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Hunan Fangsheng Pharmaceutical Co (603998) Fair Value & Analysis

Healthcare · CN · Market cap 4.3B CNY

HF Hunan Fangsheng Pharmaceutical Co 603998 · SHG
Price¥9.72
Fair Value¥12.46
Upside+28.2%
Quality74/100
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Mixed Growth
Solidly profitable · 17.1% net margin
Low debt · generates free cash flow
3.10% dividend yield
Ranks above peers (11/14)
Wide moat 67/100
Evidence: High Range ¥9.29 – ¥16.11 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 ¥12.80 to ¥12.46 (−2.7%) since Jun 24, 2026. Share price +3.0% over the past month.

A solid business, screening 28% undervalued on our models.

What matters now

  • The rarer combination: high quality (74/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • Our model range runs from ¥9.29 (bear) to ¥16.11 (bull), base ¥12.46. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 74/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥14.63 ¥4.50 Fair Value ¥12.46 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 ¥4.50 – ¥14.63 · fair‑value band ¥9.29 – ¥16.11 · the ¥9.72 price screens below the ¥12.46 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Hunan Fangsheng Pharmaceutical Co (603998) currently trades at ¥9.72, while our model-based Fair Value estimate is ¥12.46, implying the stock looks roughly 28.2% undervalued today. The Quality Score stands at 74/100 (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, Hunan Fangsheng Pharmaceutical Co generated revenue of 1.8B CNY at a net margin of 17.1%. Revenue grew 10.7% year over year. It earns a return on equity of 16.8%. Net debt stands at 67.4M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥9.29 (bear case) to ¥16.11 (bull case); at ¥9.72, 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 28% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at 28%, 603998 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 ¥8.11 ¥13.66 ¥22.62 80
Residual Income ¥4.34 ¥5.42 ¥12.93 76
Rev-Margin DCF ¥7.37 ¥12.49 ¥19.14 74
All 26 models by family
DCF Models
FCF DCF ¥8.20 ¥14.35 ¥24.69 38
Owner Earnings ¥8.26 ¥14.46 ¥24.90 31
5Y Revenue Exit ¥7.37 ¥12.62 ¥19.74 39
5Y EBITDA Exit ¥8.89 ¥15.78 ¥24.43 41
5Y P/E Exit ¥10.00 ¥18.06 ¥27.34 38
10Y Revenue Exit ¥7.36 ¥12.38 ¥20.07 36
10Y EBITDA Exit ¥8.57 ¥14.65 ¥23.92 37
10Y P/E Exit ¥9.29 ¥16.29 ¥26.31 35
Earnings-Based
Graham-Dodd ¥4.74 ¥22.31 ¥30.67 54
Lynch FV ¥5.91 ¥8.44 ¥10.98 50
PEG = 1.0 ¥5.91 ¥8.44 ¥10.98 46
EPV ¥6.29 ¥7.24 ¥8.05 59
Dividend Discount
Gordon GGM ¥3.87 ¥7.70 ¥11.66 70
DDM Multi-Stage ¥3.87 ¥6.66 ¥8.13 61
Multiples
P/E Multiple ¥11.51 ¥15.35 ¥19.19 63
P/S Multiple ¥8.90 ¥11.86 ¥14.83 58
P/B Multiple ¥8.90 ¥11.86 ¥14.83 55
EV/EBIT ¥9.75 ¥12.91 ¥16.06 53
EV/EBITDA ¥10.01 ¥13.25 ¥16.49 54
EV/Revenue ¥7.05 ¥9.94 ¥12.83 43
Asset-Based
NCAV (Graham) ¥1.95 ¥2.61 ¥3.90 50
Growth DCF
Growth DCF ¥8.11 ¥13.66 ¥22.62 80
Rev-Margin DCF ¥7.37 ¥12.49 ¥19.14 74
Economic Profit
Residual Income ¥4.34 ¥5.42 ¥12.93 76
ROIC Compounder ¥7.05 ¥9.33 ¥12.30 72
Growth Earnings
Growth-Adj P/E ¥9.59 ¥13.71 ¥17.82 68

