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China National Medicines Corp Ltd (600511) Fair Value & Analysis

Healthcare · CN · Market cap 20.8B CNY (≈ $3.1B) · ISIN CNE000001D56

What is China National Medicines Corp Ltd really worth?

CN China National Medicines Corp Ltd 600511 · SHG
Price¥27.05
Fair Value¥58.22
Upside+115.2%
Quality62/100

A solid business, trading 54% below our fair value of ¥58.22.

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Strengths

Healthy Growth (revenue 5y +5.4 %/yr)
Low debt · generates free cash flow
Ranks above peers (13/14)

Risks

!Thin margins · 3.8% net margin
!Narrow moat 34/100

For context

·2.96% dividend yield
Evidence: High Range ¥43.66 – ¥72.07

Fair value as of: Aug 21, 2026

From 26 valuation models · updated 15 days ago

Share price −1.8% 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 is below even our cautious bear case (¥43.66). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

¥42.59 ¥23.93 Fair Value ¥58.22 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ¥23.93 – ¥42.59 · fair‑value band ¥43.66 – ¥72.07 · the ¥27.05 price screens below the ¥58.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

China National Medicines Corp Ltd (600511) currently trades at ¥27.05, while our model-based Fair Value estimate is ¥58.22, implying the stock looks roughly 53.5% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of ¥79.76 per share, and 22 of the 26 models we run sit above the ¥27.05 price. Bear case: the Dividend Discount group reads lowest at ¥13.35, and 4 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, China National Medicines Corp Ltd generated revenue of 53.3B CNY at a net margin of 3.8%. Revenue grew 6.6% year over year. It earns a return on equity of 10.4%. The balance sheet holds a net cash position of 4.3B CNY. Fundamentals as of Aug 21, 2026

Our scenario range runs from ¥43.66 (bear case) to ¥72.07 (bull case); at ¥27.05, 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 13% 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 −10% fair-value upside, at 115%, 600511 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 ¥1.27 per share, which is 2.2 % 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
FCF DCF ¥47.32 ¥79.76 ¥146.07 77
Growth DCF ¥46.57 ¥76.72 ¥130.53 76
5Y EBITDA Exit ¥48.67 ¥81.63 ¥124.64 74
All 26 models by family
DCF Models
FCF DCF ¥47.32 ¥79.76 ¥146.07 77
Owner Earnings ¥51.53 ¥90.06 ¥161.96 73
5Y Revenue Exit ¥44.80 ¥73.22 ¥113.22 71
5Y EBITDA Exit ¥48.67 ¥81.63 ¥124.64 74
5Y P/E Exit ¥51.20 ¥87.12 ¥130.14 70
10Y Revenue Exit ¥44.22 ¥72.18 ¥118.15 65
10Y EBITDA Exit ¥48.00 ¥78.53 ¥128.21 67
10Y P/E Exit ¥49.71 ¥82.67 ¥133.05 62
Earnings-Based
Graham-Dodd ¥17.99 ¥98.79 ¥137.05 63
Lynch FV ¥27.49 ¥39.27 ¥51.05 61
PEG = 1.0 ¥27.49 ¥39.27 ¥51.05 57
EPV ¥38.41 ¥42.85 ¥46.73 74
Dividend Discount
Gordon GGM ¥7.61 ¥15.83 ¥25.12 66
DDM Multi-Stage ¥7.61 ¥13.35 ¥16.62 66
Multiples
P/E Multiple ¥43.66 ¥58.22 ¥72.77 63
P/S Multiple ¥33.74 ¥44.99 ¥56.23 58
P/B Multiple ¥33.74 ¥44.99 ¥56.23 55
EV/EBIT ¥56.06 ¥70.83 ¥85.60 66
EV/EBITDA ¥51.56 ¥64.83 ¥78.09 67
EV/Revenue ¥43.38 ¥56.93 ¥70.48 54
Asset-Based
NCAV (Graham) ¥12.29 ¥16.47 ¥24.58 54
Growth DCF
Growth DCF ¥46.57 ¥76.72 ¥130.53 76
Rev-Margin DCF ¥44.80 ¥72.14 ¥109.50 72
Economic Profit
Residual Income ¥22.05 ¥25.00 ¥44.27 74
ROIC Compounder ¥43.01 ¥54.96 ¥70.83 72
Growth Earnings
Growth-Adj P/E ¥40.93 ¥58.47 ¥76.01 67

Widest divergence: DCF Models (¥79.76) versus Dividend Discount (¥13.35). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 10.1
P/S ratio 0.39 P/E × margin
EPS (TTM) ¥2.67 price ÷ EPS = P/E 10.1
Dividend yield 3.0% payout 30.0%
Net margin 3.8% FY2025
Return on equity 10.4% TTM
More key figures
Profitability
Return on assets (EBIT) 8.4% avg 5y
Operating margin 3.5% TTM
Growth
Revenue (TTM) 53.3B CNY TTM
Revenue growth (YoY) +6.6% 3y avg +4.9%
EPS growth (YoY) +3.3%
Balance sheet & cash flow
Free cash flow 1.9B CNY FY2025
Net cash 4.3B CNY FY2025

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 63 · Market factors (momentum, volatility) 52

Profitability 46
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 82
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

China National Medicines Corporation Ltd., together with its subsidiaries, engages in pharmaceutical equipment circulation in China.

