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Luye Pharma Group Ltd (2186) Fair Value & Analysis

Healthcare · HK · Market cap HK$7.3B

LP Luye Pharma Group Ltd 2186 · HK
PriceHK$2.05
Fair ValueHK$3.96
Upside+93.2%
Quality42/100
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Healthy Growth
Thin margins · 9.8% net margin
Low debt · generates free cash flow
Ranks above peers (9/13)
Narrow moat 43/100
Evidence: Medium Range HK$2.97 – HK$4.95 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 3 days ago

Share price −8.9% over the past month.

Below-average quality, screening 93% undervalued on our models.

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What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$2.97). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$5.65 HK$1.77 Fair Value HK$3.96 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$1.77 – HK$5.65 · fair‑value band HK$2.97 – HK$4.95 · the HK$2.05 price screens below the HK$3.96 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Luye Pharma Group Ltd (2186) currently trades at HK$2.05, while our model-based Fair Value estimate is HK$3.96, implying the stock looks roughly 93.2% undervalued today. The Quality Score stands at 42/100 (below-average 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: medium), always confirm before acting.

Over the trailing twelve months, Luye Pharma Group Ltd generated revenue of HK$6.3B at a net margin of 9.8%. Revenue grew 4.7% year over year. It earns a return on equity of 4.1%. Net debt stands at HK$4.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$2.97 (bear case) to HK$4.95 (bull case); at HK$2.05, the current price sits below 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 54% below its 52-week high and 18% 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 93%, 2186 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 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$2.63 HK$4.39 HK$7.25 80
Residual Income HK$2.94 HK$2.88 HK$2.52 76
Rev-Margin DCF HK$2.91 HK$5.04 HK$7.84 74
All 24 models by family
DCF Models
FCF DCF HK$2.66 HK$4.63 HK$7.98 38
Owner Earnings HK$1.65 HK$2.80 HK$4.75 31
5Y Revenue Exit HK$2.91 HK$5.12 HK$8.16 39
5Y EBITDA Exit HK$4.42 HK$8.28 HK$13.22 41
5Y P/E Exit HK$2.61 HK$4.50 HK$6.67 38
10Y Revenue Exit HK$2.71 HK$4.76 HK$7.98 36
10Y EBITDA Exit HK$3.79 HK$7.04 HK$12.18 37
10Y P/E Exit HK$2.61 HK$4.31 HK$6.75 35
Earnings-Based
Graham-Dodd HK$1.05 HK$5.12 HK$7.06 54
Lynch FV HK$1.37 HK$1.96 HK$2.55 50
PEG = 1.0 HK$1.37 HK$1.96 HK$2.55 46
EPV HK$2.51 HK$2.87 HK$3.19 59
Multiples
P/E Multiple HK$2.56 HK$3.41 HK$4.26 63
P/S Multiple HK$1.97 HK$2.63 HK$3.29 58
P/B Multiple HK$1.97 HK$2.63 HK$3.29 55
EV/EBIT HK$4.20 HK$5.52 HK$6.84 53
EV/EBITDA HK$5.70 HK$7.53 HK$9.35 54
EV/Revenue HK$3.06 HK$4.27 HK$5.49 43
Asset-Based
NCAV (Graham) HK$2.01 HK$2.70 HK$4.03 50
Growth DCF
Growth DCF HK$2.63 HK$4.39 HK$7.25 80
Rev-Margin DCF HK$2.91 HK$5.04 HK$7.84 74
Economic Profit
Residual Income HK$2.94 HK$2.88 HK$2.52 76
ROIC Compounder HK$2.51 HK$2.87 HK$3.19 72
Growth Earnings
Growth-Adj P/E HK$2.18 HK$3.12 HK$4.06 68

Widest divergence: DCF Models (HK$4.63) versus Earnings-Based (HK$1.96). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$6.3B
Revenue growth (YoY) +4.7%
Net margin 9.8%
Return on equity 4.1%
Free cash flow HK$780M FY2025
P/E ratio 13.1 as of Jul 2, 2026
More key figures
Operating margin 19.4%
EPS (TTM) HK$0.0800
EPS growth (YoY) +240%
Net debt HK$4.9B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 43 · Market factors (momentum, volatility) 23

Profitability 26
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 44
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

Luye Pharma Group Ltd., together with its subsidiaries, develops, produces, markets, and sells pharmaceutical products in the People's Republic of China, the United States, Europe, and internationally.

