Huadong Medicine Co., Ltd

SZSE:000963 Stock Report

Market Cap: CN¥61.7b

Huadong Medicine Valuation

Is 000963 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 000963 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000963 (CN¥36.4) is trading below our estimate of fair value (CN¥72.48)

Significantly Below Fair Value: 000963 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 000963?

Key metric: As 000963 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 000963. This is calculated by dividing 000963's market cap by their current earnings.
What is 000963's PE Ratio?
PE Ratio19.8x
EarningsCN¥3.21b
Market CapCN¥61.71b

Price to Earnings Ratio vs Peers

How does 000963's PE Ratio compare to its peers?

The above table shows the PE ratio for 000963 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
601607 Shanghai Pharmaceuticals Holding
20.2x18.5%CN¥69.2b
600998 Jointown Pharmaceutical Group
13.2x17.1%CN¥26.4b
600511 China National Medicines
12.7x9.1%CN¥25.9b
600056 China Meheco Group
20.7xn/aCN¥18.4b
000963 Huadong Medicine
19.8x13.2%CN¥61.7b

Price-To-Earnings vs Peers: 000963 is expensive based on its Price-To-Earnings Ratio (19.8x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

How does 000963's PE Ratio compare vs other companies in the CN Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
000963 19.8xIndustry Avg. 34.3xNo. of Companies4PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 000963 is good value based on its Price-To-Earnings Ratio (19.8x) compared to the CN Healthcare industry average (34.3x).

Price to Earnings Ratio vs Fair Ratio

What is 000963'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.

000963 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.8x
Fair PE Ratio25.8x

Price-To-Earnings vs Fair Ratio: 000963 is good value based on its Price-To-Earnings Ratio (19.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).

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 000963 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥36.40
CN¥42.61
+17.1%
11.3%CN¥50.03CN¥31.00n/a10
Nov ’25CN¥32.87
CN¥43.48
+32.3%
12.0%CN¥50.22CN¥31.00n/a11
Oct ’25CN¥34.99
CN¥42.68
+22.0%
13.8%CN¥50.22CN¥29.00n/a11
Sep ’25CN¥29.48
CN¥42.68
+44.8%
13.8%CN¥50.22CN¥29.00n/a11
Aug ’25CN¥28.70
CN¥43.09
+50.1%
15.2%CN¥50.49CN¥29.00n/a11
Jul ’25CN¥28.10
CN¥44.11
+57.0%
11.3%CN¥50.49CN¥33.00n/a11
Jun ’25CN¥31.63
CN¥44.11
+39.5%
11.3%CN¥50.49CN¥33.00n/a11
May ’25CN¥32.94
CN¥46.51
+41.2%
12.5%CN¥59.85CN¥40.00n/a12
Apr ’25CN¥31.38
CN¥51.29
+63.5%
12.9%CN¥62.00CN¥41.50n/a12
Mar ’25CN¥33.31
CN¥51.30
+54.0%
13.7%CN¥62.00CN¥41.50n/a11
Feb ’25CN¥29.72
CN¥52.23
+75.7%
11.6%CN¥62.00CN¥43.00n/a11
Jan ’25CN¥41.46
CN¥52.40
+26.4%
11.5%CN¥62.00CN¥43.00n/a11
Dec ’24CN¥41.21
CN¥52.40
+27.1%
11.5%CN¥62.00CN¥43.00n/a11
Nov ’24CN¥42.42
CN¥52.40
+23.5%
11.5%CN¥62.00CN¥43.00CN¥32.8711
Oct ’24CN¥42.24
CN¥53.36
+26.3%
11.2%CN¥62.00CN¥43.00CN¥34.9910
Sep ’24CN¥38.15
CN¥53.36
+39.9%
11.2%CN¥62.00CN¥43.00CN¥29.4810
Aug ’24CN¥41.93
CN¥54.03
+28.9%
10.6%CN¥62.00CN¥44.00CN¥28.709
Jul ’24CN¥43.37
CN¥54.27
+25.1%
11.2%CN¥62.00CN¥44.00CN¥28.108
Jun ’24CN¥38.95
CN¥54.27
+39.3%
11.2%CN¥62.00CN¥44.00CN¥31.638
May ’24CN¥41.45
CN¥52.89
+27.6%
15.8%CN¥62.00CN¥36.00CN¥32.948
Apr ’24CN¥46.34
CN¥52.09
+12.4%
17.2%CN¥62.41CN¥36.00CN¥31.387
Mar ’24CN¥47.21
CN¥52.38
+10.9%
18.4%CN¥62.41CN¥36.00CN¥33.316
Feb ’24CN¥47.87
CN¥50.54
+5.6%
24.4%CN¥62.41CN¥28.00CN¥29.726
Jan ’24CN¥46.80
CN¥45.41
-3.0%
21.8%CN¥57.00CN¥28.00CN¥41.465
Dec ’23CN¥42.30
CN¥45.41
+7.3%
21.8%CN¥57.00CN¥28.00CN¥41.215
Nov ’23CN¥43.20
CN¥45.41
+5.1%
21.8%CN¥57.00CN¥28.00CN¥42.425

Analyst Forecast: Target price is less than 20% higher than the current share price.

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