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Zhejiang Medicine Co Ltd
SSE:600216

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Zhejiang Medicine Co Ltd
SSE:600216
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Price: 14.61 CNY 0.34%
Market Cap: ¥14B

P/OCF

8.4
Current
38%
Cheaper
vs 3-y average of 13.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
8.4
=
Market Cap
¥14B
/
Operating Cash Flow
¥1.7B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
8.4
=
Market Cap
¥14B
/
Operating Cash Flow
¥1.7B

Valuation Scenarios

Zhejiang Medicine Co Ltd is trading below its 3-year average

If P/OCF returns to its 3-Year Average (13.5), the stock would be worth ¥23.55 (61% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+199%
Average Upside
111%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 8.4 ¥14.61
0%
3-Year Average 13.5 ¥23.55
+61%
5-Year Average 13.7 ¥23.93
+64%
Industry Average 25 ¥43.71
+199%
Country Average 18.3 ¥31.91
+118%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
CN
Zhejiang Medicine Co Ltd
SSE:600216
14B CNY 8.4 18.7
US
Eli Lilly and Co
NYSE:LLY
825.8B USD 49.1 40
US
Johnson & Johnson
NYSE:JNJ
548.5B USD 22.4 26.1
CH
Roche Holding AG
SIX:ROG
248.4B CHF 13.7 20.1
UK
AstraZeneca PLC
LSE:AZN
215.6B GBP 19.6 27.9
CH
Novartis AG
SIX:NOVN
218.9B CHF 14.3 19.6
US
Merck & Co Inc
NYSE:MRK
272.3B USD 16.5 14.9
IE
Endo International PLC
LSE:0Y5F
244.4B USD 907.7 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 9.9 11.5
US
Pfizer Inc
NYSE:PFE
150.6B USD 12.9 19.4
US
Bristol-Myers Squibb Co
NYSE:BMY
117.3B USD 8.3 16.6
P/E Multiple
Earnings Growth PEG
CN
Zhejiang Medicine Co Ltd
SSE:600216
Average P/E: 21.5
18.7
N/A N/A
US
Eli Lilly and Co
NYSE:LLY
40
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
26.1
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
27.9
25%
1.1
CH
Novartis AG
SIX:NOVN
19.6
14%
1.4
US
Merck & Co Inc
NYSE:MRK
14.9
14%
1.1
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
11.5
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.4
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
16.6
16%
1

Market Distribution

Lower than 74% of companies in China
Percentile
26th
Based on 6 232 companies
26th percentile
8.4
Low
0.2 — 9.8
Typical Range
9.8 — 36.5
High
36.5 —
Distribution Statistics
China
Min 0.2
30th Percentile 9.8
Median 18.3
70th Percentile 36.5
Max 266 666.7

Zhejiang Medicine Co Ltd
Glance View

Market Cap
14B CNY
Industry
Pharmaceuticals

Zhejiang Medicine Co., Ltd., a stalwart in the pharmaceutical industry, traces its roots back to a time when China's economic landscape was rapidly transforming. Founded amidst the burgeoning wave of Chinese industrial expansion, the company made a calculated entry into the biopharmaceutical sector, a move that positioned it as an indispensable player in the realm of vitamins and antibiotics. Headquartered in the populous province of Zhejiang, the firm quickly honed its expertise in the manufacturing and export of fat-soluble vitamins, notably vitamin E, which became one of its hallmark products. Their robust production facilities and rigorous adherence to quality standards have not only fueled domestic demand but also secured a strong foothold in international markets, particularly Europe and the Americas. Zhejiang Medicine has crafted a diversified portfolio that spans active pharmaceutical ingredients (APIs) and advanced intermediates, offering a spectrum of products utilized by various health and pharmaceutical companies worldwide. A key revenue driver for the company lies in its vertical integration strategy, which enables it to maintain meticulous oversight over the entire production process, from raw materials to finished goods. The company’s commitment to R&D is evident in its investments in technology and innovation, allowing it to improve production efficiency and develop new compounds that cater to the evolving demands of the health sector. This approach not only insulates the company from market volatility but also fortifies its competitive position in a dynamic industry.

Intrinsic Value
15.95 CNY
Undervaluation 8%
Intrinsic Value
Price ¥14.61
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