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Zhejiang Huakang Pharmaceutical Co (605077) Fair Value & Analysis

Basic Materials · CN · Market cap 3.7B CNY

ZH Zhejiang Huakang Pharmaceutical Co 605077 · SHG
Price¥11.06
Fair Value¥11.24
Upside+1.6%
Quality45/100
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Expensive Growth
Thin margins · 3.1% net margin
Moderate debt · negative free cash flow
4.15% dividend yield
Mixed vs. peers (7/13)
Narrow moat 30/100
Evidence: High Range ¥8.43 – ¥14.05 Share as image

Fair value as of: Jul 12, 2026

From 16 valuation models · updated 29 days ago

Share price +4.8% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ¥8.43 (bear) to ¥14.05 (bull), base ¥11.24. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 45/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥40.45 ¥10.04 Fair Value ¥11.24 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 ¥10.04 – ¥40.45 · fair‑value band ¥8.43 – ¥14.05 · the ¥11.06 price screens below the ¥11.24 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Zhejiang Huakang Pharmaceutical Co (605077) currently trades at ¥11.06, while our model-based Fair Value estimate is ¥11.24, implying the stock looks roughly 1.6% fairly valued today. The Quality Score stands at 45/100 (below-average quality), in the Basic Materials 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 Huakang Pharmaceutical Co generated revenue of 4.6B CNY at a net margin of 3.1%. Revenue grew 45.3% year over year. It earns a return on equity of 4.3%. Net debt stands at 1.7B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥8.43 (bear case) to ¥14.05 (bull case); at ¥11.06, 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 45% below its 52-week high, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at 2%, 605077 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
Residual Income ¥8.44 ¥8.78 ¥8.90 76
ROIC Compounder ¥5.59 ¥6.97 ¥8.16 72
Gordon GGM ¥7.35 ¥14.64 ¥22.16 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥4.49 ¥31.34 ¥43.99 54
Lynch FV ¥11.10 ¥15.86 ¥20.62 50
PEG = 1.0 ¥11.10 ¥15.86 ¥20.62 46
EPV ¥5.59 ¥6.97 ¥8.16 59
Dividend Discount
Gordon GGM ¥7.35 ¥14.64 ¥22.16 70
DDM Multi-Stage ¥7.35 ¥12.65 ¥15.45 61
Multiples
P/E Multiple ¥8.43 ¥11.24 ¥14.05 63
P/S Multiple ¥8.43 ¥11.24 ¥14.05 58
P/B Multiple ¥8.43 ¥11.24 ¥14.05 55
EV/EBIT ¥8.06 ¥11.80 ¥15.53 53
EV/EBITDA ¥12.09 ¥17.17 ¥22.25 54
EV/Revenue ¥6.57 ¥10.73 ¥14.89 43
Asset-Based
NCAV (Graham) ¥5.35 ¥7.16 ¥10.69 50
Economic Profit
Residual Income ¥8.44 ¥8.78 ¥8.90 76
ROIC Compounder ¥5.59 ¥6.97 ¥8.16 72
Growth Earnings
Growth-Adj P/E ¥13.32 ¥19.02 ¥24.73 68

Widest divergence: Growth Earnings (¥19.02) versus Economic Profit (¥6.97). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 4.6B CNY
Revenue growth (YoY) +45.3%
Net margin 3.1%
Return on equity 4.3%
Free cash flow −59.0M CNY FY2025
P/E ratio 26.5
More key figures
Operating margin 5.4%
EPS (TTM) ¥0.4600
Dividend yield 4.2%
EPS growth (YoY) -68.2%
Net debt 1.7B CNY FY2025

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

Quality Score breakdown

Overall quality 45/100

Of which business quality 46 · Market factors (momentum, volatility) 25

Profitability 28
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 38
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 88
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 Huakang Pharmaceutical Co., Ltd. engages in the research, production, and sale of polyols and starch sugar worldwide.

