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Edding Genor Group (6998) Fair Value & Analysis

Healthcare · HK · Market cap HK$3.5B

EG Edding Genor Group 6998 · HK
PriceHK$1.73
Fair ValueHK$3.75
Upside+117.3%
Quality40/100
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Mixed Growth
Solidly profitable · 16.1% net margin
Low debt · generates free cash flow
Ranks above peers (11/13)
Wide moat 66/100
Evidence: High Range HK$2.59 – HK$5.36 Share as image

Fair value as of: Aug 6, 2026

From 24 valuation models · updated 4 days ago

Share price −12.4% over the past month.

Below-average quality, screening 117% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$2.59). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (HK$2.59 to HK$5.36) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$18.80 HK$0.8800 Fair Value HK$3.75 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range HK$0.8800 – HK$18.80 · fair‑value band HK$2.59 – HK$5.36 · the HK$1.73 price screens below the HK$3.75 fair value. Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

Edding Genor Group (6998) currently trades at HK$1.73, while our model-based Fair Value estimate is HK$3.75, implying the stock looks roughly 117.3% undervalued today. The Quality Score stands at 40/100 (below-average 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, Edding Genor Group generated revenue of HK$2.5B at a net margin of 16.1%. Revenue grew 15.3% year over year. It earns a return on equity of 12.8%. Net debt stands at HK$431M. Fundamentals as of Aug 6, 2026

Our scenario range runs from HK$2.59 (bear case) to HK$5.36 (bull case); at HK$1.73, the current price sits below 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 69% below its 52-week high and 12% 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 117%, 6998 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
Growth DCF HK$2.30 HK$2.87 HK$3.80 80
Residual Income HK$1.72 HK$1.96 HK$3.61 76
Rev-Margin DCF HK$2.66 HK$3.90 HK$5.41 74
All 24 models by family
DCF Models
FCF DCF HK$2.22 HK$2.91 HK$4.14 38
Owner Earnings HK$3.27 HK$4.34 HK$6.26 31
5Y Revenue Exit HK$2.66 HK$3.85 HK$5.60 39
5Y EBITDA Exit HK$3.62 HK$5.52 HK$8.04 41
5Y P/E Exit HK$2.94 HK$4.34 HK$6.00 38
10Y Revenue Exit HK$2.39 HK$3.25 HK$4.19 36
10Y EBITDA Exit HK$3.04 HK$4.26 HK$5.59 37
10Y P/E Exit HK$2.63 HK$3.54 HK$4.42 35
Earnings-Based
Graham-Dodd HK$1.48 HK$1.81 HK$2.03 54
EPV HK$3.01 HK$3.43 HK$3.79 59
Dividend Discount
Gordon GGM HK$0.2000 HK$0.2200 HK$0.2500 70
DDM Multi-Stage HK$0.2000 HK$0.2500 HK$0.3200 61
Multiples
P/E Multiple HK$3.59 HK$4.78 HK$5.98 63
P/S Multiple HK$2.77 HK$3.69 HK$4.62 58
P/B Multiple HK$2.77 HK$3.69 HK$4.62 55
EV/EBIT HK$4.75 HK$6.22 HK$7.70 53
EV/EBITDA HK$5.26 HK$6.90 HK$8.54 54
EV/Revenue HK$3.19 HK$4.40 HK$5.62 43
Asset-Based
NCAV (Graham) HK$0.9700 HK$1.30 HK$1.94 50
Growth DCF
Growth DCF HK$2.30 HK$2.87 HK$3.80 80
Rev-Margin DCF HK$2.66 HK$3.90 HK$5.41 74
Economic Profit
Residual Income HK$1.72 HK$1.96 HK$3.61 76
ROIC Compounder HK$3.01 HK$3.53 HK$4.06 72
Growth Earnings
Growth-Adj P/E HK$2.53 HK$3.61 HK$4.69 68

