Nanjing King-Friend Biochemical Pharmaceutical Co.,Ltd.

SHSE:603707 Stock Report

Market Cap: CN¥22.2b

Nanjing King-Friend Biochemical PharmaceuticalLtd Valuation

Is 603707 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 603707 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603707 (CN¥13.73) is trading below our estimate of fair value (CN¥26.38)

Significantly Below Fair Value: 603707 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603707?

Key metric: As 603707 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603707. This is calculated by dividing 603707's market cap by their current revenue.
What is 603707's PS Ratio?
PS Ratio5.7x
SalesCN¥3.88b
Market CapCN¥22.18b

Price to Sales Ratio vs Peers

How does 603707's PS Ratio compare to its peers?

The above table shows the PS ratio for 603707 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
600380 Joincare Pharmaceutical Group IndustryLtd
1.3x8.3%CN¥20.9b
600535 Tasly Pharmaceutical Group
2.5x6.9%CN¥21.6b
600062 China Resources Double-Crane PharmaceuticalLtd
2.1x8.9%CN¥21.4b
600329 Tianjin Pharmaceutical Da Ren Tang Group
3.1x10.9%CN¥21.5b
603707 Nanjing King-Friend Biochemical PharmaceuticalLtd
5.7x25.5%CN¥22.2b

Price-To-Sales vs Peers: 603707 is expensive based on its Price-To-Sales Ratio (5.7x) compared to the peer average (2.2x).

Price to Sales Ratio vs Industry

How does 603707's PS Ratio compare vs other companies in the CN Pharmaceuticals Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
600664 Harbin Pharmaceutical Group
0.6xn/aUS$1.28b
000411 Zhejiang Int'l GroupLtd
0.2xn/aUS$758.85m
000153 Anhui Fengyuan Pharmaceutical
0.7xn/aUS$399.69m
600781 FUREN Group PharmaceuticalLtd
0.3xn/aUS$66.91m
603707 5.7xIndustry Avg. 3.5xNo. of Companies36PS02.85.68.411.214+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 603707 is expensive based on its Price-To-Sales Ratio (5.7x) compared to the CN Pharmaceuticals industry average (3.5x).

Price to Sales Ratio vs Fair Ratio

What is 603707's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

603707 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.7x
Fair PS Ratio5.5x

Price-To-Sales vs Fair Ratio: 603707 is expensive based on its Price-To-Sales Ratio (5.7x) compared to the estimated Fair Price-To-Sales Ratio (5.5x).

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 603707 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥13.73
CN¥18.00
+31.1%
13.3%CN¥20.85CN¥15.00n/a3
Nov ’25CN¥14.60
CN¥18.00
+23.3%
13.3%CN¥20.85CN¥15.00n/a3
Oct ’25CN¥14.55
CN¥15.34
+5.4%
2.2%CN¥15.67CN¥15.00n/a2
Sep ’25CN¥11.31
CN¥15.84
+40.0%
1.0%CN¥16.00CN¥15.67n/a2
Aug ’25CN¥12.08
CN¥16.79
+38.9%
4.7%CN¥17.57CN¥16.00n/a2
Jul ’25CN¥12.25
CN¥16.79
+37.0%
4.7%CN¥17.57CN¥16.00n/a2
Jun ’25CN¥12.53
CN¥15.82
+26.2%
1.2%CN¥16.00CN¥15.63n/a2
May ’25CN¥13.70
CN¥16.32
+19.1%
4.2%CN¥17.00CN¥15.63n/a2
Apr ’25CN¥11.24
CN¥20.19
+79.6%
15.8%CN¥23.37CN¥17.00n/a2
Mar ’25CN¥13.86
CN¥20.19
+45.6%
15.8%CN¥23.37CN¥17.00n/a2
Feb ’25CN¥12.42
CN¥20.19
+62.5%
15.8%CN¥23.37CN¥17.00n/a2
Jan ’25CN¥15.00
CN¥20.19
+34.6%
15.8%CN¥23.37CN¥17.00n/a2
Dec ’24CN¥15.90
CN¥20.19
+26.9%
15.8%CN¥23.37CN¥17.00n/a2
Nov ’24CN¥12.55
CN¥20.19
+60.8%
15.8%CN¥23.37CN¥17.00CN¥14.602
Oct ’24CN¥12.69
CN¥21.20
+67.0%
19.8%CN¥25.39CN¥17.00CN¥14.552
Sep ’24CN¥11.78
CN¥21.13
+79.3%
5.3%CN¥22.25CN¥20.00CN¥11.312
Aug ’24CN¥13.61
CN¥22.61
+66.1%
11.5%CN¥25.22CN¥20.00CN¥12.082
Jul ’24CN¥13.50
CN¥22.61
+67.5%
11.5%CN¥25.22CN¥20.00CN¥12.252
Jun ’24CN¥13.43
CN¥23.31
+73.5%
14.2%CN¥26.61CN¥20.00CN¥12.532

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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