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Hengli Petrochemical Co Ltd (600346) Fair Value & Analysis

Basic Materials · CN · Market cap 106B CNY (≈ $15.8B) · ISIN CNE0000018V0

What is Hengli Petrochemical Co Ltd really worth?

HP Hengli Petrochemical Co Ltd 600346 · SHG
Price¥19.02
Fair Value¥17.09
Upside−10.2%
Quality54/100

A solid business, but trading 11% above our fair value of ¥17.09.

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Strengths

Moderate debt · generates free cash flow
Ranks above peers (12/15)

Risks

!Mixed Growth (revenue 5y +18.6 %/yr)
!Thin margins · 4.6% net margin
!Narrow moat 44/100
!Weak on valuation: 20 out of 100

For context

·1.95% dividend yield
Evidence: High Range ¥12.81 – ¥21.36

Fair value as of: Aug 23, 2026

From 26 valuation models · updated 13 days ago

Share price +10.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

¥31.20 ¥11.45 Fair Value ¥17.09 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ¥11.45 – ¥31.20 · fair‑value band ¥12.81 – ¥21.36 · the ¥19.02 price screens above the ¥17.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Hengli Petrochemical Co Ltd (600346) currently trades at ¥19.02, while our model-based Fair Value estimate is ¥17.09, implying the stock looks roughly 11.3% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Basic Materials sector. Bull case: the DCF Models group reads highest at a median of ¥57.79 per share, and 20 of the 26 models we run sit above the ¥19.02 price. Bear case: the Asset-Based group reads lowest at ¥6.36, and 6 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Hengli Petrochemical Co Ltd generated revenue of 193B CNY at a net margin of 4.6%. Revenue declined 13.7% year over year. It earns a return on equity of 13.1%. Net debt stands at 103B CNY. Fundamentals as of Aug 23, 2026

Our scenario range runs from ¥12.81 (bear case) to ¥21.36 (bull case); at ¥19.02, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 30% below its 52-week high and 38% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −48% fair-value upside, at −10%, 600346 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.6158 per share, which is 3.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV best evidence ¥13.70 ¥16.74 ¥19.40 74
Residual Income ¥8.54 ¥9.53 ¥14.47 71
FCF DCF ¥52.88 ¥85.81 ¥190.66 70
All 26 models by family
DCF Models
FCF DCF ¥52.88 ¥85.81 ¥190.66 70
Owner Earnings ¥21.53 ¥54.76 ¥124.54 65
5Y Revenue Exit ¥27.13 ¥46.22 ¥85.85 65
5Y EBITDA Exit ¥32.88 ¥57.86 ¥106.69 67
5Y P/E Exit ¥20.87 ¥41.83 ¥68.62 64
10Y Revenue Exit ¥34.28 ¥71.28 ¥91.87 63
10Y EBITDA Exit ¥39.37 ¥83.67 ¥157.82 61
10Y P/E Exit ¥30.60 ¥57.79 ¥98.36 58
Earnings-Based
Graham-Dodd ¥6.83 ¥47.66 ¥66.89 59
Lynch FV ¥24.62 ¥35.18 ¥45.73 57
PEG = 1.0 ¥24.62 ¥35.18 ¥45.73 54
EPV best evidence ¥13.70 ¥16.74 ¥19.40 74
Dividend Discount
Gordon GGM ¥10.90 ¥22.65 ¥35.94 62
DDM Multi-Stage ¥10.90 ¥19.10 ¥23.78 63
Multiples
P/E Multiple ¥12.81 ¥17.09 ¥21.36 63
P/S Multiple ¥12.81 ¥17.09 ¥21.36 58
P/B Multiple ¥12.81 ¥17.09 ¥21.36 55
EV/EBIT ¥18.20 ¥25.78 ¥33.36 65
EV/EBITDA ¥24.20 ¥33.77 ¥43.35 67
EV/Revenue ¥15.17 ¥23.62 ¥32.06 53
Asset-Based
NCAV (Graham) ¥4.74 ¥6.36 ¥9.49 54
Growth DCF
Growth DCF ¥49.47 ¥102.65 ¥189.79 70
Rev-Margin DCF ¥30.18 ¥53.60 ¥102.91 65
Economic Profit
Residual Income ¥8.54 ¥9.53 ¥14.47 71
ROIC Compounder ¥18.69 ¥28.49 ¥37.23 67
Growth Earnings
Growth-Adj P/E ¥30.29 ¥43.28 ¥56.26 64

Widest divergence: DCF Models (¥57.79) versus Asset-Based (¥6.36). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 14.9
P/S ratio 0.52 P/E × margin
EPS (TTM) ¥1.28 price ÷ EPS = P/E 14.9
Dividend yield 1.9% payout 28.9%
Net margin 3.5% FY2025
Return on equity 13.1% TTM
More key figures
Profitability
Return on assets (EBIT) 4.5% avg 5y
Operating margin 9.7% TTM
Growth
Revenue (TTM) 193B CNY TTM
Revenue growth (YoY) −13.7% 3y avg −3.3%
EPS growth (YoY) +93.1%
Balance sheet & cash flow
Free cash flow 24.0B CNY FY2025
Net debt 103B CNY FY2025 · ≈ 4.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 51 · Market factors (momentum, volatility) 48

Profitability 35
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 19
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hengli Petrochemical Co.,Ltd. engages in petrochemical industry in China and internationally. The company operates through Petrochemical Business and Polyester Fiber Business segments.

