Shandong Xinhua Pharmaceutical Company (000756) Fair Value & Analysis

Healthcare · CN · Market cap 8.7B CNY

A solid business, currently priced close to our fair value.

What matters now

• The price sits close to our fair value, market and models broadly agree here, little valuation tension.
• Our model range runs from ¥10.75 (bear) to ¥17.77 (bull), base ¥14.25. The closer the price sits to the lower half, the larger the margin of safety.
• Quality 56/100 (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 7, 2026.

How to read this chart

60‑month range ¥7.00 – ¥44.16 · fair‑value band ¥10.75 – ¥17.77 · the ¥14.20 price screens below the ¥14.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 7, 2026.

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Analysis

Shandong Xinhua Pharmaceutical Company (000756) currently trades at ¥14.20, while our model-based Fair Value estimate is ¥14.25, implying the stock looks roughly 0.4% fairly valued today. The Quality Score stands at 56/100 (solid quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Shandong Xinhua Pharmaceutical Company generated revenue of 8.7B CNY at a net margin of 3.0%. Revenue declined 0.3% year over year. It earns a return on equity of 5.0%. The balance sheet holds a net cash position of 84.2M CNY. Fundamentals as of Jul 7, 2026

Our scenario range runs from ¥10.75 (bear case) to ¥17.77 (bull case); at ¥14.20, 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 24% below its 52-week high and 17% 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 0%, 000756 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 (¥11.69) versus Earnings-Based (¥3.72). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Shandong Xinhua Pharmaceutical Company Limited develops, manufactures, and sells bulk pharmaceuticals, preparations, and chemical products in the People's Republic of China, the Americas, Europe, and internationally.

Full company description

Shandong Xinhua Pharmaceutical Company Limited develops, manufactures, and sells bulk pharmaceuticals, preparations, and chemical products in the People's Republic of China, the Americas, Europe, and internationally. It offers antipyretic and analgesic, cardiovascular and cerebrovascular, anti-infective, and central nervous drugs under the Xinhua brand; and contract manufacturing services for active pharmaceutical ingredients and pharmaceutical intermediates, OTC, and generics. The company also provides ibuprofen bulk pharmaceutical products; and prepared Chinese herbal medicine for decoction, traditional Chinese medicine, chemical bulk drugs, chemical preparations, chemical raw materials, antibiotics, biochemical medicines, anesthetics, anti-psychotic drugs, pharmaceutical precursor chemicals, protein assimilation preparations, peptide hormones, medical toxic drugs, etc. In addition, it offers raw materials and intermediates; internet data services, internet sales, and internet information services for pharmaceuticals and medical devices; veterinary drugs and fodders; bulk pharmaceutical and intermediates; steroid system apis and intermediates; and chemical raw materials. Further, the company produces and sells chemical products; exports and imports goods and technologies; and designs medical projects. Additionally, it engages in the property management, nonresidential real estate and housing leasing activities; certification and import and export business; installation and testing of chemical equipment; and manufacture of mechanical and electrical equipment, nonstandard equipment, as well as production and hardware and electrical equipment, and electrical installations equipment and manufacture; and sale of controller switching equipment. The company was founded in 1943 and is based in Zibo, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shandong Xinhua Pharmaceutical Company reported revenue of ¥8.7B in FY2025 versus ¥6.6B in FY2021, a compound +7.4%/yr. Reported net income was ¥290M in FY2025, compounding −4.5%/yr from FY2021.

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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.