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Chinese maker of surfactants and fine-chemical intermediates used in agrochemicals, coatings and detergents.
Chinese maker of surfactants and fine-chemical intermediates used in agrochemicals, coatings and detergents.
Moat: none (scale). Surfactant intermediates are a fragmented, price-competitive segment of Chinese fine chemicals.
Headquarters: Zhejiang, China · Employees: 1,316
Size Zhejiang Xinhua Chemical (603867.SS) is a China Materials company (Chemicals: Specialty) with a market value of $817M, the 2705th largest of 4,839 China companies the cockpit tracks. Shares closed at CN¥25.16 on 6 Nov 2026.
Performance Over six months the shares fell 26.6%, against -13.2% for the median peer and -16.4% for the China market (cap-weighted) — 8th lowest of 21 in its peer set.
Growth Revenue grew 7.3% over the last twelve months (peer median +4.6%); the operating margin is 9.8% (peer median 7.8%).
Valuation It trades at 16.1× forward earnings against a peer median of 23.9× (6th cheapest of 16).
Price implies For today's price to make sense, revenue must grow about 13% a year for seven years (Req g). Recent delivered growth is +5%, so the hurdle is +8 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 2.3 points below its cost of capital (8.5% WACC).
Next results Next results expected around 23 Apr 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | CN¥3.19B | CN¥2.94B | CN¥2.96B | CN¥2.58B | CN¥2.68B |
| Revenue growth | — | -1% | +15% | -4% | — |
| Gross profit | CN¥578M | CN¥612M | CN¥578M | CN¥566M | CN¥604M |
| EBITDA | CN¥577M | CN¥523M | CN¥453M | CN¥436M | CN¥479M |
| Net income | CN¥264M | CN¥260M | CN¥227M | CN¥253M | CN¥329M |
| Free cash flow | CN¥158M | -CN¥19.2M | CN¥86.6M | -CN¥98.1M | -CN¥231M |
| Capital expenditure | CN¥239M | CN¥339M | CN¥225M | CN¥384M | CN¥520M |
| Total debt | CN¥696M | CN¥598M | CN¥1.17B | CN¥1.00B | CN¥1.04B |
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| Measure | 603867.SS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -27.4% | -14.8% | lowest of 21 |
| 6-month return | -26.6% | -13.2% | 8th lowest of 21 |
| Distance from 52-week high | -42.8% | -43.9% | 10th highest of 21 |
| Revenue growth (TTM) | +7.3% | +4.6% | 10th highest of 21 |
| Operating margin | 9.8% | 7.8% | 9th highest of 21 |
| Forward P/E | 16.1× | 23.9× | 6th cheapest of 16 |
| Growth the price implies (Req g, 7 yrs) | 12.8% | 17.6% | 4th least demanding of 10 |
| Growth delivered (Del g) | +4.9% | +4.3% | 4th highest of 10 |
| Hurdle (Req g minus delivered) | +7.9 pp | +15.0 pp | 5th least demanding of 10 |
| ROIC minus cost of capital | -2.3 pp | -4.5 pp | 7th highest of 21 |
| EV / EBITDA | 10.1× | 21.1× | 3rd cheapest of 8 |
| Net debt / EBITDA | 0.1× | 0.9× | 4th least indebted of 9 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Zhejiang Xinhua Chemical 603867.SS | China | $817M | -27% | +7% | 10% | 16.1× | 12.8% | +4.9% |
| Jiangsu Aisen Semiconductor Material 688720.SS | China | $817M | -21% | +29% | 5% | 40.2× | n/a | n/a |
| Neo Performance Materials NEO.TO | Canada | $821M | -13% | +24% | 14% | 12.2× | n/a | n/a |
| Zhejiang Zhengguang Industrial 301092.SZ | China | $823M | -1% | -5% | 13% | 53.7× | n/a | n/a |
| Neogen Chemicals NEOGEN.NS | India | $809M | +47% | +27% | 14% | 109.3× | n/a | n/a |
| Shanxi Lu'an Chemical Technology 600691.SS | China | $827M | -31% | -14% | -8% | 232.0× | 27.2% | -11.2% |
| HuBei NengTer Technology 002102.SZ | China | $832M | -12% | -59% | -3% | 16.6× | n/a | n/a |
| China Petrochemical Development 1314.TW | Taiwan | $833M | -1% | -35% | -18% | n/a | n/a | n/a |
| Sinolong New Materials 301565.SZ | China | $799M | -27% | +20% | 1% | 23.9× | n/a | n/a |
| Hangzhou Greenda Electronic Materials 603931.SS | China | $797M | -31% | -4% | 20% | 39.7× | 21.4% | +1.4% |
| Fujian Yuanli Active Carbon 300174.SZ | China | $840M | -14% | +7% | 9% | 20.2× | 17.3% | +10.1% |
| Toyobo 3101.T | Japan | $793M | -1% | +2% | 7% | 13.6× | 2.0% | +4.6% |
| Pan Asian Microvent Tech (Jiangsu) 688386.SS | China | $792M | -40% | +37% | 18% | 40.7× | n/a | n/a |
| Zhejiang Jihua 603980.SS | China | $788M | +22% | +2% | 2% | n/a | 27.0% | -3.6% |
| Sinosteel New Materials 002057.SZ | China | $849M | -22% | +13% | 9% | 12.3× | 12.4% | +13.5% |
| Alkyl Amines Chemicals ALKYLAMINE.NS | India | $849M | -9% | +13% | 17% | 37.4× | 36.2% | +4.3% |
| Kingfa Science & Technology (India) KINGFA.NS | India | $849M | +20% | +24% | 14% | n/a | n/a | n/a |
| Sichuan Lutianhua Company Limited By Shares 000912.SZ | China | $785M | -31% | -5% | -4% | n/a | n/a | n/a |
| Shandong Head 002810.SZ | China | $855M | -38% | +16% | 21% | 14.2× | -1.6% | +7.9% |
| Daqo New Energy Corp Sponsored ADR DQ | United States | $856M | -32% | -21% | -70% | n/a | n/a | n/a |
| Kronos Worldwide KRO | United States | $859M | +46% | +3% | -1% | 11.9× | 17.6% | +2.6% |