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Hangzhou TianMuShan Pharmaceutical Enterprise Co (600671) Fair Value & Analysis

Healthcare · CN · Market cap 2.6B CNY

HT Hangzhou TianMuShan Pharmaceutical Enterprise Co 600671 · SHG
Price¥21.70
Fair Value¥2.46
Upside-88.7%
Quality41/100
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Weak Growth
Thin margins · 8.0% net margin
Moderate debt · negative free cash flow
Trails peers (0/12)
Narrow moat 43/100
Evidence: Medium Range ¥1.80 – ¥3.08 Share as image

Fair value as of: Aug 9, 2026

From 16 valuation models · updated yesterday

Share price +13.0% over the past month.

Below-average quality, and screening another 89% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥3.08). The favourable scenario is already priced in.
  • Weak quality (41/100) 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)

¥22.50 ¥5.85 Fair Value ¥2.46 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 ¥5.85 – ¥22.50 · fair‑value band ¥1.80 – ¥3.08 · the ¥21.70 price screens above the ¥2.46 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Hangzhou TianMuShan Pharmaceutical Enterprise Co (600671) currently trades at ¥21.70, while our model-based Fair Value estimate is ¥2.46, implying the stock looks roughly 88.7% overvalued today. The Quality Score stands at 41/100 (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, Hangzhou TianMuShan Pharmaceutical Enterprise Co generated revenue of 204M CNY at a net margin of 8.0%. Revenue declined 15.1% year over year. It earns a return on equity of 8.0%. Net debt stands at 112M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥1.80 (bear case) to ¥3.08 (bull case); at ¥21.70, 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 7% below its 52-week high and 74% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -25% fair-value upside, at -89%, 600671 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥0.3900 to ¥4.61). Read the values as a conservative anchor, not as a price target.
Model 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. Evidence
Highest evidence
Residual Income ¥0.9000 ¥1.20 ¥5.54 76
ROIC Compounder ¥0.5500 ¥0.6900 ¥0.8600 72
Gordon GGM ¥0.4700 ¥0.7700 ¥1.12 70
All 16 models by family
DCF Models
Owner Earnings ¥0.7300 ¥1.11 ¥1.62 31
Earnings-Based
Graham-Dodd ¥0.9800 ¥2.29 ¥2.94 54
PEG = 1.0 ¥0.3900 ¥0.5600 ¥0.7200 46
EPV ¥0.5500 ¥0.6700 ¥0.7700 59
Dividend Discount
Gordon GGM ¥0.4700 ¥0.7700 ¥1.12 70
DDM Multi-Stage ¥0.4700 ¥0.6800 ¥0.9100 61
Multiples
P/E Multiple ¥2.39 ¥3.18 ¥3.98 63
P/S Multiple ¥1.85 ¥2.46 ¥3.08 58
P/B Multiple ¥1.85 ¥2.46 ¥3.08 55
EV/EBIT ¥1.60 ¥2.20 ¥2.80 53
EV/EBITDA ¥3.41 ¥4.61 ¥5.81 54
EV/Revenue ¥1.09 ¥1.64 ¥2.19 43
Asset-Based
NCAV (Graham) ¥0.2900 ¥0.3900 ¥0.5700 50
Economic Profit
Residual Income ¥0.9000 ¥1.20 ¥5.54 76
ROIC Compounder ¥0.5500 ¥0.6900 ¥0.8600 72
Growth Earnings
Growth-Adj P/E ¥1.80 ¥2.57 ¥3.34 68

Widest divergence: Growth Earnings (¥2.57) versus Asset-Based (¥0.3900). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 204M CNY
Revenue growth (YoY) -15.1%
Net margin 8.0%
Return on equity 8.0%
Free cash flow −19.4M CNY FY2025
P/E ratio 126.7
More key figures
Operating margin 13.7%
EPS (TTM) ¥0.1300
EPS growth (YoY) -25.1%
Net debt 112M CNY FY2025

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

Quality Score breakdown

Overall quality 41/100

Of which business quality 40 · Market factors (momentum, volatility) 69

Profitability 47
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 10
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 83
Distance to the 52-week high (market factor)
Net Issuance 82
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

Hangzhou TianMuShan Pharmaceutical Enterprise Co.,Ltd, together with its subsidiaries, engages in the pharmaceutical manufacturing and drug distribution businesses in China.

