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Sunshine Lake Pharma Co (6887) Fair Value & Analysis

Healthcare · HK · Market cap HK$21.7B

SL Sunshine Lake Pharma Co 6887 · HK
PriceHK$36.00
Fair ValueHK$10.99
Upside-69.5%
Quality56/100
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Expensive Growth
Thin margins · 5.7% net margin
Low debt · generates free cash flow
Trails peers (5/13)
Narrow moat 41/100
Evidence: High Range HK$7.75 – HK$13.73 Share as image

Fair value as of: Aug 6, 2026

From 25 valuation models · updated 5 days ago

Fair value updated Aug 6, 2026, revised from HK$10.93 to HK$10.99 (+0.5%) since Jul 2, 2026. Share price −2.9% over the past month.

A solid business, but screening 69% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$13.73). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (12 months)

HK$59.90 HK$28.00 Fair Value HK$10.99 Aug 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 6, 2026.

How to read this chart

12‑month range HK$28.00 – HK$59.90 · fair‑value band HK$7.75 – HK$13.73 · the HK$36.00 price screens above the HK$10.99 fair value. As of Aug 6, 2026.

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Analysis

Sunshine Lake Pharma Co (6887) currently trades at HK$36.00, while our model-based Fair Value estimate is HK$10.99, implying the stock looks roughly 69.5% overvalued today. The Quality Score stands at 56/100 (solid 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: high).

Over the trailing twelve months, Sunshine Lake Pharma Co generated revenue of HK$4.8B at a net margin of 5.7%. Revenue grew 100.2% year over year. It earns a return on equity of 6.1%. Net debt stands at HK$2.6B. Fundamentals as of Aug 6, 2026

Our scenario range runs from HK$7.75 (bear case) to HK$13.73 (bull case); at HK$36.00, 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 42% below its 52-week high and 16% 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 -69%, 6887 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.

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
Growth DCF HK$5.28 HK$8.67 HK$14.24 80
Residual Income HK$6.06 HK$6.34 HK$6.55 76
Rev-Margin DCF HK$8.52 HK$15.11 HK$23.33 74
All 25 models by family
DCF Models
FCF DCF HK$5.28 HK$8.86 HK$14.86 38
5Y Revenue Exit HK$8.52 HK$15.34 HK$24.59 39
5Y EBITDA Exit HK$13.30 HK$24.93 HK$39.41 41
5Y P/E Exit HK$6.32 HK$10.94 HK$16.11 38
10Y Revenue Exit HK$7.03 HK$13.11 HK$22.33 36
10Y EBITDA Exit HK$10.49 HK$20.02 HK$34.39 37
10Y P/E Exit HK$5.92 HK$9.94 HK$15.43 35
Earnings-Based
Graham-Dodd HK$3.22 HK$13.43 HK$18.31 54
Lynch FV HK$3.40 HK$4.86 HK$6.31 50
PEG = 1.0 HK$3.40 HK$4.86 HK$6.31 46
EPV HK$8.60 HK$9.98 HK$11.18 59
Dividend Discount
Gordon GGM HK$9.31 HK$19.36 HK$30.72 70
DDM Multi-Stage HK$9.31 HK$16.33 HK$20.32 61
Multiples
P/E Multiple HK$7.09 HK$9.46 HK$11.82 63
P/S Multiple HK$6.03 HK$8.04 HK$10.05 58
P/B Multiple HK$6.03 HK$8.04 HK$10.05 55
EV/EBIT HK$15.15 HK$20.08 HK$25.01 53
EV/EBITDA HK$18.86 HK$25.02 HK$31.19 54
EV/Revenue HK$10.33 HK$14.60 HK$18.87 43
Asset-Based
NCAV (Graham) HK$3.77 HK$5.05 HK$7.54 50
Growth DCF
Growth DCF HK$5.28 HK$8.67 HK$14.24 80
Rev-Margin DCF HK$8.52 HK$15.11 HK$23.33 74
Economic Profit
Residual Income HK$6.06 HK$6.34 HK$6.55 76
ROIC Compounder HK$9.05 HK$12.00 HK$16.14 72
Growth Earnings
Growth-Adj P/E HK$5.64 HK$8.06 HK$10.47 68

