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Shanghai New World Co (600628) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 3.9B CNY

SN Shanghai New World Co 600628 · SHG
Price¥6.06
Fair Value¥2.27
Upside-62.5%
Quality55/100
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Weak Growth
Thin margins · 6.6% net margin
Low debt · generates free cash flow
0.66% dividend yield
Trails peers (5/14)
Narrow moat 30/100
Evidence: High Range ¥1.70 – ¥2.83 Share as image

Fair value as of: Aug 9, 2026

From 23 valuation models · updated yesterday

Share price +5.2% over the past month.

A solid business, but screening 63% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥2.83). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥12.11 ¥5.38 Fair Value ¥2.27 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 ¥5.38 – ¥12.11 · fair‑value band ¥1.70 – ¥2.83 · the ¥6.06 price screens above the ¥2.27 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Shanghai New World Co (600628) currently trades at ¥6.06, while our model-based Fair Value estimate is ¥2.27, implying the stock looks roughly 62.5% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Consumer Cyclical 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: high).

Over the trailing twelve months, Shanghai New World Co generated revenue of 1.1B CNY at a net margin of 6.6%. Revenue declined 0.9% year over year. It earns a return on equity of 1.7%. The balance sheet holds a net cash position of 828M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥1.70 (bear case) to ¥2.83 (bull case); at ¥6.06, 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 38% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 50% fair-value upside, at -63%, 600628 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 ¥2.01 ¥2.06 ¥2.15 80
Residual Income ¥4.49 ¥4.23 ¥3.18 76
ROIC Compounder ¥2.49 ¥2.59 ¥2.68 72
All 23 models by family
DCF Models
FCF DCF ¥2.01 ¥2.06 ¥2.16 38
Owner Earnings ¥2.62 ¥2.90 ¥3.41 31
5Y Revenue Exit ¥2.54 ¥2.99 ¥3.66 39
5Y EBITDA Exit ¥3.53 ¥4.72 ¥6.28 41
5Y P/E Exit ¥2.79 ¥3.43 ¥4.20 38
10Y Revenue Exit ¥2.29 ¥2.60 ¥2.95 36
10Y EBITDA Exit ¥2.91 ¥3.65 ¥4.46 37
10Y P/E Exit ¥2.47 ¥2.87 ¥3.27 35
Earnings-Based
Graham-Dodd ¥0.7000 ¥0.8600 ¥0.9600 54
EPV ¥2.49 ¥2.59 ¥2.68 59
Dividend Discount
Gordon GGM ¥0.5100 ¥0.5600 ¥0.6300 70
DDM Multi-Stage ¥0.5100 ¥0.6300 ¥0.8000 61
Multiples
P/E Multiple ¥1.70 ¥2.27 ¥2.83 63
P/S Multiple ¥1.31 ¥1.75 ¥2.19 58
P/B Multiple ¥1.31 ¥1.75 ¥2.19 55
EV/EBIT ¥3.52 ¥4.08 ¥4.63 53
EV/EBITDA ¥5.00 ¥6.04 ¥7.09 54
EV/Revenue ¥2.98 ¥3.46 ¥3.94 43
Asset-Based
NCAV (Graham) ¥3.27 ¥4.38 ¥6.53 50
Growth DCF
Growth DCF ¥2.01 ¥2.06 ¥2.15 80
Economic Profit
Residual Income ¥4.49 ¥4.23 ¥3.18 76
ROIC Compounder ¥2.49 ¥2.59 ¥2.68 72
Growth Earnings
Growth-Adj P/E ¥1.20 ¥1.71 ¥2.23 68

Widest divergence: Asset-Based (¥4.38) versus Dividend Discount (¥0.5600). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.1B CNY
Revenue growth (YoY) -0.9%
Net margin 6.6%
Return on equity 1.7%
Free cash flow 10.3M CNY FY2025
P/E ratio 61.3
More key figures
Operating margin 7.6%
EPS (TTM) ¥0.1000
Dividend yield 0.7%
Net cash 828M CNY FY2024

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

Quality Score breakdown

Overall quality 55/100

Of which business quality 54 · Market factors (momentum, volatility) 33

Profitability 19
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 10
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

Shanghai New World Co., Ltd. owns and operates department stores in China. The company produce and distributes Chinese herbal medicines; and sells Chinese patent medicines, western medicines, ginseng and antler tonics, nutritional health products, etc.

