Zhongzhi Pharm Hldg Ltd (3737) fair value: what the stock is really worth
As of Sep 30, 2026: fair value of Zhongzhi Pharm Hldg Ltd HK$0.78, price HK$0.76, upside +3.3%, quality 55 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range HK$0.5200 – HK$1.38 · the HK$0.7550 price screens below the HK$0.7800 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Zhongzhi Pharmaceutical Holdings Limited, an investment holding company, engages in the research, development, manufacture, and sale of pharmaceutical products in the People's Republic of China. The company operates through two segments Pharmaceutical Manufacturing and Operation of Chain Pharmacies segments.
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Zhongzhi Pharmaceutical Holdings Limited, an investment holding company, engages in the research, development, manufacture, and sale of pharmaceutical products in the People's Republic of China. The company operates through two segments Pharmaceutical Manufacturing and Operation of Chain Pharmacies segments. It also provides Chinese patent medicines and decoction pieces under the Zeus, Liumian, and Caojinghua brand names. In addition, the company manufactures and sells food and Chinese herbs; offers detection and testing and property management. Further, the company engages in the wholesale of pharmaceutical products; and provision of traditional Chinese medicine service. Zhongzhi Pharmaceutical Holdings Limited was founded in 1993 and is headquartered in Zhongshan, the People's Republic of China. Zhongzhi Pharmaceutical Holdings Limited operates as a subsidiary of Crystal Talent Investment Group Limited.
Stock analysis
Zhongzhi Pharm Hldg Ltd (3737) currently trades at HK$0.7550, while our model-based Fair Value estimate is HK$0.7800, so the stock looks roughly fairly valued today (gap 3.2%).
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Valuation
Bull case: the DCF Models group reads highest at a median of HK$0.9800 per share, and 11 of the 26 models we run sit above the HK$0.7550 price.
Bear case: the Earnings-Based group reads lowest at HK$0.1700, and 15 of the 26 models stay below the price. Evidence for this calculation is low.
Quality & growth
The Quality Score stands at 55/100 (solid quality), in the Healthcare sector.
Weak Growth: Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Zhongzhi Pharm Hldg Ltd reported revenue of HK$1.7B in FY2025 versus HK$1.7B in FY2021, a compound −0.1%/yr. Reported net income was HK$17.3M in FY2025, compounding −24.1%/yr from FY2021.
Key figures
Market cap HK$622M (≈ $79.2M) · P/E ratio 34.0 · P/S ratio 0.34 · EPS (TTM) HK$0.0100 · Dividend yield 6.5% · Net margin 1.0% · Return on equity 1.6% · Return on assets (EBIT) 5.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 17% below its 52-week high and 45% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −19% fair-value upside, at 3%, 3737 screens cheaper than that median.
Fair Value models
Bear HK$0.7800Fair Value HK$0.7800Bull HK$0.7800
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (HK$0.0075 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Revenue growth 1 year
−21.6%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−1.6%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+1.6%
Start year 2020 (pandemic). Over 10 years: +9.7% a year
Revenue growth 13 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+11.7%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−24.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−31.3%
Dividend (yield on the price)6.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−31.3% vs −15.7%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 0%
Start year 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−1.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Hong Kong: IMF forecast 2.1% a year to 2030, 1.8% from 2016 to 2025) that is about −3.3% a year for the price.
Compare Zhongzhi Pharm Hldg Ltd with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Drug Manufacturers - Specialty & Generic · 619 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score55 · Above median
Fair Value upside+3.3% · Above median
Profitability
Return on equity (TTM)1.6% · Below median
Return on assets−0.1% · Below median
Net margin (TTM)1.0% · Below median
Operating margin (TTM)0.6% · Below median
Growth and dividend
Revenue growth−23.9% · Bottom 25%
Dividend yield (TTM)6.5% · Top 25%
Balance sheet
Debt / equity0.03× · Below median
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
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Is Zhongzhi Pharm Hldg Ltd (3737) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of HK$0.7800 versus a price of HK$0.7550, about +3% upside (fairly valued).
What is the fair value of 3737?
Our model-based fair value for Zhongzhi Pharm Hldg Ltd is HK$0.7800 (as of Sep 27, 2026), built from audited fundamentals. The current price: HK$0.7550.
What is the quality score of 3737?
Zhongzhi Pharm Hldg Ltd has a Quality Score of 55/100. 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 price target for Zhongzhi Pharm Hldg Ltd (3737)?
Our model-based price target is the fair value of HK$0.7800 (as of Sep 27, 2026) from 26 valuation models. It is a calculation from audited fundamentals, not an analyst target.
What is the Zhongzhi Pharm Hldg Ltd stock forecast for 2026?
Our models put fair value at HK$0.7800, about +3% upside versus a price of HK$0.7550 (fairly valued). The calculation is refreshed regularly with new filings.
What is the revenue of Zhongzhi Pharm Hldg Ltd (3737)?
Zhongzhi Pharm Hldg Ltd reported trailing-twelve-month revenue of about HK$1.7B (latest available figure, as of Sep 27, 2026).
Does Zhongzhi Pharm Hldg Ltd pay a dividend?
Zhongzhi Pharm Hldg Ltd currently shows a dividend yield of about 6.55% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Zhongzhi Pharm Hldg Ltd (3737)?
For today's price to be fair in a discounted-cash-flow model, Zhongzhi Pharm Hldg Ltd would have to grow free cash flow by -1.2 % per year for five years (discount rate 11.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.6 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of 3737 use?
Our models discount Zhongzhi Pharm Hldg Ltd at 11.8 %: a base by market capitalisation (micro), damped by beta 0.40, country premium for Hong Kong. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Zhongzhi Pharm Hldg Ltd that is -1.2 % per year a year over ten years, using the same discount rate (11.8 %) and the same formula as our fair value.
