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Shanghai Kindly Enterprise Development Group (603987) Fair Value & Analysis

Healthcare · CN · Market cap 3.2B CNY

SK Shanghai Kindly Enterprise Development Group 603987 · SHG
Price¥7.42
Fair Value¥11.20
Upside+50.9%
Quality65/100
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Weak Growth
Solidly profitable · 10.2% net margin
Low debt · generates free cash flow
2.33% dividend yield
Ranks above peers (13/14)
Moderate moat 47/100
Evidence: Medium Range ¥8.36 – ¥14.03 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 ¥12.11 to ¥11.20 (−7.5%) since Jun 24, 2026. Share price +3.3% over the past month.

A solid business, screening 51% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥8.36). The market is more pessimistic than our downside scenario.
  • Solid quality (65/100) 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)

¥30.06 ¥5.82 Fair Value ¥11.20 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 ¥5.82 – ¥30.06 · fair‑value band ¥8.36 – ¥14.03 · the ¥7.42 price screens below the ¥11.20 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Shanghai Kindly Enterprise Development Group (603987) currently trades at ¥7.42, while our model-based Fair Value estimate is ¥11.20, implying the stock looks roughly 50.9% undervalued today. The Quality Score stands at 65/100 (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 Kindly Enterprise Development Group generated revenue of 2.3B CNY at a net margin of 10.2%. Revenue declined 2.1% year over year. It earns a return on equity of 8.3%. Net debt stands at 57.4M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥8.36 (bear case) to ¥14.03 (bull case); at ¥7.42, 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 27% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -43% fair-value upside, at 51%, 603987 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 ¥7.55 ¥10.39 ¥14.25 80
Residual Income ¥5.22 ¥5.65 ¥6.92 76
Rev-Margin DCF ¥7.06 ¥10.46 ¥14.33 74
All 26 models by family
DCF Models
FCF DCF ¥7.45 ¥10.65 ¥15.27 38
Owner Earnings ¥7.20 ¥10.27 ¥14.71 31
5Y Revenue Exit ¥7.06 ¥10.43 ¥14.69 39
5Y EBITDA Exit ¥9.46 ¥14.89 ¥21.16 41
5Y P/E Exit ¥8.51 ¥13.13 ¥17.91 38
10Y Revenue Exit ¥6.97 ¥10.02 ¥14.03 36
10Y EBITDA Exit ¥8.64 ¥13.03 ¥18.81 37
10Y P/E Exit ¥8.05 ¥11.84 ¥16.41 35
Earnings-Based
Graham-Dodd ¥3.74 ¥11.08 ¥14.67 54
Lynch FV ¥2.33 ¥3.33 ¥4.33 50
PEG = 1.0 ¥2.33 ¥3.33 ¥4.33 46
EPV ¥6.53 ¥7.39 ¥8.13 59
Dividend Discount
Gordon GGM ¥1.67 ¥3.33 ¥5.04 70
DDM Multi-Stage ¥1.67 ¥2.66 ¥3.51 61
Multiples
P/E Multiple ¥9.08 ¥12.11 ¥15.13 63
P/S Multiple ¥7.02 ¥9.35 ¥11.69 58
P/B Multiple ¥7.02 ¥9.35 ¥11.69 55
EV/EBIT ¥9.58 ¥12.41 ¥15.24 53
EV/EBITDA ¥11.85 ¥15.44 ¥19.03 54
EV/Revenue ¥7.14 ¥9.74 ¥12.34 43
Asset-Based
NCAV (Graham) ¥3.11 ¥4.17 ¥6.22 50
Growth DCF
Growth DCF ¥7.55 ¥10.39 ¥14.25 80
Rev-Margin DCF ¥7.06 ¥10.46 ¥14.33 74
Economic Profit
Residual Income ¥5.22 ¥5.65 ¥6.92 76
ROIC Compounder ¥6.61 ¥7.93 ¥9.54 72
Growth Earnings
Growth-Adj P/E ¥7.35 ¥10.50 ¥13.65 68

Widest divergence: DCF Models (¥10.65) versus Dividend Discount (¥2.66). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 2.3B CNY
Revenue growth (YoY) -2.1%
Net margin 10.2%
Return on equity 8.3%
Free cash flow 261M CNY FY2025
P/E ratio 13.8
More key figures
Operating margin 12.4%
EPS (TTM) ¥0.5300
Dividend yield 2.3%
EPS growth (YoY) -14.3%
Net debt 57.4M CNY FY2025

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

Quality Score breakdown

Overall quality 65/100

Of which business quality 64 · Market factors (momentum, volatility) 41

Profitability 40
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 21
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

Shanghai Kindly Enterprise Development Group Co.,LTD. researches, develops, produces, sales medical devices such as medical puncture needles and medical infusion devices worldwide. It offers syringes, infusion sets, needles, and tube bags.

