Hunan Er-Kang Pharmaceutical Co (300267) Fair Value & Analysis

Healthcare · CN · Market cap 7.3B CNY

Below-average quality, and screening another 88% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥0.4100). The favourable scenario is already priced in.
• Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
• The models converge in a tight band (¥0.3900 to ¥0.4100), unusually little disagreement for a valuation.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 9, 2026.

How to read this chart

60‑month range ¥2.06 – ¥5.11 · fair‑value band ¥0.3900 – ¥0.4100 · the ¥3.24 price screens above the ¥0.4000 fair value. Dashed = 300-day average. As of Jul 9, 2026.

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Analysis

Hunan Er-Kang Pharmaceutical Co (300267) currently trades at ¥3.24, while our model-based Fair Value estimate is ¥0.4000, implying the stock looks roughly 87.7% overvalued today. The Quality Score stands at 49/100 (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: medium).

Over the trailing twelve months, Hunan Er-Kang Pharmaceutical Co generated revenue of 1.1B CNY at a net margin of -37.3%. Revenue declined 30.0% year over year. It earns a return on equity of -9.9%. The balance sheet holds a net cash position of 193M CNY. Fundamentals as of Jul 9, 2026

Our scenario range runs from ¥0.3900 (bear case) to ¥0.4100 (bull case); at ¥3.24, 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 37% below its 52-week high and 8% 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 -88%, 300267 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.

Widest divergence: Asset-Based (¥1.31) versus Earnings-Based (¥0.4000). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Hunan Er-Kang Pharmaceutical Co., Ltd engages in the research and development, production, and sale of pharmaceutical excipients, APIs and finished drugs in China and internationally.

Full company description

Hunan Er-Kang Pharmaceutical Co., Ltd engages in the research and development, production, and sale of pharmaceutical excipients, APIs and finished drugs in China and internationally. The company offers various APIs, such as glycerin, dilute hydrochloric acid, sulbenicillin sodium, dihydroxypropyl theophylline, calamine powder, sulfadiazine, sulphaguanidine, TMP, and resorcinol. It also provides finished drugs, including sulbenicillin sodium for injection and compound liquorice tablets. In addition, the company offers conventional pharmaceutical excipients include pharmaceutical glycerin, medicinal ethanol, medicinal propylene glycol, medicinal sodium hydroxide, and sucrose; and new pharmaceutical excipients comprise hydroxypropyl starch empty capsules, hydroxypropyl starch soft capsules, and citrate products. Hunan Er-Kang Pharmaceutical Co., Ltd was founded in 2003 and is based in Changsha, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hunan Er-Kang Pharmaceutical Co reported revenue of ¥1.2B in FY2025 versus ¥2.2B in FY2021, a compound −15.0%/yr. Reported net income was −¥380M in FY2025.

300267 screens 88% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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.

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.

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.