Cathay Biotech Inc (688065) Fair Value & Analysis
Basic Materials · CN · Market cap 35.3B CNY (≈ $5.3B) · ISIN CNE100004447
What is Cathay Biotech Inc really worth?
Below-average quality, and trading another 265% above our fair value of ¥11.33.
Strengths
Risks
For context
Fair value as of: Aug 13, 2026
From 17 valuation models · updated 22 days ago
Share price −8.1% 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 sits above even our optimistic bull case (¥14.17). The favourable scenario is already priced in.
- Weak quality (34/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range ¥32.20 – ¥131.61 · fair‑value band ¥8.50 – ¥14.17 · the ¥41.42 price screens above the ¥11.33 fair value. Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Cathay Biotech Inc (688065) currently trades at ¥41.42, while our model-based Fair Value estimate is ¥11.33, implying the stock looks roughly 265.5% overvalued today. The Quality Score stands at 34/100 (below-average quality), in the Basic Materials sector. Bull case: the Economic Profit group reads highest at a median of ¥20.58 per share, and 0 of the 17 models we run sit above the ¥41.42 price. Bear case: the Dividend Discount group reads lowest at ¥6.99, and 17 of the 17 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Cathay Biotech Inc generated revenue of 3.4B CNY at a net margin of 17.4%. Revenue grew 12.7% year over year. It earns a return on equity of 2.7%. The balance sheet holds a net cash position of 3.5B CNY. Fundamentals as of Aug 13, 2026
Our scenario range runs from ¥8.50 (bear case) to ¥14.17 (bull case); at ¥41.42, the current price sits above 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 36% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −48% fair-value upside, at −73%, 688065 screens richer 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 ¥0.2504 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.
All 17 models by family
Widest divergence: Economic Profit (¥20.58) versus Dividend Discount (¥6.99). Highest evidence: Owner Earnings (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 38 · Market factors (momentum, volatility) 36
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
Cathay Biotech Inc., together with its subsidiaries, engages in the research, development, production, and sale of bio-based materials in China and internationally. The company offers biological long-chain diacids, including sebacic acid and octadecanedioic acid; bio-based polyamides; and bio-based pentamethylene diamine under the TERRYL and ECOPENT brands.
Full company description
Cathay Biotech Inc., together with its subsidiaries, engages in the research, development, production, and sale of bio-based materials in China and internationally. The company offers biological long-chain diacids, including sebacic acid and octadecanedioic acid; bio-based polyamides; and bio-based pentamethylene diamine under the TERRYL and ECOPENT brands. It also provides digital solutions for electrification, automation, and digitization for biological manufacturing. The company's products are used in textiles, pharmaceuticals, perfumes, automobiles, electronic appliances, consumer goods, engineering materials, and other industries. It exports its products. The company was incorporated in 2000 and is headquartered in Shanghai, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Cathay Biotech Inc reported revenue of 3.3B CNY in FY2025 versus 2.4B CNY in FY2021, a compound +8.7%/yr. Reported net income was 566M CNY in FY2025, compounding −1.2%/yr from FY2021.
688065 screens 265% overvalued. Compare with Saudi Basic Industries Corporation →
Peer Group
Chemicals · 339 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.
Valuation Multiples vs Chemicals median · lower = cheaper
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.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Saudi Basic Industries Corporation 2010 | 49.50 SAR | 18.13 SAR | −63% |
| A. Schulman, Inc SLMNP | $849.00 | $203.64 | −76% |
| Ningxia Baofeng Energy Group 600989 | ¥24.49 | ¥20.17 | −18% |
| Dow Inc DOW | $30.51 | $21.03 | −31% |
| Zhejiang Juhua Co 600160 | ¥41.32 | ¥21.62 | −48% |
| Rongsheng Petrochemical Co 002493 | ¥13.76 | ¥2.39 | −83% |
| Zangge Mining Company 000408 | ¥78.04 | ¥20.99 | −73% |
| Ganfeng Lithium Group 002460 | ¥52.53 | ¥16.17 | −69% |
| PT Barito Pacific Tbk, BRPT | 1,855 IDR | 1,584 IDR | −15% |
| Hengli Petrochemical Co 600346 | ¥18.87 | ¥17.09 | −9% |
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