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Wedge Industrial Co Ltd (000534) Fair Value & Analysis

Healthcare · CN · Market cap 14.0B CNY (≈ $2.1B) · ISIN CNE0000004T4

What is Wedge Industrial Co Ltd really worth?

WI Wedge Industrial Co Ltd 000534 · SHE
Price¥24.92
Fair Value¥6.43
Upside−74.2%
Quality42/100

Below-average quality, and trading another 288% above our fair value of ¥6.43.

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Strengths

Solidly profitable · 15.3% net margin

Risks

!Mixed Growth (revenue 5y +14.5 %/yr)
!Moderate debt · negative free cash flow
!Trails peers (5/14)
!Moderate moat 56/100
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range ¥4.82 – ¥8.04

Fair value as of: Aug 26, 2026

From 9 valuation models · updated 10 days ago

Share price −6.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (¥8.04). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (5 years)

¥47.65 ¥8.66 Fair Value ¥6.43 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 26, 2026.

How to read this chart

60‑month range ¥8.66 – ¥47.65 · fair‑value band ¥4.82 – ¥8.04 · the ¥24.92 price screens above the ¥6.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 26, 2026.

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Analysis

Wedge Industrial Co Ltd (000534) currently trades at ¥24.92, while our model-based Fair Value estimate is ¥6.43, implying the stock looks roughly 287.6% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Healthcare sector. Bull case: the Multiples group reads highest at a median of ¥6.43 per share, and 0 of the 9 models we run sit above the ¥24.92 price. Bear case: the Asset-Based group reads lowest at ¥1.79, and 9 of the 9 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Wedge Industrial Co Ltd generated revenue of 1.3B CNY at a net margin of 15.3%. Revenue grew 7.4% year over year. It earns a return on equity of 9.7%. Net debt stands at 1.1B CNY. Fundamentals as of Aug 26, 2026

Our scenario range runs from ¥4.82 (bear case) to ¥8.04 (bull case); at ¥24.92, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 49% below its 52-week high and 94% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −45% fair-value upside, at −74%, 000534 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2024 figures, and about 12 months have passed since. In that time the company retained roughly ¥0.4000 per share, which is 6.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ¥2.62 ¥3.23 ¥6.65 71
DDM Multi-Stage ¥2.13 ¥3.73 ¥4.64 67
EV/EBITDA ¥6.93 ¥9.70 ¥12.48 67
All 9 models by family
Dividend Discount
Gordon GGM ¥2.13 ¥4.42 ¥7.02 66
DDM Multi-Stage ¥2.13 ¥3.73 ¥4.64 67
Multiples
P/S Multiple ¥4.82 ¥6.43 ¥8.04 58
P/B Multiple ¥4.01 ¥5.34 ¥6.68 55
EV/EBIT ¥5.83 ¥8.24 ¥10.65 65
EV/EBITDA ¥6.93 ¥9.70 ¥12.48 67
EV/Revenue ¥2.58 ¥4.29 ¥6.00 52
Asset-Based
NCAV (Graham) ¥1.34 ¥1.79 ¥2.67 54
Economic Profit
Residual Income best evidence ¥2.62 ¥3.23 ¥6.65 71

Widest divergence: Multiples (¥6.43) versus Asset-Based (¥1.79). Highest evidence: Residual Income (71).

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Key figures & financial health

P/E ratio 62.3
P/S ratio 11.1 P/E × margin
EPS (TTM) ¥0.4000 price ÷ EPS = P/E 62.3
Net margin 17.9% FY2024
Return on equity 9.7% TTM
Return on assets (EBIT) 5.9% avg 5y
More key figures
Profitability
Operating margin 23.4% TTM
Growth
Revenue (TTM) 1.3B CNY TTM
Revenue growth (YoY) +7.4% 3y avg +18.0%
EPS growth (YoY) +5.6%
Balance sheet & cash flow
Free cash flow −473M CNY FY2024
Net debt 1.1B CNY FY2024

Figures from reported company fundamentals · as of Aug 26, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 39 · Market factors (momentum, volatility) 46

Profitability 44
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 20
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 56
Distance to the 52-week high (market factor)
Net Issuance 75
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Wedge Industrial Co.,Ltd., together with its subsidiaries, engages in the research and development, production, and sale of micro-ecological live bacteria products, superalloys, and related products in China.

