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SUNSHINE LAKE PHARMA CO LTD (6887) Fair Value & Analysis

Healthcare · HK · Market cap HK$21.7B (≈ $2.8B)

What is SUNSHINE LAKE PHARMA CO LTD really worth?

SL SUNSHINE LAKE PHARMA CO LTD 6887 · HK
PriceHK$37.48
Fair ValueHK$12.10
Upside−67.7%
Quality56/100

A solid business, but trading 210% above our fair value of HK$12.10.

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Strengths

Low debt · generates free cash flow

Risks

!Expensive Growth (revenue 3y +8.1 %/yr)
!Thin margins · 5.7% net margin
!Trails peers (5/14)
!Narrow moat 41/100
!Weak on past: 25 out of 100
Evidence: High Range HK$7.75 – HK$15.12

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from HK$10.99 to HK$12.10 (+10.1%) since Aug 6, 2026. Share price +2.2% 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 (HK$15.12). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (HK$7.75 to HK$15.12) leaves room in how you read the outcome.

Price vs Fair Value (13 months)

HK$59.90 HK$28.00 Fair Value HK$12.10 Aug 2025 Sep 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 13, 2026.

How to read this chart

13‑month range HK$28.00 – HK$59.90 · fair‑value band HK$7.75 – HK$15.12 · the HK$37.48 price screens above the HK$12.10 fair value. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

SUNSHINE LAKE PHARMA CO LTD (6887) currently trades at HK$37.48, while our model-based Fair Value estimate is HK$12.10, implying the stock looks roughly 209.8% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Healthcare sector. Bull case: the Dividend Discount group reads highest at a median of HK$16.33 per share, and 0 of the 25 models we run sit above the HK$37.48 price. Bear case: the Earnings-Based group reads lowest at HK$4.86, and 25 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, SUNSHINE LAKE PHARMA CO LTD generated revenue of HK$4.8B at a net margin of 5.7%. Revenue grew 100.2% year over year. It earns a return on equity of 6.1%. Net debt stands at HK$2.6B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$7.75 (bear case) to HK$15.12 (bull case); at HK$37.48, 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 40% below its 52-week high and 20% 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 −68%, 6887 screens richer than that median.

Fair Value models

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 HK$5.28 HK$8.86 HK$14.86 75
Growth DCF HK$5.28 HK$8.67 HK$14.24 73
Residual Income HK$6.06 HK$6.34 HK$6.55 73
All 25 models by family
DCF Models
FCF DCF best evidence HK$5.28 HK$8.86 HK$14.86 75
5Y Revenue Exit HK$8.52 HK$15.34 HK$24.59 68
5Y EBITDA Exit HK$14.17 HK$26.67 HK$42.25 70
5Y P/E Exit HK$6.76 HK$11.81 HK$17.48 67
10Y Revenue Exit HK$7.03 HK$13.11 HK$22.33 62
10Y EBITDA Exit HK$11.06 HK$21.27 HK$36.71 63
10Y P/E Exit HK$6.20 HK$10.56 HK$16.54 60
Earnings-Based
Graham-Dodd HK$3.22 HK$13.43 HK$18.31 61
Lynch FV HK$3.40 HK$4.86 HK$6.31 58
PEG = 1.0 HK$3.40 HK$4.86 HK$6.31 55
EPV HK$8.60 HK$9.98 HK$11.18 71
Dividend Discount
Gordon GGM HK$9.31 HK$19.36 HK$30.72 63
DDM Multi-Stage HK$9.31 HK$16.33 HK$20.32 64
Multiples
P/E Multiple HK$7.80 HK$10.40 HK$13.00 63
P/S Multiple HK$6.03 HK$8.04 HK$10.05 58
P/B Multiple HK$6.03 HK$8.04 HK$10.05 55
EV/EBIT HK$14.33 HK$18.98 HK$23.64 66
EV/EBITDA HK$20.28 HK$26.92 HK$33.56 67
EV/Revenue HK$10.33 HK$14.60 HK$18.87 54
Asset-Based
NCAV (Graham) HK$3.77 HK$5.05 HK$7.54 54
Growth DCF
Growth DCF HK$5.28 HK$8.67 HK$14.24 73
Rev-Margin DCF HK$8.52 HK$15.11 HK$23.33 68
Economic Profit
Residual Income HK$6.06 HK$6.34 HK$6.55 73
ROIC Compounder HK$9.05 HK$12.00 HK$16.14 69
Growth Earnings
Growth-Adj P/E HK$5.96 HK$8.51 HK$11.07 65