Widest divergence: Multiples (HK$4.40) versus Dividend Discount (HK$0.2200). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.5B
Revenue growth (YoY) +15.3%
Net margin 16.1%
Return on equity 12.8%
Free cash flow HK$404M FY2025
P/E ratio 6.5
More key figures
Operating margin 26.4%
EPS (TTM) HK$-0.1000
EPS growth (YoY) +104%
Net debt HK$431M FY2025

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

Quality Score breakdown

Overall quality 40/100

Of which business quality 42 · Market factors (momentum, volatility) 12

Profitability 47
Margins and returns on capital today
Quality Growth 27
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 57
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 2
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 0
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

Edding Genor Group Holdings Limited, together with its subsidiaries, engages in the research, development, manufacturing, and distribution of biopharmaceutical products in China, the United States, and internationally.

Full company description

Edding Genor Group Holdings Limited, together with its subsidiaries, engages in the research, development, manufacturing, and distribution of biopharmaceutical products in China, the United States, and internationally. The company offers GB491, a differentiated CDK4/6 inhibitor for advanced or metastatic breast cancer; GB261, a novel CD3/CD20 bispecific antibody which is in Phase III clinical trial for autoimmune diseases; and GB263T and GB268, tri-specific antibody candidates which are Phase I clinical trial. It also provides Vancocin for multidrug-resistant gram-positive bacteria; Ceclor for mild to moderate community-acquired bacterial infections in children; Yirui Ping for nebulized inhalation therapy; Vascepa for cardiovascular risk reduction; Mulpleta for reducing bleeding risk; Jing Zhu Da for breast cancer treatment; Recormon for CRA indication; and three siRNA candidates for chronic disease treatment, as well as entinostat and lerociclib hydrochloride tablets. In addition, the company is involved in marketing, commercialization, and trading of pharmaceutical products; research and development of respiratory products; and consultancy and promotion services. Its products are used in oncology, autoimmune, cardiovascular, respiratory, and anti-infective therapeutic areas. Edding Genor Group Holdings Limited was founded in 2001 and is headquartered in Zhuhai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Edding Genor Group reported revenue of HK$2.7B in FY2025 versus HK$0 in FY2021. Reported net income was HK$433M in FY2025.

Growth Quality 83/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$2.7B
Latest YoY
−2.3%
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.
+426.1%
Avg. 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.
+197.3%
Avg. growth/yr (7Y) 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.
+129.1%
Revenue
FY21 HK$0
FY22 HK$18.5M
FY23 HK$0
FY24 HK$2.8B
FY25 HK$2.7B
Net income
FY21 −HK$1.0B
FY22 −HK$849M
FY23 −HK$745M
FY24 HK$421M
FY25 HK$433M

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Cite: Fair Value Calculator (2026). "Edding Genor Group Fair Value". https://www.fairvalue-calculator.com/stock/6998

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 40 · Bottom 25%
Fair Value upside +117% · Top 25%
Return on equity (TTM) 13% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 26% · Top 25%
Revenue growth 15% · Top 25%
Debt / equity 0.10× · Higher than median

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

P/E (TTM) 6.5× · Cheaper than 75% of peers
P/B 0.90× · Cheaper than median
P/S (TTM) 1.40× · Cheaper than median
P/FCF 1.1× · Cheaper than median
EV/EBITDA 3.3× · Cheaper than 75% of peers

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 100 · sector 6
FUTURE 77 · sector 20
PAST 51 · sector 24
HEALTH 95 · sector 97
DIVIDEND 0 · 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 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 Edding Genor Group (6998) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of HK$3.75 versus a price of HK$1.73, about +117% (undervalued).
What is the fair value of 6998?
Our model-based fair value for Edding Genor Group is HK$3.75 (as of Aug 6, 2026), built from audited fundamentals. The current price is HK$1.73.
What is the quality score of 6998?
Edding Genor Group has a Quality Score of 40/100. 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 Edding Genor Group (6998)?
Edding Genor Group reported trailing-twelve-month revenue of about HK$2.5B (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 6998?
The net profit margin of Edding Genor Group is about 16.1%, meaning it keeps roughly 16.1% 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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