Full company description

Wedge Industrial Co.,Ltd., together with its subsidiaries, engages in the research and development, production, and sale of micro-ecological live bacteria products, superalloys, and related products in China. The company offers micro-ecological preparations, such as bifidobacterium lactobacillus triple live bacteria tablets under the Golden Bifidobacterium brand; vaginal lactobacillus live capsules under the Dingjunsheng brand; dual-span microecological live bacteria drugs under the Jinshuangqi brand; and vaginal microecological live bacteria drug for use in the treatment of gynecological infections under the Dingjunsheng brand. It also provides probiotic products, health food products, probiotic dietary supplements, probiotic hand creams, and other probiotic health products under the Sanlian Probiotics, Bacteria powder, and Today's Bacteria brands. In addition, the company is involved in the research, development, and manufacture of high-temperature alloy materials and core components, including precision casting blades, high temperature alloy powder discs, high temperature master alloys and their alloy powders, and nickel-based high-temperature master alloys. Wedge Industrial Co.,Ltd. was formerly known as Guangdong Wanze Industrial Co., Ltd. and changed its name to Wedge Industrial Co., Ltd. in May 2013. The company was founded in 1992 and is based in Shantou, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Wedge Industrial Co Ltd reported revenue of 1.1B CNY in FY2024 versus 553M CNY in FY2020, a compound +18.2%/yr. Reported net income was 193M CNY in FY2024, compounding +25.9%/yr from FY2020.

Growth Quality 49/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
1.1B CNY
Latest YoY
+9.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.5%
Avg. revenue growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+19.3% (19.3 + 0.0)
Revenue +18.2%/yr
FY20 553M CNY
FY21 656M CNY
FY22 794M CNY
FY23 981M CNY
FY24 1.1B CNY
Net income +25.9%/yr
FY20 76.7M CNY
FY21 95.3M CNY
FY22 102M CNY
FY23 177M CNY
FY24 193M CNY
Character of growth · EPS growth decomposed (2013-2024) +7.4 % p.a.
Revenue per share +3.3 %

of which total revenue +3.2 % · buybacks/dilution +0.1 %

EBIT margin +1.2 %
Tax rate +3.1 %
Residual (interest, one-offs) −0.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

000534 screens 288% overvalued. Compare with Merck KGaA →

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Cite: Fair Value Calculator (2026). "Wedge Industrial Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/000534

Peer Group

Drug Manufacturers - Specialty & Generic · 608 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 40 · Bottom 25%
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 10% · Above median
Return on assets 2% · Below median
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 23% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.81× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 62.3× · Pricier than 75% of peers
P/B 10.32× · Pricier than 75% of peers
P/S (TTM) 10.68× · Pricier than 75% of peers
EV/EBITDA 53.7× · Pricier than 75% of peers
PEG 0.94× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 2
FUTURE37 · sector 22
PAST39 · sector 26
HEALTH60 · sector 97
DIVIDEND0 · sector 29

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 26, 2026).

Stock Price Fair Value vs Fair Value
Merck KGaA MRK €140.25 €106.48 −24%
Takeda Pharmaceutical Company TAK $18.03 $11.11 −38%
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 −52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 −49%
Galderma Group GALD CHF 178.55 CHF 55.07 −69%
Haleon plc HLN $10.11 $7.64 −24%
Teva Pharmaceutical Industries Limited TEVA $36.05 $15.33 −57%
Sandoz Group SDZ CHF 70.66 CHF 39.21 −45%
Zoetis Inc ZTS $77.10 $104.88 +36%
Hansoh Pharmaceutical Group 3692 HK$35.12 HK$16.18 −54%

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Frequently asked questions

Is Wedge Industrial Co Ltd (000534) overvalued or undervalued?
As of Aug 26, 2026, our model estimates a fair value of ¥6.43 versus a price of ¥24.92, about −74% upside (overvalued).
What is the fair value of 000534?
Our model-based fair value for Wedge Industrial Co Ltd is ¥6.43 (as of Aug 26, 2026), built from audited fundamentals. The current price: ¥24.92.
What is the quality score of 000534?
Wedge Industrial Co Ltd has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Wedge Industrial Co Ltd (000534)?
Wedge Industrial Co Ltd reported trailing-twelve-month revenue of about 1.3B CNY (latest available figure, as of Aug 26, 2026).
What is the net profit margin of 000534?
The net profit margin of Wedge Industrial Co Ltd is about 15.3%, meaning it keeps roughly 15.3% of revenue as net income. Based on the latest reported figures.
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