Full company description

Luye Pharma Group Ltd., together with its subsidiaries, develops, produces, markets, and sells pharmaceutical products in the People's Republic of China, the United States, Europe, and internationally. The company offers Lipusu, for ovarian cancer and carcinoma of ovary; CMNa, a chemical sensitizer for cancer radiotherapy; Boyounuo, an injection for the treatment of various types of cancers; and Xuezhikang, a lipid-regulating drug for the treatment of hypercholesterolaemia. It also provides Maitongna for cerebral edema and edema caused by trauma or surgery, and for treatment of venous reflux disorders; Beixi, an acarbose capsule for Type 2 diabetes mellitus; Seroquel, Seroquel XR, Erzofri; and Rivastigmine Multi-Day Transdermal, Rotigotine transdermal, Fentanyl, and Buprenorphine patches. In addition, the company offers Rykindo, an injection for the treatment of schizophrenia; Boyoubei, a denosumab injection for the treatment of postmenopausal women with osteoporosis; and Boyouping, a dulaglutide injection for glycemic control in adults. Further, it offers Oukai; Meibirui; Jinyouping; and other products. The company distributes and sells pharmaceutical drugs; develops, manufactures, and commercialises of biologics; and manufactures and sells biopharmaceutical products. Luye Pharma Group Ltd. was founded in 1994 and is headquartered in Yantai, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Luye Pharma Group Ltd reported revenue of HK$6.3B in FY2025 versus HK$5.2B in FY2021, a compound +4.9%/yr. Reported net income was HK$619M in FY2025.

Growth Quality 63/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$6.3B
Latest YoY
+4.1%
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.
+1.8%
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.
+2.6%
Avg. growth/yr (22Y) ⓘ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.
+16.1%
Revenue +4.9%/yr
FY21 HK$5.2B
FY22 HK$6.0B
FY23 HK$6.1B
FY24 HK$6.1B
FY25 HK$6.3B
Net income
FY21 −HK$134M
FY22 HK$605M
FY23 HK$533M
FY24 HK$472M
FY25 HK$619M
Character of growth · EPS growth decomposed (2014-2025) −5.3 % p.a.
Revenue per share +6.8 pp

of which total revenue +8.8 pp · buybacks/dilution −2.0 pp

EBIT margin −7.4 pp
Tax rate −1.9 pp
Residual (interest, one-offs) −2.9 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).

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Luye Pharma Group Ltd · Fair Value
HK$3.96 +93%Fair Value
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Cite: Fair Value Calculator (2026). "Luye Pharma Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2186

Peer Group

Drug Manufacturers - Specialty & Generic · 622 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 42 · Below median
Fair Value upside +93% · Top 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 19% · Top 25%
Revenue growth 5% · Above median
Debt / equity 0.22× · Higher than median

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

P/E (TTM) 13.1× · Cheaper than 75% of peers
P/B 0.45× · Cheaper than 75% of peers
P/S (TTM) 1.16× · Cheaper than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 3.2× · Cheaper than 75% of peers

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 100 · sector 7
FUTURE 24 · sector 21
PAST 17 · sector 25
HEALTH 89 · sector 97
DIVIDEND 0 · sector 32

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 13, 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 Luye Pharma Group Ltd (2186) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$3.96 versus a price of HK$2.05, about +93% (undervalued).
What is the fair value of 2186?
Our model-based fair value for Luye Pharma Group Ltd is HK$3.96 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.05.
What is the quality score of 2186?
Luye Pharma Group Ltd has a Quality Score of 42/100. 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 Luye Pharma Group Ltd (2186)?
Luye Pharma Group Ltd reported trailing-twelve-month revenue of about HK$6.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2186?
The net profit margin of Luye Pharma Group Ltd is about 9.8%, meaning it keeps roughly 9.8% of revenue as net income. 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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