How much growth has Zhongzhi Pharm Hldg Ltd (3737) delivered so far?
Over the past 5 years revenue at Zhongzhi Pharm Hldg Ltd grew +1.6 % a year. The price currently implies -1.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Zhongzhi Pharm Hldg Ltd (3737) growing?
The median revenue growth in the sector is +2.7 % a year. That is the yardstick for the growth priced into Zhongzhi Pharm Hldg Ltd (-1.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Zhongzhi Pharm Hldg Ltd (3737)?
The free-cash-flow yield on the price is 11.24 %: that much free cash flow Zhongzhi Pharm Hldg Ltd produces per unit of market value. When it exceeds the discount rate of our models (11.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Zhongzhi Pharm Hldg Ltd (3737)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Zhongzhi Pharm Hldg Ltd it is HK$0.7800 per share (as of Sep 27, 2026), against a price of HK$0.7550. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Zhongzhi Pharm Hldg Ltd stock overvalued or undervalued in 2026?
As of Sep 27, 2026, 3737 trades below its calculated fair value: price HK$0.7550, fair value HK$0.7800, a gap of about +3% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 3737?
No. The price is what the market pays today (HK$0.7550); the fair value is what the company's own numbers justify (HK$0.7800). For Zhongzhi Pharm Hldg Ltd the two are HK$0.0250 per share apart. That gap is exactly why we show both numbers side by side.
How much is Zhongzhi Pharm Hldg Ltd worth?
The market values Zhongzhi Pharm Hldg Ltd at about HK$622M (market capitalisation, as of Sep 27, 2026). Per share that is HK$0.7550; our models calculate a fair value of HK$0.7800 per share.
What is the P/E ratio of 3737?
Zhongzhi Pharm Hldg Ltd trades at a price-to-earnings ratio of 34.0 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of HK$0.7800 is built from several models across several years. Other multiples: P/B 0.6, P/S 0.4, EV/EBITDA 8.3.
How solid is the balance sheet of Zhongzhi Pharm Hldg Ltd (3737)?
Balance-sheet figures for Zhongzhi Pharm Hldg Ltd (as of Sep 27, 2026): return on equity 1.6%, debt of 0.03 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is 3737 from its 52-week high?
Zhongzhi Pharm Hldg Ltd trades at HK$0.7550, about 17% below its 52-week high of HK$0.9100 and 45% above the low of HK$0.5200 (as of Sep 30, 2026). Distance from the high says nothing about value: that is what the fair value of HK$0.7800 is for.
Which stocks are comparable to Zhongzhi Pharm Hldg Ltd?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Teva Pharmaceutical Industries Limited, Sun Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Zhongzhi Pharm Hldg Ltd stock attractive at the current price?
The data as of Sep 27, 2026: price HK$0.7550, calculated fair value HK$0.7800 (+3%), Quality Score 55/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 3737 calculated?
We run Zhongzhi Pharm Hldg Ltd through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of HK$0.7800, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.7 % above its aggregate fair value. Zhongzhi Pharm Hldg Ltd currently trades 3 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Zhongzhi Pharm Hldg Ltd (3737)?
The closing price on Sep 30, 2026 was HK$0.7550. Our model-based fair value is HK$0.7800, about +3% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Zhongzhi Pharm Hldg Ltd right now?
The price is below even our cautious bear case (HK$0.7800). The market is more pessimistic than our downside scenario. The price sits close to our fair value, market and models broadly agree here, little valuation tension. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
Where does the earnings growth of Zhongzhi Pharm Hldg Ltd (3737) come from?
Earnings per share at Zhongzhi Pharm Hldg Ltd grew +0.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +10.6 %, EBIT margin −9.3 %, tax rate −0.5 %, residual (interest, one-offs) +0.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Zhongzhi Pharm Hldg Ltd
How large is the market capitalisation of Zhongzhi Pharm Hldg Ltd (3737)?
The market capitalisation of Zhongzhi Pharm Hldg Ltd is HK$622M (≈ $79.2M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Zhongzhi Pharm Hldg Ltd (3737)?
The price-to-sales ratio of Zhongzhi Pharm Hldg Ltd is 0.34 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Zhongzhi Pharm Hldg Ltd (3737)?
Earnings per share at Zhongzhi Pharm Hldg Ltd are HK$0.0100 (price ÷ EPS = P/E 34.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Zhongzhi Pharm Hldg Ltd (3737)?
The dividend yield of Zhongzhi Pharm Hldg Ltd is 6.5%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Zhongzhi Pharm Hldg Ltd (3737)?
The net margin of Zhongzhi Pharm Hldg Ltd is 1.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Zhongzhi Pharm Hldg Ltd (3737)?
The return on equity (ROE) of Zhongzhi Pharm Hldg Ltd is 1.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Zhongzhi Pharm Hldg Ltd (3737)?
On an EBIT basis the return on assets of Zhongzhi Pharm Hldg Ltd is 5.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Zhongzhi Pharm Hldg Ltd (3737)?
The operating margin of Zhongzhi Pharm Hldg Ltd is 0.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Zhongzhi Pharm Hldg Ltd (3737)?
Revenue at Zhongzhi Pharm Hldg Ltd is growing −23.9% versus a year earlier (3y avg −1.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Zhongzhi Pharm Hldg Ltd (3737)?
Earnings per share at Zhongzhi Pharm Hldg Ltd are growing −7.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Zhongzhi Pharm Hldg Ltd (3737) carry?
The net debt of Zhongzhi Pharm Hldg Ltd is HK$26.1M (fiscal year 2025, ≈ 0.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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