# Rongsheng Petrochemical (002493.SHE)

Canonical: https://gigainvestors.com/s/002493.SHE

Analysis as of: 2026-10-16T07:34:57.543Z. Financial observations: FY2007–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 11.54 per share; close as of 2026-10-15.

Estimated value: low CNY 1.95 per share, central CNY 2.57 per share, high CNY 2.93 per share. Buy at or below the central value CNY 2.57 per share. Valuation as of 2026-10-16T07:34:57.543Z; scenarios are not confidence intervals.

Expected annual return: 4.4% at the stated quote. About 4.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 1.08×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.03×

- FY2018: 0.02×

- FY2019: 0.04×

- FY2020: 0.16×

- FY2021: 0.18×

- FY2022: 0.02×

- FY2023: 0.00×

- FY2024: 0.01×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.7%

- ROIC, second-lowest year: 1.0%

- Typical minus recent gross margin: -0.4 pp

- Typical gross margin (annual median): 11.1%

- Recent gross margin (lower of latest and 3-year median): 11.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.3%

- ROIC including acquisitions, ten-year median: -0.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.2%

- FY2017: 7.4%

- FY2018: 3.2%

- FY2019: 3.0%

- FY2020: 9.7%

- FY2021: 13.5%

- FY2022: 3.0%

- FY2023: 0.8%

- FY2024: 1.0%

- FY2025: 4.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.39×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 7.5B

- Net income, five-year total: CNY 19B

- Return on incremental invested capital: 3.4%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.6 pp

- Working capital / revenue, final three-year average: -1.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.99×

- FY2023: 0.98×

- FY2024: -6.03×

- FY2025: -6.79×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 7.4% vs 1.0%

- Per-share earnings: 0.23 to 0.09 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.4%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: CNY 23B

- Cumulative retained earnings: CNY 23B

- Diluted shares, 10-year annual growth: 2.4%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -10.9%

- Per-share value change: CNY -0.14

- Per-share value, starting three-year median: CNY 0.23

- Per-share value, ending three-year median: CNY 0.09

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 2.1%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 8.6B

- Cumulative net income, 10 years: CNY 34B

- ROIC, first three-year median: 7.4%

- ROIC, last three-year median: 1.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.23

- FY2017: CNY 0.24

- FY2018: CNY 0.18

- FY2019: CNY 0.24

- FY2020: CNY 0.78

- FY2021: CNY 1.32

- FY2022: CNY 0.33

- FY2023: CNY 0.12

- FY2024: CNY 0.08

- FY2025: CNY 0.09

### accounting: pass

- Sloan accruals: -11.5%

- Receivables to sales index (DSRI): 0.30×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 53.53×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.21×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.0%

- FY2017: -3.3%

- FY2018: -2.7%

- FY2019: 2.3%

- FY2020: -4.2%

- FY2021: -6.0%

- FY2022: -4.3%

- FY2023: -7.2%

- FY2024: -9.0%

- FY2025: -11.5%

## Holders

## Price story

Down 39% since Feb 2022 · sales -5.5%

Story as of 2026-10-16T10:00:03.199Z; price observation 2026-10-15.

Price needs cash profits to grow 28.4% a year for ten years

### Sales · FY2024–2025

sales -5.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 46B 

- FY2017: CNY 72B 

- FY2018: CNY 91B 

- FY2019: CNY 82B 

- FY2020: CNY 107B 

- FY2021: CNY 183B 

- FY2022: CNY 289B 

- FY2023: CNY 325B 

- FY2024: CNY 326B 

- FY2025: CNY 309B 

### Gross margin · FY2025

gross margin 12.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 10.3% 

- FY2017: 5.5% 

- FY2018: 5.8% 

- FY2019: 6.8% 

- FY2020: 19.7% 

- FY2021: 26.2% 

- FY2022: 10.7% 

- FY2023: 11.5% 

- FY2024: 11.4% 

- FY2025: 12.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in chemicals; annual sales are CNY 308.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2025: revenue 308622318229.03; grossProfit 37698731490.08; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002493.SHE: Rongsheng Petrochemical Co., Ltd. engages in the research, development, production, and sale of chemical, oil, and polyester products in China. It also provides polyolefins, aromatics, chemical and oil products, etc., which are widely used in covering new energy; new materials; organic chemicals; synthetic fibers, resins, and rubber; oil products, and other fields. The company was founded in 1995 and is based in Hangzhou, China. Rongsheng Petrochemical Co., Ltd. is a subsidiary of Zhejiang Rongsheng Holding Group Co., Ltd.

