SEHK:2096Pharmaceuticals
Simcere Pharmaceutical Group (SEHK:2096) Stock Price Trails Margin Surge And DCF Gap
Simcere Pharmaceutical Group stock has drifted over the past month, down about 9%, even as the latest half year results land with a very different message. The headline is margin power. Net margin for the current period sits at 18% compared with 12.4% a year earlier, and trailing 12 month earnings now reflect a 78.6% yearly jump.
The market still prices Simcere Pharmaceutical Group on a P/E of 16.9x, above local pharma peers. However, the company’s own cash flow estimate points to value above...