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963

Huadong Medicine SZSE:000963 Stock Report

Last Price

CN¥42.40

Market Cap

CN¥74.2b

7D

-2.4%

1Y

11.6%

Updated

15 Aug, 2022

Data

Company Financials +
963 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends3/6

963 Stock Overview

Huadong Medicine Co., Ltd produces and sells various pharmaceutical products in China.

Huadong Medicine Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Huadong Medicine
Historical stock prices
Current Share PriceCN¥42.40
52 Week HighCN¥49.00
52 Week LowCN¥27.75
Beta0.82
1 Month Change-7.81%
3 Month Change23.44%
1 Year Change11.64%
3 Year Change49.82%
5 Year Change55.57%
Change since IPO986.48%

Recent News & Updates

Shareholder Returns

963CN HealthcareCN Market
7D-2.4%-1.3%1.3%
1Y11.6%-24.2%-9.7%

Return vs Industry: 000963 exceeded the CN Healthcare industry which returned -21.9% over the past year.

Return vs Market: 000963 exceeded the CN Market which returned -10.1% over the past year.

Price Volatility

Is 963's price volatile compared to industry and market?
963 volatility
963 Average Weekly Movement6.3%
Healthcare Industry Average Movement5.3%
Market Average Movement6.0%
10% most volatile stocks in CN Market9.1%
10% least volatile stocks in CN Market3.9%

Stable Share Price: 000963 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 000963's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199312,427n/ahttps://www.eastchinapharm.com

Huadong Medicine Co., Ltd produces and sells various pharmaceutical products in China. It offers Chinese patent drugs, immunosuppressive agents, endocrine drugs, digestive system drugs, antineoplastic drugs, cardiovascular drugs, medical cosmetology, and antibiotic drugs, as well as medical equipment. The company’s products include gastrointestinal agents, APIs, and other products.

Huadong Medicine Fundamentals Summary

How do Huadong Medicine's earnings and revenue compare to its market cap?
963 fundamental statistics
Market CapCN¥74.19b
Earnings (TTM)CN¥2.34b
Revenue (TTM)CN¥35.58b

31.7x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
963 income statement (TTM)
RevenueCN¥35.58b
Cost of RevenueCN¥24.63b
Gross ProfitCN¥10.96b
Other ExpensesCN¥8.61b
EarningsCN¥2.34b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.34
Gross Margin30.79%
Net Profit Margin6.58%
Debt/Equity Ratio14.4%

How did 963 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

22%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 963 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 963?

Other financial metrics that can be useful for relative valuation.

963 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA22.1x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does 963's PE Ratio compare to its peers?

963 PE Ratio vs Peers
The above table shows the PE ratio for 963 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.9x
601607 Shanghai Pharmaceuticals Holding
14.9x15.0%CN¥56.0b
600511 China National Medicines
10.6x9.7%CN¥19.3b
600998 Jointown Pharmaceutical Group
9.8x20.5%CN¥20.9b
301015 Qingdao Baheal Medical
32.4x20.6%CN¥13.8b
000963 Huadong Medicine
31.7x21.5%CN¥74.2b

Price-To-Earnings vs Peers: 000963 is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

How does 963's PE Ratio compare vs other companies in the CN Healthcare Industry?

Price-To-Earnings vs Industry: 000963 is good value based on its Price-To-Earnings Ratio (31.7x) compared to the CN Healthcare industry average (32.2x)


Price to Earnings Ratio vs Fair Ratio

What is 963's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

963 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.7x
Fair PE Ratio32.2x

Price-To-Earnings vs Fair Ratio: 000963 is good value based on its Price-To-Earnings Ratio (31.7x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).


Share Price vs Fair Value

What is the Fair Price of 963 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000963 (CN¥42.4) is trading above our estimate of fair value (CN¥9.6)

Significantly Below Fair Value: 000963 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Huadong Medicine forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000963's forecast earnings growth (21.5% per year) is above the savings rate (3.2%).

Earnings vs Market: 000963's earnings (21.5% per year) are forecast to grow slower than the CN market (24.5% per year).

High Growth Earnings: 000963's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 000963's revenue (10.6% per year) is forecast to grow slower than the CN market (17.7% per year).

High Growth Revenue: 000963's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 000963's Return on Equity is forecast to be low in 3 years time (15.8%).


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Past Performance

How has Huadong Medicine performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 000963 has high quality earnings.

Growing Profit Margin: 000963's current net profit margins (6.6%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: 000963's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: 000963's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 000963 had negative earnings growth (-2%) over the past year, making it difficult to compare to the Healthcare industry average (2.5%).


Return on Equity

High ROE: 000963's Return on Equity (13.2%) is considered low.


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Financial Health

How is Huadong Medicine's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 000963's short term assets (CN¥16.6B) exceed its short term liabilities (CN¥9.1B).

Long Term Liabilities: 000963's short term assets (CN¥16.6B) exceed its long term liabilities (CN¥2.0B).


Debt to Equity History and Analysis

Debt Level: 000963 has more cash than its total debt.

Reducing Debt: 000963's debt to equity ratio has reduced from 19.1% to 14.4% over the past 5 years.

Debt Coverage: 000963's debt is well covered by operating cash flow (67.1%).

Interest Coverage: 000963 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Huadong Medicine current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 000963's dividend (0.68%) is higher than the bottom 25% of dividend payers in the CN market (0.45%).

High Dividend: 000963's dividend (0.68%) is low compared to the top 25% of dividend payers in the CN market (1.88%).


Stability and Growth of Payments

Stable Dividend: 000963 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 000963's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.7%), 000963's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (72.9%), 000963's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Huadong Medicine has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 000963's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: 000963's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Huadong Medicine Co., Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Huadong Medicine Co., Ltd
  • Ticker: 963
  • Exchange: SZSE
  • Founded: 1993
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Implied Market Cap: CN¥74.192b
  • Shares outstanding: 1.75b
  • Website: https://www.eastchinapharm.com

Number of Employees


Location

  • Huadong Medicine Co., Ltd
  • No. 866 Moganshan Road
  • Hangzhou
  • Zhejiang Province
  • 310011
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.