# Wanhua Chemical Group (600309.SHG)

Canonical: https://gigainvestors.com/s/600309.SHG

Analysis as of: 2026-10-16T07:34:19.311Z. Financial observations: FY1997–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 64.95 per share; close as of 2026-10-15.

Estimated value: low CNY 46.27 per share, central CNY 60.30 per share, high CNY 68.68 per share. Buy at or below the central value CNY 60.30 per share. Valuation as of 2026-10-16T07:34:19.311Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% 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

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.41×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.19×

- FY2017: 0.32×

- FY2018: 0.27×

- FY2019: 0.18×

- FY2020: 0.16×

- FY2021: 0.20×

- FY2022: 0.12×

- FY2023: 0.12×

- FY2024: 0.10×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 10.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 13.5%

- ROIC, second-lowest year: 9.7%

- Typical minus recent gross margin: 10.4 pp

- Typical gross margin (annual median): 27.1%

- Recent gross margin (lower of latest and 3-year median): 16.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 19.1%

- ROIC including acquisitions, ten-year median: 5.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.2%

- FY2017: 29.5%

- FY2018: 31.3%

- FY2019: 16.2%

- FY2020: 13.0%

- FY2021: 23.1%

- FY2022: 13.8%

- FY2023: 12.2%

- FY2024: 9.7%

- FY2025: 7.0%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.31×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 26B

- Net income, five-year total: CNY 83B

- Return on incremental invested capital: 6.3%

- Working capital / revenue, annual change: -3.6 pp

- Working capital / revenue, change between three-year averages: -28.8 pp

- Working capital / revenue, final three-year average: -5.7%

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

- FY2021: 0.98×

- FY2022: 0.40×

- FY2023: -0.54×

- FY2024: -0.48×

- FY2025: 0.82×

### management: pass

- 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: 29.5% vs 9.7%

- Per-share earnings: 1.41 to 4.15 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.8%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: CNY 195B

- Cumulative retained earnings: CNY 87B

- Diluted shares, 10-year annual growth: 1.8%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.5%

- Per-share value change: CNY 2.74

- Per-share value, starting three-year median: CNY 1.41

- Per-share value, ending three-year median: CNY 4.15

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 10B

- Cumulative net income, 10 years: CNY 134B

- ROIC, first three-year median: 29.5%

- ROIC, last three-year median: 9.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.41

- FY2017: CNY 4.08

- FY2018: CNY 5.71

- FY2019: CNY 3.25

- FY2020: CNY 3.20

- FY2021: CNY 7.85

- FY2022: CNY 5.17

- FY2023: CNY 5.36

- FY2024: CNY 4.15

- FY2025: CNY 3.98

### accounting: pass

- Sloan accruals: -6.4%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.64×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.14×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.2%

- FY2017: 1.4%

- FY2018: -4.8%

- FY2019: -16.3%

- FY2020: -5.1%

- FY2021: -1.7%

- FY2022: -10.0%

- FY2023: -4.0%

- FY2024: -5.8%

- FY2025: -6.4%

## Holders

## Price story

Down 38% since Oct 2021 · sales +11.6%

Story as of 2026-10-16T10:00:00.085Z; price observation 2026-10-15.

Price needs cash profits to grow 7.3% a year for ten years

### Sales · FY2024–2025

sales +11.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 30B 

- FY2017: CNY 53B 

- FY2018: CNY 73B 

- FY2019: CNY 68B 

- FY2020: CNY 73B 

- FY2021: CNY 146B 

- FY2022: CNY 166B 

- FY2023: CNY 175B 

- FY2024: CNY 182B 

- FY2025: CNY 203B 

### Gross margin · FY2024

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

- FY2016: 31.0% 

- FY2017: 39.7% 

- FY2018: 35.5% 

- FY2019: 28.0% 

- FY2020: 23.8% 

- FY2021: 26.3% 

- FY2022: 16.5% 

- FY2023: 16.7% 

- FY2024: 16.0% 

## Owner memo

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

### How it makes money

Operates in specialty chemicals; annual sales are CNY 203.2 billion.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2025-12-31 (filed 2026-10-16T07:34:19.311Z); FY2025: revenue 203234574000; grossProfit 203234574000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600309.SHG: Wanhua Chemical Group Co., Ltd., together with its subsidiaries, engages in the research, development, production, and sale of chemical products in China and internationally. It operates through three segments: Polyurethane; Petrochemical; and Fine Chemicals and New Materials. The company offers isocyanates and polyether polyols; olefin derivatives and ethylene; functional chemicals, including specialty isocyanates, specialty amines, and intermediates; and new materials, such as thermoplastic polyurethane elastomers, polyolefin elastomers, polymethyl methacrylate, water treatment membranes, superabsorbent polymers, nylon elastomers, ultra-high voltage cable materials, and methyl methacrylate-styrene copolymers. It also provides surface materials comprising coatings and adhesives raw materials, silicone intermediates, and finished adhesives, as well as synthetic leather, personal and home care, liquid silicone rubber, release agents, and bio-based chemicals; polymers; caustic soda, specialty PVC, and other chlorine products; flavorings, nutritional supplements, and pharmaceutical intermediates; and lithium iron phosphate, graphite anodes, battery-grade sulfates, N-methylpyrrolidone, polyacrylic acid, and other battery materials and related chemicals. The company's products are used in homeware and furniture, sports and leisure, automobiles and transportation, building and construction, electronics and electrical appliances, personal care, and green energy industries. It exports its products. The company was formerly known as Yantai Wanhua Polyurethanes Co., Ltd. and changed its name to Wanhua Chemical Group Co., Ltd. in June 2013. Wanhua Chemical Group Co., Ltd. was founded in 1978 and is headquartered in Yantai, China.

