Wanhua Chemical Group Co Ltd

Wanhua Chemical Group maintains a capital structure characterized by significant leverage and tight liquidity metrics. The company reports total assets of 323.0 billion CNY against total liabilities of 214.7 billion CNY, resulting in a debt-to-equity ratio of 1.02. Long-term debt stands at 110.9 billion CNY, which exceeds the total equity of 108.3 billion CNY. Liquidity is constrained, evidenced by a current ratio of 0.62, indicating that current liabilities exceed current assets. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, highlighting a reliance on external financing or operating cash flow to meet obligations.

Profitability metrics show moderate returns on capital. The company generated net income of 12.5 billion CNY on revenue of 203.2 billion CNY, yielding a net margin of approximately 6.2%. Return on equity (ROE) is 11.57%, while return on assets (ROA) is 3.88%. These returns are supported by an operating income of 16.7 billion CNY and gross profit of 27.2 billion CNY. The valuation snapshot indicates a price-to-earnings ratio of 17.75 and a price-to-book ratio of 2.05, suggesting the market prices the company at a premium to its book value but with a moderate earnings multiple.

Revenue concentration and geographic exposure details are absent from the provided data. The input does not contain segment breakdowns or geographic revenue splits, preventing an analysis of diversification or regional risk. Consequently, the narrative cannot assess concentration risk based on disclosed segments or regions.

Growth trajectory analysis is limited by the absence of historical period data. The input provides only the latest normalized financial snapshot without 5-year annual or 8-quarter quarterly trends. Therefore, revenue growth rates, earnings momentum, and cyclical positioning cannot be derived from the available historical periods table.

Risk factors are primarily centered on liquidity and leverage. The key flag identifies negative net cash after debt subtraction, reinforcing the medium liquidity risk rating. Dilution risk is assessed as low, with no immediate signs of aggressive share issuance. The high debt load relative to equity and the low current ratio suggest sensitivity to interest rate fluctuations and credit market conditions.

Recent events and market sentiment are reflected in analyst estimates. The mean price target is 102.38 CNY, with a median of 107.70 CNY, implying significant upside from the current market price of 71.02 CNY. The mean recommendation is 1.81, driven by 7 strong-buy and 7 buy ratings, with only 1 hold rating. Competitor context lists Chevron, Shell, and BP, though no comparative financial data is provided for these entities.

Analysts project 40.2% upside to a mean price target of 102.375, reflecting strong market confidence in future performance.

Revenue grew 11.6% year-over-year to 203.2 billion CNY in FY2026, demonstrating robust top-line expansion capabilities.

Free cash flow improved 71.6% year-over-year in FY2026, signaling a positive trend in cash generation despite deficits.

Net income declined 15.6% annually over four years, falling to 12.5 billion CNY in FY2026, showing eroding profitability.

The company faces high credit risk, posing significant potential threats to financial stability and debt servicing capacity.

Long-term debt surged to 110.9 billion CNY in FY2026, increasing leverage and financial obligations significantly.

Capex intensity ranks in the bottom quartile of the cohort, indicating heavy capital requirements relative to revenue generation.

Revenue ¥59.01B, +71,2% YoY; Operating income +43,3% YoY.

• ▍Revenue ¥59.01B, +71,2% YoY
• ▍Operating income +43,3% YoY
• ▍Net income +73,7% YoY
• ▍Net margin 5.7%

Revenue ¥53.32B, +5,5% YoY; Operating income +3,9% YoY.

• ▍Revenue ¥53.32B, +5,5% YoY
• ▍Operating income +3,9% YoY
• ▍Net income +4,0% YoY
• ▍Net margin 5.7%

Revenue ¥47.83B, −6,0% YoY; Operating income −30,3% YoY.

• ▍Revenue ¥47.83B, −6,0% YoY
• ▍Operating income −30,3% YoY
• ▍Net income −24,3% YoY
• ▍Net margin 6.4%

Revenue ¥43.07B; Operating income ¥4.02B.

• ▍Revenue ¥43.07B
• ▍Operating income ¥4.02B
• ▍Net margin 7.2%

Revenue ¥34.46B; Operating income ¥3.41B.

• ▍Revenue ¥34.46B
• ▍Operating income ¥3.41B
• ▍Net margin 5.6%

Revenue ¥50.54B; Operating income ¥3.99B.

• ▍Revenue ¥50.54B
• ▍Operating income ¥3.99B
• ▍Net margin 5.8%

Revenue ¥50.91B; Operating income ¥5.20B.

• ▍Revenue ¥50.91B
• ▍Operating income ¥5.20B
• ▍Net margin 7.9%

Revenue ¥203.23B, +11,6% YoY; Operating income −7,2% YoY.

• ▍Revenue ¥203.23B, +11,6% YoY
• ▍Operating income −7,2% YoY
• ▍Net income −3,9% YoY
• ▍Free cash flow +71,6% YoY
• ▍Net margin 6.2%

Revenue ¥182.07B, +3,8% YoY; Operating income −11,9% YoY.

• ▍Revenue ¥182.07B, +3,8% YoY
• ▍Operating income −11,9% YoY
• ▍Net income −22,5% YoY
• ▍Free cash flow +16,7% YoY
• ▍Net margin 7.2%

Revenue ¥175.36B, +5,9% YoY; Operating income +2,8% YoY.

• ▍Revenue ¥175.36B, +5,9% YoY
• ▍Operating income +2,8% YoY
• ▍Net income +3,6% YoY
• ▍Free cash flow −33,2% YoY
• ▍Net margin 9.6%

Revenue ¥165.57B, +13,8% YoY; Operating income −32,6% YoY.

• ▍Revenue ¥165.57B, +13,8% YoY
• ▍Operating income −32,6% YoY
• ▍Net income −34,1% YoY
• ▍Free cash flow −49 831,0% YoY
• ▍Net margin 9.8%

Revenue ¥145.54B; Operating income ¥29.43B.

• ▍Revenue ¥145.54B
• ▍Operating income ¥29.43B
• ▍Net margin 16.9%