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Wai Yuen Tong Medicine Holdings (0897) Fair Value & Analysis

Healthcare · HK · Market cap HK$318M

WY Wai Yuen Tong Medicine Holdings 0897 · HK
PriceHK$0.2800
Fair ValueHK$0.0800
Upside-71.4%
Quality56/100
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Weak Growth
Loss-making · -1.9% net margin
Low debt · generates free cash flow
Trails peers (3/10)
Narrow moat 5/100
Evidence: High Range HK$0.0600 – HK$0.1000 Share as image

Fair value as of: Aug 15, 2026

From 19 valuation models · updated yesterday

Share price −15.2% over the past month.

A solid business, but screening 71% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.1000). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$0.4750 HK$0.1860 Fair Value HK$0.0800 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range HK$0.1860 – HK$0.4750 · fair‑value band HK$0.0600 – HK$0.1000 · the HK$0.2800 price screens above the HK$0.0800 fair value. Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

Wai Yuen Tong Medicine Holdings (0897) currently trades at HK$0.2800, while our model-based Fair Value estimate is HK$0.0800, implying the stock looks roughly 71.4% overvalued today. The Quality Score stands at 56/100 (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, Wai Yuen Tong Medicine Holdings generated revenue of HK$721M at a net margin of -1.9%. Revenue declined 6.9% year over year. It earns a return on equity of -1.2%. Net debt stands at HK$146M. Fundamentals as of Aug 15, 2026

Our scenario range runs from HK$0.0600 (bear case) to HK$0.1000 (bull case); at HK$0.2800, 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 45% below its 52-week high and 2% 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 -71%, 0897 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.

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
Growth DCF HK$0.5500 HK$0.7000 HK$0.9500 80
Residual Income HK$0.6700 HK$0.5900 HK$0.3700 76
Rev-Margin DCF HK$0.5400 HK$0.8000 HK$1.12 74
All 19 models by family
DCF Models
FCF DCF HK$0.5300 HK$0.6900 HK$0.9700 38
Owner Earnings HK$0.4800 HK$0.6200 HK$0.8700 31
5Y Revenue Exit HK$0.5400 HK$0.7800 HK$1.14 39
5Y EBITDA Exit HK$0.5600 HK$0.8100 HK$1.15 41
5Y P/E Exit HK$0.2500 HK$0.2900 HK$0.3300 38
10Y Revenue Exit HK$0.5200 HK$0.7000 HK$0.8900 36
10Y EBITDA Exit HK$0.5400 HK$0.7100 HK$0.9000 37
10Y P/E Exit HK$0.3700 HK$0.4100 HK$0.4400 35
Earnings-Based
Graham-Dodd HK$0.0200 HK$0.0300 HK$0.0400 54
Multiples
P/E Multiple HK$0.0600 HK$0.0800 HK$0.1000 63
P/S Multiple HK$0.0500 HK$0.0600 HK$0.0800 58
P/B Multiple HK$0.0500 HK$0.0600 HK$0.0800 55
EV/EBITDA HK$0.6700 HK$0.9000 HK$1.13 54
EV/Revenue HK$0.5900 HK$0.8600 HK$1.12 43
Asset-Based
NCAV (Graham) HK$0.5300 HK$0.7100 HK$1.06 50
Growth DCF
Growth DCF HK$0.5500 HK$0.7000 HK$0.9500 80
Rev-Margin DCF HK$0.5400 HK$0.8000 HK$1.12 74
Economic Profit
Residual Income HK$0.6700 HK$0.5900 HK$0.3700 76
Growth Earnings
Growth-Adj P/E HK$0.0400 HK$0.0600 HK$0.0800 68

Widest divergence: Asset-Based (HK$0.7100) versus Earnings-Based (HK$0.0300). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$721M
Revenue growth (YoY) -6.9%
Net margin -1.9%
Return on equity -1.2%
Free cash flow HK$75.2M FY2025
Operating margin -6.0%
More key figures
EPS (TTM) HK$-0.0100
EPS growth (YoY) -88.3%
Net debt HK$146M FY2026

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 57 · Market factors (momentum, volatility) 29

Profitability 23
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 90
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

Wai Yuen Tong Medicine Holdings Limited, an investment holding company, engages in production and sale of Chinese and western pharmaceuticals and health food products in Mainland China and Hong Kong.

Full company description

Wai Yuen Tong Medicine Holdings Limited, an investment holding company, engages in production and sale of Chinese and western pharmaceuticals and health food products in Mainland China and Hong Kong. The company manufactures, processes, and sells traditional Chinese medicines under the brand Wai Yuen Tong brand and western pharmaceutical and personal care products under the Madame Pearl's and Pearl's brands. It also invests in commercial premises for rental. Wai Yuen Tong Medicine Holdings Limited was founded in 1897 and is headquartered in Kowloon Bay, Hong Kong. The company is a subsidiary of Rich Time Strategy Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Wai Yuen Tong Medicine Holdings reported revenue of HK$683M in FY2026 versus HK$1.4B in FY2022, a compound −16.3%/yr. Reported net income was HK$4.0M in FY2026.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$683M
Latest YoY
−8.3%
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.
−19.0%
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.
−9.2%
Avg. growth/yr (26Y) 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.
+4.1%
Revenue −16.3%/yr
FY22 HK$1.4B
FY23 HK$1.3B
FY24 HK$784M
FY25 HK$745M
FY26 HK$683M
Net income
FY22 −HK$109M
FY23 −HK$20.5M
FY24 −HK$15.4M
FY25 HK$7.1M
FY26 HK$4.0M

0897 screens 71% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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Cite: Fair Value Calculator (2026). "Wai Yuen Tong Medicine Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0897

Peer Group

Drug Manufacturers - Specialty & Generic · 624 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 56 · Above median
Fair Value upside −71% · Bottom 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -2% · Below median
Operating margin (TTM) -6% · Bottom 25%
Revenue growth -7% · Below median
Debt / equity 0.13× · Higher than median

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

P/S (TTM) 0.06× · Cheaper than 75% of peers
P/FCF 0.5× · 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 0 · sector 6
FUTURE 0 · sector 21
PAST 0 · sector 25
HEALTH 93 · sector 97
DIVIDEND 0 · sector 31

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 - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 15, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 -52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹8,500 ₹1,932 -77%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,915 ₹1,163 -76%
PharmaEssentia Corporation 6446 1,440 TWD 233.93 TWD -84%
Cipla Limited CIPLA ₹1,463 ₹1,001 -32%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,167 ₹703.32 -40%
Lupin Limited LUPIN ₹2,281 ₹2,477 +9%
Mankind Pharma Limited MANKIND ₹2,433 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,200 ₹874.79 -27%

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Frequently asked questions

Is Wai Yuen Tong Medicine Holdings (0897) overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of HK$0.0800 versus a price of HK$0.2800, about −71% (overvalued).
What is the fair value of 0897?
Our model-based fair value for Wai Yuen Tong Medicine Holdings is HK$0.0800 (as of Aug 15, 2026), built from audited fundamentals. The current price is HK$0.2800.
What is the quality score of 0897?
Wai Yuen Tong Medicine Holdings has a Quality Score of 56/100. 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 Wai Yuen Tong Medicine Holdings (0897)?
Wai Yuen Tong Medicine Holdings reported trailing-twelve-month revenue of about HK$721M (latest available figure, as of Aug 15, 2026).
What is the net profit margin of 0897?
The net profit margin of Wai Yuen Tong Medicine Holdings is about -1.9%, 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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