Is There An Opportunity With China Resources Pharmaceutical Group Limited's (HKG:3320) 24% Undervaluation?
Jan 24
Hong Kong (HSI) Pharma Industry Analysis
UpdatedJan 29, 2023
DataAggregated Company Financials
Companies44
- 7D1.6%
- 3M28.8%
- 1Y3.4%
- YTD6.7%
In the last week, the Pharma industry is up 1.6%, with Hansoh Pharmaceutical Group up 2.9%. This takes the industry's 12 month performance to a gain of 3.4%. Looking forward, earnings are forecast to grow by 18% annually.
Industry Valuation and Performance
Has the Hong Kong Pharma Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 29 Jan 2023 | HK$645.5b | HK$447.3b | HK$35.6b | 10.8x | 18.1x | 1.4x |
| Tue, 27 Dec 2022 | HK$585.3b | HK$442.0b | HK$34.7b | 10.6x | 16.8x | 1.3x |
| Thu, 24 Nov 2022 | HK$576.4b | HK$437.1b | HK$33.9b | 9.2x | 17x | 1.3x |
| Sat, 22 Oct 2022 | HK$570.7b | HK$512.7b | HK$38.8b | 8.9x | 14.7x | 1.1x |
| Mon, 19 Sep 2022 | HK$528.7b | HK$518.6b | HK$40.6b | 9.2x | 13x | 1x |
| Wed, 17 Aug 2022 | HK$580.2b | HK$512.3b | HK$51.2b | 7.8x | 11.3x | 1.1x |
| Fri, 15 Jul 2022 | HK$634.3b | HK$514.1b | HK$52.1b | 8.5x | 12.2x | 1.2x |
| Sun, 12 Jun 2022 | HK$581.2b | HK$514.2b | HK$51.9b | 9.2x | 11.2x | 1.1x |
| Tue, 10 May 2022 | HK$553.5b | HK$514.3b | HK$51.4b | 8.1x | 10.8x | 1.1x |
| Thu, 07 Apr 2022 | HK$639.8b | HK$525.2b | HK$53.0b | 9.1x | 12.1x | 1.2x |
| Sat, 05 Mar 2022 | HK$641.0b | HK$501.0b | HK$45.2b | 9.4x | 14.2x | 1.3x |
| Mon, 31 Jan 2022 | HK$653.4b | HK$497.0b | HK$43.8b | 9x | 14.9x | 1.3x |
| Wed, 29 Dec 2021 | HK$704.8b | HK$496.9b | HK$43.8b | 9.7x | 16.1x | 1.4x |
| Fri, 26 Nov 2021 | HK$690.9b | HK$495.9b | HK$43.7b | 9.5x | 15.8x | 1.4x |
| Sun, 24 Oct 2021 | HK$730.7b | HK$492.5b | HK$42.8b | 10x | 17.1x | 1.5x |
| Tue, 21 Sep 2021 | HK$760.9b | HK$489.7b | HK$42.4b | 9.6x | 17.9x | 1.6x |
| Thu, 19 Aug 2021 | HK$852.0b | HK$489.5b | HK$42.4b | 11.9x | 20.1x | 1.7x |
| Thu, 03 Jun 2021 | HK$1.1t | HK$463.7b | HK$30.0b | 15.3x | 36.1x | 2.3x |
| Sun, 07 Mar 2021 | HK$953.9b | HK$439.3b | HK$27.7b | 12.4x | 34.4x | 2.2x |
| Wed, 09 Dec 2020 | HK$843.3b | HK$424.8b | HK$25.2b | 15x | 33.5x | 2x |
| Tue, 01 Sep 2020 | HK$853.8b | HK$407.8b | HK$27.1b | 17.1x | 31.5x | 2.1x |
| Fri, 05 Jun 2020 | HK$728.0b | HK$416.7b | HK$27.5b | 14.6x | 26.5x | 1.7x |
| Mon, 09 Mar 2020 | HK$720.7b | HK$429.4b | HK$27.1b | 14x | 26.6x | 1.7x |
Price to Earnings Ratio
26.4x
Current Industry PE
- Investors are pessimistic on the Hong Kong Pharmaceuticals industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 18.1x which is lower than its 3-year average PE of 22.5x.
- The 3-year average PS ratio of 1.6x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Pharmaceuticals industry have grown 9.5% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the Hong Kong Healthcare industry?
| HK Market | 2.72% | |
| Healthcare | 1.88% | |
| Pharma | 1.60% | |
| Pharma | 1.60% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 3692 Hansoh Pharmaceutical Group | HK$17.28 | 2.9% +HK$2.8b | 10.3% | PE32.6x | |
| 3320 China Resources Pharmaceutical Group | HK$6.22 | 3.7% +HK$1.4b | 68.1% | PE9x | |
| 1177 Sino Biopharmaceutical | HK$4.91 | 1.4% +HK$1.3b | -8.2% | PE9.8x | |
| 867 China Medical System Holdings | HK$14.32 | 2.9% +HK$980.8m | 11.9% | PE9.5x | |
| 6185 CanSino Biologics | HK$74.70 | 4.0% +HK$715.6m | -39.8% | PE150.6x |
