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Chengdu Kanghong Pharmaceuticals Group Co Ltd (002773) Fair Value & Analysis

Healthcare · CN · Market cap 18.6B CNY (≈ $2.8B) · ISIN CNE1000020C4

What is Chengdu Kanghong Pharmaceuticals Group Co Ltd really worth?

CK Chengdu Kanghong Pharmaceuticals Group Co Ltd 002773 · SHE
Price¥20.30
Fair Value¥27.77
Upside+36.8%
Quality76/100

A strong business, trading 27% below our fair value of ¥27.77.

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Strengths

Healthy Growth (revenue 5y +6.8 %/yr)
Highly profitable · 24.2% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Wide moat 76/100

For context

·3.45% dividend yield
Evidence: High Range ¥20.83 – ¥34.71

Fair value as of: Aug 22, 2026

From 26 valuation models · updated 14 days ago

Share price −5.7% over the past month.

What runs behind every stock

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

What matters now

  • The rarer combination: high quality (76/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (¥20.83). The market is more pessimistic than our downside scenario.

Price vs Fair Value (5 years)

¥44.56 ¥11.38 Fair Value ¥27.77 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ¥11.38 – ¥44.56 · fair‑value band ¥20.83 – ¥34.71 · the ¥20.30 price screens below the ¥27.77 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Chengdu Kanghong Pharmaceuticals Group Co Ltd (002773) currently trades at ¥20.30, while our model-based Fair Value estimate is ¥27.77, implying the stock looks roughly 26.9% undervalued today. The Quality Score stands at 76/100 (high quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of ¥32.82 per share, and 18 of the 26 models we run sit above the ¥20.30 price. Bear case: the Asset-Based group reads lowest at ¥6.76, and 8 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Chengdu Kanghong Pharmaceuticals Group Co Ltd generated revenue of 4.4B CNY at a net margin of 24.2%. Revenue declined 12.7% year over year. It earns a return on equity of 11.3%. The balance sheet holds a net cash position of 5.7B CNY. Fundamentals as of Aug 22, 2026

Our scenario range runs from ¥20.83 (bear case) to ¥34.71 (bull case); at ¥20.30, 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 56% below its 52-week high and 3% 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 37%, 002773 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 ¥0.3113 per share, which is 1.1 % 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
FCF DCF ¥23.16 ¥34.71 ¥53.75 79
Growth DCF ¥23.21 ¥34.23 ¥52.19 78
Owner Earnings ¥21.80 ¥32.39 ¥49.86 76
All 26 models by family
DCF Models
FCF DCF ¥23.16 ¥34.71 ¥53.75 79
Owner Earnings ¥21.80 ¥32.39 ¥49.86 76
5Y Revenue Exit ¥18.95 ¥26.49 ¥36.32 73
5Y EBITDA Exit ¥22.76 ¥34.04 ¥47.73 75
5Y P/E Exit ¥24.79 ¥38.07 ¥52.74 71
10Y Revenue Exit ¥19.92 ¥27.40 ¥38.03 67
10Y EBITDA Exit ¥22.75 ¥32.82 ¥47.23 68
10Y P/E Exit ¥24.08 ¥35.70 ¥51.26 64
Earnings-Based
Graham-Dodd ¥8.58 ¥34.39 ¥46.75 64
Lynch FV ¥8.55 ¥12.22 ¥15.88 61
PEG = 1.0 ¥8.55 ¥12.22 ¥15.88 57
EPV ¥18.26 ¥20.19 ¥21.88 74
Dividend Discount
Gordon GGM ¥5.51 ¥11.45 ¥18.17 66
DDM Multi-Stage ¥5.51 ¥9.66 ¥12.02 66
Multiples
P/E Multiple ¥20.83 ¥27.77 ¥34.71 63
P/S Multiple ¥13.06 ¥17.42 ¥21.77 58
P/B Multiple ¥16.09 ¥21.46 ¥26.82 55
EV/EBIT ¥24.62 ¥30.59 ¥36.57 66
EV/EBITDA ¥24.17 ¥29.99 ¥35.82 67
EV/Revenue ¥17.13 ¥21.61 ¥26.09 54
Asset-Based
NCAV (Graham) ¥5.05 ¥6.76 ¥10.09 54
Growth DCF
Growth DCF ¥23.21 ¥34.23 ¥52.19 78
Rev-Margin DCF ¥18.95 ¥26.47 ¥35.78 73
Economic Profit
Residual Income ¥9.49 ¥11.32 ¥22.21 72
ROIC Compounder ¥19.35 ¥22.87 ¥27.00 72
Growth Earnings
Growth-Adj P/E ¥15.44 ¥22.06 ¥28.67 67

