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Modern Chinese Medicine Group (1643) Fair Value & Analysis

Healthcare · HK · Market cap HK$864M

MC Modern Chinese Medicine Group 1643 · HK
PriceHK$0.8300
Fair ValueHK$0.3315
Upside-60.1%
Quality28/100
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Weak Growth
Loss-making · -9.3% net margin
negative free cash flow
Trails peers (2/9)
Narrow moat 2/100
Evidence: Low Range HK$0.2210 – HK$0.4080 Share as image

Fair value as of: Aug 5, 2026

From 1 valuation models · updated 5 days ago

Share price −12.6% over the past month.

Below-average quality, and screening another 60% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.4080). The favourable scenario is already priced in.
  • Weak quality (28/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (HK$0.2210 to HK$0.4080) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$3.20 HK$0.2450 Fair Value HK$0.3315 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$0.2450 – HK$3.20 · fair‑value band HK$0.2210 – HK$0.4080 · the HK$0.8300 price screens above the HK$0.3315 fair value. Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

Modern Chinese Medicine Group (1643) currently trades at HK$0.8300, while our model-based Fair Value estimate is HK$0.3315, implying the stock looks roughly 60.1% overvalued today. The Quality Score stands at 28/100 (below-average 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: low).

Over the trailing twelve months, Modern Chinese Medicine Group generated revenue of HK$145M at a net margin of -9.3%. Revenue declined 41.5% year over year. It earns a return on equity of -2.8%. The balance sheet holds a net cash position of HK$230M. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$0.2210 (bear case) to HK$0.4080 (bull case); at HK$0.8300, 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 75% below its 52-week high and 108% 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 -60%, 1643 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
NCAV (Graham) HK$0.3500 HK$0.4600 HK$0.6900 50
All 1 models by family
Asset-Based
NCAV (Graham) HK$0.3500 HK$0.4600 HK$0.6900 50

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Key figures & financial health

Revenue (TTM) HK$145M
Revenue growth (YoY) -41.5%
Net margin -9.3%
Return on equity -2.8%
Free cash flow −HK$16.6M FY2025
Operating margin -23.1%
More key figures
EPS growth (YoY) -22.1%
Net cash HK$230M FY2025

Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 28/100

Of which business quality 34 · Market factors (momentum, volatility) 48

Profitability 7
Margins and returns on capital today
Quality Growth 2
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 40
Distance to the 52-week high (market factor)
Net Issuance 25
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

Modern Chinese Medicine Group Co., Ltd., an investment holding company, engages in the production and sale of proprietary Chinese medicines in the People's Republic of China.

Full company description

Modern Chinese Medicine Group Co., Ltd., an investment holding company, engages in the production and sale of proprietary Chinese medicines in the People's Republic of China. It provides vigour and vitality supplement, circulation enhancement pills, cardiotonic enhancement capsules, kidney invigoration pill, heart wellness capsules, menstrual discomfort relief, liver detox tablets, additional ingredient Huoxiang Zheng Qi pill, liver-dispersing and stomach regulating pills, and fever- removing and detoxification pills. The company offers its products as therapeutics for the treatment of qi-deficiency and blood-statis, cardio-cerebrovascular, digestive and gastrointestinal, gynecological, and symptoms of COVID-19 and similar illnesses. It also provides business support, technical, and consulting services. The company serves elderlies and middle-aged customers. The company was founded in 1986 and is headquartered in Chengde, China. Modern Chinese Medicine Group Co., Ltd. operates as a subsidiary of Modern Biotechnology Group Holdings Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Modern Chinese Medicine Group reported revenue of HK$141M in FY2025 versus HK$361M in FY2021, a compound −20.9%/yr. Reported net income was −HK$13.2M in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$141M
Latest YoY
−33.9%
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.
−29.3%
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.
−14.5%
Avg. growth/yr (8Y) 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.
+3.6%
Revenue −20.9%/yr
FY21 HK$361M
FY22 HK$400M
FY23 HK$344M
FY24 HK$214M
FY25 HK$141M
Net income
FY21 HK$81.8M
FY22 HK$87.8M
FY23 HK$48.8M
FY24 HK$9.7M
FY25 −HK$13.2M

1643 screens 60% overvalued. Compare with Eli Lilly and Company →

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Cite: Fair Value Calculator (2026). "Modern Chinese Medicine Group Fair Value". https://www.fairvalue-calculator.com/stock/1643

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 34 · Bottom 25%
Fair Value upside −60% · Bottom 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -9% · Bottom 25%
Operating margin (TTM) -23% · Bottom 25%
Revenue growth -42% · Bottom 25%

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

P/B 0.22× · Cheaper than 75% of peers
P/S (TTM) 0.76× · Cheaper than 75% of peers

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 Aug 5, 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 Modern Chinese Medicine Group (1643) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$0.3315 versus a price of HK$0.8300, about −60% (overvalued).
What is the fair value of 1643?
Our model-based fair value for Modern Chinese Medicine Group is HK$0.3315 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$0.8300.
What is the quality score of 1643?
Modern Chinese Medicine Group has a Quality Score of 28/100. 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 Modern Chinese Medicine Group (1643)?
Modern Chinese Medicine Group reported trailing-twelve-month revenue of about HK$145M (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 1643?
The net profit margin of Modern Chinese Medicine Group is about -9.3%, 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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