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Lily Group (603823) Fair Value & Analysis

Basic Materials · CN · Market cap 18.4B CNY

LG Lily Group 603823 · SHG
Price¥65.90
Fair Value¥6.82
Upside-89.7%
Quality60/100
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Healthy Growth
Thin margins · 7.6% net margin
Low debt · generates free cash flow
0.30% dividend yield
Mixed vs. peers (6/14)
Narrow moat 38/100
Evidence: Medium Range ¥5.11 – ¥8.52 Share as image

Fair value as of: Jul 12, 2026

From 25 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥7.65 to ¥6.82 (−10.8%) since Jun 24, 2026. Share price −5.6% over the past month.

A solid business, but screening 90% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥8.52). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥81.93 ¥6.03 Fair Value ¥6.82 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 ¥6.03 – ¥81.93 · fair‑value band ¥5.11 – ¥8.52 · the ¥65.90 price screens above the ¥6.82 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Lily Group (603823) currently trades at ¥65.90, while our model-based Fair Value estimate is ¥6.82, implying the stock looks roughly 89.7% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Basic Materials 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, Lily Group generated revenue of 2.2B CNY at a net margin of 7.6%. Revenue grew 0.7% year over year. It earns a return on equity of 7.1%. The balance sheet holds a net cash position of 565M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥5.11 (bear case) to ¥8.52 (bull case); at ¥65.90, 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 near its 52-week high. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -90%, 603823 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 ¥4.00 ¥5.08 ¥6.55 80
Residual Income ¥4.77 ¥5.01 ¥5.30 76
Rev-Margin DCF ¥5.19 ¥7.54 ¥10.06 74
All 25 models by family
DCF Models
FCF DCF ¥3.93 ¥5.09 ¥6.75 38
Owner Earnings ¥6.84 ¥9.32 ¥12.88 31
5Y Revenue Exit ¥5.19 ¥7.54 ¥10.48 39
5Y EBITDA Exit ¥6.02 ¥9.03 ¥12.43 41
5Y P/E Exit ¥5.16 ¥7.49 ¥9.83 38
10Y Revenue Exit ¥4.55 ¥6.57 ¥9.13 36
10Y EBITDA Exit ¥5.21 ¥7.58 ¥10.56 37
10Y P/E Exit ¥4.67 ¥6.54 ¥8.66 35
Earnings-Based
Graham-Dodd ¥2.73 ¥6.58 ¥8.50 54
PEG = 1.0 ¥1.16 ¥1.66 ¥2.16 46
EPV ¥5.63 ¥6.34 ¥6.96 59
Dividend Discount
Gordon GGM ¥1.47 ¥2.62 ¥4.10 70
DDM Multi-Stage ¥1.47 ¥2.20 ¥3.00 61
Multiples
P/E Multiple ¥5.11 ¥6.82 ¥8.52 63
P/S Multiple ¥5.11 ¥6.82 ¥8.52 58
P/B Multiple ¥5.11 ¥6.82 ¥8.52 55
EV/EBIT ¥6.93 ¥8.79 ¥10.64 53
EV/EBITDA ¥8.02 ¥10.24 ¥12.46 54
EV/Revenue ¥6.19 ¥8.26 ¥10.32 43
Asset-Based
NCAV (Graham) ¥2.96 ¥3.96 ¥5.91 50
Growth DCF
Growth DCF ¥4.00 ¥5.08 ¥6.55 80
Rev-Margin DCF ¥5.19 ¥7.54 ¥10.06 74
Economic Profit
Residual Income ¥4.77 ¥5.01 ¥5.30 76
ROIC Compounder ¥5.63 ¥6.50 ¥7.59 72
Growth Earnings
Growth-Adj P/E ¥3.96 ¥5.66 ¥7.36 68

Widest divergence: DCF Models (¥7.49) versus Dividend Discount (¥2.20). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 2.2B CNY
Revenue growth (YoY) +0.7%
Net margin 7.6%
Return on equity 7.1%
Free cash flow 99.4M CNY FY2025
P/E ratio 113.2
More key figures
Operating margin 10.6%
EPS (TTM) ¥0.3900
Dividend yield 0.3%
EPS growth (YoY) -9.1%
Net cash 565M CNY FY2024

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

Quality Score breakdown

Overall quality 60/100

Of which business quality 59 · Market factors (momentum, volatility) 83

Profitability 36
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 41
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 73
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

Lily Group Co., Ltd. manufactures and sells organic pigments and pigment intermediates in the People's Republic of China and internationally. The company offers paint, ink, plastic, and pearlescent pigments, as well as fine chemical products. It also provides enterprise management services. The company exports its products to Europe and the United States.

Full company description

Lily Group Co., Ltd. manufactures and sells organic pigments and pigment intermediates in the People's Republic of China and internationally. The company offers paint, ink, plastic, and pearlescent pigments, as well as fine chemical products. It also provides enterprise management services. The company exports its products to Europe and the United States. The company was formerly known as Lily Group and changed its name to Lily Group Co., Ltd. in 2012. The company was founded in 1989 and is headquartered in Hangzhou, the People's Republic of China. Lily Group Co., Ltd. operates as a subsidiary of Lily Holding Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lily Group reported revenue of ¥2.2B in FY2025 versus ¥2.5B in FY2021, a compound −3.3%/yr. Reported net income was ¥167M in FY2025, compounding −14.5%/yr from FY2021.

Growth Quality 62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
2.2B CNY
Avg. growth/yr (3Y)
−0.7%
Avg. growth/yr (5Y)
+3.9%
Avg. growth/yr (13Y)
+6.2%
Revenue −3.3%/yr
FY21 ¥2.5B
FY22 ¥2.5B
FY23 ¥2.3B
FY24 ¥2.4B
FY25 ¥2.2B
Net income −14.5%/yr
FY21 ¥312M
FY22 ¥215M
FY23 ¥120M
FY24 ¥176M
FY25 ¥167M

603823 screens 90% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Lily Group Fair Value". https://www.fairvalue-calculator.com/stock/603823

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 60 · Above median
Fair Value upside −90% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 1% · Below median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 113.2× · Pricier than 75% of peers
P/B 7.47× · Pricier than 75% of peers
P/S (TTM) 8.53× · Pricier than 75% of peers
P/FCF 27.4× · Pricier than 75% of peers
EV/EBITDA 51.2× · 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 4 · sector 19
PAST 28 · sector 23
HEALTH 100 · sector 95
DIVIDEND 6 · sector 25

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 12, 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 Lily Group (603823) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥6.82 versus a price of ¥65.90, about −90% (overvalued).
What is the fair value of 603823?
Our model-based fair value for Lily Group is ¥6.82 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥65.90.
What is the quality score of 603823?
Lily Group has a Quality Score of 60/100. 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 Lily Group (603823)?
Lily Group reported trailing-twelve-month revenue of about 2.2B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 603823?
The net profit margin of Lily Group is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does Lily Group pay a dividend?
Lily Group currently shows a dividend yield of about 0.30% 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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