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Yifeng Pharmacy Chain Co (603939) Fair Value & Analysis

Healthcare · CN · Market cap 26.4B CNY

YP Yifeng Pharmacy Chain Co 603939 · SHG
Price¥22.15
Fair Value¥29.07
Upside+31.2%
Quality63/100
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Healthy Growth
Thin margins · 7.1% net margin
Low debt · generates free cash flow
3.36% dividend yield
Ranks above peers (9/14)
Moderate moat 52/100
Evidence: High Range ¥21.80 – ¥36.34 Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 30 days ago

Share price +9.4% over the past month.

A solid business, screening 31% undervalued on our models.

What matters now

  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from ¥21.80 (bear) to ¥36.34 (bull), base ¥29.07. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 63/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥56.96 ¥17.75 Fair Value ¥29.07 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range ¥17.75 – ¥56.96 · fair‑value band ¥21.80 – ¥36.34 · the ¥22.15 price screens below the ¥29.07 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Yifeng Pharmacy Chain Co (603939) currently trades at ¥22.15, while our model-based Fair Value estimate is ¥29.07, implying the stock looks roughly 31.2% undervalued today. The Quality Score stands at 63/100 (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: high), always confirm before acting.

Over the trailing twelve months, Yifeng Pharmacy Chain Co generated revenue of 24.5B CNY at a net margin of 7.1%. Revenue grew 1.3% year over year. It earns a return on equity of 15.2%. Net debt stands at 365M CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥21.80 (bear case) to ¥36.34 (bull case); at ¥22.15, 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 17% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -15% fair-value upside, at 31%, 603939 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 ¥40.22 ¥74.91 ¥143.81 80
Residual Income ¥9.46 ¥11.95 ¥27.64 76
Rev-Margin DCF ¥27.10 ¥50.81 ¥87.15 74
All 26 models by family
DCF Models
FCF DCF ¥42.52 ¥67.49 ¥144.45 38
Owner Earnings ¥41.39 ¥92.68 ¥200.35 31
5Y Revenue Exit ¥27.10 ¥45.65 ¥82.46 39
5Y EBITDA Exit ¥37.30 ¥67.14 ¥123.07 41
5Y P/E Exit ¥28.25 ¥54.86 ¥89.25 38
10Y Revenue Exit ¥30.70 ¥58.65 ¥83.73 36
10Y EBITDA Exit ¥38.79 ¥78.98 ¥154.28 37
10Y P/E Exit ¥32.33 ¥60.94 ¥110.26 35
Earnings-Based
Graham-Dodd ¥9.41 ¥65.65 ¥92.13 54
Lynch FV ¥21.39 ¥30.55 ¥39.72 50
PEG = 1.0 ¥21.39 ¥30.55 ¥39.72 46
EPV ¥16.77 ¥19.37 ¥21.64 59
Dividend Discount
Gordon GGM ¥6.43 ¥13.37 ¥21.22 70
DDM Multi-Stage ¥6.43 ¥11.28 ¥14.04 61
Multiples
P/E Multiple ¥21.80 ¥29.07 ¥36.34 63
P/S Multiple ¥17.65 ¥23.54 ¥29.42 58
P/B Multiple ¥17.65 ¥23.54 ¥29.42 55
EV/EBIT ¥27.62 ¥36.43 ¥45.25 53
EV/EBITDA ¥35.47 ¥46.90 ¥58.33 54
EV/Revenue ¥20.05 ¥28.14 ¥36.23 43
Asset-Based
NCAV (Graham) ¥4.80 ¥6.43 ¥9.60 50
Growth DCF
Growth DCF ¥40.22 ¥74.91 ¥143.81 80
Rev-Margin DCF ¥27.10 ¥50.81 ¥87.15 74
Economic Profit
Residual Income ¥9.46 ¥11.95 ¥27.64 76
ROIC Compounder ¥21.04 ¥31.16 ¥40.91 72
Growth Earnings
Growth-Adj P/E ¥28.42 ¥40.59 ¥52.77 68

Widest divergence: DCF Models (¥60.94) versus Asset-Based (¥6.43). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 24.5B CNY
Revenue growth (YoY) +1.3%
Net margin 7.1%
Return on equity 15.2%
Free cash flow 3.0B CNY FY2025
P/E ratio 15.5
More key figures
Operating margin 12.1%
EPS (TTM) ¥1.40
Dividend yield 3.4%
EPS growth (YoY) +11.1%
Net debt 365M CNY FY2024

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 64 · Market factors (momentum, volatility) 45

Profitability 53
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 76
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 56
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

Yifeng Pharmacy Chain Co., Ltd. engages in the retail business of pharmaceutical products in China. The company operates through Retail business and Wholesale business segments.

