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Market Cap

CN¥13.5b

Last Updated

2021/04/11 09:16 UTC

Data Sources

Company Financials +

Executive Summary

Zhejiang Medicine Co., Ltd. produces and sells fat-soluble vitamins, quasi-vitamins, quinolone antibiotics, anti-drug-resistant antibiotics, and other products. More Details


Snowflake Analysis

Very undervalued with solid track record.

Share Price & News

How has Zhejiang Medicine's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600216 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 600216's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of CN stocks.


Market Performance


7 Day Return

1.7%

600216

-0.1%

CN Pharmaceuticals

-1.1%

CN Market


1 Year Return

-19.0%

600216

15.8%

CN Pharmaceuticals

28.4%

CN Market

Return vs Industry: 600216 underperformed the CN Pharmaceuticals industry which returned 15.8% over the past year.

Return vs Market: 600216 underperformed the CN Market which returned 28.4% over the past year.


Shareholder returns

600216IndustryMarket
7 Day1.7%-0.1%-1.1%
30 Day-10.7%3.9%1.0%
90 Day2.7%-5.4%-5.8%
1 Year-14.9%-19.0%16.9%15.8%30.4%28.4%
3 Year2.0%-4.9%25.2%20.7%25.9%19.9%
5 Year2.0%-6.7%41.6%34.1%23.6%15.5%

Long-Term Price Volatility Vs. Market

How volatile is Zhejiang Medicine's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Zhejiang Medicine undervalued compared to its fair value and its price relative to the market?

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600216 (CN¥14.13) is trading below our estimate of fair value (CN¥18.68)

Significantly Below Fair Value: 600216 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 600216 is good value based on its PE Ratio (22.4x) compared to the CN Pharmaceuticals industry average (31.2x).

PE vs Market: 600216 is good value based on its PE Ratio (22.4x) compared to the CN market (33.9x).


Price to Earnings Growth Ratio

PEG Ratio: 600216 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 600216 is good value based on its PB Ratio (1.8x) compared to the CN Pharmaceuticals industry average (2.7x).


Future Growth

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

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600216's forecast earnings growth (28.5% per year) is above the savings rate (3.3%).

Earnings vs Market: 600216's earnings (28.5% per year) are forecast to grow faster than the CN market (23.4% per year).

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

Revenue vs Market: 600216's revenue (14.8% per year) is forecast to grow slower than the CN market (17.9% per year).

High Growth Revenue: 600216's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600216's Return on Equity is forecast to be low in 3 years time (18.4%).


Past Performance

How has Zhejiang Medicine performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600216 has high quality earnings.

Growing Profit Margin: 600216's current net profit margins (8.4%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: 600216's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: 600216's earnings growth over the past year (185%) exceeds its 5-year average (11.3% per year).

Earnings vs Industry: 600216 earnings growth over the past year (185%) exceeded the Pharmaceuticals industry 10.8%.


Return on Equity

High ROE: 600216's Return on Equity (6.8%) is considered low.


Financial Health

How is Zhejiang Medicine's financial position?


Financial Position Analysis

Short Term Liabilities: 600216's short term assets (CN¥5.5B) exceed its short term liabilities (CN¥2.4B).

Long Term Liabilities: 600216's short term assets (CN¥5.5B) exceed its long term liabilities (CN¥543.0M).


Debt to Equity History and Analysis

Debt Level: 600216's debt to equity ratio (16.5%) is considered satisfactory.

Reducing Debt: 600216's debt to equity ratio has increased from 5.5% to 16.5% over the past 5 years.

Debt Coverage: 600216's debt is well covered by operating cash flow (65.5%).

Interest Coverage: 600216 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

7.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600216's dividend (7.08%) is higher than the bottom 25% of dividend payers in the CN market (0.43%).

High Dividend: 600216's dividend (7.08%) is in the top 25% of dividend payers in the CN market (1.81%)


Stability and Growth of Payments

Stable Dividend: 600216's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600216's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (158.5%), 600216's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Chun Lu (53 yo)

2.83yrs

Tenure

CN¥811,600

Compensation

Mr. Chun Lei Lu is President and Director of Zhejiang Medicine Co., Ltd. since June 15, 2018. Mr. Lu was Executive Vice President and General Manager of Changhai Biological Branch at Zhejiang Medicine Co.,...


Leadership Team

Experienced Management: 600216's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: 600216's board of directors are considered experienced (3.8 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

Zhejiang Medicine Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhejiang Medicine Co., Ltd.
  • Ticker: 600216
  • Exchange: SHSE
  • Founded: 1954
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CN¥13.541b
  • Shares outstanding: 958.30m
  • Website: https://www.china-zmc.com

Number of Employees


Location

  • Zhejiang Medicine Co., Ltd.
  • 168 Mid Zhiyuan Avenue
  • Binhai New Area
  • Shaoxing
  • Zhejiang Province
  • 312366
  • China

Listings


Biography

Zhejiang Medicine Co., Ltd. produces and sells fat-soluble vitamins, quasi-vitamins, quinolone antibiotics, anti-drug-resistant antibiotics, and other products. The company offers anti-infective drugs, glu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 09:16
End of Day Share Price2021/04/09 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.