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Shandong Hualu-Hengsheng Chemical

Market Cap

CN¥57.7b

Last Updated

2021/04/11 09:17 UTC

Data Sources

Company Financials +

Executive Summary

Shandong Hualu-Hengsheng Chemical Co., Ltd. More Details


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.

Share Price & News

How has Shandong Hualu-Hengsheng Chemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600426 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 600426's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of CN stocks.


Market Performance


7 Day Return

-5.7%

600426

0.07%

CN Chemicals

-1.1%

CN Market


1 Year Return

116.3%

600426

54.6%

CN Chemicals

28.4%

CN Market

Return vs Industry: 600426 exceeded the CN Chemicals industry which returned 54.6% over the past year.

Return vs Market: 600426 exceeded the CN Market which returned 28.4% over the past year.


Shareholder returns

600426IndustryMarket
7 Day-5.7%0.07%-1.1%
30 Day-5.1%-0.5%1.0%
90 Day-18.3%0.5%-5.8%
1 Year120.3%116.3%56.9%54.6%30.4%28.4%
3 Year120.4%111.8%23.5%18.5%25.9%19.9%
5 Year409.8%382.4%33.0%25.4%23.6%15.5%

Long-Term Price Volatility Vs. Market

How volatile is Shandong Hualu-Hengsheng Chemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shandong Hualu-Hengsheng Chemical 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: 600426 (CN¥35.48) is trading below our estimate of fair value (CN¥72.81)

Significantly Below Fair Value: 600426 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 600426 is good value based on its PE Ratio (32.1x) compared to the CN Chemicals industry average (34.8x).

PE vs Market: 600426 is good value based on its PE Ratio (32.1x) compared to the CN market (33.9x).


Price to Earnings Growth Ratio

PEG Ratio: 600426 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 600426 is overvalued based on its PB Ratio (3.7x) compared to the CN Chemicals industry average (2.8x).


Future Growth

How is Shandong Hualu-Hengsheng Chemical forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600426's forecast earnings growth (26.3% per year) is above the savings rate (3.3%).

Earnings vs Market: 600426's earnings (26.3% per year) are forecast to grow faster than the CN market (23.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 600426's revenue (16.2% per year) is forecast to grow slower than the CN market (17.9% per year).

High Growth Revenue: 600426's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600426's Return on Equity is forecast to be low in 3 years time (17.6%).


Past Performance

How has Shandong Hualu-Hengsheng Chemical performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600426 has high quality earnings.

Growing Profit Margin: 600426's current net profit margins (13.7%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: 600426's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: 600426's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600426 had negative earnings growth (-26.6%) over the past year, making it difficult to compare to the Chemicals industry average (10%).


Return on Equity

High ROE: 600426's Return on Equity (11.5%) is considered low.


Financial Health

How is Shandong Hualu-Hengsheng Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: 600426's short term assets (CN¥3.3B) do not cover its short term liabilities (CN¥3.7B).

Long Term Liabilities: 600426's short term assets (CN¥3.3B) exceed its long term liabilities (CN¥1.2B).


Debt to Equity History and Analysis

Debt Level: 600426's debt to equity ratio (15.5%) is considered satisfactory.

Reducing Debt: 600426's debt to equity ratio has reduced from 42.3% to 15.5% over the past 5 years.

Debt Coverage: 600426's debt is well covered by operating cash flow (123.6%).

Interest Coverage: 600426's interest payments on its debt are well covered by EBIT (43.7x coverage).


Balance Sheet


Dividend

What is Shandong Hualu-Hengsheng Chemical current dividend yield, its reliability and sustainability?

0.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600426's dividend (0.85%) is higher than the bottom 25% of dividend payers in the CN market (0.43%).

High Dividend: 600426's dividend (0.85%) is low compared to the top 25% of dividend payers in the CN market (1.81%).


Stability and Growth of Payments

Stable Dividend: 600426's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600426's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.1%), 600426's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600426's dividends in 3 years are forecast to be well covered by earnings (25.6% payout ratio).


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Huai Chun Chang (51 yo)

10.33yrs

Tenure

Mr. Huai Chun Chang has been General Manager of Shandong Hualu Hengsheng Chemical Co. Ltd. since December 2010 and served as its President. Mr. Chang has been the Chairman of Shandong Hualu Hengsheng Chemi...


Leadership Team

Experienced Management: 600426's management team is seasoned and experienced (9 years average tenure).


Board Members

Experienced Board: 600426's board of directors are considered experienced (6 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

Shandong Hualu-Hengsheng Chemical Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shandong Hualu-Hengsheng Chemical Co., Ltd.
  • Ticker: 600426
  • Exchange: SHSE
  • Founded: 2000
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: CN¥57.714b
  • Shares outstanding: 1.63b
  • Website: https://www.hl-hengsheng.com

Number of Employees


Location

  • Shandong Hualu-Hengsheng Chemical Co., Ltd.
  • 24 West Tianqu Road
  • Decheng District
  • Dezhou
  • Shandong Province
  • 253024
  • China

Listings


Biography

Shandong Hualu-Hengsheng Chemical Co., Ltd. manufactures and sells chemical products worldwide. The company offers ammonia alcohol, compound fertilizers, water-soluble fertilizers, mixed methylamine, aceti...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 09:17
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
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.