Widest divergence: DCF Models (¥32.82) versus Asset-Based (¥6.76). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 17.5
P/S ratio 4.44 P/E × margin
EPS (TTM) ¥1.16 price ÷ EPS = P/E 17.5
Dividend yield 3.4% payout 60.3%
Net margin 25.4% FY2025
Return on equity 11.3% TTM
More key figures
Profitability
Return on assets (EBIT) 12.2% avg 5y
Operating margin 33.0% TTM
Growth
Revenue (TTM) 4.4B CNY TTM
Revenue growth (YoY) −12.7% 3y avg +10.6%
EPS growth (YoY) −23.3%
Balance sheet & cash flow
Free cash flow 1.2B CNY FY2025
Net cash 5.7B CNY FY2024

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 76/100

Of which business quality 75 · Market factors (momentum, volatility) 30

Profitability 65
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 61
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 1
Distance to the 52-week high (market factor)
Net Issuance 79
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

Chengdu Kanghong Pharmaceutical Group Co., Ltd engages in the research, development, manufacture, and sale of pharmaceuticals and medical devices in China. It develops medicines for ophthalmic, neuropsychiatric, and others. The company was founded in 1996 and is headquartered in Chengdu, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chengdu Kanghong Pharmaceuticals Group Co Ltd reported revenue of 4.6B CNY in FY2025 versus 3.6B CNY in FY2021, a compound +6.2%/yr. Reported net income was 1.2B CNY in FY2025, compounding +28.9%/yr from FY2021.

Growth Quality 78/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
4.6B CNY
Latest YoY
+3.0%
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.
+10.6%
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.
+6.8%
Avg. revenue growth/yr (16Y) 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.
+13.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+17.9% (14.5 + 3.4)
Revenue +6.2%/yr
FY21 3.6B CNY
FY22 3.4B CNY
FY23 4.0B CNY
FY24 4.5B CNY
FY25 4.6B CNY
Net income +28.9%/yr
FY21 421M CNY
FY22 897M CNY
FY23 1.0B CNY
FY24 1.2B CNY
FY25 1.2B CNY
Character of growth · EPS growth decomposed (2013-2024) +11.9 % p.a.
Revenue per share +7.7 %

of which total revenue +9.5 % · buybacks/dilution −1.6 %

EBIT margin +4.2 %
Tax rate +0.0 %
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).

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Cite: Fair Value Calculator (2026). "Chengdu Kanghong Pharmaceuticals Group Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002773

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 76 · Top 25%
Fair Value upside +37% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 24% · Top 25%
Operating margin (TTM) 33% · Top 25%
Revenue growth −13% · Bottom 25%
Dividend yield (TTM) 3.4% · Top 25%
Debt / equity 0.03× · Lower than median

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

P/E (TTM) 17.5× · Cheaper than median
P/B 2.00× · Pricier than median
P/S (TTM) 4.19× · Pricier than 75% of peers
P/FCF 2.2× · Cheaper than median
EV/EBITDA 8.9× · 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
VALUE82 · sector 2
FUTURE0 · sector 22
PAST45 · sector 26
HEALTH99 · sector 97
DIVIDEND69 · sector 29

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 22, 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 Chengdu Kanghong Pharmaceuticals Group Co Ltd (002773) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ¥27.77 versus a price of ¥20.30, about +37% upside (undervalued).
What is the fair value of 002773?
Our model-based fair value for Chengdu Kanghong Pharmaceuticals Group Co Ltd is ¥27.77 (as of Aug 22, 2026), built from audited fundamentals. The current price: ¥20.30.
What is the quality score of 002773?
Chengdu Kanghong Pharmaceuticals Group Co Ltd has a Quality Score of 76/100. 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 Chengdu Kanghong Pharmaceuticals Group Co Ltd (002773)?
Chengdu Kanghong Pharmaceuticals Group Co Ltd reported trailing-twelve-month revenue of about 4.4B CNY (latest available figure, as of Aug 22, 2026).
What is the net profit margin of 002773?
The net profit margin of Chengdu Kanghong Pharmaceuticals Group Co Ltd is about 24.2%, meaning it keeps roughly 24.2% of revenue as net income. Based on the latest reported figures.
Does Chengdu Kanghong Pharmaceuticals Group Co Ltd pay a dividend?
Chengdu Kanghong Pharmaceuticals Group Co Ltd currently shows a dividend yield of about 3.45% relative to its recent price (as of Aug 22, 2026).
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