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China Meheco Group (600056) Fair Value & Analysis

Healthcare · CN · Market cap 14.0B CNY

CM China Meheco Group 600056 · SHG
Price¥9.40
Fair Value¥6.64
Upside-29.4%
Quality57/100
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Weak Growth
Thin margins · 1.4% net margin
Low debt · generates free cash flow
1.00% dividend yield
Trails peers (4/14)
Narrow moat 28/100
Evidence: Medium Range ¥4.98 – ¥8.30 Share as image

Fair value as of: Aug 6, 2026

From 26 valuation models · updated 4 days ago

Share price +3.3% over the past month.

A solid business, but screening 29% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥8.30). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥28.08 ¥7.33 Fair Value ¥6.64 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range ¥7.33 – ¥28.08 · fair‑value band ¥4.98 – ¥8.30 · the ¥9.40 price screens above the ¥6.64 fair value. Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

China Meheco Group (600056) currently trades at ¥9.40, while our model-based Fair Value estimate is ¥6.64, implying the stock looks roughly 29.4% overvalued today. The Quality Score stands at 57/100 (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: medium).

Over the trailing twelve months, China Meheco Group generated revenue of 35.0B CNY at a net margin of 1.4%. Revenue declined 4.0% year over year. It earns a return on equity of 4.7%. Net debt stands at 561M CNY. Fundamentals as of Aug 6, 2026

Our scenario range runs from ¥4.98 (bear case) to ¥8.30 (bull case); at ¥9.40, 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 25% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at 2% fair-value upside, at -29%, 600056 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥11.50 ¥18.16 ¥29.29 80
Residual Income ¥5.94 ¥5.94 ¥5.42 76
Rev-Margin DCF ¥11.00 ¥17.29 ¥25.31 74
All 26 models by family
DCF Models
FCF DCF ¥11.54 ¥18.70 ¥30.93 38
Owner Earnings ¥7.70 ¥11.88 ¥19.04 31
5Y Revenue Exit ¥11.00 ¥17.44 ¥26.12 39
5Y EBITDA Exit ¥13.01 ¥21.54 ¥32.17 41
5Y P/E Exit ¥8.38 ¥12.11 ¥16.24 38
10Y Revenue Exit ¥10.81 ¥16.97 ¥26.25 36
10Y EBITDA Exit ¥12.43 ¥19.95 ¥31.25 37
10Y P/E Exit ¥9.37 ¥13.09 ¥18.08 35
Earnings-Based
Graham-Dodd ¥2.15 ¥9.53 ¥13.05 54
Lynch FV ¥2.47 ¥3.53 ¥4.59 50
PEG = 1.0 ¥2.47 ¥3.53 ¥4.59 46
EPV ¥9.58 ¥10.80 ¥11.86 59
Dividend Discount
Gordon GGM ¥1.86 ¥3.87 ¥6.14 70
DDM Multi-Stage ¥1.86 ¥3.27 ¥4.07 61
Multiples
P/E Multiple ¥4.98 ¥6.64 ¥8.30 63
P/S Multiple ¥4.03 ¥5.38 ¥6.72 58
P/B Multiple ¥4.03 ¥5.38 ¥6.72 55
EV/EBIT ¥14.33 ¥18.34 ¥22.36 53
EV/EBITDA ¥14.75 ¥18.90 ¥23.05 54
EV/Revenue ¥10.88 ¥14.56 ¥18.25 43
Asset-Based
NCAV (Graham) ¥3.96 ¥5.30 ¥7.91 50
Growth DCF
Growth DCF ¥11.50 ¥18.16 ¥29.29 80
Rev-Margin DCF ¥11.00 ¥17.29 ¥25.31 74
Economic Profit
Residual Income ¥5.94 ¥5.94 ¥5.42 76
ROIC Compounder ¥10.25 ¥13.11 ¥17.04 72
Growth Earnings
Growth-Adj P/E ¥4.05 ¥5.79 ¥7.53 68

Widest divergence: Growth DCF (¥17.29) versus Dividend Discount (¥3.27). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 35.0B CNY
Revenue growth (YoY) -4.0%
Net margin 1.4%
Return on equity 4.7%
Free cash flow 1.1B CNY FY2025
P/E ratio 28.6
More key figures
Operating margin 4.0%
EPS (TTM) ¥0.3200
Dividend yield 1.1%
EPS growth (YoY) +5.5%
Net debt 561M CNY FY2025

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 55 · Market factors (momentum, volatility) 42

Profitability 31
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 22
Distance to the 52-week high (market factor)
Net Issuance 82
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

China Meheco Group Co., Ltd. engages in the manufacture, marketing, and trade of pharmaceuticals and medical devices in China and internationally. The company is involved in the planting and sale of Chinese medicinal materials, as well as the provision of related technical and warehousing services.

Full company description

China Meheco Group Co., Ltd. engages in the manufacture, marketing, and trade of pharmaceuticals and medical devices in China and internationally. The company is involved in the planting and sale of Chinese medicinal materials, as well as the provision of related technical and warehousing services. Its drug products cover therapeutic fields, such as anti-infection, cardiovascular, hormones and endocrine regulation, respiratory and digestive systems, nutritional supplements, antipyretic analgesics, and other therapeutic areas as well as Chinese herbal medicine processing and decoction pieces. The company was founded in 1983 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Meheco Group reported revenue of ¥35.4B in FY2025 versus ¥36.2B in FY2021, a compound −0.6%/yr. Reported net income was ¥473M in FY2025, compounding −7.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
35.4B CNY
Latest YoY
+3.6%
Avg. growth/yr (3Y)
−2.0%
Avg. growth/yr (5Y)
−2.1%
Avg. growth/yr (31Y)
+11.2%
Revenue −0.6%/yr
FY21 ¥36.2B
FY22 ¥37.6B
FY23 ¥38.8B
FY24 ¥34.1B
FY25 ¥35.4B
Net income −7.5%/yr
FY21 ¥647M
FY22 ¥736M
FY23 ¥1.0B
FY24 ¥535M
FY25 ¥473M

600056 screens 29% overvalued. Compare with McKesson Corporation →

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Cite: Fair Value Calculator (2026). "China Meheco Group Fair Value". https://www.fairvalue-calculator.com/stock/600056

Peer Group

Medical Distribution · 81 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 57 · Above median
Fair Value upside −29% · Below median
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 4% · Above median
Revenue growth -4% · Below median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Medical Distribution median · lower = cheaper

P/E (TTM) 29.2× · Pricier than 75% of peers
P/B 1.18× · Pricier than median
P/S (TTM) 0.40× · Cheaper than median
P/FCF 1.9× · Pricier than median
EV/EBITDA 6.4× · Pricier 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 32
FUTURE 0 · sector 14
PAST 19 · sector 21
HEALTH 97 · sector 97
DIVIDEND 20 · sector 53

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 Medical Distribution stocks, each showing price versus our Fair Value estimate (as of Aug 6, 2026).

Stock Price Fair Value vs Fair Value
McKesson Corporation MCK $805.96 $819.31 +2%
Cencora, Inc COR $303.44 $175.74 -42%
Cardinal Health, Inc CAH $224.94 $141.77 -37%
Henry Schein, Inc HSIC $87.82 $74.67 -15%
Shanghai Pharmaceuticals Holding 601607 ¥16.70 ¥33.96 +103%
Sinopharm Group 1099 HK$16.74 HK$61.33 +266%
Galenica AG GALE CHF 87.05 CHF 61.79 -29%
Guangzhou Baiyunshan Pharmaceutical Holdings 600332 ¥21.50 ¥28.65 +33%
Jointown Pharmaceutical Group 600998 ¥4.99 ¥9.84 +97%
Asker Healthcare Group ASKER kr 79.45 kr 25.69 -68%

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Frequently asked questions

Is China Meheco Group (600056) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of ¥6.64 versus a price of ¥9.40, about −29% (overvalued).
What is the fair value of 600056?
Our model-based fair value for China Meheco Group is ¥6.64 (as of Aug 6, 2026), built from audited fundamentals. The current price is ¥9.40.
What is the quality score of 600056?
China Meheco Group has a Quality Score of 57/100. 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 China Meheco Group (600056)?
China Meheco Group reported trailing-twelve-month revenue of about 35.0B CNY (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 600056?
The net profit margin of China Meheco Group is about 1.4%, meaning it keeps roughly 1.4% of revenue as net income. Based on the latest reported figures.
Does China Meheco Group pay a dividend?
China Meheco Group currently shows a dividend yield of about 1.06% relative to its recent price (as of Aug 6, 2026).

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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