| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.09 | 120 |
| Intrinsic value (DCF) | 3.47 | -71 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Teyi Pharmaceutical Group Co., Ltd. is a prominent Chinese pharmaceutical manufacturer specializing in both proprietary Chinese medicines and chemical preparations. Headquartered in Taishan, China, the company operates across the entire pharmaceutical value chain, from research and development to production and sales. Teyi's diverse product portfolio targets major therapeutic areas including cough and phlegm treatments, kidney medications, anti-infectives, cardiovascular drugs, and digestive system solutions. The company's chemical raw materials division produces essential compounds such as aluminum magnesium carbonate, phenytoin, ferrous sulfate, and various acid and salt formulations. Operating in China's rapidly growing pharmaceutical sector, Teyi leverages its dual expertise in traditional Chinese medicine and modern chemical pharmaceuticals to address the healthcare needs of the world's second-largest pharmaceutical market. With its comprehensive manufacturing capabilities and established distribution network, Teyi Pharmaceutical Group represents a significant player in China's specialized and generic drug manufacturing industry, contributing to the country's healthcare infrastructure while navigating the evolving regulatory landscape.
Teyi Pharmaceutical presents a high-risk, high-beta investment profile with concerning financial metrics. The company's beta of 2.44 indicates extreme volatility relative to the market, suggesting significant sensitivity to economic and sector-specific fluctuations. While the company maintains a modest market capitalization of approximately CNY 4.5 billion and generated CNY 687 million in revenue, its profitability appears strained with net income of only CNY 20.5 million, translating to a diluted EPS of CNY 0.04. More alarmingly, the negative operating cash flow of CNY -22.5 million combined with substantial capital expenditures of CNY -113.6 million raises liquidity concerns, despite a cash position of CNY 457 million against total debt of CNY 516 million. The modest dividend of CNY 0.05 per share provides some income, but investors should carefully weigh the company's financial stability against the growth potential in China's pharmaceutical market.
Teyi Pharmaceutical operates in the highly competitive Chinese pharmaceutical market, where it faces intense pressure from both domestic giants and specialized manufacturers. The company's competitive positioning is defined by its dual focus on proprietary Chinese medicines and chemical preparations, which provides some diversification but also spreads resources thin across different therapeutic areas and manufacturing technologies. Teyi's relatively small scale (CNY 687 million revenue) compared to industry leaders limits its R&D spending power and distribution reach, potentially hindering its ability to compete effectively in high-margin innovative drug segments. The company's negative operating cash flow and substantial capital expenditures suggest potential operational inefficiencies or aggressive expansion efforts that may not be yielding immediate returns. In China's pharmaceutical landscape, where regulatory changes, pricing pressures, and consolidation trends are reshaping the industry, Teyi's modest market capitalization and financial metrics position it as a niche player rather than a market leader. The company's strength lies in its established product portfolio in specific therapeutic categories and its chemical raw materials business, but it faces significant challenges in scaling operations, improving profitability, and competing with larger players who benefit from economies of scale and stronger R&D capabilities. The high beta of 2.44 further indicates that the market perceives Teyi as particularly vulnerable to sector-wide volatility and regulatory changes.