Full company description

Hengli Petrochemical Co.,Ltd. engages in petrochemical industry in China and internationally. The company operates through Petrochemical Business and Polyester Fiber Business segments. It offers oil refining products, chemical products, purified terephthalic acid, polyester chips, and polyester fibers; and engineering plastics, functional films, and biodegradable materials. The company also provides civilian and industrial polyester filament; and polyester filament. In addition, it engages in wholesale and retail activities; transportation industry; and industrial investment activities, as well as other financial services. Further, the company is involved in sale of petroleum, synthetic materials, rubber products, metal chains, metal materials, metal mines, textiles and raw materials, coal, and non-metallic minerals; wholesale of hardware; business management consulting; non-residential real estate leasing; domestic trade agency; and offshore trade operations. The company was formerly known as Dalian Rubber and Plastic Machinery Co., Ltd and changed its name to Hengli Petrochemical Co.,Ltd. in May 2016. The company was founded in 1999 and is based in Dalian, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengli Petrochemical Co Ltd reported revenue of 201B CNY in FY2025 versus 198B CNY in FY2021, a compound +0.4%/yr. Reported net income was 7.1B CNY in FY2025, compounding −17.8%/yr from FY2021.

Growth Quality 95/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
201B CNY
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.6%
Avg. revenue growth/yr (26Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+31.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−10.2% (−12.1 + 1.9)
Revenue +0.4%/yr
FY21 198B CNY
FY22 222B CNY
FY23 235B CNY
FY24 236B CNY
FY25 201B CNY
Net income −17.8%/yr
FY21 15.5B CNY
FY22 2.3B CNY
FY23 6.9B CNY
FY24 7.0B CNY
FY25 7.1B CNY

600346 screens 11% overvalued. Compare with Saudi Basic Industries Corporation →

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Cite: Fair Value Calculator (2026). "Hengli Petrochemical Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600346

Peer Group

Chemicals · 339 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside −10% · Above median
Return on equity (TTM) 13% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth −14% · Bottom 25%
Dividend yield (TTM) 1.9% · Above median
Debt / equity 0.92× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 14.9× · Cheaper than 75% of peers
P/B 1.59× · Pricier than median
P/S (TTM) 0.55× · Cheaper than median
P/FCF 0.7× · Cheaper than median
EV/EBITDA 5.5× · Cheaper than 75% of peers
PEG 1.01× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE20 · sector 0
FUTURE0 · sector 22
PAST53 · sector 20
HEALTH54 · sector 94
DIVIDEND39 · sector 32

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

Stock Price Fair Value vs Fair Value
Saudi Basic Industries Corporation 2010 49.50 SAR 18.13 SAR −63%
A. Schulman, Inc SLMNP $849.00 $203.64 −76%
Ningxia Baofeng Energy Group 600989 ¥24.49 ¥20.17 −18%
Dow Inc DOW $30.51 $21.03 −31%
Zhejiang Juhua Co 600160 ¥41.32 ¥21.62 −48%
Rongsheng Petrochemical Co 002493 ¥13.76 ¥2.39 −83%
Zangge Mining Company 000408 ¥78.04 ¥20.99 −73%
Ganfeng Lithium Group 002460 ¥52.53 ¥16.17 −69%
PT Barito Pacific Tbk, BRPT 1,855 IDR 1,584 IDR −15%
LG Chem, Ltd 051910 263,000 KRW 587,755 KRW +123%

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Frequently asked questions

Is Hengli Petrochemical Co Ltd (600346) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of ¥17.09 versus a price of ¥19.02, about −10% upside (overvalued).
What is the fair value of 600346?
Our model-based fair value for Hengli Petrochemical Co Ltd is ¥17.09 (as of Aug 23, 2026), built from audited fundamentals. The current price: ¥19.02.
What is the quality score of 600346?
Hengli Petrochemical Co Ltd has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hengli Petrochemical Co Ltd (600346)?
Hengli Petrochemical Co Ltd reported trailing-twelve-month revenue of about 193B CNY (latest available figure, as of Aug 23, 2026).
What is the net profit margin of 600346?
The net profit margin of Hengli Petrochemical Co Ltd is about 4.6%, meaning it keeps roughly 4.6% of revenue as net income. Based on the latest reported figures.
Does Hengli Petrochemical Co Ltd pay a dividend?
Hengli Petrochemical Co Ltd currently shows a dividend yield of about 1.95% relative to its recent price (as of Aug 23, 2026).
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