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Lushang Freda Pharmaceutical Co (600223) Fair Value & Analysis

Real Estate · CN · Market cap 5.6B CNY

LF Lushang Freda Pharmaceutical Co 600223 · SHG
Price¥5.54
Fair Value¥5.30
Upside-4.3%
Quality62/100
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Weak Growth
Thin margins · 4.6% net margin
Low debt · generates free cash flow
1.03% dividend yield
Trails peers (5/14)
Narrow moat 28/100
Evidence: Medium Range ¥4.50 – ¥6.10 Share as image

Fair value as of: Aug 7, 2026

From 16 valuation models · updated 3 days ago

Share price +4.8% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

¥17.98 ¥4.96 Fair Value ¥5.30 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 7, 2026.

How to read this chart

60‑month range ¥4.96 – ¥17.98 · fair‑value band ¥4.50 – ¥6.10 · the ¥5.54 price screens above the ¥5.30 fair value. Dashed = 300-day average. As of Aug 7, 2026.

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Analysis

Lushang Freda Pharmaceutical Co (600223) currently trades at ¥5.54, while our model-based Fair Value estimate is ¥5.30, implying the stock looks roughly 4.3% fairly valued today. The Quality Score stands at 62/100 (solid quality), in the Real Estate 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, Lushang Freda Pharmaceutical Co generated revenue of 3.7B CNY at a net margin of 4.6%. Revenue grew 2.8% year over year. It earns a return on equity of 4.3%. The balance sheet holds a net cash position of 2.7B CNY. Fundamentals as of Aug 7, 2026

Our scenario range runs from ¥4.50 (bear case) to ¥6.10 (bull case); at ¥5.54, the current price sits within 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 40% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 32% fair-value upside, at -4%, 600223 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 ¥4.60 ¥5.36 ¥6.39 80
Residual Income ¥3.10 ¥3.08 ¥2.80 76
Rev-Margin DCF ¥4.60 ¥5.62 ¥6.77 74
All 16 models by family
DCF Models
FCF DCF ¥4.57 ¥5.43 ¥6.65 38
5Y Revenue Exit ¥4.60 ¥5.61 ¥6.89 39
5Y EBITDA Exit ¥5.70 ¥7.65 ¥9.90 41
10Y Revenue Exit ¥4.52 ¥5.42 ¥6.61 36
10Y EBITDA Exit ¥5.25 ¥6.79 ¥8.82 37
Dividend Discount
Gordon GGM ¥0.5600 ¥1.12 ¥1.70 70
DDM Multi-Stage ¥0.5600 ¥0.8900 ¥1.18 61
Multiples
P/S Multiple ¥2.35 ¥3.14 ¥3.92 58
P/B Multiple ¥2.35 ¥3.14 ¥3.92 55
EV/EBIT ¥6.22 ¥7.35 ¥8.47 53
EV/EBITDA ¥6.81 ¥8.13 ¥9.45 54
EV/Revenue ¥4.71 ¥5.50 ¥6.30 43
Asset-Based
NCAV (Graham) ¥2.08 ¥2.79 ¥4.16 50
Growth DCF
Growth DCF ¥4.60 ¥5.36 ¥6.39 80
Rev-Margin DCF ¥4.60 ¥5.62 ¥6.77 74
Economic Profit
Residual Income ¥3.10 ¥3.08 ¥2.80 76

Widest divergence: DCF Models (¥5.61) versus Dividend Discount (¥0.8900). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 3.7B CNY
Revenue growth (YoY) +2.8%
Net margin 4.6%
Return on equity 4.3%
Free cash flow 166M CNY FY2025
P/E ratio 35.6
More key figures
Operating margin 2.6%
EPS (TTM) ¥0.1600
Dividend yield 1.0%
EPS growth (YoY) -40.0%
Net cash 2.7B CNY FY2024

Figures from reported company fundamentals · as of Aug 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 31

Profitability 39
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 89
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

Lushang Freda Pharmaceutical Co.,Ltd. engages in the research, development, production, and sales of cosmetics, pharmaceuticals, raw materials, and additives in China. It is involved in property management services. The company provides facial cleansers, lotions, creams, sprays, masks, and other products.

