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Zhejiang Cheng Yi Pharmaceutical Co (603811) Fair Value & Analysis

Healthcare · CN · Market cap 3.6B CNY

ZC Zhejiang Cheng Yi Pharmaceutical Co 603811 · SHG
Price¥7.43
Fair Value¥10.13
Upside+36.3%
Quality80/100
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Weak Growth
Highly profitable · 23.4% net margin
Low debt · generates free cash flow
2.85% dividend yield
Ranks above peers (11/14)
Wide moat 66/100
Evidence: High Range ¥7.60 – ¥12.67 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥11.93 to ¥10.13 (−15.1%) since Jun 24, 2026. Share price +1.0% over the past month.

A strong business, screening 36% undervalued on our models.

What matters now

  • The rarer combination: high quality (80/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (¥7.60). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥16.82 ¥6.01 Fair Value ¥10.13 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥6.01 – ¥16.82 · fair‑value band ¥7.60 – ¥12.67 · the ¥7.43 price screens below the ¥10.13 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Zhejiang Cheng Yi Pharmaceutical Co (603811) currently trades at ¥7.43, while our model-based Fair Value estimate is ¥10.13, implying the stock looks roughly 36.3% undervalued today. The Quality Score stands at 80/100 (high 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: high), always confirm before acting.

Over the trailing twelve months, Zhejiang Cheng Yi Pharmaceutical Co generated revenue of 828M CNY at a net margin of 23.4%. Revenue grew 8.3% year over year. It earns a return on equity of 14.1%. Net debt stands at 17.4M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥7.60 (bear case) to ¥12.67 (bull case); at ¥7.43, 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 56% below its 52-week high, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at 36%, 603811 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 ¥8.75 ¥13.37 ¥20.30 80
Residual Income ¥4.08 ¥5.04 ¥10.87 76
Rev-Margin DCF ¥6.71 ¥10.10 ¥14.18 74
All 26 models by family
DCF Models
FCF DCF ¥8.70 ¥13.47 ¥20.74 38
Owner Earnings ¥9.02 ¥13.98 ¥21.55 31
5Y Revenue Exit ¥6.71 ¥10.07 ¥14.37 39
5Y EBITDA Exit ¥8.72 ¥13.94 ¥20.14 41
5Y P/E Exit ¥9.21 ¥14.89 ¥21.00 38
10Y Revenue Exit ¥7.20 ¥10.46 ¥14.90 36
10Y EBITDA Exit ¥8.63 ¥13.13 ¥19.32 37
10Y P/E Exit ¥8.94 ¥13.79 ¥19.98 35
Earnings-Based
Graham-Dodd ¥4.05 ¥14.47 ¥19.49 54
Lynch FV ¥3.41 ¥4.86 ¥6.32 50
PEG = 1.0 ¥3.41 ¥4.86 ¥6.32 46
EPV ¥5.30 ¥6.03 ¥6.66 59
Dividend Discount
Gordon GGM ¥2.24 ¥4.46 ¥6.76 70
DDM Multi-Stage ¥2.24 ¥3.86 ¥4.71 61
Multiples
P/E Multiple ¥9.84 ¥13.11 ¥16.39 63
P/S Multiple ¥6.52 ¥8.69 ¥10.86 58
P/B Multiple ¥7.60 ¥10.13 ¥12.67 55
EV/EBIT ¥7.88 ¥10.29 ¥12.70 53
EV/EBITDA ¥9.65 ¥12.64 ¥15.64 54
EV/Revenue ¥5.82 ¥8.03 ¥10.24 43
Asset-Based
NCAV (Graham) ¥2.12 ¥2.85 ¥4.25 50
Growth DCF
Growth DCF ¥8.75 ¥13.37 ¥20.30 80
Rev-Margin DCF ¥6.71 ¥10.10 ¥14.18 74
Economic Profit
Residual Income ¥4.08 ¥5.04 ¥10.87 76
ROIC Compounder ¥5.58 ¥7.00 ¥8.80 72
Growth Earnings
Growth-Adj P/E ¥6.72 ¥9.60 ¥12.49 68

