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600516:SSEFangDa Carbon New Material Co., Ltd. Class A Analysis

Data as of 2026-03-16 - not real-time

CN¥6.61

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

FangDa Carbon shows a bullish technical backdrop – the 20‑day SMA (6.30) sits above the 50‑day (6.03) and 200‑day (5.44) averages, MACD is positive and the price trades comfortably above the near‑term support of 5.60.
However, fundamentals are markedly weak: a trailing PE of 330.5 versus an industry average of ~34, negative operating margins, operating cash flow deficits and a debt‑to‑equity ratio above 8 signal severe overvaluation. The DCF fair value (~1.57 CNY) is far below the current price (6.61 CNY) and the dividend payout exceeds earnings, making the 0.77% yield unsustainable.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 5/10

Key Factors

  • Bullish MACD and SMA alignment
  • Price above immediate support level
  • Increasing trading volume

Medium Term

1–3 years
Cautious
Model confidence: 7/10

Key Factors

  • PE far above industry average
  • Negative operating cash flow and margins
  • DCF fair value far below market price

Long Term

> 3 years
Cautious
Model confidence: 8/10

Key Factors

  • Unsustainable dividend payout ratio >100%
  • High debt‑to‑equity ratio indicating leverage risk
  • Persistent profitability weakness

Key Metrics & Analysis

Financial Health

Revenue Growth16.60%
Profit Margin1.27%
P/E Ratio330.5
ROE-0.05%
ROA-1.03%
Debt/Equity8.11
P/B Ratio1.5
Op. Cash FlowCN¥-449239936
Free Cash FlowCN¥55.4M
Industry P/E33.7

Technical Analysis

TrendBullish
RSI56.2
SupportCN¥5.60
ResistanceCN¥7.29
MA 20CN¥6.30
MA 50CN¥6.03
MA 200CN¥5.44
MACDBullish
VolumeIncreasing
Fear & Greed Index74.91

Valuation

Fair ValueCN¥1.57
GradeOvervalued
TypeValue
Dividend Yield0.77%

Risk Assessment

Beta0.32
Volatility55.19%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
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.