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Zhejiang Huahai Pharmaceutical Co (600521) Fair Value & Analysis

Healthcare · CN · Market cap 26.3B CNY

ZH Zhejiang Huahai Pharmaceutical Co 600521 · SHG
Price¥17.55
Fair Value¥6.18
Upside-64.8%
Quality40/100
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Expensive Growth
Thin margins · 4.4% net margin
Low debt · negative free cash flow
0.61% dividend yield
Trails peers (1/14)
Narrow moat 30/100
Evidence: Medium Range ¥4.65 – ¥7.73 Share as image

Fair value as of: Aug 8, 2026

From 14 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥3.91 to ¥6.18 (+58.2%) since Jul 11, 2026. Share price +7.3% over the past month.

Below-average quality, and screening another 65% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥7.73). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥28.39 ¥11.38 Fair Value ¥6.18 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ¥11.38 – ¥28.39 · fair‑value band ¥4.65 – ¥7.73 · the ¥17.55 price screens above the ¥6.18 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Zhejiang Huahai Pharmaceutical Co (600521) currently trades at ¥17.55, while our model-based Fair Value estimate is ¥6.18, implying the stock looks roughly 64.8% overvalued today. The Quality Score stands at 40/100 (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, Zhejiang Huahai Pharmaceutical Co generated revenue of 8.6B CNY at a net margin of 4.4%. Revenue declined 1.4% year over year. It earns a return on equity of 3.3%. Net debt stands at 3.2B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥4.65 (bear case) to ¥7.73 (bull case); at ¥17.55, 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 37% below its 52-week high and 25% 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 -65%, 600521 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
Residual Income ¥4.54 ¥4.39 ¥3.66 76
ROIC Compounder ¥2.81 ¥3.32 ¥3.76 72
Growth-Adj P/E ¥2.70 ¥3.85 ¥5.01 68
All 14 models by family
Earnings-Based
Graham-Dodd ¥1.21 ¥6.46 ¥8.96 54
Lynch FV ¥1.78 ¥2.55 ¥3.31 50
PEG = 1.0 ¥1.78 ¥2.55 ¥3.31 46
EPV ¥2.81 ¥3.32 ¥3.76 59
Multiples
P/E Multiple ¥2.94 ¥3.91 ¥4.89 63
P/S Multiple ¥2.27 ¥3.02 ¥3.78 58
P/B Multiple ¥2.27 ¥3.02 ¥3.78 55
EV/EBIT ¥6.87 ¥9.24 ¥11.60 53
EV/EBITDA ¥12.71 ¥17.03 ¥21.34 54
EV/Revenue ¥4.84 ¥7.01 ¥9.18 43
Asset-Based
NCAV (Graham) ¥3.15 ¥4.23 ¥6.31 50
Economic Profit
Residual Income ¥4.54 ¥4.39 ¥3.66 76
ROIC Compounder ¥2.81 ¥3.32 ¥3.76 72
Growth Earnings
Growth-Adj P/E ¥2.70 ¥3.85 ¥5.01 68

Widest divergence: Asset-Based (¥4.23) versus Earnings-Based (¥2.55). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 8.6B CNY
Revenue growth (YoY) -1.4%
Net margin 4.4%
Return on equity 3.3%
Free cash flow −736M CNY FY2025
P/E ratio 73.1
More key figures
Operating margin 13.2%
EPS (TTM) ¥0.2400
Dividend yield 0.6%
EPS growth (YoY) +28.6%
Net debt 3.2B CNY FY2025

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 41 · Market factors (momentum, volatility) 41

Profitability 27
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 62
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

Zhejiang Huahai Pharmaceutical Co., Ltd. engaged in the research, development, production and sales of generic drugs, biological drugs, and APIs in multiple dosage forms in China and internationally. The company offers central neurological, cardiovascular, anti-viral, and other products, as well as APIs and intermediates.

Full company description

Zhejiang Huahai Pharmaceutical Co., Ltd. engaged in the research, development, production and sales of generic drugs, biological drugs, and APIs in multiple dosage forms in China and internationally. The company offers central neurological, cardiovascular, anti-viral, and other products, as well as APIs and intermediates. It also provides packaging components, such as polyethylene bottles and polypropylene caps for pharmaceuticals. In addition, the company offers contract manufacturing and other services, as well as import and export trade services. Further, it operates as a pharmaceutical company. Zhejiang Huahai Pharmaceutical Co., Ltd. was founded in 1989 and is headquartered in Linhai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Huahai Pharmaceutical Co reported revenue of ¥8.6B in FY2025 versus ¥6.6B in FY2021, a compound +6.6%/yr. Reported net income was ¥266M in FY2025, compounding −14.0%/yr from FY2021.

Growth Quality 27/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
8.6B CNY
Latest YoY
−10.1%
Avg. growth/yr (3Y)
+1.3%
Avg. growth/yr (5Y)
+5.8%
Avg. growth/yr (25Y)
+18.0%
Revenue +6.6%/yr
FY21 ¥6.6B
FY22 ¥8.3B
FY23 ¥8.3B
FY24 ¥9.5B
FY25 ¥8.6B
Net income −14.0%/yr
FY21 ¥488M
FY22 ¥1.2B
FY23 ¥830M
FY24 ¥1.1B
FY25 ¥266M

600521 screens 65% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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Cite: Fair Value Calculator (2026). "Zhejiang Huahai Pharmaceutical Co Fair Value". https://www.fairvalue-calculator.com/stock/600521

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 40 · Bottom 25%
Fair Value upside −65% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 13% · Above median
Revenue growth -1% · Below median
Dividend yield (TTM) 0.6% · Below median
Debt / equity 0.20× · Higher than median

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

P/E (TTM) 73.1× · Pricier than 75% of peers
P/B 2.78× · Pricier than median
P/S (TTM) 3.07× · Pricier than median
EV/EBITDA 18.1× · Pricier than median
PEG 1.54× · 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 7
FUTURE 0 · sector 20
PAST 13 · sector 23
HEALTH 90 · sector 97
DIVIDEND 12 · sector 34

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 Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 8, 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 Zhejiang Huahai Pharmaceutical Co (600521) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥6.18 versus a price of ¥17.55, about −65% (overvalued).
What is the fair value of 600521?
Our model-based fair value for Zhejiang Huahai Pharmaceutical Co is ¥6.18 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥17.55.
What is the quality score of 600521?
Zhejiang Huahai Pharmaceutical Co has a Quality Score of 40/100. 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 Zhejiang Huahai Pharmaceutical Co (600521)?
Zhejiang Huahai Pharmaceutical Co reported trailing-twelve-month revenue of about 8.6B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600521?
The net profit margin of Zhejiang Huahai Pharmaceutical Co is about 4.4%, meaning it keeps roughly 4.4% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Huahai Pharmaceutical Co pay a dividend?
Zhejiang Huahai Pharmaceutical Co currently shows a dividend yield of about 0.61% relative to its recent price (as of Aug 8, 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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