Zhejiang Zhenyuan Share Co (000705) Fair Value & Analysis
Healthcare · CN · Market cap 2.2B CNY
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.
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 ¥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.
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.
All 14 models by family
Widest divergence: Asset-Based (¥3.96) versus Earnings-Based (¥0.3700). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 54 · Market factors (momentum, volatility) 31
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.
of which total revenue +7.5 pp · buybacks/dilution −0.3 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 →
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.
Valuation Multiples vs Drug Manufacturers - General 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.
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.
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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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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