Announcement • Jun 02
Haisco Pharmaceutical Group Receives U.S. FDA Marketing Approval For Cipepofol (CYPSEDO) Injection Haisco Pharmaceutical Group has officially received marketing approval from the U.S. Food and Drug Administration (FDA) for Cipepofol (CYPSEDO) Injection, a Class 1 innovative intravenous anesthetic independently developed by Haisco Pharmaceutical Group, becoming the first China-originated innovative intravenous anesthetic to enter the global market. Cipepofol (Chinese trade name: Sishuning) is China's first independently developed Class 1 innovative intravenous anesthetic with global independent intellectual property rights. It has been approved in China for sedation and anesthesia in non-tracheal intubation surgeries/procedures, induction and maintenance of general anesthesia, and sedation during mechanical ventilation in the intensive care unit. In September 2025, its approval was further expanded to include the induction and maintenance of general anesthesia in children and adolescents. The development of Cipepofol dates back to 2012. Haisco's R&D team tackled numerous challenges to refine the molecular structure. By introducing a chiral cyclopropyl group and conducting thousands of screenings and safety evaluations, they successfully developed a Class 1 new drug that demonstrated favorable efficacy and safety profiles. Results from clinical studies conducted both domestically and internationally showed that, while retaining the advantages of rapid onset and complete recovery, Cipepofol significantly reduced the incidence of intraoperative respiratory depression and cardiovascular adverse reactions, as well as injection pain. With a lower risk of respiratory depression, more stable hemodynamics, milder injection pain, and individualized care for elderly and pediatric patients, Cipepofol not only makes "comfortable treatment" more compassionate—directly addressing patients' desire for a pain-free anesthesia induction and reducing their fear of surgery—but also substantially enhances the comfort and safety of the diagnosis and treatment process on both physiological and psychological levels, while greatly improving the accuracy and success rate of physicians' diagnoses and treatments. In December 2020, Cipepofol was officially approved for marketing by the National Medical Products Administration (NMPA), ushering in a new chapter in clinical comfortable anesthesia. Subsequently, multiple indications were approved in succession, including induction of general anesthesia, fiberoptic bronchoscopy, and sedation during intensive care. In September 2025, the dosage and administration for the induction and maintenance of general anesthesia in children and adolescents were approved, further broadening its clinical application scenarios. As of May 2026, Cipepofol has been incorporated into the recommendations of over 20 guidelines and consensus documents, as well as into textbooks for higher education under China's 14th Five-Year Plan, and has been included in the National Reimbursement Drug List (NRDL). To date, it has been adopted by over 3,300 medical institutions, cumulatively benefiting more than 40 million patient visits. After receiving FDA clearance to conduct clinical trials in 2021, Cipepofol was granted a waiver for Phase II trials in the United States and advanced directly to pivotal Phase III trials. All clinical studies were completed in 2024, yielding superior results in a head-to-head comparison against the standard of care. In July 2025, the New Drug Application (NDA) for Cipepofol was formally accepted by the U.S. FDA. Haisco is actively advancing its commercialization in the United States and other regions through collaborations. The company will also consider initiating a marketing authorization application in Europe at an appropriate time. Declared Dividend • May 11
Dividend of CN¥0.27 announced Shareholders will receive a dividend of CN¥0.27. Ex-date: 15th May 2026 Payment date: 15th May 2026 Dividend yield will be 0.5%, which is lower than the industry average of 1.9%. Sustainability & Growth Dividend is well covered by both earnings (39% earnings payout ratio) and cash flows (37% cash payout ratio). The dividend has increased by an average of 2.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 41% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Apr 24