### Why customers stay

Margins ranged from 11.4% to 12.2% during 2023–25; it earns 3.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2023: grossProfit / revenue = 11.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2024: grossProfit / revenue = 11.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2025: grossProfit / revenue = 12.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); 10-year return on capital observations [[2016,0.08157413371002745],[2017,0.07404817014136773],[2018,0.03177458236479013],[2019,0.029802507448007113],[2020,0.09716089556538485],[2021,0.13545583693172825],[2022,0.029872546548525124],[2023,0.007757239765714141],[2024,0.010395244414766825],[2025,0.04191496790290324]]; median 0.03684477513384669. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2016: growth capex 1158629570; upkeep 1269617308; owner earnings 1920605769. Growth capex / owner earnings = 0.6032625688733938.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2017: growth capex 13531383617; upkeep 1451067383; owner earnings 2016654968. Growth capex / owner earnings = 6.70981592375201.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2021: growth capex 51351117000; upkeep 6895274000; owner earnings 13189298852.61. Growth capex / owner earnings = 3.8933924823333763.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2022: growth capex 18186088000; upkeep 11271795000; owner earnings 3318328855.865453. Growth capex / owner earnings = 5.48049599359461.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); FY2023: growth capex 17947583000; upkeep 14695685000; owner earnings 1130260509.8061645. Growth capex / owner earnings = 15.879156039060362.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); Dividend observations: [[2016,1014332071],[2017,1316321000],[2018,2387983000],[2019,629111000],[2020,754933000],[2021,1012552000],[2022,1507313000],[2023,1476357000],[2024,9351536000],[2025,8380943834.55]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 75.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002493.SHE SharesStats.PercentInsiders = 75.91 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 28.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:57.543Z); Ten-year compound average after fade. Initial solved rate 0.40331622759364294. Price 11.54; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.3574975804637042 → FY2025 -0.6114400433335139. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 9.85 per share

