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Tonghua Dongbao Pharmaceutical Co Ltd (600867) Fair Value & Analysis

Healthcare · CN · Market cap 16.5B CNY (≈ $2.5B) · ISIN CNE000000H87

What is Tonghua Dongbao Pharmaceutical Co Ltd really worth?

TD Tonghua Dongbao Pharmaceutical Co Ltd 600867 · SHG
Price¥8.02
Fair Value¥11.14
Upside+38.9%
Quality70/100

A solid business, trading 28% below our fair value of ¥11.14.

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Strengths

Highly profitable · 40.6% net margin
Low debt · generates free cash flow
Ranks above peers (10/14)
Wide moat 68/100

Risks

!Weak Growth (revenue 5y +0.4 %/yr)
!Evidence only medium, so the estimate is less certain

For context

·3.74% dividend yield
Evidence: Medium Range ¥7.61 – ¥15.52

Fair value as of: Sep 3, 2026

From 26 valuation models · updated yesterday

Fair value updated Sep 3, 2026, revised from ¥6.19 to ¥11.14 (+80.0%) since Aug 13, 2026. Share price −2.9% over the past month.

What runs behind every stock

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

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range (¥7.61 to ¥15.52) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

¥12.39 ¥7.06 Fair Value ¥11.14 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range ¥7.06 – ¥12.39 · fair‑value band ¥7.61 – ¥15.52 · the ¥8.02 price screens below the ¥11.14 fair value. Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

Tonghua Dongbao Pharmaceutical Co Ltd (600867) currently trades at ¥8.02, while our model-based Fair Value estimate is ¥11.14, implying the stock looks roughly 28.0% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Healthcare sector. Bull case: the Growth Earnings group reads highest at a median of ¥11.37 per share, and 7 of the 26 models we run sit above the ¥8.02 price. Bear case: the Asset-Based group reads lowest at ¥2.43, and 19 of the 26 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Tonghua Dongbao Pharmaceutical Co Ltd generated revenue of 3.0B CNY at a net margin of 40.6%. Revenue grew 14.8% year over year. It earns a return on equity of 17.6%. Net debt stands at 110M CNY. Fundamentals as of Sep 3, 2026

Our scenario range runs from ¥7.61 (bear case) to ¥15.52 (bull case); at ¥8.02, 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 25% below its 52-week high and 9% 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 39%, 600867 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 ¥0.2165 per share, which is 1.9 % 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 ¥1.73 ¥2.54 ¥3.91 80
Growth DCF ¥1.73 ¥2.49 ¥3.76 78
Owner Earnings ¥6.84 ¥11.45 ¥19.22 74
All 26 models by family
DCF Models
FCF DCF best evidence ¥1.73 ¥2.54 ¥3.91 80
Owner Earnings ¥6.84 ¥11.45 ¥19.22 74
5Y Revenue Exit ¥2.84 ¥4.77 ¥7.40 71
5Y EBITDA Exit ¥3.87 ¥6.85 ¥10.59 74
5Y P/E Exit ¥7.31 ¥13.77 ¥21.12 69
10Y Revenue Exit ¥2.35 ¥4.06 ¥6.67 65
10Y EBITDA Exit ¥3.13 ¥5.56 ¥9.28 66
10Y P/E Exit ¥5.38 ¥10.56 ¥17.89 61
Earnings-Based
Graham-Dodd ¥4.23 ¥18.03 ¥24.62 64
Lynch FV ¥4.60 ¥6.57 ¥8.54 61
PEG = 1.0 ¥4.60 ¥6.57 ¥8.54 57
EPV ¥3.27 ¥3.71 ¥4.10 74
Dividend Discount
Gordon GGM ¥2.37 ¥4.93 ¥7.81 66
DDM Multi-Stage ¥2.37 ¥4.15 ¥5.17 66
Multiples
P/E Multiple ¥10.27 ¥13.69 ¥17.12 63
P/S Multiple ¥3.95 ¥5.27 ¥6.58 58
P/B Multiple ¥7.94 ¥10.58 ¥13.23 55
EV/EBIT ¥4.56 ¥5.87 ¥7.17 66
EV/EBITDA ¥5.32 ¥6.88 ¥8.44 67
EV/Revenue ¥3.43 ¥4.64 ¥5.84 54
Asset-Based
NCAV (Graham) ¥1.81 ¥2.43 ¥3.63 54
Growth DCF
Growth DCF ¥1.73 ¥2.49 ¥3.76 78
Rev-Margin DCF ¥2.84 ¥4.70 ¥7.02 72
Economic Profit
Residual Income ¥4.08 ¥5.26 ¥15.51 66
ROIC Compounder ¥3.27 ¥3.81 ¥4.77 72
Growth Earnings
Growth-Adj P/E ¥7.96 ¥11.37 ¥14.78 67