Widest divergence: DCF Models (¥13.47) versus Asset-Based (¥2.85). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 828M CNY
Revenue growth (YoY) +8.3%
Net margin 23.4%
Return on equity 14.1%
Free cash flow 235M CNY FY2025
P/E ratio 18.1
More key figures
Operating margin 22.1%
EPS (TTM) ¥0.6100
Dividend yield 2.9%
Net debt 17.4M CNY FY2024

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 80/100

Of which business quality 78 · Market factors (momentum, volatility) 22

Profitability 62
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 86
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 1
Distance to the 52-week high (market factor)
Net Issuance 86
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

Zhejiang Cheng Yi Pharmaceutical Co., Ltd. produces and sells APIs, injections, food, capsules, tablets, traditional Chinese medicines, preparations, pharmaceutical intermediates in China and internationally. The company was formerly known as Wenzhou No. 3 Pharmaceutical Factory and changed its name to Zhejiang Cheng Yi Pharmaceutical Co., Ltd.

Full company description

Zhejiang Cheng Yi Pharmaceutical Co., Ltd. produces and sells APIs, injections, food, capsules, tablets, traditional Chinese medicines, preparations, pharmaceutical intermediates in China and internationally. The company was formerly known as Wenzhou No. 3 Pharmaceutical Factory and changed its name to Zhejiang Cheng Yi Pharmaceutical Co., Ltd. in April 2001. Zhejiang Cheng Yi Pharmaceutical Co., Ltd. was founded in 1966 and is based in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Cheng Yi Pharmaceutical Co reported revenue of ¥812M in FY2025 versus ¥694M in FY2021, a compound +4.0%/yr. Reported net income was ¥195M in FY2025, compounding +3.4%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
812M CNY
Latest YoY
+13.7%
Avg. growth/yr (3Y)
+7.4%
Avg. growth/yr (5Y)
+1.4%
Avg. growth/yr (14Y)
+10.0%
Revenue +4.0%/yr
FY21 ¥694M
FY22 ¥655M
FY23 ¥672M
FY24 ¥714M
FY25 ¥812M
Net income +3.4%/yr
FY21 ¥171M
FY22 ¥162M
FY23 ¥163M
FY24 ¥201M
FY25 ¥195M

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Cite: Fair Value Calculator (2026). "Zhejiang Cheng Yi Pharmaceutical Co Fair Value". https://www.fairvalue-calculator.com/stock/603811

Peer Group

Drug Manufacturers - Specialty & Generic · 626 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 80 · Top 25%
Fair Value upside +36% · Top 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 6% · Above median
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 2.9% · Above median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 18.1× · Cheaper than median
P/B 2.60× · Pricier than median
P/S (TTM) 4.36× · Pricier than 75% of peers
P/FCF 2.3× · Cheaper than median
EV/EBITDA 12.9× · Pricier than median

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 82 · sector 7
FUTURE 42 · sector 20
PAST 57 · sector 23
HEALTH 100 · sector 97
DIVIDEND 57 · sector 34

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 - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%

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Frequently asked questions

Is Zhejiang Cheng Yi Pharmaceutical Co (603811) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥10.13 versus a price of ¥7.43, about +36% (undervalued).
What is the fair value of 603811?
Our model-based fair value for Zhejiang Cheng Yi Pharmaceutical Co is ¥10.13 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥7.43.
What is the quality score of 603811?
Zhejiang Cheng Yi Pharmaceutical Co has a Quality Score of 80/100. 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 Zhejiang Cheng Yi Pharmaceutical Co (603811)?
Zhejiang Cheng Yi Pharmaceutical Co reported trailing-twelve-month revenue of about 828M CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 603811?
The net profit margin of Zhejiang Cheng Yi Pharmaceutical Co is about 23.4%, meaning it keeps roughly 23.4% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Cheng Yi Pharmaceutical Co pay a dividend?
Zhejiang Cheng Yi Pharmaceutical Co currently shows a dividend yield of about 2.85% relative to its recent price (as of Jul 12, 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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