# Zhejiang Satellite Petrochemical (002648.SHE)

Canonical: https://gigainvestors.com/s/002648.SHE

Analysis as of: 2026-10-16T07:35:29.663Z. Financial observations: FY2008–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

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

Share price: CNY 24.81 per share; close as of 2026-10-15.

Estimated value: low CNY 18.23 per share, central CNY 24.47 per share, high CNY 28.10 per share. Buy at or below the central value CNY 24.47 per share. Valuation as of 2026-10-16T07:35:29.663Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% 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: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.30×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.10×

- FY2017: 0.13×

- FY2018: 0.10×

- FY2019: 0.13×

- FY2020: 0.18×

- FY2021: 0.24×

- FY2022: 0.09×

- FY2023: 0.13×

- FY2024: 0.15×

- FY2025: 0.17×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 11.8%

- ROIC, second-lowest year: 8.7%

- Typical minus recent gross margin: 1.5 pp

- Typical gross margin (annual median): 22.8%

- Recent gross margin (lower of latest and 3-year median): 21.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.8%

- ROIC including acquisitions, ten-year median: 7.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.0%

- FY2017: 15.4%

- FY2018: 11.7%

- FY2019: 10.8%

- FY2020: 8.7%

- FY2021: 19.2%

- FY2022: 7.1%

- FY2023: 10.2%

- FY2024: 13.5%

- FY2025: 13.6%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.57×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 14B

- Net income, five-year total: CNY 25B

- Return on incremental invested capital: 65.7%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -12.4 pp

- Working capital / revenue, final three-year average: 1.7%

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

- FY2021: 0.80×

- FY2022: 0.08×

- FY2023: 0.33×

- FY2024: 0.51×

- FY2025: 0.87×

### management: fail

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 12.0% vs 13.5%

- Per-share earnings: 0.28 to 1.58 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 11.7%

- Ordinary dilution, 5-year annual growth: 17.5%

- Market cap gain: CNY 46B

- Cumulative retained earnings: CNY 24B

- Diluted shares, 10-year annual growth: 11.7%

- Diluted shares, 5-year annual growth: 17.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 24.3%

- Per-share value change: CNY 1.30

- Per-share value, starting three-year median: CNY 0.28

- Per-share value, ending three-year median: CNY 1.58

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 0.1%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 2.0B

- Cumulative net income, 10 years: CNY 30B

- ROIC, first three-year median: 12.0%

- ROIC, last three-year median: 13.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.28

- FY2017: CNY 0.69

- FY2018: CNY 0.63

- FY2019: CNY 0.85

- FY2020: CNY 1.11

- FY2021: CNY 3.51

- FY2022: CNY 0.91

- FY2023: CNY 1.42

- FY2024: CNY 1.80

- FY2025: CNY 1.58

### accounting: pass

- Sloan accruals: -6.9%

- Receivables to sales index (DSRI): 0.74×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.91×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.8%

- FY2017: 3.7%

- FY2018: 1.4%

- FY2019: -0.4%

- FY2020: 6.5%

- FY2021: 4.8%

- FY2022: -4.7%

- FY2023: -5.0%

- FY2024: -6.6%

- FY2025: -6.9%

## Holders

## Price story

Down 45% since Feb 2022 · sales +0.7%

Story as of 2026-10-16T10:00:05.150Z; price observation 2026-10-15.

Price needs cash profits to grow 6.7% a year for ten years

### Sales · FY2024–2025

sales +0.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 5.4B 

- FY2017: CNY 8.2B 

- FY2018: CNY 10B 

- FY2019: CNY 11B 

- FY2020: CNY 11B 

- FY2021: CNY 29B 

- FY2022: CNY 37B 

- FY2023: CNY 41B 

- FY2024: CNY 46B 

- FY2025: CNY 46B 

### Gross margin · FY2025

gross margin 21.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.0% 

- FY2017: 24.5% 

- FY2018: 20.7% 

- FY2019: 26.1% 

- FY2020: 28.7% 

- FY2021: 31.7% 

- FY2022: 16.5% 

- FY2023: 19.8% 

- FY2024: 23.5% 

- FY2025: 21.3% 

## Owner memo

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

### How it makes money

Operates in specialty chemicals; annual sales are CNY 46 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2025: revenue 45961518000; grossProfit 9790929000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002648.SHE: Satellite Chemical Co.,Ltd., a low-carbon chemical company, research, development, production, sale, and service of new electronic chemicals and functional materials in China and internationally. The company offers ethylene oxide, high density polyethylene, ethylene glycol, and polycarboxylic monomer products; and acrylic acid monomer, super absorbent polymer, polymer emulsion and resin, polypropylene, pigment intermediate, and hydrogen peroxide products. Its products are used in aerospace, new energy vehicles, electronic chips, green infrastructure, and healthcare. The company was formerly known as Zhejiang Satellite Petrochemical Co., Ltd. and changed its name to Satellite Chemical Co.,Ltd. in October 2021. Satellite Chemical Co.,Ltd. was founded in 1992 and is based in Jiaxing, China.

