# Hengli Petrochemical (600346.SHG)

Canonical: https://gigainvestors.com/s/600346.SHG

Analysis as of: 2026-10-16T07:35:01.001Z. Financial observations: FY1998–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 15.24 per share; close as of 2026-10-15.

Estimated value: low CNY 7.91 per share, central CNY 8.34 per share, high CNY 8.92 per share. Buy at or below the central value CNY 8.34 per share. Valuation as of 2026-10-16T07:35:01.001Z; scenarios are not confidence intervals.

Expected annual return: 5.3% at the stated quote. About 5.3% 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: 0.50×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.07×

- FY2018: 0.07×

- FY2019: 0.13×

- FY2020: 0.12×

- FY2021: 0.10×

- FY2022: 0.01×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 7.6%

- ROIC, second-lowest year: 3.7%

- Typical minus recent gross margin: 1.9 pp

- Typical gross margin (annual median): 12.9%

- Recent gross margin (lower of latest and 3-year median): 11.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.6%

- ROIC including acquisitions, ten-year median: 4.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 10.3%

- FY2017: 24.8%

- FY2018: 4.2%

- FY2019: 8.4%

- FY2020: 9.8%

- FY2021: 10.1%

- FY2022: 1.4%

- FY2023: 3.9%

- FY2024: 3.7%

- FY2025: 6.8%

### 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 12B

- Net income, five-year total: CNY 39B

- Return on incremental invested capital: 6.3%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 3.5 pp

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

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

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: -2.01×

- FY2024: -0.49×

- FY2025: 1.65×

### 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: 10.3% vs 3.9%

- Per-share earnings: 0.48 to 1.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 18.4%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: CNY 134B

- Cumulative retained earnings: CNY 38B

- Diluted shares, 10-year annual growth: 18.4%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.7%

- Per-share value change: CNY 0.52

- Per-share value, starting three-year median: CNY 0.48

- Per-share value, ending three-year median: CNY 1.00

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.2%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 9.1B

- Cumulative net income, 10 years: CNY 70B

- ROIC, first three-year median: 10.3%

- ROIC, last three-year median: 3.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.29

- FY2017: CNY 0.58

- FY2018: CNY 0.50

- FY2019: CNY 1.47

- FY2020: CNY 1.91

- FY2021: CNY 2.21

- FY2022: CNY 0.33

- FY2023: CNY 0.98

- FY2024: CNY 1.00

- FY2025: CNY 1.01

### accounting: pass

- Sloan accruals: -9.2%

- Receivables to sales index (DSRI): 0.10×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.40×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.3%

- FY2017: 8.3%

- FY2018: -0.6%

- FY2019: -4.0%

- FY2020: -5.6%

- FY2021: -1.5%

- FY2022: -9.8%

- FY2023: -6.4%

- FY2024: -5.7%

- FY2025: -9.2%

## Holders

## Price story

Down 42% since Jan 2026 · sales -14.9%

Story as of 2026-10-16T10:00:03.340Z; price observation 2026-10-15.

Price needs cash profits to grow 14.5% a year for ten years

### Sales · FY2024–2025

sales -14.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 19B 

- FY2017: CNY 47B 

- FY2018: CNY 60B 

- FY2019: CNY 101B 

- FY2020: CNY 152B 

- FY2021: CNY 198B 

- FY2022: CNY 222B 

- FY2023: CNY 235B 

- FY2024: CNY 236B 

- FY2025: CNY 201B 

### Gross margin · FY2025

gross margin 13.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.5% 

- FY2017: 12.7% 

- FY2018: 12.7% 

- FY2019: 20.7% 

- FY2020: 18.1% 

- FY2021: 15.3% 

- FY2022: 6.8% 

- FY2023: 11.0% 

- FY2024: 9.3% 

- FY2025: 13.2% 

## Owner memo

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

### How it makes money

Operates in chemicals; annual sales are CNY 201.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2025: revenue 201087300615.49; grossProfit 26518833289.41; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600346.SHG: 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.

