Northeast Pharmaceutical Group (000597) Fair Value & Analysis

Healthcare · CN · Market cap 6.6B CNY

A solid business, but screening 15% overvalued on our models.

What matters now

• Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
• Our model range runs from ¥3.01 (bear) to ¥5.01 (bull), base ¥4.01. The closer the price sits to the lower half, the larger the margin of safety.
• Quality 60/100 (solid quality) with high evidence: the data supports the verdict.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range ¥3.72 – ¥8.38 · fair‑value band ¥3.01 – ¥5.01 · the ¥4.74 price screens above the ¥4.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Northeast Pharmaceutical Group (000597) currently trades at ¥4.74, while our model-based Fair Value estimate is ¥4.01, implying the stock looks roughly 15.4% overvalued today. The Quality Score stands at 60/100 (solid 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: high).

Over the trailing twelve months, Northeast Pharmaceutical Group generated revenue of 7.1B CNY at a net margin of 3.5%. Revenue grew 3.0% year over year. It earns a return on equity of 3.5%. The balance sheet holds a net cash position of 2.9B CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥3.01 (bear case) to ¥5.01 (bull case); at ¥4.74, 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 29% below its 52-week high and 10% 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 -15%, 000597 screens cheaper 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.

Widest divergence: DCF Models (¥10.20) versus Earnings-Based (¥1.26). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Northeast Pharmaceutical Group Co., Ltd. engages in chemical pharmaceuticals manufacturing, pharmaceutical distribution, pharmaceutical engineering, biopharmaceuticals, and other businesses in China.

Full company description

Northeast Pharmaceutical Group Co., Ltd. engages in chemical pharmaceuticals manufacturing, pharmaceutical distribution, pharmaceutical engineering, biopharmaceuticals, and other businesses in China. It offers vitamin products, such as vitamin C, vitamin B1, vitamin B6, and L-carnitine series; anti- infective products, such as fosfomycin series, azithromycin series, amantadine series, polyalkali hydrochloride, chloramphenicol, and other products; and reproductive system and hormone products comprising carboprost suppositories, carboprost tromethamine, dapoxetine hydrochloride, and levonorgestrel and tadalafil tablets. It also provides nervous system products, such as piracetam series, levetiracetam series, vinpocetine, and other products; narcotics and psychotropic drugs and related products, including morphine hydrochloride injections and tablets, oxycodone hydrochloride injection, compound glycyrrhiza series, and acetaminophen-codeine tablets; anti-AIDS products comprising Krughar /zidovudine tablets and capsules, efavirenz tablets, and other products; and in vitro biological diagnostic reagent products for HIV, HBV, HCV, HPV, and TB. In addition, it offers general health products, including glucosamine sulfate chondroitin collagen D3 calcium capsules, protein powder, probiotic powder, effervescent tablets, chewable tablets, solid drinks, and other products. Further, it provides Enterogermina, magnesium aluminum carbonate chewable tablets; compound proglutamine-cimetidine tablets; acetaminophen tablets; pain relievers, phenacetin, pregabalin, noscapine syrup, and citrate table; and other products, as well as cell therapy products. Additionally, it engages in medical distribution business. The company was founded in 1946 and is based in Shenyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Northeast Pharmaceutical Group reported revenue of ¥7.1B in FY2025 versus ¥8.1B in FY2021, a compound −3.5%/yr. Reported net income was ¥260M in FY2025, compounding +27.3%/yr from FY2021.

000597 screens 15% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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.

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

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.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

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

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Frequently asked questions

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.