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 14% to CN¥57.72. The fair value is estimated to be CN¥47.55, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 17% per annum. Earnings are also forecast to grow by 32% per annum over the same time period. Major Estimate Revision • Apr 22
Consensus EPS estimates fall by 33% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥6.53b to CN¥5.89b. EPS estimate also fell from CN¥1.27 per share to CN¥0.855 per share. Net income forecast to grow 269% next year vs 23% growth forecast for Pharmaceuticals industry in China. Consensus price target of CN¥99.43 unchanged from last update. Share price was steady at CN¥58.39 over the past week. Price Target Changed • Apr 14
Price target increased by 12% to CN¥99.43 Up from CN¥88.53, the current price target is provided by 1 analyst. New target price is 70% above last closing price of CN¥58.48. Stock is up 29% over the past year. The company is forecast to post earnings per share of CN¥1.27 for next year compared to CN¥0.23 last year. New Risk • Apr 14
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 41% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (116% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.9% net profit margin). Announcement • Apr 13
Haisco Pharmaceutical Group Co., Ltd., Annual General Meeting, May 06, 2026 Haisco Pharmaceutical Group Co., Ltd., Annual General Meeting, May 06, 2026, at 14:00 China Standard Time. Location: 3F, Office Building, No. 136, Baili Road, Cross-Strait Science and Technology Industrial Development Park, Wenjiang District, Chengdu, Sichuan China Reported Earnings • Apr 12
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.23 (down from CN¥0.35 in FY 2024). Revenue: CN¥4.39b (up 18% from FY 2024). Net income: CN¥259.6m (down 34% from FY 2024). Profit margin: 5.9% (down from 11% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 51%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 31
Haisco Pharmaceutical Group Co., Ltd. to Report Q1, 2026 Results on Apr 27, 2026 Haisco Pharmaceutical Group Co., Ltd. announced that they will report Q1, 2026 results on Apr 27, 2026 Announcement • Dec 31
Haisco Pharmaceutical Group Co., Ltd. to Report Fiscal Year 2025 Results on Apr 13, 2026 Haisco Pharmaceutical Group Co., Ltd. announced that they will report fiscal year 2025 results on Apr 13, 2026 Board Change • Dec 12
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 2 highly experienced directors. Chairman Jun Min Wang is the most experienced director on the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. New Risk • Oct 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 7.2% Last year net profit margin: 13% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (203% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.2% net profit margin). Announcement • Sep 30
Haisco Pharmaceutical Group Co., Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Haisco Pharmaceutical Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Reported Earnings • Aug 23
Second quarter 2025 earnings released: EPS: CN¥0.084 (vs CN¥0.068 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.084 (up from CN¥0.068 in 2Q 2024). Revenue: CN¥1.11b (up 19% from 2Q 2024). Net income: CN¥82.2m (up 13% from 2Q 2024). Profit margin: 7.4% (down from 7.8% in 2Q 2024). Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 02
Haisco Pharmaceutical Group Co., Ltd. to Report First Half, 2025 Results on Aug 23, 2025 Haisco Pharmaceutical Group Co., Ltd. announced that they will report first half, 2025 results on Aug 23, 2025 New Risk • Jun 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (8.2% average weekly change). Large one-off items impacting financial results. Declared Dividend • May 12
Dividend of CN¥0.14 announced Shareholders will receive a dividend of CN¥0.14. Ex-date: 15th May 2025 Payment date: 15th May 2025 Dividend yield will be 1.0%, which is lower than the industry average of 1.9%. Sustainability & Growth Dividend is not covered by earnings (134% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.2% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 49% to bring the payout ratio under control. EPS is expected to grow by 141% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Apr 15
