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KPC Pharmaceuticals,Inc., a pharmaceutical company, (600422) Fair Value & Analysis

Healthcare · CN · Market cap 6.7B CNY

KP KPC Pharmaceuticals,Inc., a pharmaceutical company, 600422 · SHG
Price¥8.82
Fair Value¥8.13
Upside-7.8%
Quality47/100
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Weak Growth
Thin margins · 2.0% net margin
Low debt · generates free cash flow
2.06% dividend yield
Trails peers (4/14)
Narrow moat 20/100
Evidence: Medium Range ¥5.25 – ¥11.43 Share as image

Fair value as of: Aug 9, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 9, 2026, revised from ¥8.68 to ¥8.13 (−6.3%) since Jul 11, 2026. Share price +6.4% over the past month.

Below-average quality, 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.
  • A fairly wide model range (¥5.25 to ¥11.43) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥24.62 ¥7.59 Fair Value ¥8.13 Mar 2021 Aug 2026

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

How to read this chart

60‑month range ¥7.59 – ¥24.62 · fair‑value band ¥5.25 – ¥11.43 · the ¥8.82 price screens above the ¥8.13 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

KPC Pharmaceuticals,Inc., a pharmaceutical company, (600422) currently trades at ¥8.82, while our model-based Fair Value estimate is ¥8.13, implying the stock looks roughly 7.8% fairly valued today. The Quality Score stands at 47/100 (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, KPC Pharmaceuticals,Inc., a pharmaceutical company, generated revenue of 5.8B CNY at a net margin of 2.0%. Revenue declined 48.0% year over year. It earns a return on equity of 2.4%. Net debt stands at 876M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥5.25 (bear case) to ¥11.43 (bull case); at ¥8.82, 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 42% 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 -8%, 600422 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥3.70 ¥5.40 ¥7.97 80
Residual Income ¥5.63 ¥5.87 ¥6.04 76
Rev-Margin DCF ¥5.13 ¥8.33 ¥12.15 74
All 26 models by family
DCF Models
FCF DCF ¥3.68 ¥5.45 ¥8.15 38
Owner Earnings ¥7.44 ¥11.46 ¥17.62 31
5Y Revenue Exit ¥5.13 ¥8.40 ¥12.72 39
5Y EBITDA Exit ¥6.94 ¥11.90 ¥17.89 41
5Y P/E Exit ¥6.20 ¥10.48 ¥15.13 38
10Y Revenue Exit ¥4.40 ¥7.24 ¥11.31 36
10Y EBITDA Exit ¥5.71 ¥9.66 ¥15.29 37
10Y P/E Exit ¥5.24 ¥8.68 ¥13.17 35
Earnings-Based
Graham-Dodd ¥3.14 ¥11.35 ¥15.30 54
Lynch FV ¥2.69 ¥3.84 ¥4.99 50
PEG = 1.0 ¥2.69 ¥3.84 ¥4.99 46
EPV ¥5.46 ¥6.21 ¥6.85 59
Dividend Discount
Gordon GGM ¥2.63 ¥5.25 ¥7.95 70
DDM Multi-Stage ¥2.63 ¥4.54 ¥5.54 61
Multiples
P/E Multiple ¥7.63 ¥10.17 ¥12.71 63
P/S Multiple ¥5.89 ¥7.86 ¥9.82 58
P/B Multiple ¥5.89 ¥7.86 ¥9.82 55
EV/EBIT ¥8.28 ¥10.80 ¥13.32 53
EV/EBITDA ¥9.62 ¥12.59 ¥15.55 54
EV/Revenue ¥6.12 ¥8.43 ¥10.74 43
Asset-Based
NCAV (Graham) ¥3.54 ¥4.75 ¥7.08 50
Growth DCF
Growth DCF ¥3.70 ¥5.40 ¥7.97 80
Rev-Margin DCF ¥5.13 ¥8.33 ¥12.15 74
Economic Profit
Residual Income ¥5.63 ¥5.87 ¥6.04 76
ROIC Compounder ¥5.46 ¥6.21 ¥6.85 72
Growth Earnings
Growth-Adj P/E ¥5.25 ¥7.51 ¥9.76 68

Widest divergence: DCF Models (¥8.68) versus Earnings-Based (¥3.84). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 5.8B CNY
Revenue growth (YoY) -48.0%
Net margin 2.0%
Return on equity 2.4%
Free cash flow 199M CNY FY2025
P/E ratio 56.6
More key figures
Operating margin -20.5%
EPS (TTM) ¥0.1500
Dividend yield 2.1%
EPS growth (YoY) -62.6%
Net debt 876M CNY FY2025

Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 49 · Market factors (momentum, volatility) 35

Profitability 34
Margins and returns on capital today
Quality Growth 9
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 75
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

KPC Pharmaceuticals,Inc., a pharmaceutical company, engages in the research and development, production, marketing, and commercial wholesale of botanical drugs and natural drugs in the People's Republic of China and internationally.