### Why customers stay

Margins ranged from 16% to 100% during 2023–25; it earns 13.5% on its capital.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2023-12-31 (filed 2026-10-16T07:34:19.311Z); FY2023: grossProfit / revenue = 16.7%.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2024-12-31 (filed 2026-10-16T07:34:19.311Z); FY2024: grossProfit / revenue = 16%.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2025-12-31 (filed 2026-10-16T07:34:19.311Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.311Z); 10-year return on capital observations [[2016,0.13196380397253424],[2017,0.29522646017276916],[2018,0.31340205362401125],[2019,0.1616442955156701],[2020,0.1303317290021795],[2021,0.2308986577832087],[2022,0.13754210105788034],[2023,0.1217752803184123],[2024,0.09719977487976394],[2025,0.07027091182256616]]; median 0.1347529525152073. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 6.3% on new investment; paid dividends in 9 of 9 years.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2016-12-31 (filed 2026-10-16T07:34:19.311Z); FY2016: growth capex 1354502406.9899998; upkeep 2758958000; owner earnings 3679422000. Growth capex / owner earnings = 0.36812912652856883.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2017-12-31 (filed 2026-10-16T07:34:19.311Z); FY2017: growth capex 2774796459.3; upkeep 3177856000; owner earnings 11134790000. Growth capex / owner earnings = 0.24920060991720547.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2018-12-31 (filed 2026-10-16T07:34:19.311Z); FY2018: growth capex 6304472028.35; upkeep 3974538000; owner earnings 15566256000. Growth capex / owner earnings = 0.40500888770877214.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2021-12-31 (filed 2026-10-16T07:34:19.311Z); FY2021: growth capex 19774532886.59; upkeep 7225050000; owner earnings 24107429663.63. Growth capex / owner earnings = 0.8202671608920264.

- Source: https://eodhd.com/api/fundamentals/600309.SHG.json#2022-12-31 (filed 2026-10-16T07:34:19.311Z); FY2022: growth capex 15794751052.639812; upkeep 16861801573.280186; cash acquisitions 77791859.82; owner earnings 6477783596.707813. Growth capex plus acquisitions / owner earnings = 2.4503045950047904.

- Source: https://stockmc.xueqiu.com/202604/600309_20260421_8AV6.pdf (filed 2026-10-16T07:34:19.311Z); FY2025: growth capex 14074139840.54; upkeep 16637061371.349998; owner earnings 10311454204.029999. Growth capex / owner earnings = 1.364903491016761.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.311Z); Incremental return on capital 0.06347661927072408, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.311Z); Dividend observations: [[2016,1457435155.6],[2017,2058466417.5],[2018,5001899872.03],[2019,6279493252],[2020,4081670613],[2021,4081670613],[2022,7849366565],[2023,8337985033],[2024,10170496000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 44.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600309.SHG SharesStats.PercentInsiders = 44.932 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.311Z); Ten-year compound average after fade. Initial solved rate 0.09237325085004244. Price 64.95; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.7610807415587532 → FY2025 3.2740481449084298. Closing-price date 2026-10-15.