Haisco Pharmaceutical Group Co., Ltd. Proposes Final Cash Dividend for the Year 2024 Haisco Pharmaceutical Group Co., Ltd. proposed final cash dividend/10 shares (tax included) of CNY 1.35000000 for the year 2024. Announcement • Apr 14
Haisco Pharmaceutical Group Co., Ltd., Annual General Meeting, May 06, 2025 Haisco Pharmaceutical Group Co., Ltd., Annual General Meeting, May 06, 2025, at 14:00 China Standard Time. Location: 3F, Office Building, No. 136, Baili Road, Cross-Strait Science and Technology Industrial Development Park, Wenjiang District, Chengdu, Sichuan China New Risk • Apr 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 111% Paying a dividend despite having no free cash flows. Minor Risk Large one-off items impacting financial results. Reported Earnings • Apr 12
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.35 (up from CN¥0.27 in FY 2023). Revenue: CN¥3.72b (up 11% from FY 2023). Net income: CN¥395.5m (up 34% from FY 2023). Profit margin: 11% (up from 8.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.6%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 49% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Apr 08
Now 23% undervalued Over the last 90 days, the stock has risen 30% to CN¥40.46. The fair value is estimated to be CN¥52.36, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 14%. Revenue is forecast to grow by 57% in 2 years. Earnings are forecast to grow by 93% in the next 2 years. Announcement • Mar 31
Haisco Pharmaceutical Group Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Haisco Pharmaceutical Group Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Announcement • Feb 28
Haisco Pharmaceutical Group Co., Ltd. announced that it expects to receive CNY 1.3652567 billion in funding Haisco Pharmaceutical Group Co., Ltd. announced a private placement of not more than 70,000,000 A shares for the gross proceeds of CNY 1,365,256,700 on February 27, 2025. The transaction will include participation from not more than 35 specific investors. The shares will not be transferrable within 6 months from the date of completion of the issuance. The transaction has been approved by the shareholders of the company in the 24th meeting of the 5th board of directors and the 13th meeting of the 5th supervisory board. The transaction is subjected to approval by the company's general meeting of shareholders, review and approval by the Shenzhen Stock Exchange, and registration consent by the China Securities Regulatory Commission. The validity for the approval is of 12 months from the date the company's general meeting of shareholders approves the relevant proposals for this issuance. New Risk • Feb 12
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 111% Cash payout ratio: 309% Dividend yield: 0.9% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 111% Cash payout ratio: 309% Minor Risk Large one-off items impacting financial results. Announcement • Jan 18
Haisco Pharmaceutical Group Co., Ltd. Approves Profit Distribution Plan for Third Quarter 2024, Payable on 24 January 2025 Haisco Pharmaceutical Group Co., Ltd. at the Extraordinary General Meeting held on 15 January 2025 approved 2024 third quarter profit distribution plan. Cash dividend per 10 shares (A shares): (tax included) of CNY 1.35000000. Record date: 23 January 2025; Ex-date: 24 January 2025; Payment date: 24 January 2025. Announcement • Jan 02
Haisco Pharmaceutical Group Co., Ltd. Proposes Dividend for Third Quarter of 2024 Haisco Pharmaceutical Group Co., Ltd. proposed Cash dividend/10 shares (tax included) of CNY1.35000000 for third quarter of 2024. Announcement • Dec 31
Haisco Pharmaceutical Group Co., Ltd. to Report Fiscal Year 2024 Results on Apr 12, 2025 Haisco Pharmaceutical Group Co., Ltd. announced that they will report fiscal year 2024 results on Apr 12, 2025 Price Target Changed • Nov 05
Price target increased by 17% to CN¥42.38 Up from CN¥36.19, the current price target is provided by 1 analyst. New target price is 16% above last closing price of CN¥36.65. Stock is up 49% over the past year. The company is forecast to post earnings per share of CN¥0.41 for next year compared to CN¥0.27 last year. New Risk • Oct 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (332% cash payout ratio). Large one-off items impacting financial results. Reported Earnings • Oct 30