Full company description

Yifeng Pharmacy Chain Co., Ltd. engages in the retail business of pharmaceutical products in China. The company operates through Retail business and Wholesale business segments. The company offers Western and Chinese patent medicine, traditional Chinese medicine herbal pieces, medical devices and equipment, health supplements and products, personal care products, drugs, and convenience products related to health. It is also involved in chronic disease management, medical project investment, and medical technology development, as well as operates internet hospitals and clinics. The company also offers its products through franchise distribution and e-commerce. Yifeng Pharmacy Chain Co., Ltd. was founded in 2001 and is headquartered in Changsha, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Yifeng Pharmacy Chain Co reported revenue of ¥24.4B in FY2025 versus ¥15.3B in FY2021, a compound +12.4%/yr. Reported net income was ¥1.7B in FY2025, compounding +17.3%/yr from FY2021.

Growth Quality 93/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
24.4B CNY
Latest YoY
+1.5%
Avg. growth/yr (3Y)
+7.1%
Avg. growth/yr (5Y)
+13.2%
Avg. growth/yr (14Y)
+23.8%
Revenue +12.4%/yr
FY21 ¥15.3B
FY22 ¥19.9B
FY23 ¥22.6B
FY24 ¥24.1B
FY25 ¥24.4B
Net income +17.3%/yr
FY21 ¥888M
FY22 ¥1.3B
FY23 ¥1.4B
FY24 ¥1.5B
FY25 ¥1.7B

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Cite: Fair Value Calculator (2026). "Yifeng Pharmacy Chain Co Fair Value". https://www.fairvalue-calculator.com/stock/603939

Peer Group

Pharmaceutical Retailers · 61 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 63 · Top 25%
Fair Value upside +31% · Top 25%
Return on equity (TTM) 15% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) 12% · Top 25%
Revenue growth 1% · Below median
Dividend yield (TTM) 3.4% · Above median
Debt / equity 0.14× · Higher than median

Valuation Multiples vs Pharmaceutical Retailers median · lower = cheaper

P/E (TTM) 15.5× · Cheaper than 75% of peers
P/B 2.27× · Pricier than median
P/S (TTM) 1.08× · Pricier than 75% of peers
P/FCF 1.3× · Cheaper than median
EV/EBITDA 9.2× · 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 75 · sector 21
FUTURE 7 · sector 19
PAST 61 · sector 19
HEALTH 93 · sector 97
DIVIDEND 67 · sector 66

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 Pharmaceutical Retailers stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
JD Health International Inc 6618 HK$39.20 HK$33.28 -15%
Raia Drogasil S.A RADL3 R$18.20 R$15.58 -14%
DaShenLin Pharmaceutical Group 603233 ¥17.81 ¥23.86 +34%
Corporativo Fragua, S.A. FRAGUAB 463.00 MXN 821.18 MXN +77%
LBX Pharmacy Chain Joint Stock Company 603883 ¥11.51 ¥10.57 -8%
MedPlus Health Services Limited MEDPLUS ₹690.20 ₹379.25 -45%
Yixintang Pharmaceutical Group 002727 ¥11.46 ¥9.45 -18%
Anhui Huaren Health Pharmaceutical Co 301408 ¥14.40 ¥10.05 -30%
Apotea AB APOTEA kr 74.75 kr 43.95 -41%
ShuYu Civilian Pharmacy Corp 301017 ¥13.34 ¥5.91 -56%

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Frequently asked questions

Is Yifeng Pharmacy Chain Co (603939) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥29.07 versus a price of ¥22.15, about +31% (undervalued).
What is the fair value of 603939?
Our model-based fair value for Yifeng Pharmacy Chain Co is ¥29.07 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥22.15.
What is the quality score of 603939?
Yifeng Pharmacy Chain Co has a Quality Score of 63/100. 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 Yifeng Pharmacy Chain Co (603939)?
Yifeng Pharmacy Chain Co reported trailing-twelve-month revenue of about 24.5B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603939?
The net profit margin of Yifeng Pharmacy Chain Co is about 7.1%, meaning it keeps roughly 7.1% of revenue as net income. Based on the latest reported figures.
Does Yifeng Pharmacy Chain Co pay a dividend?
Yifeng Pharmacy Chain Co currently shows a dividend yield of about 3.36% relative to its recent price (as of Jul 11, 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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