Full company description

Hangzhou TianMuShan Pharmaceutical Enterprise Co.,Ltd, together with its subsidiaries, engages in the pharmaceutical manufacturing and drug distribution businesses in China. The company produces tablets, granules, pills, oral solutions, and other medications; and health food products, including oral liquids, syrups, eye drops, pills, soft capsules, tablets, and granules. It also sells prepared slices of traditional Chinese medicine. In addition, the company operates Chinese medicine clinic; provision of traditional chinese medicine clinic, software development, remote health management, commercial complex management, and internet information services; food business; and sale of health food products. The company was founded in 1958 and is headquartered in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hangzhou TianMuShan Pharmaceutical Enterprise Co reported revenue of ¥212M in FY2025 versus ¥147M in FY2021, a compound +9.5%/yr. Reported net income was ¥17.6M in FY2025.

Growth Quality 20/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
212M CNY
Latest YoY
−2.6%
Avg. growth/yr (3Y) 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.
+24.8%
Avg. growth/yr (5Y) 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.
+0.5%
Avg. growth/yr (32Y) 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.
+5.1%
Revenue +9.5%/yr
FY21 ¥147M
FY22 ¥109M
FY23 ¥122M
FY24 ¥217M
FY25 ¥212M
Net income
FY21 −¥29.8M
FY22 −¥67.5M
FY23 −¥38.3M
FY24 ¥15.2M
FY25 ¥17.6M

600671 screens 89% overvalued. Compare with Eli Lilly and Company →

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Cite: Fair Value Calculator (2026). "Hangzhou TianMuShan Pharmaceutical Enterprise Co Fair Value". https://www.fairvalue-calculator.com/stock/600671

Peer Group

Drug Manufacturers - General · 76 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 41 · Bottom 25%
Fair Value upside −89% · Bottom 25%
Return on equity (TTM) 8% · Below median
Return on assets 2% · Below median
Net margin (TTM) 8% · Below median
Operating margin (TTM) 13% · Below median
Revenue growth -15% · Bottom 25%
Debt / equity 0.80× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - General median · lower = cheaper

P/E (TTM) 165.6× · Pricier than 75% of peers
P/B 37.45× · Pricier than 75% of peers
P/S (TTM) 12.86× · Pricier than 75% of peers
EV/EBITDA 86.6× · 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 0
FUTURE 0 · sector 24
PAST 32 · sector 50
HEALTH 60 · sector 94
DIVIDEND 0 · sector 46

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

Stock Price Fair Value vs Fair Value
Eli Lilly and Company LLY $1,182 $396.77 -66%
Johnson & Johnson, JNJ $257.59 $169.04 -34%
AbbVie Inc ABBV $254.49 $67.72 -73%
Roche Holding 1RO €392.80 €226.68 -42%
Merck & Co MRK €108.08 €121.54 +12%
Novartis AG NVSN 2,742 MXN 2,379 MXN -13%
AstraZeneca PLC AZN $171.61 $129.54 -25%
Novo Nordisk A/S NOVOB kr 329.90 kr 409.46 +24%
Amgen Inc AMGN $363.39 $252.02 -31%
Sanofi SNYN 770.00 MXN 1,251 MXN +63%

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Frequently asked questions

Is Hangzhou TianMuShan Pharmaceutical Enterprise Co (600671) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥2.46 versus a price of ¥21.70, about −89% (overvalued).
What is the fair value of 600671?
Our model-based fair value for Hangzhou TianMuShan Pharmaceutical Enterprise Co is ¥2.46 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥21.70.
What is the quality score of 600671?
Hangzhou TianMuShan Pharmaceutical Enterprise Co has a Quality Score of 41/100. 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co (600671)?
Hangzhou TianMuShan Pharmaceutical Enterprise Co reported trailing-twelve-month revenue of about 204M CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600671?
The net profit margin of Hangzhou TianMuShan Pharmaceutical Enterprise Co is about 8.0%, meaning it keeps roughly 8.0% of revenue as net income. Based on the latest reported figures.

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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