Widest divergence: Growth Earnings (¥11.37) versus Asset-Based (¥2.43). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 12.9
P/S ratio 5.35 P/E × margin
EPS (TTM) ¥0.6200 price ÷ EPS = P/E 12.9
Dividend yield 3.7% payout 48.4%
Net margin 41.4% FY2025
Return on equity 17.6% TTM
More key figures
Profitability
Return on assets (EBIT) 15.7% avg 5y
Operating margin 21.2% TTM
Growth
Revenue (TTM) 3.0B CNY TTM
Revenue growth (YoY) +14.8% 3y avg +2.0%
Balance sheet & cash flow
Free cash flow 172M CNY FY2025
Net debt 110M CNY FY2024 · ≈ 0.6 yrs of FCF

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 66 · Market factors (momentum, volatility) 47

Profitability 64
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 95
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

Tonghua Dongbao Pharmaceutical Co., Ltd. researches, develops, produces, and markets pharmaceuticals in China. It offers human insulin injections; insulin glargine injections; insulin aspart injections; liraglutide injections; and proprietary Chinese medicine.

Full company description

Tonghua Dongbao Pharmaceutical Co., Ltd. researches, develops, produces, and markets pharmaceuticals in China. It offers human insulin injections; insulin glargine injections; insulin aspart injections; liraglutide injections; and proprietary Chinese medicine. The company also provides insulin pen and pen needles; and chronic disease management platform, a diabetes management platform for drug treatment, blood glucose monitoring, and patient education. In addition, it offers chemical drugs, such as repaglinide, sitagliptin phosphate, and metformin hydrochloride tablets. Tonghua Dongbao Pharmaceutical Co., Ltd. was founded in 1985 and is headquartered in Tonghua, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tonghua Dongbao Pharmaceutical Co Ltd reported revenue of 2.9B CNY in FY2025 versus 3.3B CNY in FY2021, a compound −2.5%/yr. Reported net income was 1.2B CNY in FY2025, compounding −1.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
2.9B CNY
Latest YoY
+46.7%
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.
+2.0%
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.
+0.4%
Avg. revenue growth/yr (31Y) 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.
+10.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+9.9% (6.2 + 3.7)
Revenue −2.5%/yr
FY21 3.3B CNY
FY22 2.8B CNY
FY23 3.1B CNY
FY24 2.0B CNY
FY25 2.9B CNY
Net income −1.7%/yr
FY21 1.3B CNY
FY22 1.6B CNY
FY23 1.2B CNY
FY24 −42.7M CNY
FY25 1.2B CNY
Character of growth · EPS growth decomposed (2013-2024) +18.5 % p.a.
Revenue per share +8.5 %

of which total revenue +8.7 % · buybacks/dilution −0.2 %

EBIT margin +9.4 %
Tax rate +0.1 %
Residual (interest, one-offs) −0.1 %

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). "Tonghua Dongbao Pharmaceutical Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600867

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 70 · Top 25%
Fair Value upside +39% · Top 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 41% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 15% · Above median
Dividend yield (TTM) 3.7% · Top 25%
Debt / equity 0.03× · Lower than median

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

P/E (TTM) 12.9× · Cheaper than 75% of peers
P/B 2.32× · Pricier than median
P/S (TTM) 5.42× · Pricier than 75% of peers
P/FCF 14.4× · Pricier than 75% of peers
EV/EBITDA 16.4× · Pricier 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
VALUE85 · sector 2
FUTURE74 · sector 22
PAST71 · sector 26
HEALTH99 · sector 97
DIVIDEND75 · 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 Sep 3, 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 Tonghua Dongbao Pharmaceutical Co Ltd (600867) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of ¥11.14 versus a price of ¥8.02, about +39% upside (undervalued).
What is the fair value of 600867?
Our model-based fair value for Tonghua Dongbao Pharmaceutical Co Ltd is ¥11.14 (as of Sep 3, 2026), built from audited fundamentals. The current price: ¥8.02.
What is the quality score of 600867?
Tonghua Dongbao Pharmaceutical Co Ltd has a Quality Score of 70/100. 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 Tonghua Dongbao Pharmaceutical Co Ltd (600867)?
Tonghua Dongbao Pharmaceutical Co Ltd reported trailing-twelve-month revenue of about 3.0B CNY (latest available figure, as of Sep 3, 2026).
What is the net profit margin of 600867?
The net profit margin of Tonghua Dongbao Pharmaceutical Co Ltd is about 40.6%, meaning it keeps roughly 40.6% of revenue as net income. Based on the latest reported figures.
Does Tonghua Dongbao Pharmaceutical Co Ltd pay a dividend?
Tonghua Dongbao Pharmaceutical Co Ltd currently shows a dividend yield of about 3.74% relative to its recent price (as of Sep 3, 2026).
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