The Discounted Cash Flow (DCF) valuation of Tangshan Sanyou Chemical Industries Co Ltd (600409.SS) is 7.32 CNY. With the latest stock price at 5.08 CNY, the upside of Tangshan Sanyou Chemical Industries Co Ltd based on DCF is 44.2%.

Is 600409.SS a buy or a sell?

Based on the latest price of 5.08 CNY and our DCF valuation, Tangshan Sanyou Chemical Industries Co Ltd (600409.SS) is a buy. Buying 600409.SS stocks now will result in a potential gain of 44.2%.

	Range	Selected
WACC / Discount Rate	6.6% - 8.4%	7.5%
Long-term Growth Rate	0.5% - 1.5%	1.0%
Fair Price	5.91 - 9.51	7.32
Upside	16.3% - 87.1%	44.2%

5.08 CNY

Stock Price

7.32 CNY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

600409.SS DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	21,361	24,782	27,261	30,825	31,441	32,070
% Growth	3%	16%	10%	13%	2%	2%

Cost of goods sold	(18,104)	(21,004)	(23,105)	(26,125)	(26,648)	(27,181)
% of Revenue	85%	85%	85%	85%	85%	85%

Selling, G&A expenses	(1,707)	(1,981)	(2,179)	(2,464)	(2,513)	(2,563)
% of Revenue	8%	8%	8%	8%	8%	8%

Research & Development	(572)	(664)	(730)	(825)	(842)	(859)
% of Revenue	3%	3%	3%	3%	3%	3%

Net interest & other expenses	(147)	(170)	(187)	(212)	(216)	(220)
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	(177)	(205)	(226)	(255)	(260)	(265)
Tax rate	21%	21%	21%	21%	21%	21%

Net profit	654	759	834	944	962	982
% Margin	3%	3%	3%	3%	3%	3%