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Shanghai Pharmaceuticals Holding (601607) Fair Value & Analysis

Healthcare · CN · Market cap 60.6B CNY

SP Shanghai Pharmaceuticals Holding 601607 · SHG
Price¥16.43
Fair Value¥33.96
Upside+106.7%
Quality50/100
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Healthy Growth
Thin margins · 2.0% net margin
Low debt · generates free cash flow
2.89% dividend yield
Ranks above peers (13/15)
Narrow moat 36/100
Evidence: Medium Range ¥25.47 – ¥42.45 Share as image

Fair value as of: Jul 7, 2026

From 24 valuation models · updated 31 days ago

Fair value updated Jul 7, 2026, revised from ¥45.15 to ¥33.96 (−24.8%) since Jun 24, 2026. Share price +1.7% over the past month.

A solid business, screening 107% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥25.47). The market is more pessimistic than our downside scenario.
  • Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥25.03 ¥15.29 Fair Value ¥33.96 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 7, 2026.

How to read this chart

60‑month range ¥15.29 – ¥25.03 · fair‑value band ¥25.47 – ¥42.45 · the ¥16.43 price screens below the ¥33.96 fair value. Dashed = 300-day average. As of Jul 7, 2026.

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Analysis

Shanghai Pharmaceuticals Holding (601607) currently trades at ¥16.43, while our model-based Fair Value estimate is ¥33.96, implying the stock looks roughly 106.7% undervalued today. We read business quality at 50/100 (solid quality), in the Healthcare 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: medium), always confirm before acting.

Over the trailing twelve months, Shanghai Pharmaceuticals Holding generated revenue of 288B CNY at a net margin of 2.0%. Revenue grew 6.4% year over year. It earns a return on equity of 8.1%. Net debt stands at 15.6B CNY. Fundamentals as of Jul 7, 2026

Our scenario range runs from ¥25.47 (bear case) to ¥42.45 (bull case); at ¥16.43, the current price sits below 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 17% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at 2% fair-value upside, at 107%, 601607 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 ¥23.06 ¥38.08 ¥66.49 80
Residual Income ¥16.84 ¥17.90 ¥19.73 76
Rev-Margin DCF ¥29.35 ¥52.41 ¥86.71 74
All 24 models by family
DCF Models
FCF DCF ¥23.77 ¥35.02 ¥66.75 38
Owner Earnings ¥34.00 ¥67.08 ¥136.10 31
5Y Revenue Exit ¥29.35 ¥50.56 ¥91.01 39
5Y EBITDA Exit ¥34.62 ¥62.05 ¥110.95 41
5Y P/E Exit ¥28.47 ¥51.86 ¥81.94 38
10Y Revenue Exit ¥26.72 ¥50.68 ¥81.84 36
10Y EBITDA Exit ¥31.35 ¥60.56 ¥114.69 37
10Y P/E Exit ¥27.03 ¥49.04 ¥86.89 35
Earnings-Based
Graham-Dodd ¥10.50 ¥72.33 ¥101.45 54
Lynch FV ¥21.30 ¥30.43 ¥39.55 50
PEG = 1.0 ¥21.30 ¥30.43 ¥39.55 46
EPV ¥26.00 ¥29.05 ¥31.73 59
Multiples
P/E Multiple ¥23.16 ¥30.87 ¥38.59 63
P/S Multiple ¥19.68 ¥26.24 ¥32.80 58
P/B Multiple ¥19.68 ¥26.24 ¥32.80 55
EV/EBIT ¥41.48 ¥52.74 ¥64.01 53
EV/EBITDA ¥39.61 ¥50.26 ¥60.90 54
EV/Revenue ¥30.46 ¥40.22 ¥49.99 43
Asset-Based
NCAV (Graham) ¥10.23 ¥13.71 ¥20.46 50
Growth DCF
Growth DCF ¥23.06 ¥38.08 ¥66.49 80
Rev-Margin DCF ¥29.35 ¥52.41 ¥86.71 74
Economic Profit
Residual Income ¥16.84 ¥17.90 ¥19.73 76
ROIC Compounder ¥29.81 ¥41.02 ¥49.74 72
Growth Earnings
Growth-Adj P/E ¥28.67 ¥40.95 ¥53.24 68

Widest divergence: DCF Models (¥50.68) versus Asset-Based (¥13.71). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 288B CNY
Revenue growth (YoY) +6.4%
Net margin 2.0%
Return on equity 8.1%
Free cash flow 3.8B CNY FY2025
P/E ratio 10.5
More key figures
Operating margin 3.5%
EPS (TTM) ¥1.56
Dividend yield 2.9%
EPS growth (YoY) +6.3%
Net debt 15.6B CNY FY2025

Figures from reported company fundamentals · as of Jul 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 49 · Market factors (momentum, volatility) 48

Profitability 41
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 70
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 Pharmaceuticals Holding Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical and healthcare products in China and internationally. The company operates through four segments: Production, Distribution, Retail, and Others.