Widest divergence: Dividend Discount (HK$16.33) versus Earnings-Based (HK$4.86). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 58.9 as of Jul 2, 2026
P/S ratio 3.33 P/E × margin
Dividend yield 2.7%
Net margin 5.7% FY2025
Return on equity 6.1% TTM
Return on assets (EBIT) 3.7% avg 4y
More key figures
Profitability
Operating margin 17.6% TTM
Growth
Revenue (TTM) HK$4.8B TTM
Revenue growth (YoY) +100% 3y avg +8.1%
Balance sheet & cash flow
Free cash flow HK$228M FY2025
Net debt HK$2.6B FY2025 · ≈ 11.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 55 · Market factors (momentum, volatility) 33

Profitability 35
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 42
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 14
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

Sunshine Lake Pharma Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical products for the treatment of infectious diseases, chronic diseases, and oncology.

Full company description

Sunshine Lake Pharma Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical products for the treatment of infectious diseases, chronic diseases, and oncology. It offers Kewei for the treatment of influenza; Dongweien for the treatment of hepatitis C; and generic drugs for the treatment of infections caused by sensitive bacteria, namely Clarithromycin, Levofloxacin, and Moxifloxacin Hydrochlorid, as well as active pharmaceutical ingredients. The company also engages in the wholesale, retail, import, and export of drugs. The company was formerly known as Sunshine Lake Pharma Ltd. The company was incorporated in 2001 and is based in Dongguan, China.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

SUNSHINE LAKE PHARMA CO LTD reported revenue of 4.8B CNY in FY2025 versus 3.8B CNY in FY2022, a compound +8.1%/yr. Reported net income was 272M CNY in FY2025.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$4.8B
Latest YoY
+19.8%
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.
+8.1%
Value creation/yr (3Y) Earnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
+16.5% (13.8 + 2.7)
Revenue +8.1%/yr
FY22 3.8B CNY
FY23 6.4B CNY
FY24 4.0B CNY
FY25 4.8B CNY
Net income
FY22 −1.2B CNY
FY23 185M CNY
FY24 −207M CNY
FY25 272M CNY

6887 screens 210% overvalued. Compare with Merck KGaA →

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Cite: Fair Value Calculator (2026). "SUNSHINE LAKE PHARMA CO LTD Fair Value". https://www.fairvalue-calculator.com/stock/6887

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 56 · Above median
Fair Value upside −68% · Bottom 25%
Return on equity (TTM) 6% · Below median
Return on assets 4% · Above median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 18% · Above median
Revenue growth 100% · Top 25%
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.29× · Higher than 75% of peers

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

P/E (TTM) 58.9× · Pricier than 75% of peers
P/B 5.00× · Pricier than 75% of peers
P/S (TTM) 4.51× · Pricier than 75% of peers
P/FCF 12.1× · Pricier than 75% of peers
EV/EBITDA 19.6× · 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
VALUE0 · sector 2
FUTURE100 · sector 22
PAST25 · sector 26
HEALTH85 · sector 97
DIVIDEND54 · sector 29

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.

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 Aug 13, 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 SUNSHINE LAKE PHARMA CO LTD (6887) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$12.10 versus a price of HK$37.48, about −68% upside (overvalued).
What is the fair value of 6887?
Our model-based fair value for SUNSHINE LAKE PHARMA CO LTD is HK$12.10 (as of Aug 13, 2026), built from audited fundamentals. The current price: HK$37.48.
What is the quality score of 6887?
SUNSHINE LAKE PHARMA CO LTD has a Quality Score of 56/100. 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 SUNSHINE LAKE PHARMA CO LTD (6887)?
SUNSHINE LAKE PHARMA CO LTD reported trailing-twelve-month revenue of about HK$4.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 6887?
The net profit margin of SUNSHINE LAKE PHARMA CO LTD is about 5.7%, meaning it keeps roughly 5.7% of revenue as net income. Based on the latest reported figures.
Does SUNSHINE LAKE PHARMA CO LTD pay a dividend?
SUNSHINE LAKE PHARMA CO LTD currently shows a dividend yield of about 2.69% relative to its recent price (as of Aug 13, 2026).
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