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Wedge Industrial Co (000534) Fair Value & Analysis

Healthcare · CN · Market cap 15.4B CNY

WI Wedge Industrial Co 000534 · SHE
Price¥27.94
Fair Value¥6.43
Upside-77.0%
Quality42/100
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Mixed Growth
Solidly profitable · 15.3% net margin
Moderate debt · negative free cash flow
Trails peers (5/14)
Moderate moat 56/100
Evidence: Medium Range ¥4.82 – ¥8.04 Share as image

Fair value as of: Jul 25, 2026

From 9 valuation models · updated 16 days ago

Share price −11.4% over the past month.

Below-average quality, and screening another 77% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥8.04). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥47.65 ¥8.66 Fair Value ¥6.43 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range ¥8.66 – ¥47.65 · fair‑value band ¥4.82 – ¥8.04 · the ¥27.94 price screens above the ¥6.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Wedge Industrial Co (000534) currently trades at ¥27.94, while our model-based Fair Value estimate is ¥6.43, implying the stock looks roughly 77.0% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Wedge Industrial Co generated revenue of 1.3B CNY at a net margin of 15.3%. Revenue grew 7.4% year over year. It earns a return on equity of 9.7%. Net debt stands at 1.1B CNY. Fundamentals as of Jul 25, 2026

Our scenario range runs from ¥4.82 (bear case) to ¥8.04 (bull case); at ¥27.94, 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 43% below its 52-week high and 117% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -77%, 000534 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥2.62 ¥3.23 ¥6.65 76
Gordon GGM ¥2.13 ¥4.42 ¥7.02 70
DDM Multi-Stage ¥2.13 ¥3.73 ¥4.64 61
All 9 models by family
Dividend Discount
Gordon GGM ¥2.13 ¥4.42 ¥7.02 70
DDM Multi-Stage ¥2.13 ¥3.73 ¥4.64 61
Multiples
P/S Multiple ¥4.82 ¥6.43 ¥8.04 58
P/B Multiple ¥4.01 ¥5.34 ¥6.68 55
EV/EBIT ¥5.83 ¥8.24 ¥10.65 53
EV/EBITDA ¥6.93 ¥9.70 ¥12.48 54
EV/Revenue ¥2.58 ¥4.29 ¥6.00 43
Asset-Based
NCAV (Graham) ¥1.34 ¥1.79 ¥2.67 50
Economic Profit
Residual Income ¥2.62 ¥3.23 ¥6.65 76

Widest divergence: Multiples (¥6.43) versus Asset-Based (¥1.79). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 1.3B CNY
Revenue growth (YoY) +7.4%
Net margin 15.3%
Return on equity 9.7%
Free cash flow −473M CNY FY2024
P/E ratio 75.5
More key figures
Operating margin 23.4%
EPS (TTM) ¥0.4000
EPS growth (YoY) +5.6%
Net debt 1.1B CNY FY2024

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 39 · Market factors (momentum, volatility) 59

Profitability 44
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 20
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 75
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.

About the company

Wedge Industrial Co.,Ltd., together with its subsidiaries, engages in the research and development, production, and sale of micro-ecological live bacteria products, superalloys, and related products in China.

Full company description

Wedge Industrial Co.,Ltd., together with its subsidiaries, engages in the research and development, production, and sale of micro-ecological live bacteria products, superalloys, and related products in China. The company offers micro-ecological preparations, such as bifidobacterium lactobacillus triple live bacteria tablets under the Golden Bifidobacterium brand; vaginal lactobacillus live capsules under the Dingjunsheng brand; dual-span microecological live bacteria drugs under the Jinshuangqi brand; and vaginal microecological live bacteria drug for use in the treatment of gynecological infections under the Dingjunsheng brand. It also provides probiotic products, health food products, probiotic dietary supplements, probiotic hand creams, and other probiotic health products under the Sanlian Probiotics, Bacteria powder, and Today's Bacteria brands. In addition, the company is involved in the research, development, and manufacture of high-temperature alloy materials and core components, including precision casting blades, high temperature alloy powder discs, high temperature master alloys and their alloy powders, and nickel-based high-temperature master alloys. Wedge Industrial Co.,Ltd. was formerly known as Guangdong Wanze Industrial Co., Ltd. and changed its name to Wedge Industrial Co., Ltd. in May 2013. The company was founded in 1992 and is based in Shantou, China.

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

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Wedge Industrial Co reported revenue of ¥1.1B in FY2024 versus ¥553M in FY2020, a compound +18.2%/yr. Reported net income was ¥193M in FY2024, compounding +25.9%/yr from FY2020.

Growth Quality 49/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
1.1B CNY
Latest YoY
+9.9%
Avg. growth/yr (3Y)
+18.0%
Avg. growth/yr (5Y)
+14.5%
Avg. growth/yr (32Y)
+8.5%
Revenue +18.2%/yr
FY20 ¥553M
FY21 ¥656M
FY22 ¥794M
FY23 ¥981M
FY24 ¥1.1B
Net income +25.9%/yr
FY20 ¥76.7M
FY21 ¥95.3M
FY22 ¥102M
FY23 ¥177M
FY24 ¥193M

000534 screens 77% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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Cite: Fair Value Calculator (2026). "Wedge Industrial Co Fair Value". https://www.fairvalue-calculator.com/stock/000534

Peer Group

Drug Manufacturers - Specialty & Generic · 626 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 40 · Bottom 25%
Fair Value upside −77% · Bottom 25%
Return on equity (TTM) 10% · Above median
Return on assets 2% · Below median
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 23% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.81× · Higher than 75% of peers

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

P/E (TTM) 75.5× · Pricier than 75% of peers
P/B 11.31× · Pricier than 75% of peers
P/S (TTM) 11.70× · Pricier than 75% of peers
EV/EBITDA 58.6× · Pricier than 75% of peers
PEG 0.94× · Cheaper than median

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 · sector 7
FUTURE 37 · sector 20
PAST 39 · sector 23
HEALTH 60 · sector 97
DIVIDEND 0 · sector 34

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 25, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%

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Frequently asked questions

Is Wedge Industrial Co (000534) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of ¥6.43 versus a price of ¥27.94, about −77% (overvalued).
What is the fair value of 000534?
Our model-based fair value for Wedge Industrial Co is ¥6.43 (as of Jul 25, 2026), built from audited fundamentals. The current price is ¥27.94.
What is the quality score of 000534?
Wedge Industrial Co has a Quality Score of 42/100. 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 Wedge Industrial Co (000534)?
Wedge Industrial Co reported trailing-twelve-month revenue of about 1.3B CNY (latest available figure, as of Jul 25, 2026).
What is the net profit margin of 000534?
The net profit margin of Wedge Industrial Co is about 15.3%, meaning it keeps roughly 15.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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