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GuangYuYuan Chinese Herbal Medicine Co (600771) Fair Value & Analysis

Healthcare · CN · Market cap 7.0B CNY

GC GuangYuYuan Chinese Herbal Medicine Co 600771 · SHG
Price¥14.29
Fair Value¥2.83
Upside-80.2%
Quality70/100
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Healthy Growth
Thin margins · 4.6% net margin
Low debt · generates free cash flow
Trails peers (4/13)
Narrow moat 40/100
Evidence: High Range ¥2.13 – ¥3.54 Share as image

Fair value as of: Aug 9, 2026

From 26 valuation models · updated yesterday

Share price +2.3% over the past month.

A solid business, but screening 80% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥3.54). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

¥53.35 ¥12.71 Fair Value ¥2.83 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 ¥12.71 – ¥53.35 · fair‑value band ¥2.13 – ¥3.54 · the ¥14.29 price screens above the ¥2.83 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

GuangYuYuan Chinese Herbal Medicine Co (600771) currently trades at ¥14.29, while our model-based Fair Value estimate is ¥2.83, implying the stock looks roughly 80.2% overvalued today. The Quality Score stands at 70/100 (solid 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: high).

Over the trailing twelve months, GuangYuYuan Chinese Herbal Medicine Co generated revenue of 1.4B CNY at a net margin of 4.6%. Revenue grew 17.0% year over year. It earns a return on equity of 4.0%. The balance sheet holds a net cash position of 62.9M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥2.13 (bear case) to ¥3.54 (bull case); at ¥14.29, 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 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -25% fair-value upside, at -80%, 600771 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 ¥4.86 ¥7.98 ¥12.91 80
Residual Income ¥2.42 ¥2.35 ¥2.03 76
Rev-Margin DCF ¥3.46 ¥5.45 ¥7.98 74
All 26 models by family
DCF Models
FCF DCF ¥4.89 ¥8.28 ¥13.83 38
Owner Earnings ¥2.76 ¥4.62 ¥7.65 31
5Y Revenue Exit ¥3.46 ¥5.46 ¥8.08 39
5Y EBITDA Exit ¥4.21 ¥6.98 ¥10.37 41
5Y P/E Exit ¥3.07 ¥4.67 ¥6.42 38
10Y Revenue Exit ¥3.84 ¥5.86 ¥8.78 36
10Y EBITDA Exit ¥4.41 ¥6.94 ¥10.62 37
10Y P/E Exit ¥3.67 ¥5.30 ¥7.44 35
Earnings-Based
Graham-Dodd ¥0.8800 ¥3.83 ¥5.25 54
Lynch FV ¥0.9900 ¥1.41 ¥1.84 50
PEG = 1.0 ¥0.9900 ¥1.41 ¥1.84 46
EPV ¥2.52 ¥2.89 ¥3.21 59
Dividend Discount
Gordon GGM ¥0.0200 ¥0.0400 ¥0.0600 70
DDM Multi-Stage ¥0.0200 ¥0.0400 ¥0.0400 61
Multiples
P/E Multiple ¥2.13 ¥2.83 ¥3.54 63
P/S Multiple ¥1.64 ¥2.19 ¥2.74 58
P/B Multiple ¥1.64 ¥2.19 ¥2.74 55
EV/EBIT ¥3.82 ¥5.03 ¥6.23 53
EV/EBITDA ¥4.21 ¥5.55 ¥6.88 54
EV/Revenue ¥2.78 ¥3.89 ¥5.00 43
Asset-Based
NCAV (Graham) ¥1.67 ¥2.23 ¥3.34 50
Growth DCF
Growth DCF ¥4.86 ¥7.98 ¥12.91 80
Rev-Margin DCF ¥3.46 ¥5.45 ¥7.98 74
Economic Profit
Residual Income ¥2.42 ¥2.35 ¥2.03 76
ROIC Compounder ¥2.52 ¥2.89 ¥3.21 72
Growth Earnings
Growth-Adj P/E ¥1.68 ¥2.40 ¥3.12 68