### Why customers stay

Margins ranged from 9.3% to 13.2% during 2023–25; it earns 7.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2023: grossProfit / revenue = 11%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2024: grossProfit / revenue = 9.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2025: grossProfit / revenue = 13.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); 10-year return on capital observations [[2016,0.10263911406085811],[2017,0.24768560950278112],[2018,0.041872500388029955],[2019,0.08440534865681806],[2020,0.09773005758462626],[2021,0.10100046797745944],[2022,0.013877012376790511],[2023,0.03916832578073716],[2024,0.03721905372100497],[2025,0.068109981957007]]; median 0.07625766530691253. 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 651.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2016: growth capex 0; upkeep 380329430; owner earnings 1866297905. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2017: growth capex 12254941100; upkeep 1844444900; owner earnings 3194536884. Growth capex / owner earnings = 3.8362183768731843.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2020: growth capex 17175703645; upkeep 6763250000; owner earnings 13461786000. Growth capex / owner earnings = 1.27588595190861.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2021: growth capex 5123128000; upkeep 8268267000; owner earnings 15518521545.922. Growth capex / owner earnings = 0.3301299021842883.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2022: growth capex 16886175000; upkeep 8828677000; owner earnings 2307152824.018. Growth capex / owner earnings = 7.319053520950573.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2025: growth capex 0; upkeep 7111242107.71; owner earnings 11670571968.024. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); Dividend observations: [[2016,343891740],[2017,1770144000],[2018,3876021000],[2019,6208880000],[2020,7990812337],[2021,9981785000],[2022,12120673000],[2023,5772677855.06],[2024,9441369000],[2025,8352593535.44]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); FY2025: cash repurchases 651495897.4620509 CNY.

### Are managers owners

Insiders own 76.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600346.SHG SharesStats.PercentInsiders = 76.43799999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 14.5% yearly over ten years; actual growth was 5.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.001Z); Ten-year compound average after fade. Initial solved rate 0.19619704974066576. Price 15.24; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.989294796341837 → FY2025 1.6661446630518963. Closing-price date 2026-10-15.