Full company description

KPC Pharmaceuticals,Inc., a pharmaceutical company, engages in the research and development, production, marketing, and commercial wholesale of botanical drugs and natural drugs in the People's Republic of China and internationally. It offers artemisia annua series, panax notoginseng, gastrodia, artemether, comether tablets, specialty herbal products, classic prescription for bones and joint, antibiotics, immunosuppressive, oral products, injections, and other products, as well as engages in the wholesale and retail of medicines and equipment. The company offers products in the field of cardiovascular and cerebrovascular, orthopedics series, antimalarial, gynecology, digestive system, and others treatments. It offers its products under Luotai, Tianxuanqing, Artemedine, Artem, and Arco brands. The company was formerly known as Kunming Pharmaceutical Corporation and changed its name to KPC Pharmaceuticals, Inc. in April 2015. KPC Pharmaceuticals,Inc. was founded in 1951 and is based in Kunming, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

KPC Pharmaceuticals,Inc., a pharmaceutical company, reported revenue of ¥6.6B in FY2025 versus ¥8.3B in FY2021, a compound −5.5%/yr. Reported net income was ¥350M in FY2025, compounding −8.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
6.6B CNY
Latest YoY
−21.7%
Avg. growth/yr (3Y)
−7.4%
Avg. growth/yr (5Y)
−3.1%
Avg. growth/yr (28Y)
+12.0%
Revenue −5.5%/yr
FY21 ¥8.3B
FY22 ¥8.3B
FY23 ¥8.4B
FY24 ¥8.4B
FY25 ¥6.6B
Net income −8.9%/yr
FY21 ¥508M
FY22 ¥383M
FY23 ¥541M
FY24 ¥648M
FY25 ¥350M

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Cite: Fair Value Calculator (2026). "KPC Pharmaceuticals,Inc., a pharmaceutical company, Fair Value". https://www.fairvalue-calculator.com/stock/600422

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.

Quality Score 47 · Below median
Fair Value upside −8% · Above median
Return on equity (TTM) 2% · Below median
Return on assets -0% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) -20% · Bottom 25%
Revenue growth -48% · Bottom 25%
Dividend yield (TTM) 2.1% · Above median
Debt / equity 0.13× · Higher than median

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 58.8× · Pricier than 75% of peers
P/B 1.25× · Cheaper than median
P/S (TTM) 1.15× · Cheaper than median
P/FCF 5.0× · Pricier than median
EV/EBITDA 68.2× · Pricier than 75% of peers

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 23 · sector 7
FUTURE 0 · sector 20
PAST 9 · sector 23
HEALTH 94 · sector 97
DIVIDEND 41 · sector 34

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 Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%

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Frequently asked questions

Is KPC Pharmaceuticals,Inc., a pharmaceutical company, (600422) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥8.13 versus a price of ¥8.82, about −8% (fairly valued).
What is the fair value of 600422?
Our model-based fair value for KPC Pharmaceuticals,Inc., a pharmaceutical company, is ¥8.13 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥8.82.
What is the quality score of 600422?
KPC Pharmaceuticals,Inc., a pharmaceutical company, has a Quality Score of 47/100. 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 KPC Pharmaceuticals,Inc., a pharmaceutical company, (600422)?
KPC Pharmaceuticals,Inc., a pharmaceutical company, reported trailing-twelve-month revenue of about 5.8B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600422?
The net profit margin of KPC Pharmaceuticals,Inc., a pharmaceutical company, is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.
Does KPC Pharmaceuticals,Inc., a pharmaceutical company, pay a dividend?
KPC Pharmaceuticals,Inc., a pharmaceutical company, currently shows a dividend yield of about 2.11% relative to its recent price (as of Aug 9, 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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