Wanhua Chemical Group Co., Ltd. (600309.SS) stock analysis

In our weekly check, Wanhua Chemical Group Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4.

About Wanhua Chemical Group Co., Ltd.

Wanhua Chemical Group Co., Ltd. is a Basic Materials company (Chemicals - Specialty) based in China, listed on SHH as 600309.SS.

What our checks show for 600309.SS

Red flags

• The net margin fell by 9.2 points over 5 years, to 7.8%: the company keeps less of each sale as profit.
• The stock has fallen as much as 82% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 8.2 years.
• Return on capital (ROCE) is only 3.6%.

Warning signs

• Net debt is 2x a year of EBITDA (debt/equity 1.04). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 3.1 times: a weak year could make the payments hard.
• The net margin is only 7.8%: little room if costs rise.
• The price swings a lot: 35.7% annual volatility. Expect large ups and downs.

Strengths

• The gross margin is 36.4% and has risen by 10.1 points: pricing power is holding.
• Operating cash flow is 1.96x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 13.3% a year over the next years.
• The dividend takes 28% of profit: there is a cushion.
• The price is 11.5 times earnings (P/E), reasonable for its growth.
• A large company: market value $33.07 billion.

Similar companies

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Questions

What grade does Wanhua Chemical Group Co., Ltd. (600309.SS) have?

In our weekly check, Wanhua Chemical Group Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600309.SS stock?

This week's biggest flags for Wanhua Chemical Group Co., Ltd.: Margins falling, Deep past fall, Slow recovery after falls. In total 8 of 25 checks show a warning or a red flag.

What does Wanhua Chemical Group Co., Ltd. do?

Wanhua Chemical Group Co., Ltd. is a Basic Materials company (Chemicals - Specialty) based in China, listed on SHH as 600309.SS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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