Huadong Medicine Co Ltd (000963) Fair Value & Analysis
Healthcare · CN · Market cap 52.3B CNY (≈ $7.8B) · ISIN CNE0000011S1
What is Huadong Medicine Co Ltd really worth?
A solid business, trading 36% below our fair value of ¥42.83.
Strengths
Risks
For context
Fair value as of: Aug 19, 2026
From 24 valuation models · updated 16 days ago
Share price −2.0% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range (¥27.47 to ¥53.54) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.
How to read this chart
60‑month range ¥24.96 – ¥48.14 · fair‑value band ¥27.47 – ¥53.54 · the ¥27.37 price screens below the ¥42.83 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 19, 2026.
Analysis
Huadong Medicine Co Ltd (000963) currently trades at ¥27.37, while our model-based Fair Value estimate is ¥42.83, implying the stock looks roughly 36.1% undervalued today. The Quality Score stands at 64/100 (solid quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of ¥43.04 per share, and 19 of the 24 models we run sit above the ¥27.37 price. Bear case: the Asset-Based group reads lowest at ¥9.48, and 5 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Huadong Medicine Co Ltd generated revenue of 44.1B CNY at a net margin of 8.0%. Revenue grew 4.2% year over year. It earns a return on equity of 13.8%. The balance sheet holds a net cash position of 2.9B CNY. Fundamentals as of Aug 19, 2026
Our scenario range runs from ¥27.47 (bear case) to ¥53.54 (bull case); at ¥27.37, the current price sits below 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 40% below its 52-week high and 2% 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 56%, 000963 screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.7270 per share, which is 1.7 % 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.
All 24 models by family
Widest divergence: DCF Models (¥43.04) versus Asset-Based (¥9.48). Highest evidence: FCF DCF (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 64 · Market factors (momentum, volatility) 35
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
Huadong Medicine Co., Ltd, together with its subsidiaries, engages in the wholesale and retail of pharmaceutical products in China and internationally. The company operates through Pharmaceutical Manufacturing, Pharmaceutical Distribution, Medical Aesthetics, and Industrial Microbiology segments.
Full company description
Huadong Medicine Co., Ltd, together with its subsidiaries, engages in the wholesale and retail of pharmaceutical products in China and internationally. The company operates through Pharmaceutical Manufacturing, Pharmaceutical Distribution, Medical Aesthetics, and Industrial Microbiology segments. It offers Chinese medicine, immunosuppressive agents, endocrine, digestive system, antineoplastic, cardiovascular, antibiotic drugs, medical beauty field, and medical devices, as well as engages in pharmaceutical logistics and industrial microbiology activities. In addition, the company provides formulation filling, technical, transportation and warehousing services. Huadong Medicine Co., Ltd was incorporated in 1993 and is headquartered in Hangzhou, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Huadong Medicine Co Ltd reported revenue of 43.6B CNY in FY2025 versus 34.6B CNY in FY2021, a compound +6.0%/yr. Reported net income was 3.4B CNY in FY2025, compounding +10.4%/yr from FY2021.
of which total revenue +8.6 % · buybacks/dilution −1.2 %
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).
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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.
Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 19, 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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