LBX Pharmacy Chain Valuation

Q: What is the Fair Price of 603883 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603883 (CN¥17.57) is trading below our estimate of [[fair value]] (CN¥83.21)

Is 603883 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 603883 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603883 (CN¥17.57) is trading below our estimate of fair value (CN¥83.21)

Significantly Below Fair Value: 603883 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603883?

Key metric: As 603883 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603883. This is calculated by dividing 603883's market cap by their current earnings.
What is 603883's PE Ratio?
PE Ratio	15.9x
Earnings	CN¥842.61m
Market Cap	CN¥13.36b

603883 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	11x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does 603883's PE Ratio compare to its peers?

The above table shows the PE ratio for 603883 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31.5x
603233 DaShenLin Pharmaceutical Group	20.5x	24.9%	CN¥17.4b
002727 Yixintang Pharmaceutical Group	51.4x	45.8%	CN¥8.0b
603939 Yifeng Pharmacy Chain	18.3x	17.7%	CN¥27.8b
301408 Anhui Huaren Health Pharmaceutical	35.8x	n/a	CN¥4.8b
603883 LBX Pharmacy Chain	15.9x	18.2%	CN¥13.4b

Price-To-Earnings vs Peers: 603883 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (31.5x).

Price to Earnings Ratio vs Industry

How does 603883's PE Ratio compare vs other companies in the CN Consumer Retailing Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 603883 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the CN Consumer Retailing industry average (27.3x).

Price to Earnings Ratio vs Fair Ratio

What is 603883's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

603883 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.9x
Fair PE Ratio	20.4x

Price-To-Earnings vs Fair Ratio: 603883 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 603883 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CN¥17.57	CN¥25.50 +45.1%	23.6%	CN¥37.31	CN¥14.00	n/a	11
Nov ’25	CN¥17.68	CN¥25.18 +42.4%	25.5%	CN¥37.31	CN¥14.00	n/a	11
Oct ’25	CN¥17.38	CN¥26.64 +53.3%	25.9%	CN¥37.31	CN¥16.00	n/a	11
Sep ’25	CN¥13.50	CN¥30.36 +124.9%	16.8%	CN¥37.31	CN¥18.17	n/a	10
Aug ’25	CN¥13.49	CN¥31.93 +136.7%	9.8%	CN¥37.31	CN¥26.22	n/a	10
Jul ’25	CN¥19.18	CN¥33.11 +72.6%	6.3%	CN¥37.31	CN¥29.23	n/a	10
Jun ’25	CN¥25.85	CN¥32.90 +27.3%	3.8%	CN¥35.22	CN¥30.77	n/a	9
May ’25	CN¥25.75	CN¥30.27 +17.6%	14.4%	CN¥35.22	CN¥21.23	n/a	8
Apr ’25	CN¥23.32	CN¥30.22 +29.6%	13.7%	CN¥35.22	CN¥21.23	n/a	9
Mar ’25	CN¥23.36	CN¥30.10 +28.8%	14.0%	CN¥34.25	CN¥21.23	n/a	8
Feb ’25	CN¥21.22	CN¥29.57 +39.4%	14.3%	CN¥34.25	CN¥21.23	n/a	9
Jan ’25	CN¥22.99	CN¥29.57 +28.6%	14.3%	CN¥34.25	CN¥21.23	n/a	9
Dec ’24	CN¥23.35	CN¥30.43 +30.4%	14.0%	CN¥34.90	CN¥21.23	n/a	11
Nov ’24	CN¥20.12	CN¥30.99 +54.0%	12.7%	CN¥34.90	CN¥21.23	CN¥17.68	11
Oct ’24	CN¥19.66	CN¥31.57 +60.6%	13.6%	CN¥36.92	CN¥21.23	CN¥17.38	11
Sep ’24	CN¥19.55	CN¥31.97 +63.6%	13.3%	CN¥37.15	CN¥22.69	CN¥13.50	11
Aug ’24	CN¥21.83	CN¥32.88 +50.6%	14.0%	CN¥37.15	CN¥22.69	CN¥13.49	11
Jul ’24	CN¥22.96	CN¥34.80 +51.6%	5.6%	CN¥37.15	CN¥31.54	CN¥19.18	11
Jun ’24	CN¥24.99	CN¥34.80 +39.3%	5.6%	CN¥37.15	CN¥31.54	CN¥25.85	11
May ’24	CN¥26.81	CN¥34.73 +29.5%	4.7%	CN¥36.92	CN¥32.15	CN¥25.75	9
Apr ’24	CN¥28.79	CN¥33.34 +15.8%	13.0%	CN¥36.92	CN¥22.49	CN¥23.32	8
Mar ’24	CN¥30.44	CN¥33.16 +8.9%	13.9%	CN¥36.92	CN¥22.49	CN¥23.36	7
Feb ’24	CN¥30.47	CN¥32.28 +5.9%	13.6%	CN¥36.92	CN¥22.49	CN¥21.22	7
Jan ’24	CN¥31.13	CN¥30.84 -0.9%	15.4%	CN¥36.92	CN¥22.49	CN¥22.99	7
Dec ’23	CN¥33.05	CN¥30.84 -6.7%	15.4%	CN¥36.92	CN¥22.49	CN¥23.35	7
Nov ’23	CN¥27.35	CN¥29.96 +9.5%	15.0%	CN¥36.15	CN¥22.49	CN¥20.12	7

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.