MEGA P&C ADVANCED MATERIALS (SHANGHAI) (603062.SS)

Saturday

10:51 AM

Thesis: The ongoing decline in revenue and net income growth, coupled with rising raw material costs, has led to increased concerns about the company's near-term profitability.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$1.7B	$1.8B	$2.1B
Rev. Growth	-20.0%	+5.1%	+16.2%
EPS	$1.98	$2.01	$2.70
EPS Growth	+0.5%	+1.3%	+34.8%
P/E (fwd)	19.3×	19.0×	14.1×

★ Analysts see FY2027 revenue reaching $2.1B — +16.2% growth in a single year.

What Moves the Stock

1Demand fluctuations in the automotive sector, particularly for electric vehicles
2Raw material price volatility, especially for petrochemical inputs
3Regulatory changes impacting chemical manufacturing standards
4Technological advancements in specialty materials
5Specialty coatings and adhesives - 40%
6Advanced composites - 35%
7Other specialty chemicals - 25%
8Sustainability in chemical manufacturing

FY2025 Snapshot

Revenue: $1.7B
Rev. Growth: -20.0%
Gross Margin: 23.8%
Op. Margin: 14.8%
Net Margin: 12.3%
Net Income: $210M
NI Growth: -0.3%
EPS: $1.98
1Y Return: -15.5%

603062.SS Chart

My Notes

"Management has indicated that 'the current market environment poses significant challenges to our growth trajectory.'"
Moat: MEGA's proprietary formulations and strong R&D capabilities provide a moderate level of competitive advantage…
value - Investors may be drawn to the stock due to its low price-to-sales ratio and potential for recovery as the market stabilizes.
Rising interest rates could increase financing costs for capital expenditures, potentially impacting expansion plans and profitability.
Watch on earnings: Copper prices (HGUSD), Brent crude oil prices (BZUSD), Industrial production index (INDPRO).

One Sentence Summary:

MEGA P&C Advanced Materials (Shanghai): the story is balanced — demand fluctuations in the automotive sector, particularly for electric vehicles.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Writing up the research note…

First read for a new ticker takes about 20–30 seconds while we build the analysis from the latest fundamentals, estimates, and intelligence. It's saved after this, so future visits are instant.

Explore More

S&P 500 Screener

Filter and sort all 500 stocks

Market Movers

Today's biggest gainers and losers

Market Heatmap

Visual sector performance