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Luyan Pharma Co Ltd (002788) Fair Value & Analysis

Healthcare · CN · Market cap 4.4B CNY (≈ $653M) · ISIN CNE1000025W1

What is Luyan Pharma Co Ltd really worth?

LP Luyan Pharma Co Ltd 002788 · SHE
Price¥10.96
Fair Value¥15.91
Upside+45.2%
Quality52/100

A solid business, trading 31% below our fair value of ¥15.91.

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Strengths

Healthy Growth (revenue 5y +6.5 %/yr)
Low debt · generates free cash flow
Ranks above peers (10/14)

Risks

!Thin margins · 1.3% net margin
!Narrow moat 29/100
!Weak on future: 17 out of 100

For context

·3.19% dividend yield
Evidence: High Range ¥9.82 – ¥19.88

Fair value as of: Sep 5, 2026

From 26 valuation models · updated today

Share price +2.1% 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 (52/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥9.82 to ¥19.88) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

¥27.49 ¥5.90 Fair Value ¥15.91 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range ¥5.90 – ¥27.49 · fair‑value band ¥9.82 – ¥19.88 · the ¥10.96 price screens below the ¥15.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Luyan Pharma Co Ltd (002788) currently trades at ¥10.96, while our model-based Fair Value estimate is ¥15.91, implying the stock looks roughly 31.1% undervalued today. The Quality Score stands at 52/100 (solid quality), in the Healthcare sector. Bull case: the Growth DCF group reads highest at a median of ¥22.45 per share, and 21 of the 26 models we run sit above the ¥10.96 price. Bear case: the Asset-Based group reads lowest at ¥5.70, and 5 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Luyan Pharma Co Ltd generated revenue of 21.4B CNY at a net margin of 1.3%. Revenue grew 3.4% year over year. It earns a return on equity of 8.3%. Net debt stands at 3.8B CNY. Fundamentals as of Sep 5, 2026

Our scenario range runs from ¥9.82 (bear case) to ¥19.88 (bull case); at ¥10.96, the current price sits within 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 61% below its 52-week high and 40% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −21% fair-value upside, at 45%, 002788 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 ¥0.2436 per share, which is 1.5 % 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 best evidence ¥14.21 ¥22.88 ¥36.49 79
Growth DCF ¥14.23 ¥22.45 ¥35.05 77
Residual Income ¥7.15 ¥7.71 ¥8.73 76
All 26 models by family
DCF Models
FCF DCF best evidence ¥14.21 ¥22.88 ¥36.49 79
Owner Earnings ¥6.19 ¥9.69 ¥15.19 75
5Y Revenue Exit ¥14.26 ¥23.53 ¥35.74 72
5Y EBITDA Exit ¥17.12 ¥29.15 ¥43.75 74
5Y P/E Exit ¥12.46 ¥19.98 ¥28.17 70
10Y Revenue Exit ¥13.67 ¥22.18 ¥34.42 66
10Y EBITDA Exit ¥15.92 ¥26.10 ¥40.68 67
10Y P/E Exit ¥12.96 ¥19.70 ¥28.50 63
Earnings-Based
Graham-Dodd ¥4.92 ¥19.14 ¥25.97 64
Lynch FV ¥4.70 ¥6.72 ¥8.73 61
PEG = 1.0 ¥4.70 ¥6.72 ¥8.73 57
EPV ¥12.25 ¥14.07 ¥15.64 74
Dividend Discount
Gordon GGM ¥7.10 ¥14.14 ¥21.41 67
DDM Multi-Stage ¥7.10 ¥12.22 ¥14.93 67
Multiples
P/E Multiple ¥11.93 ¥15.91 ¥19.88 63
P/S Multiple ¥9.22 ¥12.29 ¥15.36 58
P/B Multiple ¥9.22 ¥12.29 ¥15.36 55
EV/EBIT ¥20.35 ¥26.88 ¥33.42 66
EV/EBITDA ¥20.58 ¥27.19 ¥33.80 67
EV/Revenue ¥14.74 ¥20.73 ¥26.73 54
Asset-Based
NCAV (Graham) ¥4.26 ¥5.70 ¥8.51 54
Growth DCF
Growth DCF ¥14.23 ¥22.45 ¥35.05 77
Rev-Margin DCF ¥14.26 ¥23.40 ¥34.57 72
Economic Profit
Residual Income ¥7.15 ¥7.71 ¥8.73 76
ROIC Compounder ¥13.28 ¥17.08 ¥21.91 72
Growth Earnings
Growth-Adj P/E ¥8.67 ¥12.38 ¥16.09 67

Widest divergence: Growth DCF (¥22.45) versus Asset-Based (¥5.70). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 15.4
P/S ratio 0.20 P/E × margin
EPS (TTM) ¥0.7100 price ÷ EPS = P/E 15.4
Dividend yield 3.2% payout 49.3%
Net margin 1.3% FY2025
Return on equity 8.3% TTM
More key figures
Profitability
Return on assets (EBIT) 4.0% avg 5y
Operating margin 2.7% TTM
Growth
Revenue (TTM) 21.4B CNY TTM
Revenue growth (YoY) +3.4% 3y avg +3.0%
EPS growth (YoY) −5.6%
Balance sheet & cash flow
Free cash flow 455M CNY FY2025
Net debt 3.8B CNY FY2025 · ≈ 8.4 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 51 · Market factors (momentum, volatility) 40

Profitability 41
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 39
Distance to the 52-week high (market factor)
Net Issuance 81
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

Luyan Pharma Co.,Ltd., together with its subsidiaries, engages in the research, development, production, and sale of pharmaceutical products in China. The company distributes medicines, Chinese herbal medicines, medical devices, and others; and provides medical care, elderly care, and wellness services. It also operates pharmaceutical retail chains.