Widest divergence: Dividend Discount (HK$16.33) versus Earnings-Based (HK$4.86). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$4.8B
Revenue growth (YoY) +100%
Net margin 5.7%
Return on equity 6.1%
Free cash flow HK$228M FY2025
P/E ratio 58.9
More key figures
Operating margin 17.6%
Net debt HK$2.6B FY2025

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 55 · Market factors (momentum, volatility) 29

Profitability 35
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 42
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 82
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

Sunshine Lake Pharma Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical products for the treatment of infectious diseases, chronic diseases, and oncology.

Full company description

Sunshine Lake Pharma Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical products for the treatment of infectious diseases, chronic diseases, and oncology. It offers Kewei for the treatment of influenza; Dongweien for the treatment of hepatitis C; and generic drugs for the treatment of infections caused by sensitive bacteria, namely Clarithromycin, Levofloxacin, and Moxifloxacin Hydrochlorid, as well as active pharmaceutical ingredients. The company also engages in the wholesale, retail, import, and export of drugs. The company was formerly known as Sunshine Lake Pharma Ltd. The company was incorporated in 2001 and is based in Dongguan, China.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Sunshine Lake Pharma Co reported revenue of HK$4.8B in FY2025 versus HK$3.8B in FY2022, a compound +8.1%/yr. Reported net income was HK$272M in FY2025.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$4.8B
Latest YoY
+19.8%
Avg. 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.
+8.1%
Revenue +8.1%/yr
FY22 HK$3.8B
FY23 HK$6.4B
FY24 HK$4.0B
FY25 HK$4.8B
Net income
FY22 −HK$1.2B
FY23 HK$185M
FY24 −HK$207M
FY25 HK$272M

6887 screens 69% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

Run the numbers yourself: free valuation calculators
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Sunshine Lake Pharma Co · Fair Value
HK$10.99 −69%Fair Value
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Cite: Fair Value Calculator (2026). "Sunshine Lake Pharma Co Fair Value". https://www.fairvalue-calculator.com/stock/6887

Peer Group

Drug Manufacturers - Specialty & Generic · 623 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 56 · Above median
Fair Value upside −70% · Bottom 25%
Return on equity (TTM) 6% · Above median
Return on assets 4% · Above median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 18% · Above median
Revenue growth 100% · Top 25%
Debt / equity 0.29× · Higher than 75% of peers

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

P/E (TTM) 58.9× · Pricier than 75% of peers
P/B 5.00× · Pricier than 75% of peers
P/S (TTM) 4.51× · Pricier than 75% of peers
P/FCF 12.1× · Pricier than 75% of peers
EV/EBITDA 19.6× · 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.

VALUE 0 · sector 6
FUTURE 100 · sector 20
PAST 25 · sector 24
HEALTH 85 · sector 97
DIVIDEND 0 · sector 34

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

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 Aug 6, 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 Sunshine Lake Pharma Co (6887) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of HK$10.99 versus a price of HK$36.00, about −69% (overvalued).
What is the fair value of 6887?
Our model-based fair value for Sunshine Lake Pharma Co is HK$10.99 (as of Aug 6, 2026), built from audited fundamentals. The current price is HK$36.00.
What is the quality score of 6887?
Sunshine Lake Pharma Co has a Quality Score of 56/100. 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 Sunshine Lake Pharma Co (6887)?
Sunshine Lake Pharma Co reported trailing-twelve-month revenue of about HK$4.8B (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 6887?
The net profit margin of Sunshine Lake Pharma Co is about 5.7%, meaning it keeps roughly 5.7% of revenue as net income. 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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