Full company description

Shanghai Kindly Enterprise Development Group Co.,LTD. researches, develops, produces, sales medical devices such as medical puncture needles and medical infusion devices worldwide. It offers syringes, infusion sets, needles, and tube bags. The company also provides including medical packing films, sterilization indicator tapes and needles; and intervention accessories, such as stopcocks. In addition, it offers disposable coaxial biopsy needle, therapy device, disposable pump infusion sets, drug liquid transfer devices, needle-proof prefilled syringe assemblies, polypropylene prefilled injection, disposable water delivery tube, disposable anti-needle injection and pen needle, micro needle, disposable skin-penetrating guide needles and syringes, radiofrequency treatment puncture needle, visual double-lumen endotracheal tube, disposable reflux indwelling needle, root irrigation needle, disposable arterial blood gas needle, compression hemostatic device. Further, it offers puncture care, infusion catheters, indwelling infusions, puncture intervention, medical beauty, and medicine bags. The company was founded in 1987 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 Kindly Enterprise Development Group reported revenue of ¥2.3B in FY2025 versus ¥3.1B in FY2021, a compound −7.2%/yr. Reported net income was ¥240M in FY2025, compounding −4.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
2.3B CNY
Latest YoY
+1.6%
Avg. growth/yr (3Y)
−9.7%
Avg. growth/yr (5Y)
−2.8%
Avg. growth/yr (14Y)
+8.1%
Revenue −7.2%/yr
FY21 ¥3.1B
FY22 ¥3.1B
FY23 ¥2.5B
FY24 ¥2.3B
FY25 ¥2.3B
Net income −4.7%/yr
FY21 ¥291M
FY22 ¥312M
FY23 ¥231M
FY24 ¥215M
FY25 ¥240M

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Cite: Fair Value Calculator (2026). "Shanghai Kindly Enterprise Development Group Fair Value". https://www.fairvalue-calculator.com/stock/603987

Peer Group

Medical Instruments & Supplies · 203 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 65 · Above median
Fair Value upside +51% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 4% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 12% · Above median
Revenue growth -2% · Below median
Dividend yield (TTM) 2.3% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper

P/E (TTM) 13.8× · Cheaper than 75% of peers
P/B 1.17× · Cheaper than 75% of peers
P/S (TTM) 1.39× · Cheaper than median
P/FCF 1.8× · Cheaper than median
EV/EBITDA 6.6× · 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 100 · sector 0
FUTURE 0 · sector 27
PAST 33 · sector 25
HEALTH 100 · sector 96
DIVIDEND 47 · sector 32

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 Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Intuitive Surgical, Inc ISRG $402.33 $150.04 -63%
EssilorLuxottica Société anonyme 1EL €172.45 €68.55 -60%
Medline Inc MDLN $41.11 $30.15 -27%
Becton, Dickinson and Company BDX $150.65 $103.53 -31%
Alcon Inc ALC $70.26 $39.78 -43%
ResMed Inc RMD $203.87 $187.89 -8%
West Pharmaceutical Services, Inc WST $353.71 $143.97 -59%
Straumann Holding STMN CHF 106.00 CHF 47.31 -55%
Sartorius Stedim Biotech S.A DIM €188.50 €51.16 -73%
Coloplast A/S COLOB kr 414.00 kr 382.22 -8%

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Frequently asked questions

Is Shanghai Kindly Enterprise Development Group (603987) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥11.20 versus a price of ¥7.42, about +51% (undervalued).
What is the fair value of 603987?
Our model-based fair value for Shanghai Kindly Enterprise Development Group is ¥11.20 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥7.42.
What is the quality score of 603987?
Shanghai Kindly Enterprise Development Group has a Quality Score of 65/100. 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 Shanghai Kindly Enterprise Development Group (603987)?
Shanghai Kindly Enterprise Development Group reported trailing-twelve-month revenue of about 2.3B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 603987?
The net profit margin of Shanghai Kindly Enterprise Development Group is about 10.2%, meaning it keeps roughly 10.2% of revenue as net income. Based on the latest reported figures.
Does Shanghai Kindly Enterprise Development Group pay a dividend?
Shanghai Kindly Enterprise Development Group currently shows a dividend yield of about 2.33% 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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