Kangmei Pharmaceutical Co Ltd (600518) fair value: what the stock is really worth
As of Oct 23, 2026: fair value (intrinsic value) of Kangmei Pharmaceutical Co Ltd stock ¥0.17, price ¥1.27, upside -86.6%, quality 52 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value above price?No
Good quality?Yes
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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 Oct 26, 2026.
How to read this chart
60‑month range ¥1.20 – ¥5.02 · fair‑value band ¥0.1400 – ¥0.2000 · the ¥1.27 price screens above the ¥0.1700 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Oct 26, 2026.
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Kangmei Pharmaceutical Co., Ltd. produces and sells Chinese herbal medicines in China. The company offers Chinese patent medicines, chemical medicines, and health food products.
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In addition, it engages in the operation of Chinese medicinal materials markets; production and sale of medical devices; and operation of pharmaceutical logistics system.
The company provides its products through medical institution resources, smart pharmacies, OTC retail, chain drug stores, direct sales, medical e-commerce, mobile medical care, etc. Kangmei Pharmaceutical Co., Ltd. was founded in 1997 and is based in Shenzhen, China.
Stock analysis
Kangmei Pharmaceutical Co Ltd (600518) currently trades at ¥1.27, while our model-based Fair Value estimate is ¥0.1700, 86.6% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of ¥0.3100 per share, and 1 of the 12 models we run sit above the ¥1.27 price.
Bear case: the Asset-Based group reads lowest at ¥0.0500, and 11 of the 12 models stay below the price. Data coverage for this calculation is low.
Scenario range: ¥0.1400 (bear) to ¥0.2000 (bull), the price of ¥1.27 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 52/100 (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.
Kangmei Pharmaceutical Co Ltd reported revenue of 5.3B CNY in FY2025 versus 4.2B CNY in FY2021, a compound +6.0%/yr. Reported net income was 10.3M CNY in FY2025, compounding −81.0%/yr from FY2021.
Key figures
Market cap 17.6B CNY (≈ $2.6B) Mid · P/S ratio 3.73 · Net margin 0.6% · Return on equity 0.4% · Return on assets (EBIT) 10.5% · Operating margin −1.9% · Revenue (TTM) 5.0B CNY · Revenue growth (YoY) −5.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 16 out of 100 (medium confidence).
What moves the price
The share trades about 40% 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 −24% fair-value upside, at −87%, 600518 screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (¥0.0100 to ¥2.23). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear¥0.1400Fair Value ¥0.1700Bull¥0.2000
Price ¥1.27 · Upside -86.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.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.Coverage ⓘCoverage = 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.23/100
Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Revenue growth 1 year
+1.2%
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.
+7.9%
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.
−0.6%
Start year 2020 (pandemic). Over 10 years: −11.6% a year
Revenue growth 28 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.
+16.0%
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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. Basis: EBIT basis.
−59.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year−59.4%
Dividend (yield on the price)0.0%
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.−73.5% vs −49.0%, 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.−563% → 2%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 20.2%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Compare Kangmei Pharmaceutical Co 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 · 577 stocks
Beats the industry median on 1/11 measures
Overall it trails its industry peers.
Valuation
Quality Score52 · Below median
Fair Value upside−86.6% · Bottom 25%
Profitability
Return on equity (12 months)0.4% · Below median
Return on assets0.1% · Below median
Net margin (12 months)0.6% · Below median
Operating margin (12 months)−1.9% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)−5.3% · Below median
Balance sheet
Debt / equity2.66× · Highest 25%
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/B2.41× · Pricier than median
P/S (12 months)3.54× · Pricier than median
PEG0.67× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 20
FUTURE (revenue growth)0· sector 26
PAST (return on equity)2· sector 28
HEALTH (low debt)0· sector 96
DIVIDEND (yield)0· sector 32
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Kangmei Pharmaceutical Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600518
Frequently asked questions
Is Kangmei Pharmaceutical Co Ltd (600518) overvalued or undervalued?
As of Oct 26, 2026, our model estimates a fair value of ¥0.1700 versus a price of ¥1.27, about −87% upside (overvalued).
What is the fair value of 600518?
Our model-based fair value for Kangmei Pharmaceutical Co Ltd is ¥0.1700 (as of Oct 26, 2026), built from audited fundamentals. The current price: ¥1.27.
What is the quality score of 600518?
Kangmei Pharmaceutical Co Ltd has a Quality Score of 52/100. 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 Kangmei Pharmaceutical Co Ltd (600518)?
Our model-based price target is the fair value of ¥0.1700 (as of Oct 26, 2026) from 12 valuation models. Cautious scenario ¥0.1400, optimistic scenario ¥0.2000. It is a calculation from audited fundamentals, not an analyst target.
What is the Kangmei Pharmaceutical Co Ltd stock forecast for 2026?
Our models put fair value at ¥0.1700, about −87% upside versus a price of ¥1.27 (overvalued). Cautious scenario ¥0.1400, optimistic scenario ¥0.2000. The calculation is refreshed regularly with new filings.
