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Shandong Xinhua Pharmaceutical Co Ltd
SZSE:000756

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Shandong Xinhua Pharmaceutical Co Ltd
SZSE:000756
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Price: 14.27 CNY -0.42%
Market Cap: ¥9.8B

EV/EBIT

24.8
Current
4%
More Expensive
vs 3-y average of 23.8

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
24.8
=
Enterprise Value
¥10B
/
EBIT
¥390.8m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
24.8
=
Enterprise Value
¥10B
/
EBIT
¥390.8m

Valuation Scenarios

Shandong Xinhua Pharmaceutical Co Ltd is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (23.8), the stock would be worth ¥13.66 (4% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-6%
Maximum Upside
+16%
Average Upside
1%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 24.8 ¥14.27
0%
3-Year Average 23.8 ¥13.66
-4%
5-Year Average 24.6 ¥14.12
-1%
Industry Average 23.4 ¥13.47
-6%
Country Average 28.9 ¥16.6
+16%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
¥10B
/
Jan 2026
¥390.8m
=
24.8
Current
¥10B
/
Dec 2026
¥686.7m
=
14.6
Forward
¥10B
/
Dec 2027
¥710.9m
=
14.1
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
CN
Shandong Xinhua Pharmaceutical Co Ltd
SZSE:000756
9.8B CNY 24.8 34
US
Eli Lilly and Co
NYSE:LLY
820.3B USD 28.7 39.7
US
Johnson & Johnson
NYSE:JNJ
542.6B USD 21.2 25.8
CH
Roche Holding AG
SIX:ROG
248.4B CHF 13.4 20.1
UK
AstraZeneca PLC
LSE:AZN
216.7B GBP 21.9 28.1
CH
Novartis AG
SIX:NOVN
218.2B CHF 15.6 19.6
US
Merck & Co Inc
NYSE:MRK
272.8B USD 11.4 14.9
IE
Endo International PLC
LSE:0Y5F
244.4B USD 970 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 9.9 11.5
US
Pfizer Inc
NYSE:PFE
152.3B USD 10.1 19.6
US
Bristol-Myers Squibb Co
NYSE:BMY
116.3B USD 8.8 16.5

Market Distribution

In line with most companies in China
Percentile
45th
Based on 5 337 companies
45th percentile
24.8
Low
0 — 16.6
Typical Range
16.6 — 52.9
High
52.9 —
Distribution Statistics
China
Min 0
30th Percentile 16.6
Median 28.9
70th Percentile 52.9
Max 49 021

Shandong Xinhua Pharmaceutical Co Ltd
Glance View

Market Cap
9.8B CNY
Industry
Pharmaceuticals

In the industrious province of Shandong, China, Shandong Xinhua Pharmaceutical Co. Ltd. emerges as a notable player in the pharmaceutical landscape. Established in 1943, the company has grown into a comprehensive pharmaceutical enterprise with a significant presence both domestically and internationally. At its core, Shandong Xinhua is devoted to the research, development, and manufacture of active pharmaceutical ingredients (APIs), finished dosages, and chemical intermediates. The firm's strength lies in its diverse range of products, with pain management and anti-infectives being standout categories. Their strategic focus on innovation is evident in their state-of-the-art R&D facilities, which fuel continuous product development, ensuring they meet high regulatory standards and cater to evolving market demands. The journey of Shandong Xinhua is one of strategic evolution, with a steadfast commitment to quality and sustainability. This narrative is reflected in their robust revenue streams derived from both domestic sales and the lucrative export markets across over 50 countries. The company's business model hinges on creating value through efficient manufacturing processes and leveraging economies of scale, which enhances their competitive edge in the global market. With an eye on future growth, they've also been investing in digitalization to streamline operations and enhance productivity. As the pharmaceutical sector continues to expand, Shandong Xinhua Pharmaceutical Co. Ltd. is poised to capitalize on emerging opportunities, underpinned by its solid foundation and innovative thrust.

Intrinsic Value
16.75 CNY
Undervaluation 15%
Intrinsic Value
Price ¥14.27
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