### Why customers stay

Margins ranged from 19.8% to 23.5% during 2023–25; it earns 11.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2023: grossProfit / revenue = 19.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2024: grossProfit / revenue = 23.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2025: grossProfit / revenue = 21.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); 10-year return on capital observations [[2016,0.12009046280555094],[2017,0.15407832810616837],[2018,0.11654784454851345],[2019,0.10813050251058592],[2020,0.08693507734215201],[2021,0.1923649219558072],[2022,0.07091068585874433],[2023,0.10191964724766256],[2024,0.13452356999005965],[2025,0.13582563334305064]]; median 0.11831915367703219. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 217.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2016: growth capex 0; upkeep 301941356; owner earnings 410359750. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2017: growth capex 119605490; upkeep 408109656; owner earnings 942456852. Growth capex / owner earnings = 0.12690818656173344.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2018: growth capex 738048983.5999999; upkeep 429382871; owner earnings 940627802. Growth capex / owner earnings = 0.7846344558716327.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2021: growth capex 3000214901; upkeep 1063051957; owner earnings 4788845948.026. Growth capex / owner earnings = 0.6265006086146313.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2022: growth capex 993421336.9000001; upkeep 1499025824; owner earnings 234591100.8659997. Growth capex / owner earnings = 4.2346931884148935.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2023: growth capex 124002188; upkeep 2282372524; owner earnings 1593788908.79. Growth capex / owner earnings = 0.07780339498920351.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2024: growth capex 384570000; upkeep 2755384000; owner earnings 3087459590.422. Growth capex / owner earnings = 0.12455871525995786.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2025: growth capex 0; upkeep 2659650000; owner earnings 4627355377.74. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); Dividend observations: [[2016,109506349],[2017,193305881],[2018,201019100],[2019,301301619],[2020,191827045],[2021,973938801],[2022,2253212056],[2023,547068427],[2024,1763284000],[2025,1678284000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); FY2025: cash repurchases 217859000 CNY.

### Are managers owners

Insiders own 52.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002648.SHE SharesStats.PercentInsiders = 52.271 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.663Z); Ten-year compound average after fade. Initial solved rate 0.08298686745945616. Price 24.81; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.18381978846754524 → FY2025 1.3785975266278736. Closing-price date 2026-10-15.

