50CN¥12.83
MA 200CN¥11.89
MACDBearish
VolumeDecreasing
Fear & Greed Index93.46

Valuation

Fair ValueCN¥26.55
GradeUndervalued
TypeBlend
Dividend Yield3.99%

Risk Assessment

Beta0.11
Volatility26.03%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

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.