Cathay Biotech Inc (688065) Fair Value & Analysis

Basic Materials · CN · Market cap 32.6B CNY

Below-average quality, and screening another 77% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥15.55). The favourable scenario is already priced in.
• Weak quality (34/100) and above fair value at the same time, the margin of safety is missing on both counts.
• A fairly wide model range (¥8.50 to ¥15.55) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

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 ¥32.53 – ¥132.96 · fair‑value band ¥8.50 – ¥15.55 · the ¥48.95 price screens above the ¥11.33 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Cathay Biotech Inc (688065) currently trades at ¥48.95, while our model-based Fair Value estimate is ¥11.33, implying the stock looks roughly 76.9% overvalued today. The Quality Score stands at 34/100 (below-average quality), in the Basic Materials 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: medium).

Over the trailing twelve months, Cathay Biotech Inc generated revenue of 3.4B CNY at a net margin of 17.4%. Revenue grew 12.7% year over year. It earns a return on equity of 2.7%. The balance sheet holds a net cash position of 3.5B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥8.50 (bear case) to ¥15.55 (bull case); at ¥48.95, 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 24% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at -77%, 688065 screens richer 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.

Widest divergence: Economic Profit (¥20.58) versus Dividend Discount (¥6.99). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Cathay Biotech Inc., together with its subsidiaries, engages in the research, development, production, and sale of bio-based materials in China and internationally. The company offers biological long-chain diacids, including sebacic acid and octadecanedioic acid; bio-based polyamides; and bio-based pentamethylene diamine under the TERRYL and ECOPENT brands.

Full company description

Cathay Biotech Inc., together with its subsidiaries, engages in the research, development, production, and sale of bio-based materials in China and internationally. The company offers biological long-chain diacids, including sebacic acid and octadecanedioic acid; bio-based polyamides; and bio-based pentamethylene diamine under the TERRYL and ECOPENT brands. It also provides digital solutions for electrification, automation, and digitization for biological manufacturing. The company's products are used in textiles, pharmaceuticals, perfumes, automobiles, electronic appliances, consumer goods, engineering materials, and other industries. It exports its products. The company was incorporated in 2000 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Cathay Biotech Inc reported revenue of ¥3.3B in FY2025 versus ¥2.4B in FY2021, a compound +8.7%/yr. Reported net income was ¥566M in FY2025, compounding −1.2%/yr from FY2021.

688065 screens 77% overvalued. Compare with BASF SE →

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.

Valuation Multiples vs Chemicals median · lower = cheaper

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 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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.