Widest divergence: DCF Models (¥5.46) versus Dividend Discount (¥0.0400). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.4B CNY
Revenue growth (YoY) +17.0%
Net margin 4.6%
Return on equity 4.0%
Free cash flow 192M CNY FY2025
P/E ratio 102.1
More key figures
Operating margin 15.4%
EPS (TTM) ¥0.1400
EPS growth (YoY) +4.9%
Net cash 62.9M CNY FY2024

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

Quality Score breakdown

Overall quality 70/100

Of which business quality 70 · Market factors (momentum, volatility) 35

Profitability 38
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 16
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 89
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

GuangYuYuan Chinese Herbal Medicine Co., Ltd. manufactures and sells Chinese medicinal products. The company offers traditional Chinese medicine, fine Chinese medicine, and health wine. It provides its products in the form of pills, powders, tablets, hard capsules, granules, mixtures, and wine preparations.

Full company description

GuangYuYuan Chinese Herbal Medicine Co., Ltd. manufactures and sells Chinese medicinal products. The company offers traditional Chinese medicine, fine Chinese medicine, and health wine. It provides its products in the form of pills, powders, tablets, hard capsules, granules, mixtures, and wine preparations. The company was formerly known as Topsun Science And Technology Co Ltd. and changed its name to GuangYuYuan Chinese Herbal Medicine Co., Ltd. in July 2013. GuangYuYuan Chinese Herbal Medicine Co., Ltd. was founded in 1996 and is headquartered in Taiyuan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

GuangYuYuan Chinese Herbal Medicine Co reported revenue of ¥1.4B in FY2025 versus ¥854M in FY2021, a compound +12.5%/yr. Reported net income was ¥63.0M in FY2025.

Growth Quality 67/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
1.4B CNY
Latest YoY
+12.1%
Avg. growth/yr (3Y)
+6.6%
Avg. growth/yr (5Y)
+4.3%
Avg. growth/yr (32Y)
+14.3%
Revenue +12.5%/yr
FY21 ¥854M
FY22 ¥1.1B
FY23 ¥1.3B
FY24 ¥1.2B
FY25 ¥1.4B
Net income
FY21 −¥316M
FY22 −¥250M
FY23 ¥90.1M
FY24 ¥74.5M
FY25 ¥63.0M

600771 screens 80% overvalued. Compare with Eli Lilly and Company →

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Cite: Fair Value Calculator (2026). "GuangYuYuan Chinese Herbal Medicine Co Fair Value". https://www.fairvalue-calculator.com/stock/600771

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 70 · Above median
Fair Value upside −80% · Bottom 25%
Return on equity (TTM) 4% · Bottom 25%
Return on assets 3% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 15% · Below median
Revenue growth 17% · Top 25%
Debt / equity 0.12× · Lower than median

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

P/E (TTM) 102.1× · Pricier than 75% of peers
P/B 4.28× · Pricier than median
P/S (TTM) 4.86× · Pricier than median
P/FCF 5.4× · Cheaper than median
EV/EBITDA 42.1× · 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 85 · sector 24
PAST 16 · sector 50
HEALTH 94 · 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 GuangYuYuan Chinese Herbal Medicine Co (600771) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥2.83 versus a price of ¥14.29, about −80% (overvalued).
What is the fair value of 600771?
Our model-based fair value for GuangYuYuan Chinese Herbal Medicine Co is ¥2.83 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥14.29.
What is the quality score of 600771?
GuangYuYuan Chinese Herbal Medicine Co has a Quality Score of 70/100. 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 GuangYuYuan Chinese Herbal Medicine Co (600771)?
GuangYuYuan Chinese Herbal Medicine Co reported trailing-twelve-month revenue of about 1.4B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600771?
The net profit margin of GuangYuYuan Chinese Herbal Medicine Co is about 4.6%, meaning it keeps roughly 4.6% 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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