Full company description

Luyan Pharma Co.,Ltd., together with its subsidiaries, engages in the research, development, production, and sale of pharmaceutical products in China. The company distributes medicines, Chinese herbal medicines, medical devices, and others; and provides medical care, elderly care, and wellness services. It also operates pharmaceutical retail chains. The company was formerly known as Luyan (Fujian) Pharma Co. Ltd. and changed its name to Luyan Pharma Co.,Ltd. in June 2016. Luyan Pharma Co.,Ltd. was founded in 1992 and is headquartered in Xiamen, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Luyan Pharma Co Ltd reported revenue of 21.2B CNY in FY2025 versus 17.5B CNY in FY2021, a compound +4.9%/yr. Reported net income was 281M CNY in FY2025, compounding −2.1%/yr from FY2021.

Growth Quality 67/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
21.2B CNY
Latest YoY
+3.8%
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.
+3.0%
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.
+6.5%
Avg. revenue growth/yr (14Y) 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.
+15.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+1.7% (−1.5 + 3.2)
Revenue +4.9%/yr
FY21 17.5B CNY
FY22 19.5B CNY
FY23 19.8B CNY
FY24 20.5B CNY
FY25 21.2B CNY
Net income −2.1%/yr
FY21 306M CNY
FY22 345M CNY
FY23 364M CNY
FY24 346M CNY
FY25 281M CNY
Character of growth · EPS growth decomposed (2013-2024) +8.1 % p.a.
Revenue per share +8.3 %

of which total revenue +14.0 % · buybacks/dilution −5.0 %

EBIT margin −0.4 %
Tax rate +0.4 %
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). "Luyan Pharma Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002788

Peer Group

Pharmaceutical Retailers · 57 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 52 · Below median
Fair Value upside +45% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 3% · Above median
Net margin (TTM) 1% · Above median
Operating margin (TTM) 3% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 3.2% · Above median
Debt / equity 0.10× · Higher than median

Valuation Multiples vs Pharmaceutical Retailers median · lower = cheaper

P/E (TTM) 15.4× · Cheaper than 75% of peers
P/B 1.32× · Cheaper than median
P/S (TTM) 0.20× · Cheaper than median
P/FCF 1.4× · Pricier than median
EV/EBITDA 6.3× · 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
VALUE94 · sector 20
FUTURE17 · sector 19
PAST33 · sector 15
HEALTH95 · sector 98
DIVIDEND64 · sector 63

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 Pharmaceutical Retailers stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
JD Health International Inc 6618 HK$38.86 HK$33.31 −14%
Alibaba Health Information Technology Limited 0241 HK$3.26 HK$2.04 −37%
Yifeng Pharmacy Chain Co 603939 ¥22.90 ¥29.07 +27%
DaShenLin Pharmaceutical Group 603233 ¥18.79 ¥23.86 +27%
MedPlus Health Services Limited MEDPLUS ₹656.80 ₹191.97 −71%
LBX Pharmacy Chain Joint Stock Company 603883 ¥13.44 ¥10.57 −21%
Yixintang Pharmaceutical Group 002727 ¥11.61 ¥9.45 −19%
Anhui Huaren Health Pharmaceutical Co 301408 ¥16.31 ¥10.05 −38%
ShuYu Civilian Pharmacy Corp 301017 ¥13.30 ¥5.91 −56%
Apotea AB APOTEA kr 74.15 kr 46.46 −37%

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Frequently asked questions

Is Luyan Pharma Co Ltd (002788) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of ¥15.91 versus a price of ¥10.96, about +45% upside (undervalued).
What is the fair value of 002788?
Our model-based fair value for Luyan Pharma Co Ltd is ¥15.91 (as of Sep 5, 2026), built from audited fundamentals. The current price: ¥10.96.
What is the quality score of 002788?
Luyan Pharma Co Ltd has a Quality Score of 52/100. 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 Luyan Pharma Co Ltd (002788)?
Luyan Pharma Co Ltd reported trailing-twelve-month revenue of about 21.4B CNY (latest available figure, as of Sep 5, 2026).
What is the net profit margin of 002788?
The net profit margin of Luyan Pharma Co Ltd is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.
Does Luyan Pharma Co Ltd pay a dividend?
Luyan Pharma Co Ltd currently shows a dividend yield of about 3.19% relative to its recent price (as of Sep 5, 2026).
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