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: CN¥0.19 (up from CN¥0.11 in 3Q 2023). Revenue: CN¥1.06b (up 5.0% from 3Q 2023). Net income: CN¥217.1m (up 73% from 3Q 2023). Profit margin: 20% (up from 12% in 3Q 2023). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 9.9%. Earnings per share (EPS) exceeded analyst estimates by 138%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 30
Haisco Pharmaceutical Group Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Haisco Pharmaceutical Group Co., Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Announcement • Sep 10
Haisco Pharmaceutical Group Co., Ltd. Announces Interim Cash Dividend on A Shares for the Year 2024, Payable on 18 September 2024 Haisco Pharmaceutical Group Co., Ltd. announced interim cash dividend of CNY 1.45 per 10 shares on A shares (tax included) for the year 2024. Record date: 13 September 2024, Ex-date: 18 September 2024 and Payment date: 18 September 2024. Announcement • Sep 07
Haisco Pharmaceutical Group Co., Ltd. Interim Cash Dividend for 2024 Haisco Pharmaceutical Group Co., Ltd. at the Extraordinary General Meeting of 2024 on 05 September 2024 approved 2024 interim profit distribution plan. The detailed profit distribution plan is as follows: Cash dividend per 10 shares (tax included) of CNY 1.45000000. Major Estimate Revision • Aug 22
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from CN¥0.417 to CN¥0.36 per share. Revenue forecast steady at CN¥3.98b. Net income forecast to grow 29% next year vs 30% growth forecast for Pharmaceuticals industry in China. Consensus price target down from CN¥36.19 to CN¥34.94. Share price rose 3.8% to CN¥30.04 over the past week. Announcement • Aug 17
Haisco Pharmaceutical Group Co., Ltd. Proposes Interim Dividend for the First Half of 2024 Haisco Pharmaceutical Group Co., Ltd. proposed interim cash dividend of CNY 1.45000000 per 10 shares (tax included) for the first half of 2024. Reported Earnings • Aug 16
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: CN¥0.068 (up from CN¥0.037 in 2Q 2023). Revenue: CN¥934.5m (up 25% from 2Q 2023). Net income: CN¥72.8m (up 57% from 2Q 2023). Profit margin: 7.8% (up from 6.2% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Jun 29
Haisco Pharmaceutical Group Co., Ltd. to Report First Half, 2024 Results on Aug 16, 2024 Haisco Pharmaceutical Group Co., Ltd. announced that they will report first half, 2024 results on Aug 16, 2024 New Risk • Apr 21
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 346% Dividend yield: 0.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (346% cash payout ratio). Large one-off items impacting financial results. Announcement • Apr 21
Haisco Pharmaceutical Group Co., Ltd., Annual General Meeting, May 15, 2024 Haisco Pharmaceutical Group Co., Ltd., Annual General Meeting, May 15, 2024, at 14:00 China Standard Time. Reported Earnings • Apr 20
Full year 2023 earnings released: EPS: CN¥0.27 (vs CN¥0.26 in FY 2022) Full year 2023 results: EPS: CN¥0.27 (up from CN¥0.26 in FY 2022). Revenue: CN¥3.36b (up 11% from FY 2022). Net income: CN¥295.1m (up 6.5% from FY 2022). Profit margin: 8.8% (down from 9.2% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Mar 30
Haisco Pharmaceutical Group Co., Ltd. to Report Q1, 2024 Results on Apr 20, 2024 Haisco Pharmaceutical Group Co., Ltd. announced that they will report Q1, 2024 results on Apr 20, 2024 Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥23.48, the stock trades at a forward P/E ratio of 64x. Average forward P/E is 17x in the Pharmaceuticals industry in China. Total returns to shareholders of 15% over the past three years. Announcement • Dec 30
Haisco Pharmaceutical Group Co., Ltd. to Report Fiscal Year 2023 Results on Apr 18, 2024 Haisco Pharmaceutical Group Co., Ltd. announced that they will report fiscal year 2023 results on Apr 18, 2024 New Risk • Nov 06
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 23% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.031 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.11 (up from CN¥0.031 in 3Q 2022). Revenue: CN¥1.01b (up 19% from 3Q 2022). Net income: CN¥125.7m (up 278% from 3Q 2022). Profit margin: 12% (up from 3.9% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Aug 29