Full company description

China National Medicines Corporation Ltd., together with its subsidiaries, engages in pharmaceutical equipment circulation in China. The company also manufactures and sells new drugs; sells Chinese patent medicines drug sales and western medicines, and medical equipment; and offers dental drug and equipment, warehousing, logistics and import and export agency services. It also serves hospitals, retail pharmacies, and medical institutions. The company was founded in 1999 and is based in Beijing, China. China National Medicines Corporation Ltd. operates as a subsidiary of Sinopharm Group Co. Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China National Medicines Corp Ltd reported revenue of 52.5B CNY in FY2025 versus 46.5B CNY in FY2021, a compound +3.1%/yr. Reported net income was 2.0B CNY in FY2025, compounding +3.3%/yr from FY2021.

Growth Quality 65/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
52.5B CNY
Latest YoY
+3.7%
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.
+4.9%
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.
+5.4%
Avg. revenue growth/yr (26Y) 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.
+17.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+7.7% (4.7 + 3.0)
Revenue +3.1%/yr
FY21 46.5B CNY
FY22 45.5B CNY
FY23 49.7B CNY
FY24 50.6B CNY
FY25 52.5B CNY
Net income +3.3%/yr
FY21 1.8B CNY
FY22 2.0B CNY
FY23 2.1B CNY
FY24 2.0B CNY
FY25 2.0B CNY
Character of growth · EPS growth decomposed (2014-2025) +9.5 % p.a.
Revenue per share +7.5 %

of which total revenue +11.3 % · buybacks/dilution −3.4 %

EBIT margin +1.4 %
Tax rate +0.4 %
Residual (interest, one-offs) +0.0 %

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). "China National Medicines Corp Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600511

Peer Group

Medical Distribution · 78 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 62 · Top 25%
Fair Value upside +115% · Top 25%
Return on equity (TTM) 10% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 4% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 3.0% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Medical Distribution median · lower = cheaper

P/E (TTM) 10.1× · Cheaper than 75% of peers
P/B 1.12× · Pricier than median
P/S (TTM) 0.39× · Cheaper than median
P/FCF 1.6× · Cheaper than median
EV/EBITDA 5.6× · 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
VALUE100 · sector 26
FUTURE33 · sector 14
PAST42 · sector 22
HEALTH100 · sector 97
DIVIDEND59 · sector 57

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 Medical Distribution stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
McKesson Corporation MCK $906.77 $819.31 −10%
Cencora, Inc COR $330.97 $211.07 −36%
Cardinal Health, Inc CAH $234.55 $141.77 −40%
Henry Schein, Inc HSIC $88.46 $71.70 −19%
Shanghai Pharmaceuticals Holding 601607 ¥16.37 ¥33.96 +107%
Sinopharm Group 1099 HK$16.75 HK$58.67 +250%
Galenica AG GALE CHF 80.85 CHF 61.79 −24%
Guangzhou Baiyunshan Pharmaceutical Holdings 600332 ¥21.03 ¥28.65 +36%
Jointown Pharmaceutical Group 600998 ¥5.04 ¥9.84 +95%
Asker Healthcare Group ASKER kr 74.40 kr 28.26 −62%

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Frequently asked questions

Is China National Medicines Corp Ltd (600511) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ¥58.22 versus a price of ¥27.05, about +115% upside (undervalued).
What is the fair value of 600511?
Our model-based fair value for China National Medicines Corp Ltd is ¥58.22 (as of Aug 21, 2026), built from audited fundamentals. The current price: ¥27.05.
What is the quality score of 600511?
China National Medicines Corp Ltd has a Quality Score of 62/100. 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 China National Medicines Corp Ltd (600511)?
China National Medicines Corp Ltd reported trailing-twelve-month revenue of about 53.3B CNY (latest available figure, as of Aug 21, 2026).
What is the net profit margin of 600511?
The net profit margin of China National Medicines Corp Ltd is about 3.8%, meaning it keeps roughly 3.8% of revenue as net income. Based on the latest reported figures.
Does China National Medicines Corp Ltd pay a dividend?
China National Medicines Corp Ltd currently shows a dividend yield of about 2.96% relative to its recent price (as of Aug 21, 2026).
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