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Shanghai Pharmaceuticals Holding Co Ltd (601607) Fair Value & Analysis

Healthcare · CN · Market cap 61.9B CNY (≈ $9.2B) · ISIN CNE000000C82

What is Shanghai Pharmaceuticals Holding Co Ltd really worth?

SP Shanghai Pharmaceuticals Holding Co Ltd 601607 · SHG
Price¥16.62
Fair Value¥33.96
Upside+104.3%
Quality51/100

A solid business, trading 51% below our fair value of ¥33.96.

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Strengths

Healthy Growth (revenue 5y +8.1 %/yr)
Low debt · generates free cash flow
Ranks above peers (11/15)

Risks

!Thin margins · 2.0% net margin
!Narrow moat 36/100

For context

·2.83% dividend yield
Evidence: High Range ¥25.47 – ¥42.45

Fair value as of: Aug 20, 2026

From 24 valuation models · updated 16 days ago

Share price +1.0% 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 (¥25.47). The market is more pessimistic than our downside scenario.
  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

¥25.03 ¥15.29 Fair Value ¥33.96 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range ¥15.29 – ¥25.03 · fair‑value band ¥25.47 – ¥42.45 · the ¥16.62 price screens below the ¥33.96 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Shanghai Pharmaceuticals Holding Co Ltd (601607) currently trades at ¥16.62, while our model-based Fair Value estimate is ¥33.96, implying the stock looks roughly 51.1% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of ¥52.08 per share, and 23 of the 24 models we run sit above the ¥16.62 price. Bear case: the Asset-Based group reads lowest at ¥13.71, and 1 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Shanghai Pharmaceuticals Holding Co Ltd generated revenue of 288B CNY at a net margin of 2.0%. Revenue grew 6.4% year over year. It earns a return on equity of 8.1%. Net debt stands at 15.6B CNY. Fundamentals as of Aug 20, 2026

Our scenario range runs from ¥25.47 (bear case) to ¥42.45 (bull case); at ¥16.62, 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 16% below its 52-week high and 4% 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 104%, 601607 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 ¥0.7406 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 ¥23.77 ¥35.02 ¥66.75 76
Growth DCF ¥23.06 ¥38.08 ¥66.49 75
Residual Income ¥16.84 ¥17.90 ¥19.73 75
All 24 models by family
DCF Models
FCF DCF ¥23.77 ¥35.02 ¥66.75 76
Owner Earnings ¥34.00 ¥67.08 ¥136.10 71
5Y Revenue Exit ¥29.35 ¥50.56 ¥91.01 69
5Y EBITDA Exit ¥36.35 ¥65.80 ¥118.35 71
5Y P/E Exit ¥30.09 ¥55.69 ¥88.65 68
10Y Revenue Exit ¥26.72 ¥50.68 ¥81.84 64
10Y EBITDA Exit ¥32.56 ¥63.78 ¥121.78 64
10Y P/E Exit ¥28.17 ¥52.08 ¥93.33 60
Earnings-Based
Graham-Dodd ¥10.50 ¥72.33 ¥101.45 60
Lynch FV ¥21.30 ¥30.43 ¥39.55 58
PEG = 1.0 ¥21.30 ¥30.43 ¥39.55 55
EPV ¥26.00 ¥29.05 ¥31.73 72
Multiples
P/E Multiple ¥25.47 ¥33.96 ¥42.45 61
P/S Multiple ¥19.68 ¥26.24 ¥32.80 56
P/B Multiple ¥19.68 ¥26.24 ¥32.80 53
EV/EBIT ¥39.60 ¥50.24 ¥60.88 65
EV/EBITDA ¥42.07 ¥53.53 ¥65.00 66
EV/Revenue ¥30.46 ¥40.22 ¥49.99 53
Asset-Based
NCAV (Graham) ¥10.23 ¥13.71 ¥20.46 52
Growth DCF
Growth DCF ¥23.06 ¥38.08 ¥66.49 75
Rev-Margin DCF ¥29.35 ¥52.41 ¥86.71 70
Economic Profit
Residual Income ¥16.84 ¥17.90 ¥19.73 75
ROIC Compounder ¥29.81 ¥41.02 ¥49.74 71
Growth Earnings
Growth-Adj P/E ¥29.87 ¥42.67 ¥55.47 66