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

- 2016-11: CNY 17.39 per share

- 2016-12: CNY 17.94 per share

- 2017-01: CNY 20.36 per share

- 2017-02: CNY 21.85 per share

- 2017-03: CNY 22.59 per share

- 2017-04: CNY 23.22 per share

- 2017-05: CNY 23.13 per share

- 2017-06: CNY 28.64 per share

- 2017-07: CNY 34.64 per share

- 2017-08: CNY 36.03 per share

- 2017-09: CNY 42.15 per share

- 2017-10: CNY 37.08 per share

- 2017-11: CNY 38.50 per share

- 2017-12: CNY 37.94 per share

- 2018-01: CNY 37.94 per share

- 2018-02: CNY 37.94 per share

- 2018-03: CNY 37.94 per share

- 2018-04: CNY 37.94 per share

- 2018-05: CNY 37.94 per share

- 2018-06: CNY 45.42 per share

- 2018-07: CNY 50.96 per share

- 2018-08: CNY 49.30 per share

- 2018-09: CNY 42.47 per share

- 2018-10: CNY 28.32 per share

- 2018-11: CNY 28.88 per share

- 2018-12: CNY 27.99 per share

- 2019-01: CNY 32.70 per share

- 2019-02: CNY 40.87 per share

- 2019-03: CNY 45.53 per share

- 2019-04: CNY 45.23 per share

- 2019-05: CNY 38.04 per share

- 2019-06: CNY 42.79 per share

- 2019-07: CNY 43.98 per share

- 2019-08: CNY 44.71 per share

- 2019-09: CNY 44.15 per share

- 2019-10: CNY 45.61 per share

- 2019-11: CNY 48.41 per share

- 2019-12: CNY 56.17 per share

- 2020-01: CNY 51.91 per share

- 2020-02: CNY 47.04 per share

- 2020-03: CNY 41.25 per share

- 2020-04: CNY 45.00 per share

- 2020-05: CNY 46.48 per share

- 2020-06: CNY 49.99 per share

- 2020-07: CNY 67.59 per share

- 2020-08: CNY 73.29 per share

- 2020-09: CNY 69.30 per share

- 2020-10: CNY 78.49 per share

- 2020-11: CNY 81.20 per share

- 2020-12: CNY 91.04 per share

- 2021-01: CNY 111.80 per share

- 2021-02: CNY 130.80 per share

- 2021-03: CNY 105.60 per share

- 2021-04: CNY 102.74 per share

- 2021-05: CNY 108.78 per share

- 2021-06: CNY 108.82 per share

- 2021-07: CNY 113.72 per share

- 2021-08: CNY 106.70 per share

- 2021-09: CNY 106.75 per share

- 2021-10: CNY 105.47 per share

- 2021-11: CNY 95.75 per share

- 2021-12: CNY 101.00 per share

- 2022-01: CNY 90.35 per share

- 2022-02: CNY 94.80 per share

- 2022-03: CNY 80.89 per share

- 2022-04: CNY 77.85 per share

- 2022-05: CNY 84.12 per share

- 2022-06: CNY 96.99 per share

- 2022-07: CNY 83.70 per share

- 2022-08: CNY 88.57 per share

- 2022-09: CNY 92.10 per share

- 2022-10: CNY 80.36 per share

- 2022-11: CNY 89.50 per share

- 2022-12: CNY 92.65 per share

- 2023-01: CNY 96.61 per share

- 2023-02: CNY 104.26 per share

- 2023-03: CNY 95.88 per share

- 2023-04: CNY 92.18 per share

- 2023-05: CNY 82.26 per share

- 2023-06: CNY 87.84 per share

- 2023-07: CNY 97.76 per share

- 2023-08: CNY 93.75 per share

- 2023-09: CNY 88.32 per share

- 2023-10: CNY 88.80 per share

- 2023-11: CNY 80.65 per share

- 2023-12: CNY 76.82 per share

- 2024-01: CNY 69.69 per share

- 2024-02: CNY 79.55 per share

- 2024-03: CNY 82.80 per share

- 2024-04: CNY 89.10 per share

- 2024-05: CNY 87.55 per share

- 2024-06: CNY 80.86 per share

- 2024-07: CNY 77.60 per share

- 2024-08: CNY 73.00 per share

- 2024-09: CNY 91.32 per share

- 2024-10: CNY 75.25 per share

- 2024-11: CNY 74.29 per share

- 2024-12: CNY 71.35 per share

- 2025-01: CNY 68.53 per share

- 2025-02: CNY 68.81 per share

- 2025-03: CNY 67.21 per share

- 2025-04: CNY 54.44 per share

- 2025-05: CNY 54.14 per share

- 2025-06: CNY 54.26 per share

- 2025-07: CNY 62.31 per share

- 2025-08: CNY 68.60 per share

- 2025-09: CNY 66.58 per share

- 2025-10: CNY 62.63 per share

- 2025-11: CNY 67.12 per share

- 2025-12: CNY 76.68 per share

- 2026-01: CNY 87.97 per share

- 2026-02: CNY 93.00 per share

- 2026-03: CNY 79.45 per share

- 2026-04: CNY 89.54 per share

- 2026-05: CNY 73.45 per share

- 2026-06: CNY 68.41 per share

- 2026-07: CNY 74.51 per share

- 2026-08: CNY 76.32 per share

- 2026-09: CNY 68.90 per share

- 2026-10: CNY 67.04 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.83 per share, central CNY 3.82 per share, high CNY 4.39 per share

- FY2017: low CNY 4.62 per share, central CNY 6.28 per share, high CNY 7.25 per share

- FY2018: low CNY 45.75 per share, central CNY 64.79 per share, high CNY 75.87 per share

- FY2019: low CNY 37.27 per share, central CNY 52.80 per share, high CNY 61.85 per share

- FY2020: low CNY 43.96 per share, central CNY 60.60 per share, high CNY 70.29 per share

- FY2021: low CNY 114.42 per share, central CNY 159.17 per share, high CNY 185.23 per share

- FY2022: low CNY 33.04 per share, central CNY 45.06 per share, high CNY 52.06 per share

- FY2025: low CNY 41.41 per share, central CNY 55.35 per share, high CNY 63.68 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 2026-10-15T06:40:04.932Z 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.

## Reported holder observations