Risk factor
Strong & resilient to price shocks
Profitability factor
Slightly undervalued vs peers
About
Rongsheng Petrochemical Co., Ltd. operates in the production, marketing, and sale of a diverse array of petrochemicals, chemical fibers, and associated products. Its comprehensive product lineup encompasses synthetic fibers and films, alongside a full spectrum of polyester products, including chips, bottle flakes, and various yarn types like pre-oriented, fully drawn, and textured varieties. The company is also a key producer of purified terephthalic acid (PTA). Furthermore, Rongsheng Petrochemical manufactures an extensive range of synthetic resins and polymers, such as polystyrene, ABS, SAN, styrene butadiene rubber, ion exchange resin, unsaturated resin, styrene thermoplastic elastomer, low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE), polypropylene, and polycarbonate. The company is also a significant supplier of olefins, aromatics, and their downstream derivatives, as well as refined fuel products such as gasoline, diesel, and kerosene. Key industrial intermediates like xylene, ethylene, methyl methacrylate, bisphenol A, and acrylonitrile are also part of its offerings. Established in 1995 and headquartered in Hangzhou, China, the company underwent a name change from Rongsheng Chemical Fiber Group Co., Ltd. to its current Rongsheng Petrochemical Co., Ltd. in September 2007. It operates as a subsidiary of Zhejiang Rongsheng Holding Group Co., Ltd.
Company Valuation
Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, overpriced
Target Price
The average target price of 002493.SZ is 13.7 and suggests 22.5% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to