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MeiHua Holdings (600873) Fair Value & Analysis

Basic Materials · CN · Market cap 22.1B CNY

MH MeiHua Holdings 600873 · SHG
Price¥7.88
Fair Value¥10.37
Upside+31.6%
Quality64/100
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Mixed Growth
Thin margins · 10.0% net margin
Low debt · generates free cash flow
5.42% dividend yield
Ranks above peers (11/14)
Moderate moat 45/100
Evidence: High Range ¥7.15 – ¥18.57 Share as image

Fair value as of: Aug 8, 2026

From 24 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥19.89 to ¥10.37 (−47.9%) since Jul 24, 2026. Share price −3.1% over the past month.

A solid business, screening 32% undervalued on our models.

What matters now

  • Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥7.15 to ¥18.57) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥12.83 ¥4.83 Fair Value ¥10.37 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 ¥4.83 – ¥12.83 · fair‑value band ¥7.15 – ¥18.57 · the ¥7.88 price screens below the ¥10.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

MeiHua Holdings (600873) currently trades at ¥7.88, while our model-based Fair Value estimate is ¥10.37, implying the stock looks roughly 31.6% undervalued today. The Quality Score stands at 64/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, MeiHua Holdings generated revenue of 23.9B CNY at a net margin of 10.0%. Revenue declined 4.5% year over year. It earns a return on equity of 14.9%. The balance sheet holds a net cash position of 1.5B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥7.15 (bear case) to ¥18.57 (bull case); at ¥7.88, the current price sits within 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 40% below its 52-week high, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at 32%, 600873 screens cheaper 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 ¥11.71 ¥21.05 ¥39.93 80
Residual Income ¥7.75 ¥10.30 ¥43.57 76
Rev-Margin DCF ¥11.31 ¥22.06 ¥41.75 74
All 24 models by family
DCF Models
FCF DCF ¥12.39 ¥19.02 ¥40.11 38
Owner Earnings ¥15.41 ¥33.99 ¥72.98 31
5Y Revenue Exit ¥11.31 ¥19.40 ¥36.31 39
5Y EBITDA Exit ¥15.13 ¥27.15 ¥50.68 41
5Y P/E Exit ¥17.87 ¥40.65 ¥71.92 38
10Y Revenue Exit ¥11.39 ¥24.77 ¥33.88 36
10Y EBITDA Exit ¥14.58 ¥32.94 ¥66.20 37
10Y P/E Exit ¥16.57 ¥38.81 ¥76.93 35
Earnings-Based
Graham-Dodd ¥7.96 ¥55.48 ¥77.86 54
Lynch FV ¥20.27 ¥28.96 ¥37.64 50
PEG = 1.0 ¥20.27 ¥28.96 ¥37.64 46
EPV ¥8.45 ¥9.71 ¥10.82 59
Multiples
P/E Multiple ¥18.43 ¥24.57 ¥30.71 63
P/S Multiple ¥10.36 ¥13.81 ¥17.27 58
P/B Multiple ¥14.92 ¥19.89 ¥24.86 55
EV/EBIT ¥13.79 ¥18.11 ¥22.42 53
EV/EBITDA ¥15.63 ¥20.56 ¥25.49 54
EV/Revenue ¥9.91 ¥13.79 ¥17.68 43
Asset-Based
NCAV (Graham) ¥2.91 ¥3.91 ¥5.83 50
Growth DCF
Growth DCF ¥11.71 ¥21.05 ¥39.93 80
Rev-Margin DCF ¥11.31 ¥22.06 ¥41.75 74
Economic Profit
Residual Income ¥7.75 ¥10.30 ¥43.57 76
ROIC Compounder ¥10.57 ¥15.43 ¥18.81 72
Growth Earnings
Growth-Adj P/E ¥26.10 ¥37.28 ¥48.46 68