- 2016-11: CNY 9.67 per share

- 2016-12: CNY 10.28 per share

- 2017-01: CNY 10.35 per share

- 2017-02: CNY 10.88 per share

- 2017-03: CNY 10.03 per share

- 2017-04: CNY 9.32 per share

- 2017-05: CNY 6.20 per share

- 2017-06: CNY 6.51 per share

- 2017-07: CNY 7.36 per share

- 2017-08: CNY 6.71 per share

- 2017-09: CNY 6.64 per share

- 2017-10: CNY 6.61 per share

- 2017-11: CNY 9.08 per share

- 2017-12: CNY 9.57 per share

- 2018-01: CNY 10.30 per share

- 2018-02: CNY 11.13 per share

- 2018-03: CNY 9.83 per share

- 2018-04: CNY 10.01 per share

- 2018-05: CNY 7.05 per share

- 2018-06: CNY 6.88 per share

- 2018-07: CNY 7.77 per share

- 2018-08: CNY 7.67 per share

- 2018-09: CNY 7.47 per share

- 2018-10: CNY 6.88 per share

- 2018-11: CNY 6.69 per share

- 2018-12: CNY 6.73 per share

- 2019-01: CNY 7.01 per share

- 2019-02: CNY 7.47 per share

- 2019-03: CNY 8.41 per share

- 2019-04: CNY 8.81 per share

- 2019-05: CNY 7.65 per share

- 2019-06: CNY 8.04 per share

- 2019-07: CNY 7.93 per share

- 2019-08: CNY 7.22 per share

- 2019-09: CNY 7.30 per share

- 2019-10: CNY 7.35 per share

- 2019-11: CNY 8.10 per share

- 2019-12: CNY 8.26 per share

- 2020-01: CNY 7.67 per share

- 2020-02: CNY 6.90 per share

- 2020-03: CNY 7.30 per share

- 2020-04: CNY 7.95 per share

- 2020-05: CNY 7.74 per share

- 2020-06: CNY 8.20 per share

- 2020-07: CNY 11.13 per share

- 2020-08: CNY 13.20 per share

- 2020-09: CNY 12.51 per share

- 2020-10: CNY 12.71 per share

- 2020-11: CNY 17.15 per share

- 2020-12: CNY 18.41 per share

- 2021-01: CNY 22.80 per share

- 2021-02: CNY 22.43 per share

- 2021-03: CNY 18.36 per share

- 2021-04: CNY 18.89 per share

- 2021-05: CNY 17.62 per share

- 2021-06: CNY 17.27 per share

- 2021-07: CNY 18.60 per share

- 2021-08: CNY 18.66 per share

- 2021-09: CNY 18.80 per share

- 2021-10: CNY 17.24 per share

- 2021-11: CNY 16.20 per share

- 2021-12: CNY 18.16 per share

- 2022-01: CNY 17.99 per share

- 2022-02: CNY 18.83 per share

- 2022-03: CNY 14.30 per share

- 2022-04: CNY 13.72 per share

- 2022-05: CNY 15.98 per share

- 2022-06: CNY 15.39 per share

- 2022-07: CNY 14.29 per share

- 2022-08: CNY 14.16 per share

- 2022-09: CNY 13.83 per share

- 2022-10: CNY 10.70 per share

- 2022-11: CNY 12.39 per share

- 2022-12: CNY 12.30 per share

- 2023-01: CNY 13.24 per share

- 2023-02: CNY 13.53 per share

- 2023-03: CNY 15.13 per share

- 2023-04: CNY 13.22 per share

- 2023-05: CNY 11.60 per share

- 2023-06: CNY 11.64 per share

- 2023-07: CNY 12.71 per share

- 2023-08: CNY 12.05 per share

- 2023-09: CNY 11.91 per share

- 2023-10: CNY 11.39 per share

- 2023-11: CNY 10.75 per share

- 2023-12: CNY 10.35 per share

- 2024-01: CNY 9.47 per share

- 2024-02: CNY 10.26 per share

- 2024-03: CNY 11.01 per share

- 2024-04: CNY 11.21 per share

- 2024-05: CNY 10.02 per share

- 2024-06: CNY 9.66 per share

- 2024-07: CNY 9.07 per share

- 2024-08: CNY 8.81 per share

- 2024-09: CNY 10.35 per share

- 2024-10: CNY 9.43 per share

- 2024-11: CNY 9.54 per share

- 2024-12: CNY 9.05 per share

- 2025-01: CNY 8.83 per share

- 2025-02: CNY 8.81 per share

- 2025-03: CNY 8.61 per share

- 2025-04: CNY 8.33 per share

- 2025-05: CNY 8.59 per share

- 2025-06: CNY 8.28 per share

- 2025-07: CNY 9.14 per share

- 2025-08: CNY 10.02 per share

- 2025-09: CNY 9.65 per share

- 2025-10: CNY 10.19 per share

- 2025-11: CNY 9.72 per share

- 2025-12: CNY 11.71 per share

- 2026-01: CNY 14.75 per share

- 2026-02: CNY 15.60 per share

- 2026-03: CNY 12.00 per share

- 2026-04: CNY 13.95 per share

- 2026-05: CNY 11.26 per share

- 2026-06: CNY 10.75 per share

- 2026-07: CNY 12.36 per share

- 2026-08: CNY 14.84 per share

- 2026-09: CNY 13.33 per share

- 2026-10: CNY 12.54 per share

## Annual estimated value (CNY per share)

- FY2017: low CNY 1.75 per share, central CNY 2.14 per share, high CNY 2.36 per share

- FY2023: low CNY 1.88 per share, central CNY 2.18 per share, high CNY 2.46 per share

- FY2024: low CNY 1.87 per share, central CNY 2.33 per share, high CNY 2.67 per share

- FY2025: low CNY 1.75 per share, central CNY 2.41 per share, high CNY 2.80 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.