Haisco Pharmaceutical Group Co., Ltd. Announces Management Changes Haisco Pharmaceutical Group Co., Ltd. at its 2nd Extraordinary General Meeting of 2023 on 25 August 2023, during which the following proposal(s) was/were approved: Election and nomination of non-independent directors, cumulative voting system applicable: Wang Junmin, Fan Xiulian, Zheng Wei, Yan Pangke. Election and nomination of independent directors, cumulative voting system applicable: Yue Lin and Cao Chuande. Election of shareholder supervisors, cumulative voting system applicable: Liang Yuan and Sun Tao. Reported Earnings • Aug 17
Second quarter 2023 earnings released: EPS: CN¥0.037 (vs CN¥0.052 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.037. Revenue: CN¥746.1m (up 8.9% from 2Q 2022). Net income: CN¥46.3m (up 6.2% from 2Q 2022). Profit margin: 6.2% (down from 6.4% in 2Q 2022). The decrease in margin was driven by higher expenses. New Risk • Aug 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 3.4% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Reported Earnings • Apr 18
Full year 2022 earnings released: EPS: CN¥0.26 (vs CN¥0.32 in FY 2021) Full year 2022 results: EPS: CN¥0.26 (down from CN¥0.32 in FY 2021). Revenue: CN¥3.02b (up 8.7% from FY 2021). Net income: CN¥277.0m (down 20% from FY 2021). Profit margin: 9.2% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Jun Le was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.031 (vs CN¥0.043 loss in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.031 (up from CN¥0.043 loss in 3Q 2021). Revenue: CN¥849.4m (up 34% from 3Q 2021). Net income: CN¥33.2m (up CN¥78.4m from 3Q 2021). Profit margin: 3.9% (up from net loss in 3Q 2021). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • Aug 17
Second quarter 2022 earnings released: EPS: CN¥0.052 (vs CN¥0.031 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.052 (up from CN¥0.031 in 2Q 2021). Revenue: CN¥685.3m (up 25% from 2Q 2021). Net income: CN¥43.6m (up 32% from 2Q 2021). Profit margin: 6.4% (up from 6.0% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 46%, compared to a 23% growth forecast for the Pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Jun 29
Haisco Pharmaceutical Group Co., Ltd. Announces 2021 Final Profit Cash Distribution Plan to Be Implemented (A Shares), Payable on 05 July 2022 Haisco Pharmaceutical Group Co., Ltd. announced 2021 final profit distribution plan to be implemented (A shares) of Cash dividend/10 shares (tax included): CNY 1.85185500. Record date: 04 July 2022. Ex-date: 05 July 2022. Payment date: 05 July 2022. Announcement • May 20
Haisco Pharmaceutical Group Co., Ltd. Approves Final Cash Dividend for 2021 Haisco Pharmaceutical Group Co., Ltd. at the AGM, the shareholders approved a final cash dividend per 10 shares (tax included) of CNY 1.85000000 for 2021. Announcement • May 10
Haisco Pharmaceutical Group Co., Ltd. announced that it expects to receive CNY 35 million in funding from Haisco Holdings Pte. Ltd., Haisight Holdings PTE.LTD. Haisco Pharmaceutical Group Co., Ltd. announced that it will receive CNY 358,000,000 in a round of funding on May 9, 2022. The transaction will include participation from Haisco Holdings Pte. Ltd. for CNY 286,400,000 to retain 80% stake in the company and Haisight Holdings PTE.LTD. for CNY 71,600,000 to retain 20% stake in the company. The capital increase will be fully included in the capital reserve, and the shareholding ratio held by the company. The transaction has been approved at the 36th meeting of the 4th board of directors of the company and still needs to be approved by the general meeting of shareholders. Announcement • Apr 28
Haisco Pharmaceutical Group Co., Ltd. Proposes Final Cash Dividend for 2021 Haisco Pharmaceutical Group Co., Ltd. proposed final cash dividend per 10 shares (tax included) of CNY 1.85000000 for 2021. Reported Earnings • Apr 28
