Grand Pharmaceutical Group Valuation

Is 512 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 512 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 512 (HK$4.56) is trading below our estimate of fair value (HK$10.81)

Significantly Below Fair Value: 512 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 512?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 512. This is calculated by dividing 512's market cap by their current preferred multiple.
What is 512's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	HK$15.97b

512 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	1.6x
Enterprise Value/EBITDA	5.1x
PEG Ratio	2.9x

Price to Earnings Ratio vs Peers

How does 512's PE Ratio compare to its peers?

The above table shows the PE ratio for 512 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	9.8x
3933 United Laboratories International Holdings	6.2x	3.9%	HK$19.6b
2005 SSY Group	8.3x	9.5%	HK$11.3b
867 China Medical System Holdings	12.6x	21.4%	HK$19.2b
2186 Luye Pharma Group	12.3x	22.0%	HK$10.4b
512 Grand Pharmaceutical Group	6.6x	2.3%	HK$16.0b

Price-To-Earnings vs Peers: 512 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (9.8x).

Price to Earnings Ratio vs Industry

How does 512's PE Ratio compare vs other companies in the HK Pharmaceuticals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	11.0%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	11.0%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: 512 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the Hong Kong Pharmaceuticals industry average (8.2x).

Price to Earnings Ratio vs Fair Ratio

What is 512'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.

512 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.6x
Fair PE Ratio	10.1x

Price-To-Earnings vs Fair Ratio: 512 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).

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 512 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	HK$4.56	HK$5.80 +27.2%	6.9%	HK$6.20	HK$5.40	n/a	2
Oct ’25	HK$5.20	HK$6.50 +25.0%	16.9%	HK$7.60	HK$5.40	n/a	2
Sep ’25	HK$4.41	HK$6.50 +47.4%	16.9%	HK$7.60	HK$5.40	n/a	2
Aug ’25	HK$4.40	HK$6.50 +47.7%	16.9%	HK$7.60	HK$5.40	n/a	2
Nov ’24	HK$4.21	HK$7.94 +88.6%	4.3%	HK$8.28	HK$7.60	HK$4.60	2
Oct ’24	HK$4.20	HK$7.94 +89.0%	4.3%	HK$8.28	HK$7.60	HK$5.20	2
Sep ’24	HK$4.06	HK$7.94 +95.6%	4.3%	HK$8.28	HK$7.60	HK$4.41	2
Aug ’24	HK$4.38	HK$7.94 +81.3%	4.3%	HK$8.28	HK$7.60	HK$4.40	2
Jul ’24	HK$4.42	HK$7.94 +79.6%	4.3%	HK$8.28	HK$7.60	HK$4.65	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.