Rongsheng Petrochemical (SZSE:002493) - Share price, News & Analysis

Q: What is the Fair Price of 2493 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002493 (CN¥16.4) is trading below our estimate of [[fair value]] (CN¥28.54)

2493 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	2/6
Dividends	3/6

2493 Stock Overview

Rongsheng Petrochemical Co., Ltd. produces, markets, and sells petrochemicals, chemical fibers, and other related products.

Rewards

Trading at 42.5% below our estimate of its fair value

Earnings are forecast to grow 11.88% per year

Earnings grew by 53% over the past year

Risk Analysis

Has a high level of debt

Dividend of 0.91% is not well covered by earnings

Rongsheng Petrochemical Competitors

Jiangsu Eastern Shenghong

SZSE:000301

CN¥147.4b

Hengli PetrochemicalLtd

SHSE:600346

CN¥145.6b

Yunnan Energy New Material

SZSE:002812

CN¥192.2b

Satellite ChemicalLtd

SZSE:002648

CN¥64.9b

Price History & Performance

Summary of all time highs, changes and price drops for Rongsheng Petrochemical
Historical stock prices
Current Share Price	CN¥16.40
52 Week High	CN¥23.33
52 Week Low	CN¥12.18
Beta	0.99
1 Month Change	12.95%
3 Month Change	15.01%
1 Year Change	-18.93%
3 Year Change	125.69%
5 Year Change	271.23%
Change since IPO	250.04%

Shareholder Returns

	2493	CN Chemicals	CN Market
7D	6.8%	3.9%	1.6%
1Y	-18.9%	-9.4%	-10.1%

Return vs Industry: 002493 underperformed the CN Chemicals industry which returned -9.4% over the past year.

Return vs Market: 002493 underperformed the CN Market which returned -10.1% over the past year.

Price Volatility

Is 2493's price volatile compared to industry and market?
2493 volatility
2493 Average Weekly Movement	5.3%
Chemicals Industry Average Movement	6.2%
Market Average Movement	6.0%
10% most volatile stocks in CN Market	9.1%
10% least volatile stocks in CN Market	3.9%

Stable Share Price: 002493 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 002493's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	19,331	Jiong Jiong Xiang	https://www.cnrspc.com

Rongsheng Petrochemical Co., Ltd. produces, markets, and sells petrochemicals, chemical fibers, and other related products. It offers synthetic fibers and films; olefins and downstream; aromatics and downstream; gasoline, diesel, and kerosene; purified terephthalic acid; polyester chips; polyester bottle flakes; polyester pre-oriented yarns; polyester fully drawn yarns; and polyester textured yarns. The company also provides polystyrene resin, ABS resin, SAN resin, styrene butadiene rubber, ion exchange resin, unsaturated resin, styrene thermoplastic elastomer, methyl methacrylate, and purified terephthalic acids; synthetic resins, such as low density polyethylene, linear low density polyethylene, high density polyethylene, and polypropylene; and polycarbonate, xylene, ethylene, methyl methacrylate, bisphenol A, and acrylonitrile.

Rongsheng Petrochemical Fundamentals Summary

How do Rongsheng Petrochemical's earnings and revenue compare to its market cap?
2493 fundamental statistics
Market Cap	CN¥166.06b
Earnings (TTM)	CN¥13.32b
Revenue (TTM)	CN¥211.04b

12.5x

P/E Ratio

0.8x

P/S Ratio

Is 2493 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2493 income statement (TTM)
Revenue	CN¥211.04b
Cost of Revenue	CN¥158.98b
Gross Profit	CN¥52.06b
Other Expenses	CN¥38.74b
Earnings	CN¥13.32b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.32
Gross Margin	24.67%
Net Profit Margin	6.31%
Debt/Equity Ratio	161.4%

How did 2493 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

11%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2493 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2493?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2493. This is calculated by dividing 2493's market cap by their current preferred multiple.
What is 2493's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥166.06b

2493 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	8.5x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does 2493's PE Ratio compare to its peers?

