Lianhe Chemical Technology Co Ltd
SZSE:002250

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Lianhe Chemical Technology Co Ltd Logo
Lianhe Chemical Technology Co Ltd
SZSE:002250
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Price: 16.55 CNY 0.24% Market Closed
Market Cap: ¥14.9B

EV/GP

9.8
Current
33%
More Expensive
vs 3-y average of 7.4

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
9.8
=
Enterprise Value
¥16.4B
/
Gross Profit
¥1.7B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
9.8
=
Enterprise Value
¥16.4B
/
Gross Profit
¥1.7B

Valuation Scenarios

Lianhe Chemical Technology Co Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (7.4), the stock would be worth ¥12.44 (25% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-25%
Maximum Upside
+77%
Average Upside
19%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 9.8 ¥16.55
0%
3-Year Average 7.4 ¥12.44
-25%
5-Year Average 8.3 ¥14.07
-15%
Industry Average 17.3 ¥29.22
+77%
Country Average 13.6 ¥22.89
+38%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
CN
Lianhe Chemical Technology Co Ltd
SZSE:002250
15.1B CNY 9.8 39
JP
Shin-Etsu Chemical Co Ltd
TSE:4063
13.2T JPY 13.4 27.8
US
Sherwin-Williams Co
NYSE:SHW
78.8B USD 7.7 30.7
US
Ecolab Inc
NYSE:ECL
73.2B USD 11.2 35.3
JP
Yasuhara Chemical Co Ltd
TSE:4957
10.8T JPY 3.1 10.5
CN
Wanhua Chemical Group Co Ltd
SSE:600309
280.3B CNY 12.7 21.3
CH
Givaudan SA
SIX:GIVN
25.7B CHF 9 24
DK
Novozymes A/S
CSE:NZYM B
165.6B DKK 17.4 54.8
IN
Asian Paints Ltd
NSE:ASIANPAINT
2.3T INR 15.2 60.8
US
PPG Industries Inc
NYSE:PPG
24B USD 4.3 15.2
CH
Sika AG
F:SIKA
19.9B EUR 3.5 17.5

Market Distribution

In line with most companies in China
Percentile
37th
Based on 6 967 companies
37th percentile
9.8
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

Lianhe Chemical Technology Co Ltd
Glance View

Market Cap
14.9B CNY
Industry
Chemicals

Lianhe Chemical Technology Co., Ltd. is a solutions & service provider for chemistry and technology focusing on four global markets: crop protection; pharmaceuticals; performance chemicals; and equipment & engineering service. The company is headquartered in Taizhou, Zhejiang and currently employs 6,434 full-time employees. The company went IPO on 2008-06-19. The firm operates its businesses through three segments. The Pesticides segment is principally engaged in the production and sales of pesticide active pharmaceutical ingredients (APIs) and intermediates, as well as the provision of custom production, research and development and technical services. The Pharmaceuticals segment is principally engaged in the production and sales of APIs and intermediates. The Functional Chemicals segment is engaged in the production and sales of fine chemicals and functional chemicals. The firm distributes its products within domestic market and to overseas markets.

Intrinsic Value
13.29 CNY
Overvaluation 20%
Intrinsic Value
Price ¥16.55
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