Widest divergence: Growth Earnings (¥37.28) versus Asset-Based (¥3.91). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 23.9B CNY
Revenue growth (YoY) -4.5%
Net margin 10.0%
Return on equity 14.9%
Free cash flow 1.9B CNY FY2025
P/E ratio 10.5
More key figures
Operating margin 2.5%
EPS (TTM) ¥0.8500
Dividend yield 5.4%
EPS growth (YoY) -88.9%
Net cash 1.5B CNY FY2024

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

Quality Score breakdown

Overall quality 64/100

Of which business quality 65 · Market factors (momentum, volatility) 32

Profitability 62
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 100
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

MeiHua Holdings Group Co.,Ltd, together with its subsidiaries, manufactures nutritional products and solutions in China and internationally.

Full company description

MeiHua Holdings Group Co.,Ltd, together with its subsidiaries, manufactures nutritional products and solutions in China and internationally. The company offers amino acids; l-threonine and l-lysine for livestock; umami agents comprising monosodium glutamate and I+G; food ingredients consisting of l-glutamine, l-proline, l-valine, isoleucine, adenosine, guanosine, and inosine; and colloids and polysaccharides, such as food-grade and industrial-grade xanthan gums, pullulan, and trehalose. It also provides livestock health products, including riboflavin, and feed-grade isoleucine and valine; plant-based protein, such as corn germ, corn gluten meal and feed, and MSG by-products; and organic fertilizers. In addition, the company engages in technological development; trading; investment; and warehousing. MeiHua Holdings Group Co.,Ltd was founded in 1995 and is based in Langfang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

MeiHua Holdings reported revenue of ¥24.2B in FY2025 versus ¥23.1B in FY2021, a compound +1.2%/yr. Reported net income was ¥3.3B in FY2025, compounding +8.1%/yr from FY2021.

Growth Quality 68/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
24.2B CNY
Latest YoY
−3.4%
Avg. growth/yr (3Y)
−4.7%
Avg. growth/yr (5Y)
+7.3%
Avg. growth/yr (32Y)
+23.7%
Revenue +1.2%/yr
FY21 ¥23.1B
FY22 ¥27.9B
FY23 ¥27.8B
FY24 ¥25.1B
FY25 ¥24.2B
Net income +8.1%/yr
FY21 ¥2.4B
FY22 ¥4.4B
FY23 ¥3.2B
FY24 ¥2.7B
FY25 ¥3.3B

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Cite: Fair Value Calculator (2026). "MeiHua Holdings Fair Value". https://www.fairvalue-calculator.com/stock/600873

Peer Group

Specialty Chemicals · 676 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 64 · Top 25%
Fair Value upside +32% · Top 25%
Return on equity (TTM) 15% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 2% · Below median
Revenue growth -5% · Below median
Dividend yield (TTM) 5.4% · Top 25%
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 9.3× · Cheaper than 75% of peers
P/B 1.35× · Cheaper than median
P/S (TTM) 0.92× · Cheaper than median
P/FCF 1.7× · Cheaper than median
EV/EBITDA 6.5× · Cheaper 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 75 · sector 0
FUTURE 0 · sector 19
PAST 60 · sector 23
HEALTH 94 · sector 95
DIVIDEND 100 · sector 25

Insider activity: 35/100

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is MeiHua Holdings (600873) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥10.37 versus a price of ¥7.88, about +32% (undervalued).
What is the fair value of 600873?
Our model-based fair value for MeiHua Holdings is ¥10.37 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥7.88.
What is the quality score of 600873?
MeiHua Holdings has a Quality Score of 64/100. 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 MeiHua Holdings (600873)?
MeiHua Holdings reported trailing-twelve-month revenue of about 23.9B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600873?
The net profit margin of MeiHua Holdings is about 10.0%, meaning it keeps roughly 10.0% of revenue as net income. Based on the latest reported figures.
Does MeiHua Holdings pay a dividend?
MeiHua Holdings currently shows a dividend yield of about 5.42% 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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