2493 PE Ratio vs Peers

The above table shows the PE ratio for 2493 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.6x
000301 Jiangsu Eastern Shenghong	39.4x	39.9%	CN¥147.4b
600346 Hengli PetrochemicalLtd	9.3x	20.7%	CN¥145.6b
002812 Yunnan Energy New Material	60.1x	36.2%	CN¥192.2b
002648 Satellite ChemicalLtd	9.6x	20.2%	CN¥64.9b
002493 Rongsheng Petrochemical	12.5x	11.9%	CN¥166.1b

Price-To-Earnings vs Peers: 002493 is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (29.6x).

Price to Earnings Ratio vs Industry

How does 2493's PE Ratio compare vs other companies in the CN Chemicals Industry?

Price-To-Earnings vs Industry: 002493 is good value based on its Price-To-Earnings Ratio (12.5x) compared to the CN Chemicals industry average (30x)

Price to Earnings Ratio vs Fair Ratio

What is 2493's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2493 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.5x
Fair PE Ratio	21.2x

Price-To-Earnings vs Fair Ratio: 002493 is good value based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.2x).

Share Price vs Fair Value

What is the Fair Price of 2493 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002493 (CN¥16.4) is trading below our estimate of fair value (CN¥28.54)

Significantly Below Fair Value: 002493 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Rongsheng Petrochemical forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002493's forecast earnings growth (11.9% per year) is above the savings rate (3.2%).

Earnings vs Market: 002493's earnings (11.9% per year) are forecast to grow slower than the CN market (24.5% per year).

High Growth Earnings: 002493's earnings are forecast to grow, but not significantly.

Revenue vs Market: 002493's revenue (5.9% per year) is forecast to grow slower than the CN market (17.7% per year).

High Growth Revenue: 002493's revenue (5.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 002493's Return on Equity is forecast to be high in 3 years time (23.1%)

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Past Performance

How has Rongsheng Petrochemical performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

46.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 002493 has high quality earnings.

Growing Profit Margin: 002493's current net profit margins (6.3%) are lower than last year (7.2%).

Past Earnings Growth Analysis

Earnings Trend: 002493's earnings have grown significantly by 46.5% per year over the past 5 years.

Accelerating Growth: 002493's earnings growth over the past year (53%) exceeds its 5-year average (46.5% per year).

Earnings vs Industry: 002493 earnings growth over the past year (53%) exceeded the Chemicals industry 23.2%.

Return on Equity

High ROE: Whilst 002493's Return on Equity (24.44%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Rongsheng Petrochemical's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 002493's short term assets (CN¥98.3B) do not cover its short term liabilities (CN¥135.2B).

Long Term Liabilities: 002493's short term assets (CN¥98.3B) do not cover its long term liabilities (CN¥113.4B).

Debt to Equity History and Analysis

Debt Level: 002493's net debt to equity ratio (133.8%) is considered high.

Reducing Debt: 002493's debt to equity ratio has increased from 129.2% to 161.4% over the past 5 years.

Debt Coverage: 002493's debt is well covered by operating cash flow (28.8%).

Interest Coverage: 002493's interest payments on its debt are well covered by EBIT (14.2x coverage).

Balance Sheet

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Dividend

What is Rongsheng Petrochemical current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 002493's dividend (0.91%) is higher than the bottom 25% of dividend payers in the CN market (0.45%).

High Dividend: 002493's dividend (0.91%) is low compared to the top 25% of dividend payers in the CN market (1.88%).

Stability and Growth of Payments

Stable Dividend: 002493's dividend payments have been volatile in the past 10 years.

Growing Dividend: 002493's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.4%), 002493's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 002493 is paying a dividend but the company has no free cash flows.

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Management

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

CN¥3m

CEO Compensation

CEO

Jiong Jiong Xiang (38 yo)

no data

Tenure

CN¥2,623,900

Compensation

Mr. Jiong Jiong Xiang serves as General Manager at Rongsheng Petrochemical Co., Ltd. and also served as its Secretary of the Board of Directors. Mr. Xiang serves as an Assistant to the Chairman of Rongshen...

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31