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Chengdu Kanghong Pharmaceutical Group (002773) Fair Value & Analysis

Healthcare · CN · Market cap 18.6B CNY

CK Chengdu Kanghong Pharmaceutical Group 002773 · SHE
Price¥22.75
Fair Value¥27.77
Upside+22.1%
Quality76/100
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Healthy Growth
Highly profitable · 24.2% net margin
Low debt · generates free cash flow
3.40% dividend yield
Ranks above peers (11/14)
Wide moat 76/100
Evidence: High Range ¥20.83 – ¥34.71 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Share price −4.0% over the past month.

A strong business, screening 22% undervalued on our models.

What matters now

  • Our model range runs from ¥20.83 (bear) to ¥34.71 (bull), base ¥27.77. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 76/100 (high quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥44.56 ¥11.38 Fair Value ¥27.77 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥11.38 – ¥44.56 · fair‑value band ¥20.83 – ¥34.71 · the ¥22.75 price screens below the ¥27.77 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Chengdu Kanghong Pharmaceutical Group (002773) currently trades at ¥22.75, while our model-based Fair Value estimate is ¥27.77, implying the stock looks roughly 22.1% undervalued today. The Quality Score stands at 76/100 (high 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, Chengdu Kanghong Pharmaceutical Group generated revenue of 4.4B CNY at a net margin of 24.2%. Revenue declined 12.7% year over year. It earns a return on equity of 11.3%. The balance sheet holds a net cash position of 5.7B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥20.83 (bear case) to ¥34.71 (bull case); at ¥22.75, 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 50% below its 52-week high and 16% 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 22%, 002773 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥23.21 ¥34.23 ¥52.19 80
Residual Income ¥9.49 ¥11.32 ¥22.21 76
Rev-Margin DCF ¥18.95 ¥26.47 ¥35.78 74
All 26 models by family
DCF Models
FCF DCF ¥23.16 ¥34.71 ¥53.75 38
Owner Earnings ¥21.80 ¥32.39 ¥49.86 31
5Y Revenue Exit ¥18.95 ¥26.49 ¥36.32 39
5Y EBITDA Exit ¥22.76 ¥34.04 ¥47.73 41
5Y P/E Exit ¥24.79 ¥38.07 ¥52.74 38
10Y Revenue Exit ¥19.92 ¥27.40 ¥38.03 36
10Y EBITDA Exit ¥22.75 ¥32.82 ¥47.23 37
10Y P/E Exit ¥24.08 ¥35.70 ¥51.26 35
Earnings-Based
Graham-Dodd ¥8.58 ¥34.39 ¥46.75 54
Lynch FV ¥8.55 ¥12.22 ¥15.88 50
PEG = 1.0 ¥8.55 ¥12.22 ¥15.88 46
EPV ¥18.26 ¥20.19 ¥21.88 59
Dividend Discount
Gordon GGM ¥5.51 ¥11.45 ¥18.17 70
DDM Multi-Stage ¥5.51 ¥9.66 ¥12.02 61
Multiples
P/E Multiple ¥20.83 ¥27.77 ¥34.71 63
P/S Multiple ¥13.06 ¥17.42 ¥21.77 58
P/B Multiple ¥16.09 ¥21.46 ¥26.82 55
EV/EBIT ¥24.62 ¥30.59 ¥36.57 53
EV/EBITDA ¥24.17 ¥29.99 ¥35.82 54
EV/Revenue ¥17.13 ¥21.61 ¥26.09 43
Asset-Based
NCAV (Graham) ¥5.05 ¥6.76 ¥10.09 50
Growth DCF
Growth DCF ¥23.21 ¥34.23 ¥52.19 80
Rev-Margin DCF ¥18.95 ¥26.47 ¥35.78 74
Economic Profit
Residual Income ¥9.49 ¥11.32 ¥22.21 76
ROIC Compounder ¥19.35 ¥22.87 ¥27.00 72
Growth Earnings
Growth-Adj P/E ¥15.44 ¥22.06 ¥28.67 68

Widest divergence: DCF Models (¥32.82) versus Asset-Based (¥6.76). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 4.4B CNY
Revenue growth (YoY) -12.7%
Net margin 24.2%
Return on equity 11.3%
Free cash flow 1.2B CNY FY2025
P/E ratio 17.4
More key figures
Operating margin 33.0%
EPS (TTM) ¥1.16
Dividend yield 3.4%
EPS growth (YoY) -23.3%
Net cash 5.7B CNY FY2024

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 76/100

Of which business quality 75 · Market factors (momentum, volatility) 29

Profitability 65
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 61
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 11
Distance to the 52-week high (market factor)
Net Issuance 79
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

Chengdu Kanghong Pharmaceutical Group Co., Ltd engages in the research, development, manufacture, and sale of pharmaceuticals and medical devices in China. It develops medicines for ophthalmic, neuropsychiatric, and others. The company was founded in 1996 and is headquartered in Chengdu, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chengdu Kanghong Pharmaceutical Group reported revenue of ¥4.6B in FY2025 versus ¥3.6B in FY2021, a compound +6.2%/yr. Reported net income was ¥1.2B in FY2025, compounding +28.9%/yr from FY2021.

Growth Quality 78/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
4.6B CNY
Latest YoY
+3.0%
Avg. growth/yr (3Y)
+10.6%
Avg. growth/yr (5Y)
+6.8%
Avg. growth/yr (16Y)
+13.1%
Revenue +6.2%/yr
FY21 ¥3.6B
FY22 ¥3.4B
FY23 ¥4.0B
FY24 ¥4.5B
FY25 ¥4.6B
Net income +28.9%/yr
FY21 ¥421M
FY22 ¥897M
FY23 ¥1.0B
FY24 ¥1.2B
FY25 ¥1.2B

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Cite: Fair Value Calculator (2026). "Chengdu Kanghong Pharmaceutical Group Fair Value". https://www.fairvalue-calculator.com/stock/002773

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 76 · Top 25%
Fair Value upside +22% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 24% · Top 25%
Operating margin (TTM) 33% · Top 25%
Revenue growth -13% · Bottom 25%
Dividend yield (TTM) 3.4% · Top 25%
Debt / equity 0.03× · Lower than median

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

P/E (TTM) 17.4× · Cheaper than median
P/B 2.00× · Pricier than median
P/S (TTM) 4.19× · Pricier than 75% of peers
P/FCF 2.2× · Cheaper than median
EV/EBITDA 8.9× · 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 63 · sector 7
FUTURE 0 · sector 20
PAST 45 · sector 23
HEALTH 99 · sector 97
DIVIDEND 68 · sector 34

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 22, 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 Chengdu Kanghong Pharmaceutical Group (002773) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥27.77 versus a price of ¥22.75, about +22% (undervalued).
What is the fair value of 002773?
Our model-based fair value for Chengdu Kanghong Pharmaceutical Group is ¥27.77 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥22.75.
What is the quality score of 002773?
Chengdu Kanghong Pharmaceutical Group has a Quality Score of 76/100. 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 Chengdu Kanghong Pharmaceutical Group (002773)?
Chengdu Kanghong Pharmaceutical Group reported trailing-twelve-month revenue of about 4.4B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002773?
The net profit margin of Chengdu Kanghong Pharmaceutical Group is about 24.2%, meaning it keeps roughly 24.2% of revenue as net income. Based on the latest reported figures.
Does Chengdu Kanghong Pharmaceutical Group pay a dividend?
Chengdu Kanghong Pharmaceutical Group currently shows a dividend yield of about 3.40% relative to its recent price (as of Jul 22, 2026).

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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