ShareValue scores for 9607.HK: Valuation 22, Quality 73, Growth 72, Health 37.
9607.HKHKEX
Red Avenue New Materials Group Co., Ltd.
9607.HKHKEX
Red Avenue New Materials Group Co., Ltd.
Updated
Scored on 603650.SHG, its home listing
Pulse
Pulse
Fundamental Rating
Value Trap Risk
If P/E met sector median
Rating
Trap Risk
P/E to median
vs Shanghai-listed Basic Materials stocks
Company Details
Red Avenue New Materials Group Co., Ltd. manufactures materials for the tire, electronics, and biodegradable materials industries. The company operates through three segments: Rubber Additives for Tyres and Other Chemical Products, Electronic Materials, and Fully Biodegradable Materials. The company's Rubber Additives for Tyres and Other Chemical Products segment manufactures phenolic resins, rubber processing aids, silica and functional additives, chemical peptizers, anti-reversion agents, homogenizers, and coupling agents for carbon black. The segment also produces PTPB (para-tertiary-butylphenol), DMB (2,6-dimethylol-4-methylphenol), rubber wax, cobalt, and processing oils for rubber and tire applications. The company's Electronic Materials segment manufactures semiconductor photoresists, IC photoresists, display photoresists, EBR (electronic resin), and PMA (photoresist material additive), along with high-purity solvents and CMP (chemical mechanical polishing) polishing pads. This segment also produces electronic resins, including phenolic resins for display photoresists and G/I-line photoresists, PHS resins for KrF photoresists, organic insulating films, and light-emitting materials, and provides Turnkey Electronic Solutions for semiconductor and display panel manufacturing. The company's Fully Biodegradable Materials segment manufactures PBAT (polybutylene adipate terephthalate) products used in packaging materials and agricultural mulch films, bio-compostable materials for daily use, food contact, and agriculture, and high-transparency food packaging materials. It serves the automotive tire, semiconductor, and display panel industries internationally. Red Avenue New Materials Group Co., Ltd. was founded in 1999 and is headquartered in Shanghai, China.
Score Analysis
AI Investment Thesis
Red Avenue New Materials Group Co., Ltd. looks overvalued versus Shanghai-listed Basic Materials stocks: its P/B of 10.2 is higher than 92% of peers and P/S of 10.0 higher than 90%.
Quality is the standout fundamental, with a 15.36% margin and 15.73% ROE far above the sector's 4.3% margin and negative average ROE, though the 35.0 P/E already capitalizes that.
On 15 October 2026 the company agreed to inject THB459 million (about RMB91.8 million) into its 51%-held RA Thailand unit, funding overseas capacity expansion.