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

- 2016-10: CNY 10.99 per share

- 2016-11: CNY 10.89 per share

- 2016-12: CNY 12.22 per share

- 2017-01: CNY 13.22 per share

- 2017-02: CNY 13.30 per share

- 2017-03: CNY 12.81 per share

- 2017-04: CNY 13.05 per share

- 2017-05: CNY 12.93 per share

- 2017-06: CNY 16.50 per share

- 2017-07: CNY 17.99 per share

- 2017-08: CNY 17.21 per share

- 2017-09: CNY 16.25 per share

- 2017-10: CNY 14.58 per share

- 2017-11: CNY 16.26 per share

- 2017-12: CNY 16.60 per share

- 2018-01: CNY 18.01 per share

- 2018-02: CNY 16.40 per share

- 2018-03: CNY 15.63 per share

- 2018-04: CNY 12.02 per share

- 2018-05: CNY 13.58 per share

- 2018-06: CNY 11.03 per share

- 2018-07: CNY 10.73 per share

- 2018-08: CNY 10.35 per share

- 2018-09: CNY 11.17 per share

- 2018-10: CNY 10.00 per share

- 2018-11: CNY 9.73 per share

- 2018-12: CNY 9.67 per share

- 2019-01: CNY 10.45 per share

- 2019-02: CNY 13.60 per share

- 2019-03: CNY 14.78 per share

- 2019-04: CNY 1,000,000.00 per share

- 2019-05: CNY 13.89 per share

- 2019-06: CNY 14.88 per share

- 2019-07: CNY 13.98 per share

- 2019-08: CNY 12.61 per share

- 2019-09: CNY 12.43 per share

- 2019-10: CNY 13.27 per share

- 2019-11: CNY 14.86 per share

- 2019-12: CNY 16.35 per share

- 2020-01: CNY 16.29 per share

- 2020-02: CNY 16.19 per share

- 2020-03: CNY 13.03 per share

- 2020-04: CNY 13.83 per share

- 2020-05: CNY 12.99 per share

- 2020-06: CNY 16.25 per share

- 2020-07: CNY 18.29 per share

- 2020-08: CNY 19.65 per share

- 2020-09: CNY 20.24 per share

- 2020-10: CNY 22.17 per share

- 2020-11: CNY 25.87 per share

- 2020-12: CNY 26.12 per share

- 2021-01: CNY 35.18 per share

- 2021-02: CNY 43.61 per share

- 2021-03: CNY 37.67 per share

- 2021-04: CNY 40.86 per share

- 2021-05: CNY 44.01 per share

- 2021-06: CNY 39.19 per share

- 2021-07: CNY 36.37 per share

- 2021-08: CNY 41.91 per share

- 2021-09: CNY 39.03 per share

- 2021-10: CNY 38.95 per share

- 2021-11: CNY 39.50 per share

- 2021-12: CNY 40.03 per share

- 2022-01: CNY 42.00 per share

- 2022-02: CNY 45.08 per share

- 2022-03: CNY 39.40 per share

- 2022-04: CNY 36.04 per share

- 2022-05: CNY 39.36 per share

- 2022-06: CNY 25.85 per share

- 2022-07: CNY 22.67 per share

- 2022-08: CNY 21.93 per share

- 2022-09: CNY 21.27 per share

- 2022-10: CNY 12.40 per share

- 2022-11: CNY 14.55 per share

- 2022-12: CNY 15.50 per share

- 2023-01: CNY 17.71 per share

- 2023-02: CNY 17.41 per share

- 2023-03: CNY 16.00 per share

- 2023-04: CNY 14.19 per share

- 2023-05: CNY 12.67 per share

- 2023-06: CNY 14.96 per share

- 2023-07: CNY 16.11 per share

- 2023-08: CNY 15.30 per share

- 2023-09: CNY 15.33 per share

- 2023-10: CNY 16.27 per share

- 2023-11: CNY 15.96 per share

- 2023-12: CNY 14.75 per share

- 2024-01: CNY 13.65 per share

- 2024-02: CNY 16.59 per share

- 2024-03: CNY 18.50 per share

- 2024-04: CNY 19.28 per share

- 2024-05: CNY 18.24 per share

- 2024-06: CNY 17.98 per share

- 2024-07: CNY 17.45 per share

- 2024-08: CNY 16.37 per share

- 2024-09: CNY 18.67 per share

- 2024-10: CNY 18.91 per share

- 2024-11: CNY 17.95 per share

- 2024-12: CNY 18.79 per share

- 2025-01: CNY 20.03 per share

- 2025-02: CNY 21.23 per share

- 2025-03: CNY 22.99 per share

- 2025-04: CNY 18.11 per share

- 2025-05: CNY 16.73 per share

- 2025-06: CNY 17.33 per share

- 2025-07: CNY 19.52 per share

- 2025-08: CNY 20.09 per share

- 2025-09: CNY 19.34 per share

- 2025-10: CNY 17.91 per share

- 2025-11: CNY 16.86 per share

- 2025-12: CNY 17.68 per share

- 2026-01: CNY 24.36 per share

- 2026-02: CNY 23.38 per share

- 2026-03: CNY 27.62 per share

- 2026-04: CNY 29.60 per share

- 2026-05: CNY 23.27 per share

- 2026-06: CNY 23.49 per share

- 2026-07: CNY 25.39 per share

- 2026-08: CNY 28.48 per share

- 2026-09: CNY 26.51 per share

- 2026-10: CNY 26.29 per share

## Annual estimated value (CNY per share)

- FY2017: low CNY 2.35 per share, central CNY 2.41 per share, high CNY 2.50 per share

- FY2018: low CNY 9.27 per share, central CNY 12.28 per share, high CNY 14.04 per share

- FY2019: low CNY 9.54 per share, central CNY 12.74 per share, high CNY 14.60 per share

- FY2020: low CNY 12.22 per share, central CNY 15.43 per share, high CNY 17.30 per share

- FY2021: low CNY 26.64 per share, central CNY 35.77 per share, high CNY 41.09 per share

- FY2022: low CNY 2.35 per share, central CNY 2.75 per share, high CNY 2.98 per share

- FY2023: low CNY 2.73 per share, central CNY 3.18 per share, high CNY 3.45 per share

- FY2024: low CNY 9.36 per share, central CNY 12.39 per share, high CNY 14.16 per share

- FY2025: low CNY 14.64 per share, central CNY 20.04 per share, high CNY 23.18 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

Prior published observations retained from 2026-10-15T06:41:05.771Z where newer inputs omit a numeric field or fiscal period.

## 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.