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.32 (down from CN¥0.59 in FY 2020). Revenue: CN¥2.77b (down 17% from FY 2020). Net income: CN¥345.1m (down 46% from FY 2020). Profit margin: 12% (down from 19% in FY 2020). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) exceeded analyst estimates by 10%. Over the next year, revenue is forecast to grow 25%, compared to a 26% growth forecast for the pharmaceuticals industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 6 experienced directors. No highly experienced directors. Independent Director Jun Le is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorated over the past week After last week's 20% share price decline to CN¥17.30, the stock trades at a forward P/E ratio of 51x. Average forward P/E is 22x in the Pharmaceuticals industry in China. Total returns to shareholders of 81% over the past three years. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.031 (vs CN¥0.09 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥548.1m (down 37% from 2Q 2020). Net income: CN¥33.0m (down 67% from 2Q 2020). Profit margin: 6.0% (down from 12% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 29
First quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.12 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥728.1m (up 24% from 1Q 2020). Net income: CN¥287.3m (up 124% from 1Q 2020). Profit margin: 40% (up from 22% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS CN¥0.59 (vs CN¥0.46 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: CN¥3.33b (down 15% from FY 2019). Net income: CN¥636.6m (up 29% from FY 2019). Profit margin: 19% (up from 13% in FY 2019). Post-clinical trial products Approved (during full year): 5 Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 30% per year. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥27.65, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 25x in the Pharmaceuticals industry in China. Total returns to shareholders of 147% over the past three years. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥23.39, the stock is trading at a trailing P/E ratio of 48.8x, up from the previous P/E ratio of 42.2x. This compares to an average P/E of 30x in the Pharmaceuticals industry in China. Total returns to shareholders over the past three years are 113%. Is New 90 Day High Low • Mar 05
New 90-day high: CN¥22.12 The company is up 7.0% from its price of CN¥20.59 on 04 December 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Pharmaceuticals industry, which is down 2.0% over the same period. Announcement • Mar 03
Starton Therapeutics Inc. and Haisco Pharmaceutical Group Co., Ltd. Enter into Exclusive Licensing Agreement to Develop and Commercialize STAR-OLZ for Nausea and Vomiting in China Starton Therapeutics Inc. and Haisco Pharmaceutical Group Co., Ltd. announced that they have entered into an exclusive licensing agreement for the development and commercialization of STAR-OLZ, a once-weekly transdermal olanzapine delivery system in development for Nausea and Vomiting, in Mainland China. Starton and Haisco are preparing to launch clinical studies in chemotherapy induced nausea and vomiting (CINV), followed by additional nausea and vomiting indications. Starton has completed a human bioavailability study with STAR-OLZ, which successfully delivered therapeutic blood levels and displayed acceptable tolerability. Under the terms of the agreement, Starton will receive an undisclosed upfront cash payment and is eligible to receive additional development and regulatory milestone payments, plus double-digit royalties on annual net sales of STAR-OLZ in the territory. Haisco will be responsible for developing and commercializing STAR-OLZ in China. Announcement • Feb 24
Haisco Pharmaceutical Group Co., Ltd. to Report Fiscal Year 2020 Results on Mar 26, 2021 Haisco Pharmaceutical Group Co., Ltd. announced that they will report fiscal year 2020 results on Mar 26, 2021 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥20.89, the stock is trading at a trailing P/E ratio of 43.5x, up from the previous P/E ratio of 36x. This compares to an average P/E of 28x in the Pharmaceuticals industry in China. Total returns to shareholders over the past three years are 123%. Is New 90 Day High Low • Jan 04
New 90-day low: CN¥17.25 The company is down 20% from its price of CN¥21.61 on 30 September 2020. The Chinese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 2.0% over the same period. Is New 90 Day High Low • Dec 16
New 90-day low: CN¥19.06 The company is down 18% from its price of CN¥23.17 on 17 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 2.0% over the same period. Is New 90 Day High Low • Nov 09