Widest divergence: DCF Models (¥14.46) versus Asset-Based (¥2.61). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.8B CNY
Revenue growth (YoY) +10.7%
Net margin 17.1%
Return on equity 16.8%
Free cash flow 282M CNY FY2025
P/E ratio 14.1
More key figures
Operating margin 22.7%
EPS (TTM) ¥0.7000
Dividend yield 3.1%
Net debt 67.4M CNY FY2025

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

Quality Score breakdown

Overall quality 74/100

Of which business quality 71 · Market factors (momentum, volatility) 39

Profitability 63
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 81
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

Hunan Fangsheng Pharmaceutical Co., Ltd. engages in research, develops, produces, and sells traditional Chinese medicine industry and chemical pharmaceutical products in China.

Full company description

Hunan Fangsheng Pharmaceutical Co., Ltd. engages in research, develops, produces, and sells traditional Chinese medicine industry and chemical pharmaceutical products in China. The company offers pharmaceutical manufacturing; and provides cardiovascular and cerebrovascular drugs, skeletal muscle system drugs, orthopedic drugs, respiratory drugs, pediatric drugs, gynecological drugs, and anti-infective drugs. The company's main products include Xuesetong dispersible tablets, Xuesetong tablets, Garcinia bone-strengthening tablets, Dieda Huoxue capsules, Lysine Vitamin B12 granules, Cefuroxime tablets, Jinying capsules, Pudilan anti-inflammatory tablets, Xiaoer Jingxing cough granules, Ezetimibe tablets, Xuanqi bone-strengthening tablets, Qiangli Loquat Paste (honey-refined), and Qiangli Loquat Dew and others. It also offers other businesses, such as medical services, pharmaceutical commerce, and drug sales. The company was founded in 2002 and is based in Changsha, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hunan Fangsheng Pharmaceutical Co reported revenue of ¥1.7B in FY2025 versus ¥1.6B in FY2021, a compound +2.7%/yr. Reported net income was ¥306M in FY2025, compounding +44.6%/yr from FY2021.

Growth Quality 76/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.7B CNY
Latest YoY
−1.7%
Avg. growth/yr (3Y)
−0.9%
Avg. growth/yr (5Y)
+6.4%
Avg. growth/yr (14Y)
+14.5%
Revenue +2.7%/yr
FY21 ¥1.6B
FY22 ¥1.8B
FY23 ¥1.6B
FY24 ¥1.8B
FY25 ¥1.7B
Net income +44.6%/yr
FY21 ¥70.0M
FY22 ¥286M
FY23 ¥187M
FY24 ¥255M
FY25 ¥306M

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Cite: Fair Value Calculator (2026). "Hunan Fangsheng Pharmaceutical Co Fair Value". https://www.fairvalue-calculator.com/stock/603998

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 74 · Top 25%
Fair Value upside +28% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 23% · Top 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 3.1% · Above median
Debt / equity 0.09× · Higher than median

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

P/E (TTM) 14.1× · Cheaper than 75% of peers
P/B 2.53× · Pricier than median
P/S (TTM) 2.42× · Pricier than median
P/FCF 2.3× · Cheaper than median
EV/EBITDA 10.6× · Cheaper 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 71 · sector 7
FUTURE 54 · sector 20
PAST 67 · sector 23
HEALTH 96 · sector 97
DIVIDEND 62 · 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 Hunan Fangsheng Pharmaceutical Co (603998) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥12.46 versus a price of ¥9.72, about +28% (undervalued).
What is the fair value of 603998?
Our model-based fair value for Hunan Fangsheng Pharmaceutical Co is ¥12.46 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥9.72.
What is the quality score of 603998?
Hunan Fangsheng Pharmaceutical Co has a Quality Score of 74/100. 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 Hunan Fangsheng Pharmaceutical Co (603998)?
Hunan Fangsheng Pharmaceutical Co reported trailing-twelve-month revenue of about 1.8B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 603998?
The net profit margin of Hunan Fangsheng Pharmaceutical Co is about 17.1%, meaning it keeps roughly 17.1% of revenue as net income. Based on the latest reported figures.
Does Hunan Fangsheng Pharmaceutical Co pay a dividend?
Hunan Fangsheng Pharmaceutical Co currently shows a dividend yield of about 3.10% 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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