Full company description

Zhejiang Huakang Pharmaceutical Co., Ltd. engages in the research, production, and sale of polyols and starch sugar worldwide. It offers polyols products such as xylitol, is a polyol that occurs naturally regular sugar raise blood sugar levels; sorbitol, is produced by the catalytic hydrogenation of D-glucose and is available as a free-flowing crystalline powder, and as aqueous solutions; maltitol a bulk sweetener produced from naturally occurring compounds in corn; erythritol, is produced by the enzymatic hydrolysis of starch into glucose, non-caloric, non-hygroscopic excipient with excellent sweet taste and cooling effect; lactitol is produced by hydrogenation of lactose; mannitol is derived from enzymatic hydrolysis of starch; isomalt is produced from sucrose as a raw material and transformed into isomaltulose by sucrose isomerase. In addition, the company offers starch sugar provide high fructose, glucose, maltose syrups, maltodextrin; as well as rare sugar d- xylose, and l-arabinose; and dietary fiber include polydextrose. Zhejiang Huakang Pharmaceutical Co., Ltd. was founded in 2001 and is based in Quzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Huakang Pharmaceutical Co reported revenue of ¥4.2B in FY2025 versus ¥1.6B in FY2021, a compound +27.3%/yr. Reported net income was ¥200M in FY2025, compounding −4.1%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
4.2B CNY
Latest YoY
+49.1%
Avg. growth/yr (3Y)
+23.9%
Avg. growth/yr (5Y)
+26.0%
Avg. growth/yr (9Y)
+20.8%
Revenue +27.3%/yr
FY21 ¥1.6B
FY22 ¥2.2B
FY23 ¥2.8B
FY24 ¥2.8B
FY25 ¥4.2B
Net income −4.1%/yr
FY21 ¥237M
FY22 ¥319M
FY23 ¥371M
FY24 ¥268M
FY25 ¥200M

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Cite: Fair Value Calculator (2026). "Zhejiang Huakang Pharmaceutical Co Fair Value". https://www.fairvalue-calculator.com/stock/605077

Peer Group

Chemicals · 334 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 45 · Below median
Fair Value upside +2% · Above median
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth 45% · Top 25%
Dividend yield (TTM) 4.2% · Top 25%
Debt / equity 0.65× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 26.5× · Cheaper than median
P/B 1.14× · Cheaper than median
P/S (TTM) 0.81× · Cheaper than median
EV/EBITDA 8.1× · 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 35 · sector 0
FUTURE 100 · sector 20
PAST 17 · sector 19
HEALTH 67 · sector 94
DIVIDEND 83 · sector 27

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

Stock Price Fair Value vs Fair Value
BASF SE BASN 1,034 MXN 532.13 MXN -49%
Ningxia Baofeng Energy Group 600989 ¥20.32 ¥20.17 -1%
Zhejiang Juhua Co 600160 ¥42.85 ¥23.35 -46%
PT Barito Pacific Tbk, BRPT 1,690 IDR 1,628 IDR -4%
LG Chem, Ltd 051910 260,500 KRW 587,755 KRW +126%
Formosa Chemicals & Fibre Corporation 1326 66.10 TWD 6.79 TWD -90%
PTT Global Chemical Public Company PTTGC 35.50 THB 18.21 THB -49%
542812 542812 ₹4,369 ₹791.05 -82%
Indorama Ventures Public Company IVL 24.50 THB 17.95 THB -27%
Navin Fluorine International Limited NAVINFLUOR ₹8,650 ₹2,146 -75%

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Frequently asked questions

Is Zhejiang Huakang Pharmaceutical Co (605077) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥11.24 versus a price of ¥11.06, about +2% (fairly valued).
What is the fair value of 605077?
Our model-based fair value for Zhejiang Huakang Pharmaceutical Co is ¥11.24 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥11.06.
What is the quality score of 605077?
Zhejiang Huakang Pharmaceutical Co has a Quality Score of 45/100. 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 Huakang Pharmaceutical Co (605077)?
Zhejiang Huakang Pharmaceutical Co reported trailing-twelve-month revenue of about 4.6B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605077?
The net profit margin of Zhejiang Huakang Pharmaceutical Co is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Huakang Pharmaceutical Co pay a dividend?
Zhejiang Huakang Pharmaceutical Co currently shows a dividend yield of about 4.15% 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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