Risk factor
Meaningful price volatility
Profitability factor
Overvalued vs peers
About
Operating within China, Longxing Chemical Stock Co., Ltd. specializes in the manufacturing and distribution of carbon black products, marketed under its proprietary Longxing brand. The company's product portfolio further extends to include precipitated silica and polyvinylidene fluoride. Its carbon black finds extensive application in the production of all-steel and semi-steel radial tires, as well as inner tubes. Additionally, it is a crucial component for various automotive parts, such as door and window sealing strips, oil tubes, and brake pads. Beyond the automotive industry, this versatile material serves as a fundamental ingredient across diverse sectors including rubber manufacturing, building materials, electronics, paper production, plastics, color masterbatches, paints, fuels, chemical fibers, and for fiber coloring. Established in 1994, the firm was initially known as Hebei Longxing Chemical Stock Co., Ltd. before adopting its current name, Longxing Chemical Stock Co., Ltd., in January 2008. The company's headquarters are located in Shahe, China.
Company Valuation
From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITD