Beijing Tongrentang Co (600085) Fair Value & Analysis

Healthcare · CN · Market cap 34.4B CNY

A solid business, but screening 24% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥23.85). The favourable scenario is already priced in.
• Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

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 ¥21.91 – ¥62.33 · fair‑value band ¥14.31 – ¥23.85 · the ¥25.04 price screens above the ¥19.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 6, 2026.

Full chart & analysis →

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Analysis

Beijing Tongrentang Co (600085) currently trades at ¥25.04, while our model-based Fair Value estimate is ¥19.08, implying the stock looks roughly 23.8% overvalued today. The Quality Score stands at 67/100 (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, Beijing Tongrentang Co generated revenue of 16.6B CNY at a net margin of 6.5%. Revenue declined 11.6% year over year. It earns a return on equity of 6.5%. The balance sheet holds a net cash position of 8.1B CNY. Fundamentals as of Aug 6, 2026

Our scenario range runs from ¥14.31 (bear case) to ¥23.85 (bull case); at ¥25.04, 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 33% below its 52-week high and 4% 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 -24%, 600085 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.

Widest divergence: DCF Models (¥34.38) versus Asset-Based (¥6.67). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Beijing Tongrentang Co., Ltd engages in the production and sale of traditional Chinese medicine preparations in China and internationally. The company offers various product dosage forms, such as pills, powders, medicated wines, capsules, oral liquids, and drop pills.

Full company description

Beijing Tongrentang Co., Ltd engages in the production and sale of traditional Chinese medicine preparations in China and internationally. The company offers various product dosage forms, such as pills, powders, medicated wines, capsules, oral liquids, and drop pills. Its products are used for cardiovascular, cerebrovascular, gynecology, heat-clearing, respiratory system, nourishing and calming, digestive, pediatrics, wind-dispelling and dampness removing, orthopedics, facial features, dermatological surgery, mental health, and food and beverages applications. The company was founded in 1997 and is based in Beijing, China. Beijing Tongrentang Co., Ltd operates as a subsidiary of China Beijing Tong Ren Tang Group Co. Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Beijing Tongrentang Co reported revenue of ¥17.3B in FY2025 versus ¥14.6B in FY2021, a compound +4.3%/yr. Reported net income was ¥1.2B in FY2025, compounding −0.8%/yr from FY2021.

600085 screens 24% 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.

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.