SHSE:600309

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Wanhua Chemical Group

Market Cap

CN¥335.1b

Last Updated

2021/06/22 15:24 UTC

Data Sources

Company Financials +

Executive Summary

Wanhua Chemical Group Co., Ltd. engages in the research and development, production, and sale of polyurethane series products, petrochemical products, and fine chemicals and new materials worldwide. More Details


Snowflake Analysis

Good value with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Wanhua Chemical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600309 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 600309's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-7.0%

600309

1.4%

CN Chemicals

1.7%

CN Market


1 Year Return

122.3%

600309

54.0%

CN Chemicals

21.4%

CN Market

Return vs Industry: 600309 exceeded the CN Chemicals industry which returned 52.3% over the past year.

Return vs Market: 600309 exceeded the CN Market which returned 21.1% over the past year.


Shareholder returns

600309IndustryMarket
7 Day-7.0%1.4%1.7%
30 Day3.1%6.3%2.9%
90 Day5.3%15.1%8.7%
1 Year124.9%122.3%55.7%54.0%23.0%21.4%
3 Year152.4%130.3%62.3%54.9%52.1%44.9%
5 Year747.6%629.8%47.1%38.4%31.8%23.4%

Long-Term Price Volatility Vs. Market

How volatile is Wanhua Chemical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Wanhua Chemical Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600309 (CN¥105) is trading below our estimate of fair value (CN¥269.27)

Significantly Below Fair Value: 600309 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 600309 is good value based on its PE Ratio (21.6x) compared to the CN Chemicals industry average (28.5x).

PE vs Market: 600309 is good value based on its PE Ratio (21.6x) compared to the CN market (31.8x).


Price to Earnings Growth Ratio

PEG Ratio: 600309 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 600309 is overvalued based on its PB Ratio (6x) compared to the CN Chemicals industry average (2.7x).


Future Growth

How is Wanhua Chemical Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600309's forecast earnings growth (8.8% per year) is above the savings rate (3.3%).

Earnings vs Market: 600309's earnings (8.8% per year) are forecast to grow slower than the CN market (21.4% per year).

High Growth Earnings: 600309's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600309's revenue (9.9% per year) is forecast to grow slower than the CN market (17.3% per year).

High Growth Revenue: 600309's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600309's Return on Equity is forecast to be high in 3 years time (27.1%)


Past Performance

How has Wanhua Chemical Group performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600309 has a high level of non-cash earnings.

Growing Profit Margin: 600309's current net profit margins (17.1%) are higher than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: 600309's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: 600309's earnings growth over the past year (75.5%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: 600309 earnings growth over the past year (75.5%) exceeded the Chemicals industry 41.4%.


Return on Equity

High ROE: Whilst 600309's Return on Equity (27.06%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Wanhua Chemical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 600309's short term assets (CN¥53.5B) do not cover its short term liabilities (CN¥76.6B).

Long Term Liabilities: 600309's short term assets (CN¥53.5B) exceed its long term liabilities (CN¥16.4B).


Debt to Equity History and Analysis

Debt Level: 600309's debt to equity ratio (106.7%) is considered high.

Reducing Debt: 600309's debt to equity ratio has reduced from 169.1% to 106.7% over the past 5 years.

Debt Coverage: 600309's debt is well covered by operating cash flow (27.5%).

Interest Coverage: 600309's interest payments on its debt are well covered by EBIT (45.5x coverage).


Balance Sheet


Dividend

What is Wanhua Chemical Group current dividend yield, its reliability and sustainability?

1.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600309's dividend (1.24%) is higher than the bottom 25% of dividend payers in the CN market (0.44%).

High Dividend: 600309's dividend (1.24%) is low compared to the top 25% of dividend payers in the CN market (1.85%).


Stability and Growth of Payments

Stable Dividend: 600309's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600309's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.7%), 600309's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600309's dividends in 3 years are forecast to be well covered by earnings (40.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Guangwu Kou (54 yo)

2.17yrs

Tenure

CN¥4,246,200

Compensation

Mr. GuangWu Kou ha been President of Wanhua Chemical Group Co., Ltd. since April 20, 2019. Mr. Kou served as the Chief Financial officer and Chief Accountant of Wanhua Chemical Group Co., Ltd. until April ...


Leadership Team

Experienced Management: 600309's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: 600309's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wanhua Chemical Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wanhua Chemical Group Co., Ltd.
  • Ticker: 600309
  • Exchange: SHSE
  • Founded: 1998
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: CN¥335.105b
  • Shares outstanding: 3.14b
  • Website: https://www.whchem.com

Number of Employees


Location

  • Wanhua Chemical Group Co., Ltd.
  • No.17, Tianshan Road
  • YEDA
  • Yantai
  • Shandong Province
  • 264006
  • China

Listings


Biography

Wanhua Chemical Group Co., Ltd. engages in the research and development, production, and sale of polyurethane series products, petrochemical products, and fine chemicals and new materials worldwide. The co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/22 15:24
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.