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600426:SSEShandong Hualu-Hengsheng Chemical Co., Ltd. Class A Analysis

Data as of 2026-07-30 - not real-time

CN¥21.94

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Shandong Hualu‑Hengsheng Chemical is trading at CNY 21.94, comfortably above its 20‑day (≈19.98) and 50‑day (≈20.72) moving averages but still under the 200‑day average (≈24.11), suggesting short‑term momentum within a longer‑term downtrend. The RSI sits at 61.8, indicating the stock is approaching overbought territory, while the MACD remains bullish with a positive histogram. Valuation metrics are stretched – the current price exceeds the DCF‑derived fair value of about CNY 15.55 and trades at a PE of 16.3 versus a forward PE of 11.5. The dividend yield of 2.05% is supported by a modest 31% payout ratio, but the balance sheet is leveraged (debt‑to‑equity ≈ 32) and free cash flow is slightly negative. High 30‑day volatility (≈45%) and a historic max drawdown of 42% heighten downside risk, though a negative beta reduces systematic market exposure.

Market Outlook

Short Term

< 1 year
Cautious
Model confidence: 7/10

Key Factors

  • Price near technical resistance at CNY 22.37
  • Current valuation above DCF fair value
  • Elevated short‑term volatility

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • Dividend yield of 2.05% with sustainable payout
  • Improving earnings outlook (forward EPS 1.9)
  • Debt level warrants caution

Long Term

> 3 years
Positive
Model confidence: 5/10

Key Factors

  • Stable dividend and reasonable ROE (~11%)
  • Potential price correction toward DCF value
  • Negative beta offering downside protection in market downturns

Key Metrics & Analysis

Financial Health

Revenue Growth7.40%
Profit Margin11.81%
P/E Ratio16.3
ROE11.61%
ROA6.24%
Debt/Equity32.31
P/B Ratio1.8
Op. Cash FlowCN¥4.2B
Free Cash FlowCN¥-65096360

Technical Analysis

TrendBearish
RSI61.8
SupportCN¥17.88
ResistanceCN¥22.37
MA 20CN¥19.98
MA 50CN¥20.72
MA 200CN¥24.11
MACDBullish
VolumeStable
Fear & Greed Index86.59

Valuation

Fair ValueCN¥15.55
GradeOvervalued
TypeBlend
Dividend Yield2.05%

Risk Assessment

Beta-0.25
Volatility45.21%
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.