New 90-day low: CN¥21.43 The company is down 21% from its price of CN¥27.02 on 11 August 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 12% over the same period. Major Estimate Revision • Nov 05
Analysts update estimates The 2020 consensus revenue estimate was lowered from CN¥4.36b to CN¥3.48b. Earning per share (EPS) estimate received an upgrade, with analysts raising their estimates from CN¥0.53 to CN¥0.64 for the same period. Net income is expected to grow by 54% next year compared to 32% growth forecast for the Pharmaceuticals industry in China. The consensus price target of CN¥29.05 was unchanged from the last update. Share price is down by 5.5% to CN¥22.10 over the past week. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥513.4m, up 24% from the prior year. Total revenue was CN¥3.33b over the last 12 months, down 23% from the prior year. Announcement • Oct 02
Wang Junmin and Fan Xiulian intends to acquire 63.41% stake in Chengdu Sailanuo Medical Technology Co., Ltd. from Haisco Pharmaceutical Group Co., Ltd. (SZSE:002653) for approximately CNY 320 million. Wang Junmin and Fan Xiulian intends to acquire 63.41% stake in Chengdu Sailanuo Medical Technology Co., Ltd. from Haisco Pharmaceutical Group Co., Ltd. (SZSE:002653) for approximately CNY 320 million on September 30, 2020. Of the total consideration of CNY 322 million, Wang Junmin will pay CNY 193 million while Fan Xiulian will pay CNY 128million within 2 months from the effective date of this agreement. Wang Junmin and Fan Xiulian will acquire 38.05% and 25.36% stake of Chengdu Sailanuo Medical Technology respectively. In July 31, 2020, Chengdu Sailanuo Medical Technology reported a total assets of CNY 119 million, total common equity of CNY 91.9 million, EBIT of CNY -52.7 million and negative net income of 52.7 million. The transaction was approved by the Board of Haisco Pharmaceutical Group. Is New 90 Day High Low • Sep 24
New 90-day low: CN¥21.91 The company is down 16% from its price of CN¥26.10 on 24 June 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 6.0% over the same period. Announcement • Sep 17
Haisco Pharmaceutical Group Co., Ltd. announced that it expects to receive CNY 820.7371 million in funding Haisco Pharmaceutical Group Co., Ltd. (SZSE:002653) announced a private placement of not more than 40,000,000 A shares for gross proceeds not more than CNY 820,737,100 on September 11, 2020. The transaction will involve participation from not more than 35 investors, including securities investment fund management companies, securities companies, trust companies, finance companies, insurance institutional investors, qualified foreign institutional investors, and other relevant Legal persons, natural persons or other institutional investors whose conditions are stipulated by laws and regulations. The pricing base date of the transaction is the first day of the issuance period. The issuance price shall not be lower than 80% of the average price of the company’s stock trading on the 20 trading days prior to the pricing base date. During the period from the pricing base date to the issuance date, if the company has ex-rights and ex-dividends such as dividends, bonus shares, capitalization of capital reserves, and others, the issue price of the transaction will be adjusted accordingly. The issuance under the current transaction is no more than 3.72% of the company's total share capital before the issuance. The transaction has been approved at the 10th meeting of the 4th board of directors of the company, and is subject to be reviewed and approved by the company’s shareholders meeting and by the China Securities Regulatory Commission. The shares issued in the transaction will be subject to a hold period of 6 months from the date of completion of the issuance. The validity period of the resolution of this non-public issuance of stocks is 12 months from the date when the company’s general meeting of shareholders considers and approves the relevant proposals for the transaction. Announcement • Jul 24
Haisco Pharmaceutical Group Co., Ltd. to Report First Half, 2020 Results on Aug 19, 2020 Haisco Pharmaceutical Group Co., Ltd. announced that they will report first half, 2020 results on Aug 19, 2020