Full company description

Shanghai New World Co., Ltd. owns and operates department stores in China. The company produce and distributes Chinese herbal medicines; and sells Chinese patent medicines, western medicines, ginseng and antler tonics, nutritional health products, etc. It also engages in hotel, investment consulting and management, property and project management, advertising, dining, entertainment, e-commerce, clothing, trading, tourism, and leisure businesses, retail pharmaceutical, as well as provides Chinese herbal medicine consultation and prescription services. The company was founded in 1988 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai New World Co reported revenue of ¥1.1B in FY2025 versus ¥1.2B in FY2021, a compound −1.4%/yr. Reported net income was ¥66.7M in FY2025, compounding −1.0%/yr from FY2021.

Growth Quality 33/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.1B CNY
Latest YoY
−1.7%
Avg. growth/yr (3Y)
+9.0%
Avg. growth/yr (5Y)
+1.0%
Avg. growth/yr (33Y)
+8.4%
Revenue −1.4%/yr
FY21 ¥1.2B
FY22 ¥850M
FY23 ¥1.1B
FY24 ¥1.1B
FY25 ¥1.1B
Net income −1.0%/yr
FY21 ¥69.5M
FY22 −¥52.0M
FY23 ¥31.7M
FY24 ¥70.0M
FY25 ¥66.7M

600628 screens 63% overvalued. Compare with Falabella S.A →

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Cite: Fair Value Calculator (2026). "Shanghai New World Co Fair Value". https://www.fairvalue-calculator.com/stock/600628

Peer Group

Department Stores · 127 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 55 · Above median
Fair Value upside −63% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 1% · Below median
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) 8% · Above median
Revenue growth -1% · Below median
Dividend yield (TTM) 0.7% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Department Stores median · lower = cheaper

P/E (TTM) 60.6× · Pricier than 75% of peers
P/B 0.93× · Cheaper than median
P/S (TTM) 3.57× · Pricier than 75% of peers
P/FCF 56.5× · Pricier than 75% of peers
EV/EBITDA 12.6× · 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 0 · sector 26
FUTURE 0 · sector 2
PAST 7 · sector 16
HEALTH 99 · sector 96
DIVIDEND 13 · sector 37

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 Department Stores stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
Falabella S.A FALABELLA 5,875 CLP 8,880 CLP +51%
El Puerto de Liverpool, S.A. LIVEPOLC1 99.62 MXN 263.70 MXN +165%
99 Speed Mart Retail Holdings 5326 3.70 MYR 1.45 MYR -61%
Cencosud S.A CENCOSUD 2,040 CLP 2,516 CLP +23%
Vishal Mega Mart Limited VMM ₹113.94 ₹37.39 -67%
SHINSEGAE Inc 004170 610,000 KRW 200,259 KRW -67%
Organización Soriana, S. A. B. de C. V., SORIANAB 30.04 MXN 59.59 MXN +98%
Lotte Shopping Co 023530 155,300 KRW 81,725 KRW -47%
Lojas Renner S.A LREN3 R$14.10 R$33.36 +137%
La Comer, S.A. LACOMERUBC 34.37 MXN 51.49 MXN +50%

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Frequently asked questions

Is Shanghai New World Co (600628) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥2.27 versus a price of ¥6.06, about −63% (overvalued).
What is the fair value of 600628?
Our model-based fair value for Shanghai New World Co is ¥2.27 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥6.06.
What is the quality score of 600628?
Shanghai New World Co has a Quality Score of 55/100. 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 Shanghai New World Co (600628)?
Shanghai New World Co reported trailing-twelve-month revenue of about 1.1B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600628?
The net profit margin of Shanghai New World Co is about 6.6%, meaning it keeps roughly 6.6% of revenue as net income. Based on the latest reported figures.
Does Shanghai New World Co pay a dividend?
Shanghai New World Co currently shows a dividend yield of about 0.65% 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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