Relative valuation of wanhua chemical group co., ltd.

Abstract

This study conducts a comprehensive relative valuation of Wanhua Chemical Group Co., Ltd. by applying historical multiples, forward-looking multiples, peer comparison, and internal valuation band modeling. Based on 2020–2024 financial data and 2025 forecasts, the analysis systematically estimates Wenhua’s reasonable target price and evaluates its market positioning. The selected peer companies include BASF SE, Dow Inc., LyondellBasell Industries N.V., Resonac Holdings Corporation, and Mitsui Chemicals, Inc., which share similarities in business scope, global presence, and industry relevance. While the internal valuation bands serve as a reference to identify pricing anomalies, the final target price is determined using a quantile-based peer comparison method. The resulting 2025 target price is set at RMB 63, representing an upside potential of approximately 14.4% from the 2025 estimated share price of RMB 55.05. A risk matrix highlights key factors such as raw material costs, regulation, and industry cyclicality. Based on integrated valuation outcomes and qualitative risk assessment, this study issues a BUY recommendation, supported by Wenhua’s strong earnings resilience, strategic R&D investment, and global market expansion.