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

- 2016-11: CNY 5.95 per share

- 2016-12: CNY 5.95 per share

- 2017-01: CNY 5.95 per share

- 2017-02: CNY 5.95 per share

- 2017-03: CNY 5.99 per share

- 2017-04: CNY 5.39 per share

- 2017-05: CNY 5.44 per share

- 2017-06: CNY 5.86 per share

- 2017-07: CNY 6.77 per share

- 2017-08: CNY 7.27 per share

- 2017-09: CNY 6.64 per share

- 2017-10: CNY 6.78 per share

- 2017-11: CNY 8.03 per share

- 2017-12: CNY 8.81 per share

- 2018-01: CNY 10.62 per share

- 2018-02: CNY 11.22 per share

- 2018-03: CNY 10.45 per share

- 2018-04: CNY 10.56 per share

- 2018-05: CNY 11.19 per share

- 2018-06: CNY 10.47 per share

- 2018-07: CNY 11.86 per share

- 2018-08: CNY 11.64 per share

- 2018-09: CNY 11.46 per share

- 2018-10: CNY 10.10 per share

- 2018-11: CNY 9.72 per share

- 2018-12: CNY 9.46 per share

- 2019-01: CNY 9.14 per share

- 2019-02: CNY 10.66 per share

- 2019-03: CNY 13.21 per share

- 2019-04: CNY 12.70 per share

- 2019-05: CNY 12.24 per share

- 2019-06: CNY 12.16 per share

- 2019-07: CNY 12.10 per share

- 2019-08: CNY 13.72 per share

- 2019-09: CNY 14.93 per share

- 2019-10: CNY 16.11 per share

- 2019-11: CNY 14.03 per share

- 2019-12: CNY 16.08 per share

- 2020-01: CNY 17.07 per share

- 2020-02: CNY 14.90 per share

- 2020-03: CNY 12.48 per share

- 2020-04: CNY 14.13 per share

- 2020-05: CNY 13.92 per share

- 2020-06: CNY 14.00 per share

- 2020-07: CNY 16.27 per share

- 2020-08: CNY 21.03 per share

- 2020-09: CNY 18.56 per share

- 2020-10: CNY 19.30 per share

- 2020-11: CNY 26.09 per share

- 2020-12: CNY 27.97 per share

- 2021-01: CNY 38.60 per share

- 2021-02: CNY 36.14 per share

- 2021-03: CNY 29.33 per share

- 2021-04: CNY 29.65 per share

- 2021-05: CNY 27.22 per share

- 2021-06: CNY 26.24 per share

- 2021-07: CNY 29.19 per share

- 2021-08: CNY 26.20 per share

- 2021-09: CNY 26.04 per share

- 2021-10: CNY 22.04 per share

- 2021-11: CNY 21.11 per share

- 2021-12: CNY 22.97 per share

- 2022-01: CNY 23.61 per share

- 2022-02: CNY 24.89 per share

- 2022-03: CNY 20.79 per share

- 2022-04: CNY 20.95 per share

- 2022-05: CNY 23.58 per share

- 2022-06: CNY 22.24 per share

- 2022-07: CNY 20.18 per share

- 2022-08: CNY 19.20 per share

- 2022-09: CNY 16.92 per share

- 2022-10: CNY 15.34 per share

- 2022-11: CNY 16.80 per share

- 2022-12: CNY 15.53 per share

- 2023-01: CNY 17.52 per share

- 2023-02: CNY 17.65 per share

- 2023-03: CNY 16.20 per share

- 2023-04: CNY 15.80 per share

- 2023-05: CNY 15.79 per share

- 2023-06: CNY 14.33 per share

- 2023-07: CNY 15.56 per share

- 2023-08: CNY 14.36 per share

- 2023-09: CNY 14.40 per share

- 2023-10: CNY 14.64 per share

- 2023-11: CNY 14.03 per share

- 2023-12: CNY 13.17 per share

- 2024-01: CNY 11.76 per share

- 2024-02: CNY 12.73 per share

- 2024-03: CNY 13.95 per share

- 2024-04: CNY 15.50 per share

- 2024-05: CNY 14.33 per share

- 2024-06: CNY 13.95 per share

- 2024-07: CNY 13.97 per share

- 2024-08: CNY 13.43 per share

- 2024-09: CNY 15.66 per share

- 2024-10: CNY 13.74 per share

- 2024-11: CNY 14.36 per share

- 2024-12: CNY 15.35 per share

- 2025-01: CNY 14.98 per share

- 2025-02: CNY 15.66 per share

- 2025-03: CNY 15.37 per share

- 2025-04: CNY 15.29 per share

- 2025-05: CNY 15.15 per share

- 2025-06: CNY 14.26 per share

- 2025-07: CNY 15.45 per share

- 2025-08: CNY 17.61 per share

- 2025-09: CNY 17.14 per share

- 2025-10: CNY 17.95 per share

- 2025-11: CNY 18.91 per share

- 2025-12: CNY 22.53 per share

- 2026-01: CNY 26.10 per share

- 2026-02: CNY 25.70 per share

- 2026-03: CNY 21.65 per share

- 2026-04: CNY 22.09 per share

- 2026-05: CNY 17.19 per share

- 2026-06: CNY 17.71 per share

- 2026-07: CNY 16.72 per share

- 2026-08: CNY 19.35 per share

- 2026-09: CNY 16.07 per share

- 2026-10: CNY 15.76 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 1.49 per share, central CNY 1.90 per share, high CNY 2.13 per share

- FY2017: low CNY 8.14 per share, central CNY 11.51 per share, high CNY 13.47 per share

- FY2018: low CNY 9.87 per share, central CNY 13.38 per share, high CNY 15.43 per share

- FY2019: low CNY 16.03 per share, central CNY 21.82 per share, high CNY 25.19 per share

- FY2020: low CNY 21.76 per share, central CNY 30.21 per share, high CNY 35.14 per share

- FY2021: low CNY 27.56 per share, central CNY 38.58 per share, high CNY 45.00 per share

- FY2022: low CNY 7.52 per share, central CNY 8.72 per share, high CNY 9.61 per share

- FY2023: low CNY 6.98 per share, central CNY 9.00 per share, high CNY 10.17 per share

- FY2024: low CNY 8.50 per share, central CNY 10.53 per share, high CNY 11.71 per share

- FY2025: low CNY 7.13 per share, central CNY 7.58 per share, high CNY 8.18 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 2026-10-15T06:40:45.200Z 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.