Full company description

Lushang Freda Pharmaceutical Co.,Ltd. engages in the research, development, production, and sales of cosmetics, pharmaceuticals, raw materials, and additives in China. It is involved in property management services. The company provides facial cleansers, lotions, creams, sprays, masks, and other products. It also offers products in the field of dermatology, orthopedics, ophthalmology, gynecology, and pediatrics, respiratory, endocrinology, andrology, tonic, and plasters, as well as hyaluronic acid and its derivatives, bio-fermentation, plant extracts, chemical synthesis, tablets, capsules, drinks, injections, granules, and other products. The company offers its products through online and offline channels. It exports its products to North America, the European Union, Japan, South Korea, and Southeast Asia. The company was formerly known as Lushang Health Industry Development Co.,Ltd. and changed its name to Lushang Freda Pharmaceutical Co.,Ltd. in April 2023. The company was founded in 1993 and is based in Jinan, China. Lushang Freda Pharmaceutical Co.,Ltd. is a subsidiary of Shandong Commercial Group Co.,Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lushang Freda Pharmaceutical Co reported revenue of ¥3.7B in FY2025 versus ¥12.4B in FY2021, a compound −26.3%/yr. Reported net income was ¥188M in FY2025, compounding −15.1%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
3.7B CNY
Latest YoY
−8.3%
Avg. growth/yr (3Y)
−34.4%
Avg. growth/yr (5Y)
−23.1%
Avg. growth/yr (29Y)
+11.9%
Revenue −26.3%/yr
FY21 ¥12.4B
FY22 ¥13.0B
FY23 ¥4.6B
FY24 ¥4.0B
FY25 ¥3.7B
Net income −15.1%/yr
FY21 ¥362M
FY22 ¥45.5M
FY23 ¥303M
FY24 ¥244M
FY25 ¥188M

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Cite: Fair Value Calculator (2026). "Lushang Freda Pharmaceutical Co Fair Value". https://www.fairvalue-calculator.com/stock/600223

Peer Group

Real Estate - Development · 588 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 61 · Top 25%
Fair Value upside −4% · Below median
Return on equity (TTM) 4% · Above median
Return on assets 2% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 3% · Above median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Real Estate - Development median · lower = cheaper

P/E (TTM) 34.3× · Pricier than 75% of peers
P/B 1.32× · Pricier than 75% of peers
P/S (TTM) 1.52× · Pricier than median
P/FCF 5.0× · Pricier than 75% of peers
EV/EBITDA 10.7× · 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 28 · sector 48
FUTURE 14 · sector 0
PAST 17 · sector 10
HEALTH 100 · sector 84
DIVIDEND 21 · sector 38

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 Real Estate - Development stocks, each showing price versus our Fair Value estimate (as of Aug 7, 2026).

Stock Price Fair Value vs Fair Value
DLF Limited DLF ₹657.75 ₹159.49 -76%
Lodha Developers Limited LODHA ₹1,188 ₹583.43 -51%
PT Pantai Indah Kapuk Dua Tbk, PANI 6,125 IDR 1,330 IDR -78%
Oberoi Realty Limited OBEROIRLTY ₹1,925 ₹1,183 -39%
Godrej Properties Limited GODREJPROP ₹2,102 ₹1,044 -50%
PT Jaya Real Property, Tbk., JRPT 1,080 IDR 1,674 IDR +55%
PT Bumi Serpong Damai Tbk, BSDE 555.00 IDR 1,388 IDR +150%
PT Sentul City Tbk, BKSL 64.00 IDR 84.16 IDR +32%
PT Ciputra Development Tbk, CTRA 555.00 IDR 1,388 IDR +150%
PT Duta Pertiwi Tbk DUTI 4,100 IDR 6,239 IDR +52%

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Frequently asked questions

Is Lushang Freda Pharmaceutical Co (600223) overvalued or undervalued?
As of Aug 7, 2026, our model estimates a fair value of ¥5.30 versus a price of ¥5.54, about −4% (fairly valued).
What is the fair value of 600223?
Our model-based fair value for Lushang Freda Pharmaceutical Co is ¥5.30 (as of Aug 7, 2026), built from audited fundamentals. The current price is ¥5.54.
What is the quality score of 600223?
Lushang Freda Pharmaceutical Co has a Quality Score of 62/100. 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 Lushang Freda Pharmaceutical Co (600223)?
Lushang Freda Pharmaceutical Co reported trailing-twelve-month revenue of about 3.7B CNY (latest available figure, as of Aug 7, 2026).
What is the net profit margin of 600223?
The net profit margin of Lushang Freda Pharmaceutical Co is about 4.6%, meaning it keeps roughly 4.6% of revenue as net income. Based on the latest reported figures.
Does Lushang Freda Pharmaceutical Co pay a dividend?
Lushang Freda Pharmaceutical Co currently shows a dividend yield of about 1.03% relative to its recent price (as of Aug 7, 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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