Widest divergence: DCF Models (¥52.08) versus Asset-Based (¥13.71). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 10.5 as of Jun 15, 2026
P/S ratio 0.21 P/E × margin
EPS (TTM) ¥1.56 price ÷ EPS = P/E 10.5
Dividend yield 2.8% payout 30.1%
Net margin 2.0% FY2025
Return on equity 8.1% TTM
More key figures
Profitability
Return on assets (EBIT) 4.2% avg 5y
Operating margin 3.5% TTM
Growth
Revenue (TTM) 288B CNY TTM
Revenue growth (YoY) +6.4% 3y avg +6.9%
EPS growth (YoY) +6.3%
Balance sheet & cash flow
Free cash flow 3.8B CNY FY2025
Net debt 15.6B CNY FY2025 · ≈ 4.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 49 · Market factors (momentum, volatility) 52

Profitability 41
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 70
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

Shanghai Pharmaceuticals Holding Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical and healthcare products in China and internationally. The company operates through four segments: Production, Distribution, Retail, and Others.

Full company description

Shanghai Pharmaceuticals Holding Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical and healthcare products in China and internationally. The company operates through four segments: Production, Distribution, Retail, and Others. It offers chemical and biological drugs, Chinese medicine, health care products, and medical devices to treat immunology, psychiatric and neurological, tumor, cardiovascular, digestive metabolism, psychoneurotic, neoplasm, respiratory system, and anti-infection diseases, as well as invests in equity. The company also engages in the provision of pharmaceutical distribution, warehousing, logistics, and other value-added pharmaceutical supply chain solutions and related services to pharmaceutical manufacturers and dispensers, such as hospitals, distributors, and retail pharmacies. In addition, it engages in the operation of a network of retail pharmacy stores. Shanghai Pharmaceuticals Holding Co., Ltd. was incorporated in 1994 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Pharmaceuticals Holding Co Ltd reported revenue of 284B CNY in FY2025 versus 216B CNY in FY2021, a compound +7.1%/yr. Reported net income was 5.7B CNY in FY2025, compounding +3.0%/yr from FY2021.

Growth Quality 71/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
284B 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.
+6.9%
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.
+8.1%
Avg. revenue growth/yr (32Y) 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.
+25.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+2.3% (−0.5 + 2.8)
Revenue +7.1%/yr
FY21 216B CNY
FY22 232B CNY
FY23 260B CNY
FY24 275B CNY
FY25 284B CNY
Net income +3.0%/yr
FY21 5.1B CNY
FY22 5.6B CNY
FY23 3.8B CNY
FY24 4.6B CNY
FY25 5.7B CNY
Character of growth · EPS growth decomposed (2013-2024) +3.3 % p.a.
Revenue per share +8.4 %

of which total revenue +12.0 % · buybacks/dilution −3.3 %

EBIT margin −1.2 %
Tax rate −1.0 %
Residual (interest, one-offs) −2.4 %

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). "Shanghai Pharmaceuticals Holding Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/601607

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 51 · Above median
Fair Value upside +104% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 2% · Below median
Net margin (TTM) 2% · Above median
Operating margin (TTM) 3% · Above median
Revenue growth 6% · Above median
Dividend yield (TTM) 2.8% · Below median
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Medical Distribution median · lower = cheaper

P/E (TTM) 10.5× · Cheaper than 75% of peers
P/B 0.82× · Cheaper than median
P/S (TTM) 0.22× · Cheaper than median
P/FCF 2.4× · Pricier than median
EV/EBITDA 3.1× · Cheaper than 75% of peers
PEG 9.25× · Pricier than 75% of peers

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
FUTURE32 · sector 14
PAST33 · sector 22
HEALTH97 · sector 97
DIVIDEND57 · 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 20, 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%
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%
China National Medicines Corporation 600511 ¥26.84 ¥58.22 +117%

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Frequently asked questions

Is Shanghai Pharmaceuticals Holding Co Ltd (601607) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of ¥33.96 versus a price of ¥16.62, about +104% upside (undervalued).
What is the fair value of 601607?
Our model-based fair value for Shanghai Pharmaceuticals Holding Co Ltd is ¥33.96 (as of Aug 20, 2026), built from audited fundamentals. The current price: ¥16.62.
What is the quality score of 601607?
Shanghai Pharmaceuticals Holding Co Ltd has a Quality Score of 51/100. 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 Shanghai Pharmaceuticals Holding Co Ltd (601607)?
Shanghai Pharmaceuticals Holding Co Ltd reported trailing-twelve-month revenue of about 288B CNY (latest available figure, as of Aug 20, 2026).
What is the net profit margin of 601607?
The net profit margin of Shanghai Pharmaceuticals Holding Co Ltd is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.
Does Shanghai Pharmaceuticals Holding Co Ltd pay a dividend?
Shanghai Pharmaceuticals Holding Co Ltd currently shows a dividend yield of about 2.83% relative to its recent price (as of Aug 20, 2026).
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