The Discounted Cash Flow (DCF) valuation of Shanghai Shenqi Pharmaceutical Investment Management Co Ltd (600613.SS) is 4.25 CNY. With the latest stock price at 6.69 CNY, the upside of Shanghai Shenqi Pharmaceutical Investment Management Co Ltd based on DCF is -36.5%.

Is 600613.SS a buy or a sell?

Based on the latest price of 6.69 CNY and our DCF valuation, Shanghai Shenqi Pharmaceutical Investment Management Co Ltd (600613.SS) is a sell. Selling 600613.SS stocks now will result in a potential gain of 36.5%.

	Range	Selected
WACC / Discount Rate	7.3% - 10.0%	8.6%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	3.44 - 5.93	4.25
Upside	-48.6% - -11.4%	-36.5%

6.69 CNY

Stock Price

4.25 CNY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

600613.SS DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	2,049	2,162	2,205	2,311	2,398	2,446
% Growth	12%	6%	2%	5%	4%	2%

Cost of goods sold	(1,075)	(1,112)	(1,111)	(1,141)	(1,160)	(1,160)
% of Revenue	52%	51%	50%	49%	48%	47%

Selling, G&A expenses	(824)	(870)	(887)	(930)	(964)	(984)
% of Revenue	40%	40%	40%	40%	40%	40%

Research & Development	(30)	(32)	(32)	(34)	(35)	(36)
% of Revenue	1%	1%	1%	1%	1%	1%

Net interest & other expenses	(32)	(34)	(34)	(36)	(37)	(38)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(21)	(28)	(34)	(42)	(49)	(56)
Tax rate	25%	25%	25%	25%	25%	25%

Net profit	66	87	106	128	151	172
% Margin	3%	4%	5%	6%	6%	7%