Full company description

Shanghai Pharmaceuticals Holding Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical and healthcare products in China and internationally. The company operates through four segments: Production, Distribution, Retail, and Others. It offers chemical and biological drugs, Chinese medicine, health care products, and medical devices to treat immunology, psychiatric and neurological, tumor, cardiovascular, digestive metabolism, psychoneurotic, neoplasm, respiratory system, and anti-infection diseases, as well as invests in equity. The company also engages in the provision of pharmaceutical distribution, warehousing, logistics, and other value-added pharmaceutical supply chain solutions and related services to pharmaceutical manufacturers and dispensers, such as hospitals, distributors, and retail pharmacies. In addition, it engages in the operation of a network of retail pharmacy stores. Shanghai Pharmaceuticals Holding Co., Ltd. was incorporated in 1994 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 Pharmaceuticals Holding reported revenue of ¥284B in FY2025 versus ¥216B in FY2021, a compound +7.1%/yr. Reported net income was ¥5.7B in FY2025, compounding +3.0%/yr from FY2021.

Growth Quality 71/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
284B CNY
Latest YoY
+3.0%
Avg. growth/yr (3Y)
+6.9%
Avg. growth/yr (5Y)
+8.1%
Avg. growth/yr (32Y)
+25.0%
Revenue +7.1%/yr
FY21 ¥216B
FY22 ¥232B
FY23 ¥260B
FY24 ¥275B
FY25 ¥284B
Net income +3.0%/yr
FY21 ¥5.1B
FY22 ¥5.6B
FY23 ¥3.8B
FY24 ¥4.6B
FY25 ¥5.7B

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Cite: Fair Value Calculator (2026). "Shanghai Pharmaceuticals Holding Fair Value". https://www.fairvalue-calculator.com/stock/601607

Peer Group

Medical Distribution · 81 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 50 · Above median
Fair Value upside +107% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 2% · Above median
Net margin (TTM) 2% · Above median
Operating margin (TTM) 3% · Above median
Revenue growth 6% · Above median
Dividend yield (TTM) 2.9% · Above median
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Medical Distribution median · lower = cheaper

P/E (TTM) 10.5× · Cheaper than 75% of peers
P/B 0.80× · Cheaper than median
P/S (TTM) 0.21× · Cheaper than median
P/FCF 2.3× · Pricier than median
EV/EBITDA 3.0× · Cheaper than 75% of peers
PEG 9.24× · 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 100 · sector 33
FUTURE 32 · sector 14
PAST 33 · sector 21
HEALTH 97 · sector 97
DIVIDEND 58 · sector 52

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 Medical Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 7, 2026).

Stock Price Fair Value vs Fair Value
McKesson Corporation MCK $805.96 $819.31 +2%
Cencora, Inc COR $303.44 $175.74 -42%
Cardinal Health, Inc CAH $224.94 $141.77 -37%
Henry Schein, Inc HSIC $87.82 $74.67 -15%
Sinopharm Group 1099 HK$16.74 HK$61.33 +266%
Galenica AG GALE CHF 87.05 CHF 61.79 -29%
Guangzhou Baiyunshan Pharmaceutical Holdings 600332 ¥21.26 ¥30.70 +44%
Jointown Pharmaceutical Group 600998 ¥5.07 ¥9.84 +94%
Asker Healthcare Group ASKER kr 79.45 kr 25.69 -68%
China National Medicines Corporation 600511 ¥27.78 ¥58.22 +110%

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Frequently asked questions

Is Shanghai Pharmaceuticals Holding (601607) overvalued or undervalued?
As of Jul 7, 2026, our model estimates a fair value of ¥33.96 versus a price of ¥16.43, about +107% (undervalued).
What is the fair value of 601607?
Our model-based fair value for Shanghai Pharmaceuticals Holding is ¥33.96 (as of Jul 7, 2026), built from audited fundamentals. The current price is ¥16.43.
What is the quality score of 601607?
Shanghai Pharmaceuticals Holding has a Quality Score of 50/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Shanghai Pharmaceuticals Holding (601607)?
Shanghai Pharmaceuticals Holding reported trailing-twelve-month revenue of about 288B CNY (latest available figure, as of Jul 7, 2026).
What is the net profit margin of 601607?
The net profit margin of Shanghai Pharmaceuticals Holding is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.
Does Shanghai Pharmaceuticals Holding pay a dividend?
Shanghai Pharmaceuticals Holding currently shows a dividend yield of about 2.89% relative to its recent price (as of Jul 7, 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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