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Zhejiang Zhenyuan Share Co (000705) Fair Value & Analysis

Healthcare · CN · Market cap 2.2B CNY

ZZ Zhejiang Zhenyuan Share Co 000705 · SHE
Price¥6.92
Fair Value¥1.15
Upside-83.4%
Quality54/100
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Weak Growth
Loss-making · -1.8% net margin
Low debt · negative free cash flow
Trails peers (4/12)
Narrow moat 13/100
Evidence: Medium Range ¥0.9500 – ¥1.44 Share as image

Fair value as of: Jul 21, 2026

From 14 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from ¥1.49 to ¥1.15 (−22.8%) since Jun 25, 2026. Share price +11.3% over the past month.

A solid business, but screening 83% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.44). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥10.99 ¥5.85 Fair Value ¥1.15 Feb 2021 Aug 2026

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 ¥5.85 – ¥10.99 · fair‑value band ¥0.9500 – ¥1.44 · the ¥6.92 price screens above the ¥1.15 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

Zhejiang Zhenyuan Share Co (000705) currently trades at ¥6.92, while our model-based Fair Value estimate is ¥1.15, implying the stock looks roughly 83.4% overvalued today. The Quality Score stands at 54/100 (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: medium).

Over the trailing twelve months, Zhejiang Zhenyuan Share Co generated revenue of 2.0B CNY at a net margin of -1.8%. Revenue declined 41.4% year over year. It earns a return on equity of -1.8%. The balance sheet holds a net cash position of 135M CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥0.9500 (bear case) to ¥1.44 (bull case); at ¥6.92, 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 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -25% fair-value upside, at -83%, 000705 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥0.3700 to ¥5.81). Read the values as a conservative anchor, not as a price target.
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
Residual Income ¥3.99 ¥3.69 ¥2.66 76
ROIC Compounder ¥1.09 ¥1.12 ¥1.15 72
Growth-Adj P/E ¥0.8900 ¥1.27 ¥1.65 68
All 14 models by family
Earnings-Based
Graham-Dodd ¥0.4600 ¥1.29 ¥1.69 54
Lynch FV ¥0.2600 ¥0.3700 ¥0.4800 50
PEG = 1.0 ¥0.2600 ¥0.3700 ¥0.4800 46
EPV ¥1.09 ¥1.12 ¥1.15 59
Multiples
P/E Multiple ¥1.12 ¥1.49 ¥1.87 63
P/S Multiple ¥0.8700 ¥1.15 ¥1.44 58
P/B Multiple ¥0.8700 ¥1.15 ¥1.44 55
EV/EBIT ¥1.44 ¥1.62 ¥1.80 53
EV/EBITDA ¥4.58 ¥5.81 ¥7.04 54
EV/Revenue ¥1.28 ¥1.45 ¥1.62 43
Asset-Based
NCAV (Graham) ¥2.96 ¥3.96 ¥5.91 50
Economic Profit
Residual Income ¥3.99 ¥3.69 ¥2.66 76
ROIC Compounder ¥1.09 ¥1.12 ¥1.15 72
Growth Earnings
Growth-Adj P/E ¥0.8900 ¥1.27 ¥1.65 68

Widest divergence: Asset-Based (¥3.96) versus Earnings-Based (¥0.3700). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 2.0B CNY
Revenue growth (YoY) -41.4%
Net margin -1.8%
Return on equity -1.8%
Free cash flow −146M CNY FY2025
Operating margin -2.6%
More key figures
EPS (TTM) ¥-0.1000
EPS growth (YoY) -14.1%
Net cash 135M CNY FY2024

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 31

Profitability 29
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 26
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 94
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

Zhejiang Zhenyuan Share Co.,Ltd. engages in the manufacture and wholesale of pharmaceutical products in China and internationally.

Full company description

Zhejiang Zhenyuan Share Co.,Ltd. engages in the manufacture and wholesale of pharmaceutical products in China and internationally. Its products include Chinese herbal medicines and slices, Chinese patent medicines, chemical raw materials, chemical preparations, antibiotics, biochemical drugs, biological products, medical devices, chemical reagents, glass instruments, etc. The company also provides pharmaceutical logistics, health services, etc.; and engages in the wholesale and retail of pharmaceutical products, pre-packaged food, and bulk food and dairy products. In addition, it sells its pharmaceutical products through online and offline channels. The company was founded in 1993 and is based in Shaoxing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Zhenyuan Share Co reported revenue of ¥2.3B in FY2025 versus ¥3.6B in FY2021, a compound −10.9%/yr. Reported net income was ¥22.7M in FY2025, compounding −26.4%/yr from FY2021.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
2.3B CNY
Latest YoY
−39.2%
Avg. 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.
−18.1%
Avg. 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.
−7.9%
Avg. 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.
+8.5%
Revenue −10.9%/yr
FY21 ¥3.6B
FY22 ¥4.1B
FY23 ¥4.1B
FY24 ¥3.7B
FY25 ¥2.3B
Net income −26.4%/yr
FY21 ¥77.3M
FY22 ¥77.9M
FY23 ¥81.6M
FY24 ¥34.7M
FY25 ¥22.7M
Character of growth · EPS growth decomposed (2013-2024) +3.7 % p.a.
Revenue per share +7.2 pp

of which total revenue +7.5 pp · buybacks/dilution −0.3 pp

EBIT margin −0.8 pp
Tax rate −1.2 pp
Residual (interest, one-offs) −1.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

000705 screens 83% overvalued. Compare with Eli Lilly and Company →

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Cite: Fair Value Calculator (2026). "Zhejiang Zhenyuan Share Co Fair Value". https://www.fairvalue-calculator.com/stock/000705

Peer Group

Drug Manufacturers - General · 76 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 54 · Below median
Fair Value upside −83% · Bottom 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -2% · Bottom 25%
Operating margin (TTM) -3% · Bottom 25%
Revenue growth -41% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Drug Manufacturers - General median · lower = cheaper

P/B 0.16× · Cheaper than 75% of peers
P/S (TTM) 0.17× · Cheaper than 75% of peers
EV/EBITDA 0.8× · Cheaper than 75% of peers

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 0
FUTURE 0 · sector 24
PAST 0 · sector 50
HEALTH 97 · sector 94
DIVIDEND 0 · sector 46

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 - General stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Eli Lilly and Company LLY $1,182 $396.77 -66%
Johnson & Johnson, JNJ $257.59 $169.04 -34%
AbbVie Inc ABBV $254.49 $67.72 -73%
Roche Holding 1RO €392.80 €226.68 -42%
Merck & Co MRK €108.08 €121.54 +12%
Novartis AG NVSN 2,742 MXN 2,379 MXN -13%
AstraZeneca PLC AZN $171.61 $129.54 -25%
Novo Nordisk A/S NOVOB kr 329.90 kr 409.46 +24%
Amgen Inc AMGN $363.39 $252.02 -31%
Sanofi SNYN 770.00 MXN 1,251 MXN +63%

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Frequently asked questions

Is Zhejiang Zhenyuan Share Co (000705) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥1.15 versus a price of ¥6.92, about −83% (overvalued).
What is the fair value of 000705?
Our model-based fair value for Zhejiang Zhenyuan Share Co is ¥1.15 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥6.92.
What is the quality score of 000705?
Zhejiang Zhenyuan Share Co has a Quality Score of 54/100. 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 Zhejiang Zhenyuan Share Co (000705)?
Zhejiang Zhenyuan Share Co reported trailing-twelve-month revenue of about 2.0B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000705?
The net profit margin of Zhejiang Zhenyuan Share Co is about -1.8%, meaning it is currently running at a net loss. 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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