What is the revenue of Kangmei Pharmaceutical Co Ltd (600518)?
Kangmei Pharmaceutical Co Ltd reported trailing-twelve-month revenue of about 5.0B CNY (latest available figure, as of Oct 26, 2026).
What is the intrinsic value of Kangmei Pharmaceutical Co Ltd (600518)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Kangmei Pharmaceutical Co Ltd it is ¥0.1700 per share (as of Oct 26, 2026), against a price of ¥1.27. It is the blended result of 12 valuation models (cash flow, earnings, asset, dividend).
Is Kangmei Pharmaceutical Co Ltd stock overvalued or undervalued in 2026?
As of Oct 26, 2026, 600518 trades above its calculated fair value: price ¥1.27, fair value ¥0.1700, a gap of about −87% (overvalued). 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 600518?
No. The price is what the market pays today (¥1.27); the fair value is what the company's own numbers justify (¥0.1700). For Kangmei Pharmaceutical Co Ltd the two are ¥1.10 per share apart. That gap is exactly why we show both numbers side by side.
How much is Kangmei Pharmaceutical Co Ltd worth?
The market values Kangmei Pharmaceutical Co Ltd at about 17.6B CNY (market capitalisation, as of Oct 26, 2026). Per share that is ¥1.27; our models calculate a fair value of ¥0.1700 per share.
What do the bullish and bearish scenarios say about 600518?
Our models span a range for Kangmei Pharmaceutical Co Ltd: cautious scenario ¥0.1400, base ¥0.1700, optimistic ¥0.2000 per share (as of Oct 26, 2026, price ¥1.27). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of 600518?
The PEG ratio of Kangmei Pharmaceutical Co Ltd is 0.67 (P/E divided by earnings growth, as of Oct 26, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Kangmei Pharmaceutical Co Ltd (600518)?
Balance-sheet figures for Kangmei Pharmaceutical Co Ltd (as of Oct 26, 2026): return on equity 0.4%, debt of 2.66 per unit of equity. They feed the Quality Score of 52/100, which measures business quality independently of the share price.
How far is 600518 from its 52-week high?
Kangmei Pharmaceutical Co Ltd trades at ¥1.27, about 40% below its 52-week high of ¥2.13 and 6% above the low of ¥1.20 (as of Oct 23, 2026). Distance from the high says nothing about value: that is what the fair value of ¥0.1700 is for.
Which stocks are comparable to Kangmei Pharmaceutical Co Ltd?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva 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 Kangmei Pharmaceutical Co Ltd stock attractive at the current price?
The data as of Oct 26, 2026: price ¥1.27, calculated fair value ¥0.1700 (−87%), Quality Score 52/100, from 12 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 600518 calculated?
We run Kangmei Pharmaceutical Co Ltd through 12 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 ¥0.1700, 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 12.5 % above its aggregate fair value. Kangmei Pharmaceutical Co Ltd itself currently trades above fair value. 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 Kangmei Pharmaceutical Co Ltd (600518)?
The closing price on Oct 23, 2026 was ¥1.27. Our model-based fair value is ¥0.1700, about −87% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Kangmei Pharmaceutical Co Ltd right now?
The price sits above even our optimistic bull case (¥0.2000). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Kangmei Pharmaceutical Co Ltd
How large is the market capitalisation of Kangmei Pharmaceutical Co Ltd (600518)?
The market capitalisation of Kangmei Pharmaceutical Co Ltd is 17.6B CNY (≈ $2.6B). 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 Kangmei Pharmaceutical Co Ltd (600518)?
The price-to-sales ratio of Kangmei Pharmaceutical Co Ltd is 3.73 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the net margin of Kangmei Pharmaceutical Co Ltd (600518)?
The net margin of Kangmei Pharmaceutical Co Ltd is 0.6% (last twelve months). 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 Kangmei Pharmaceutical Co Ltd (600518)?
The return on equity (ROE) of Kangmei Pharmaceutical Co Ltd is 0.4% (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 Kangmei Pharmaceutical Co Ltd (600518)?
On an EBIT basis the return on assets of Kangmei Pharmaceutical Co Ltd is 10.5% (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 Kangmei Pharmaceutical Co Ltd (600518)?
The operating margin of Kangmei Pharmaceutical Co Ltd is −1.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Kangmei Pharmaceutical Co Ltd (600518)?
Revenue at Kangmei Pharmaceutical Co Ltd is growing −5.3% versus a year earlier (3y avg +7.9%). 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 Kangmei Pharmaceutical Co Ltd (600518)?
Earnings per share at Kangmei Pharmaceutical Co Ltd are growing +20.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Kangmei Pharmaceutical Co Ltd (600518) generate?
The free cash flow of Kangmei Pharmaceutical Co Ltd is −106M CNY (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does Kangmei Pharmaceutical Co Ltd (600518) hold?
Kangmei Pharmaceutical Co Ltd holds more cash than debt, 867M CNY net (fiscal year 2024). The company holds more cash than debt, a safety cushion.
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Oct 26, 2026