Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) EBIT: ¥762 Mil (TTM As of Mar. 2026)

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SHSE:603707 Nanjing King-Friend Biochemical Pharmaceutical Co Ltd SHSE:603707
65 GF Score
Price ¥7.55
GF Value ¥12.70
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Nanjing King-Friend Biochemical Pharmaceutical Co EBIT?

Nanjing King-Friend Biochemical Pharmaceutical Co SHSE:603707 -4.07% 65 EBIT is ¥762 Mil as of Mar. 2026. GuruFocus rates SHSE:603707 with a GF Score™ of 65/100 and a GF Value™ of ¥12.70 (Significantly Undervalued). The stock has 4 warning signs investors should review.

Nanjing King-Friend Biochemical Pharmaceutical Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was ¥114 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was ¥762 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nanjing King-Friend Biochemical Pharmaceutical Co's annualized ROC % for the quarter that ended in Mar. 2026 was 5.60%. Nanjing King-Friend Biochemical Pharmaceutical Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 9.74%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Nanjing King-Friend Biochemical Pharmaceutical Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.64%.

Nanjing King-Friend Biochemical Pharmaceutical Co  (SHSE:603707) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Nanjing King-Friend Biochemical Pharmaceutical Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=406.292 * ( 1 - 8.9% )/( (6732.27 + 6479.391)/ 2 )
=370.132012/6605.8305
=5.60 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10342.535 - 899.177 - ( 2711.088 - max(0, 3204.982 - 7519.889+2711.088))
=6732.27

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10693.222 - 826.653 - ( 3387.178 - max(0, 3478.586 - 7895.422+3387.178))
=6479.391

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Nanjing King-Friend Biochemical Pharmaceutical Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=456.336/( ( (1192.338 + max(3624.803, 0)) + (1176.99 + max(3371.71, 0)) )/ 2 )
=456.336/( ( 4817.141 + 4548.7 )/ 2 )
=456.336/4682.9205
=9.74 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1216.074 + 3264.858 + 79.424) - (899.177 + 0 + 36.376)
=3624.803

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1114.703 + 3030.361 + 109.119) - (826.653 + 0 + 55.82)
=3371.71

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Nanjing King-Friend Biochemical Pharmaceutical Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=762.499/11479.465
=6.64 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Nanjing King-Friend Biochemical Pharmaceutical Co EBIT Related Terms

Nanjing King-Friend Biochemical Pharmaceutical Co EBIT Historical Data

* Premium members only.

The historical data trend for Nanjing King-Friend Biochemical Pharmaceutical Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Nanjing King-Friend Biochemical Pharmaceutical Co EBIT Chart

Nanjing King-Friend Biochemical Pharmaceutical Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,295.97 1,243.22 -213.71 1,067.70 754.67

Nanjing King-Friend Biochemical Pharmaceutical Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 106.25 228.58 170.02 249.82 114.08

SHSE:603707 vs ZTS, UTHR: EBIT Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Nanjing King-Friend Biochemical Pharmaceutical Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Nanjing King-Friend Biochemical Pharmaceutical Co EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Nanjing King-Friend Biochemical Pharmaceutical Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Nanjing King-Friend Biochemical Pharmaceutical Co's EV-to-EBIT falls into.


SHSE:603707
65GF Score
Nanjing King-Friend Biochemical Pharmaceutical Co Ltd SHSE:603707
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Nanjing King-Friend Biochemical Pharmaceutical Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥762 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of ¥762 Mil mean?
Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) has a EBIT of ¥762 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Nanjing King-Friend Biochemical Pharmaceutical Co.
Is Nanjing King-Friend Biochemical Pharmaceutical Co's EBIT too high?
Nanjing King-Friend Biochemical Pharmaceutical Co's current EBIT is ¥762 Mil. Overall, Nanjing King-Friend Biochemical Pharmaceutical Co has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nanjing King-Friend Biochemical Pharmaceutical Co's EBIT compare to ZTS and UTHR?
Nanjing King-Friend Biochemical Pharmaceutical Co's EBIT of ¥762 Mil can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Drug Manufacturers company?
A good EBIT depends on the Drug Manufacturers industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Nanjing King-Friend Biochemical Pharmaceutical Co. Nanjing King-Friend Biochemical Pharmaceutical Co's current EBIT is ¥762 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanjing King-Friend Biochemical Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥12.70, compared to a current price of ¥7.55 — trading 40.6% below its estimated fair value. The current EBIT is ¥762 Mil. Nanjing King-Friend Biochemical Pharmaceutical Co's overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707), the current EBIT is ¥762 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) Overvalued in 2026?

Based on GuruFocus' analysis, Nanjing King-Friend Biochemical Pharmaceutical Co stock appears to be undervalued. The current stock price of ¥7.55 is trading 40.6% below its estimated GF Value™ of ¥12.70. GuruFocus considers Nanjing King-Friend Biochemical Pharmaceutical Co to be Significantly Undervalued.

Key valuation signals for SHSE:603707:

  • EBIT: ¥762 Mil
  • GF Value™: ¥12.70 vs. price of ¥7.55 (40.6% below fair value)
  • GF Score™: 65/100 with 4 warning signs

No single metric tells the full story. See the SHSE:603707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nanjing King-Friend Biochemical Pharmaceutical Co Business Description

Address 1/16 Xuefu Road, Nanjing High-Tech Zone, Nanjing, CHN, 210061
Nanjing King-Friend Biochemical Pharmaceutical Co Ltd is a China-based company engaged in the research and development, import and export of medicines and health products. The main products of the company are Heparin sodium and low molecular weight heparin. Geographically, the business activities are carried out through China and it exports the product mainly to the European and American countries.
65GF Score

Get the complete analysis for SHSE:603707

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥7.55
Price
¥12.70
GF Value