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Zhejiang East Asia Pharmaceutical Co. Ltd. (605177) Fair Value & Analysis

Healthcare · CN · Market cap 2.0B CNY

ZE Zhejiang East Asia Pharmaceutical Co. Ltd. 605177 · SHG
Price¥20.38
Fair Value¥8.81
Upside-56.8%
Quality39/100
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Risks

!Trades 131% ABOVE our fair value of ¥8.81
!Weak Growth (revenue 5y +1.3 %/yr)
!Loss-making · -10.9% net margin
!Low debt · negative free cash flow
Weak Growth (revenue 5y +1.3 %/yr)
Loss-making · -10.9% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/12)
Narrow moat 13/100
Evidence: Low Range ¥5.00 – ¥12.61 Share as image

Fair value as of: Aug 13, 2026

From 4 valuation models · updated 12 days ago

Share price +42.3% over the past month.

Below-average quality, and trading another 131% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (¥12.61). The favourable scenario is already priced in.
  • Weak quality (39/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (¥5.00 to ¥12.61) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥38.17 ¥14.32 Fair Value ¥8.81 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥14.32 – ¥38.17 · fair‑value band ¥5.00 – ¥12.61 · the ¥20.38 price screens above the ¥8.81 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Zhejiang East Asia Pharmaceutical Co. Ltd. (605177) currently trades at ¥20.38, while our model-based Fair Value estimate is ¥8.81, implying the stock looks roughly 56.8% overvalued today. The Quality Score stands at 39/100 (below-average quality), in the Healthcare 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: low).

Over the trailing twelve months, Zhejiang East Asia Pharmaceutical Co. Ltd. generated revenue of 1.0B CNY at a net margin of -10.9%. Revenue grew 38.6% year over year. It earns a return on equity of -6.1%. Net debt stands at 737M CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥5.00 (bear case) to ¥12.61 (bull case); at ¥20.38, 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 about 17% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -60% fair-value upside, at -57%, 605177 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM ¥0.5800 ¥0.6300 ¥0.7000 70
DDM Multi-Stage ¥0.5800 ¥0.6900 ¥0.8400 61
EV/EBITDA ¥6.99 ¥10.80 ¥14.61 54
All 4 models by family
Dividend Discount
Gordon GGM ¥0.5800 ¥0.6300 ¥0.7000 70
DDM Multi-Stage ¥0.5800 ¥0.6900 ¥0.8400 61
Multiples
EV/EBITDA ¥6.99 ¥10.80 ¥14.61 54
Asset-Based
NCAV (Graham) ¥7.87 ¥10.55 ¥15.74 50

Widest divergence: Multiples (¥10.80) versus Dividend Discount (¥0.6300). Highest evidence: Gordon GGM (70).

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Key figures & financial health

P/S ratio 2.33 TTM
Net margin -10.9% TTM
Return on equity -6.1% TTM
Return on assets -2.0% TTM
Operating margin -5.7% TTM
EPS (TTM) ¥-0.9700
More key figures
Growth
Revenue (TTM) 1.0B CNY TTM
Revenue growth (YoY) +38.6% 3y avg -7.3%
Balance sheet & cash flow
Free cash flow −343M CNY FY2025
Net debt 737M CNY FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 40 · Market factors (momentum, volatility) 40

Profitability 7
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 44
Distance to the 52-week high (market factor)
Net Issuance 67
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Zhejiang East Asia Pharmaceutical Co., Ltd. produces and sells pharmaceutical chemicals, tablets, granules, intermediates, and capsules.

Full company description

Zhejiang East Asia Pharmaceutical Co., Ltd. produces and sells pharmaceutical chemicals, tablets, granules, intermediates, and capsules. It offers quinolones synthetic antibacterial agents, antifungal products, gastrointestinal medications, semi-synthetic cephalosporin antibiotics, carbapenem antibiotics, antiviral agents, central nervous system medications, respiratory drugs, antiallergic agents, antineoplastic agents and tumor adjuvant drugs, and other products. The company provides products in the fields of cardiovascular, anti-aging dementia, digestive system, diabetic neuropathy, and anti-pathogenic microorganisms. It serves customers through a sales network in Japan, South Korea, Europe, America, Southeast Asia, and internationally. Zhejiang East Asia Pharmaceutical Co., Ltd. was founded in 1998 and is headquartered in Taizhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang East Asia Pharmaceutical Co. Ltd. reported revenue of ¥940M in FY2025 versus ¥712M in FY2021, a compound +7.2%/yr. Reported net income was −¥82.4M in FY2025.

Growth Quality 8/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
940M CNY
Latest YoY
−21.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.3%
Avg. revenue growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.6%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +7.2%/yr
FY21 ¥712M
FY22 ¥1.2B
FY23 ¥1.4B
FY24 ¥1.2B
FY25 ¥940M
Net income
FY21 ¥68.5M
FY22 ¥104M
FY23 ¥121M
FY24 −¥101M
FY25 −¥82.4M

605177 screens 57% overvalued. Compare with Vertex Pharmaceuticals Incorporated →

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Cite: Fair Value Calculator (2026). "Zhejiang East Asia Pharmaceutical Co. Ltd. Fair Value". https://www.fairvalue-calculator.com/stock/605177

Peer Group

Biotechnology · 634 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 39 · Below median
Fair Value upside −57% · Below median
Return on assets -2% · Above median
Net margin (TTM) -11% · Bottom 25%
Operating margin (TTM) -6% · Below median
Revenue growth 39% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.42× · Higher than 75% of peers

Valuation Multiples vs Biotechnology median · lower = cheaper

P/B 0.16× · Cheaper than 75% of peers
P/S (TTM) 0.29× · Cheaper than 75% of peers
EV/EBITDA 16.2× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 0
PAST0 · sector 0
HEALTH79 · sector 98
DIVIDEND7 · sector 27

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

Similar stocks

10 more Biotechnology stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Vertex Pharmaceuticals Incorporated VRTX $525.73 $278.78 -47%
Regeneron Pharmaceuticals, Inc REGN $797.99 $594.40 -26%
argenx SE ARGX €877.60 €292.84 -67%
Samsung Biologics Co 207940 1,549,000 KRW 1,055,793 KRW -32%
Alnylam Pharmaceuticals, Inc ALNY $228.61 $51.70 -77%
Royalty Pharma plc RPRX $60.58 $24.22 -60%
Celltrion, Inc 068270 202,000 KRW 74,519 KRW -63%
BeOne Medicines AG ONC $362.51 $111.35 -69%
Moderna, Inc MRNA $63.67 $12.77 -80%
BioNTech SE 22UA €80.60 €52.92 -34%

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Frequently asked questions

Is Zhejiang East Asia Pharmaceutical Co. Ltd. (605177) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥8.81 versus a price of ¥20.38, about −57% (overvalued).
What is the fair value of 605177?
Our model-based fair value for Zhejiang East Asia Pharmaceutical Co. Ltd. is ¥8.81 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥20.38.
What is the quality score of 605177?
Zhejiang East Asia Pharmaceutical Co. Ltd. has a Quality Score of 39/100. 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 East Asia Pharmaceutical Co. Ltd. (605177)?
Zhejiang East Asia Pharmaceutical Co. Ltd. reported trailing-twelve-month revenue of about 1.0B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 605177?
The net profit margin of Zhejiang East Asia Pharmaceutical Co. Ltd. is about -10.9%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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