Beijing Wantai Biological Pharmacy Enterprise (SHSE:603392) - Share price, News & Analysis

Q: What is the Fair Price of 603392 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603392 (CN¥155.44) is trading below our estimate of [[fair value]] (CN¥248.87)

603392 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	6/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

603392 Stock Overview

Beijing Wantai Biological Pharmacy Enterprise Co., Ltd.

Rewards

Trading at 37.5% below our estimate of its fair value

Earnings are forecast to grow 26.7% per year

Earnings grew by 242% over the past year

Risk Analysis

High level of non-cash earnings

Beijing Wantai Biological Pharmacy Enterprise Competitors

Chongqing Zhifei Biological Products

SZSE:300122

CN¥182.3b

Walvax Biotechnology

SZSE:300142

CN¥77.8b

Bloomage BioTechnology

SHSE:688363

CN¥67.1b

Imeik Technology DevelopmentLtd

SZSE:300896

CN¥127.9b

Price History & Performance

Summary of all time highs, changes and price drops for Beijing Wantai Biological Pharmacy Enterprise
Historical stock prices
Current Share Price	CN¥155.44
52 Week High	CN¥206.74
52 Week Low	CN¥118.54
Beta	2.95
1 Month Change	23.88%
3 Month Change	-18.64%
1 Year Change	-8.74%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	2,404.31%

Shareholder Returns

	603392	CN Biotechs	CN Market
7D	3.4%	3.7%	1.3%
1Y	-8.7%	-31.4%	-6.8%

Return vs Industry: 603392 exceeded the CN Biotechs industry which returned -31.4% over the past year.

Return vs Market: 603392 underperformed the CN Market which returned -6.8% over the past year.

Price Volatility

Is 603392's price volatile compared to industry and market?
603392 volatility
603392 Average Weekly Movement	7.9%
Biotechs Industry Average Movement	7.0%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.0%

Stable Share Price: 603392 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 603392's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1991	3,103	Zixin Qiu	https://www.ystwt.com

Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. researches, develops, produces, distributes, and sells infectious disease diagnostic reagents and vaccines in China and internationally. The company provides COVID 19, HIV and HTLV, Hepatitis, EV-71, and Tuberculosis diagnostics test kits; Hepatitis C and Syphilis detection reagents; automated immunoassays; ELISA kits and rapid tests for infectious disease diagnostics; chemiluminescence and clinical chemistry reagents; immunodiagnostic reagents; and Hepatitis E and human papillomavirus vaccines.

Beijing Wantai Biological Pharmacy Enterprise Fundamentals Summary

How do Beijing Wantai Biological Pharmacy Enterprise's earnings and revenue compare to its market cap?
603392 fundamental statistics
Market Cap	CN¥136.82b
Earnings (TTM)	CN¥3.06b
Revenue (TTM)	CN¥8.10b

44.7x

P/E Ratio

16.9x

P/S Ratio

Is 603392 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
603392 income statement (TTM)
Revenue	CN¥8.10b
Cost of Revenue	CN¥1.05b
Gross Profit	CN¥7.05b
Other Expenses	CN¥3.99b
Earnings	CN¥3.06b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.48
Gross Margin	87.05%
Net Profit Margin	37.83%
Debt/Equity Ratio	4.9%

How did 603392 perform over the long term?

See historical performance and comparison

Dividends

0.09%

Current Dividend Yield

4%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 603392 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603392?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 603392. This is calculated by dividing 603392's market cap by their current preferred multiple.
What is 603392's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥136.82b

603392 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/Revenue	16.7x
Enterprise Value/EBITDA	37.4x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

How does 603392's PE Ratio compare to its peers?

603392 PE Ratio vs Peers

The above table shows the PE ratio for 603392 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	99x
300122 Chongqing Zhifei Biological Products	16.3x	11.9%	CN¥182.3b
300142 Walvax Biotechnology	179.1x	n/a	CN¥77.8b
688363 Bloomage BioTechnology	80.8x	28.5%	CN¥67.1b
300896 Imeik Technology DevelopmentLtd	119.8x	37.8%	CN¥127.9b
603392 Beijing Wantai Biological Pharmacy Enterprise	44.7x	26.7%	CN¥136.8b

Forward PE

Price-To-Earnings vs Peers: 603392 is good value based on its Price-To-Earnings Ratio (44.7x) compared to the peer average (99x).

Price to Earnings Ratio vs Industry

How does 603392's PE Ratio compare vs other companies in the CN Biotechs Industry?

Price-To-Earnings vs Industry: 603392 is expensive based on its Price-To-Earnings Ratio (44.7x) compared to the CN Biotechs industry average (40.3x)

Price to Earnings Ratio vs Fair Ratio

What is 603392'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.

603392 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	44.7x
Fair PE Ratio	42.6x

Price-To-Earnings vs Fair Ratio: 603392 is expensive based on its Price-To-Earnings Ratio (44.7x) compared to the estimated Fair Price-To-Earnings Ratio (42.6x).

Share Price vs Fair Value

What is the Fair Price of 603392 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603392 (CN¥155.44) is trading below our estimate of fair value (CN¥248.87)

Significantly Below Fair Value: 603392 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 603392 is poor value based on its PEG Ratio (1.7x)

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Future Growth

How is Beijing Wantai Biological Pharmacy Enterprise forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603392's forecast earnings growth (26.7% per year) is above the savings rate (3.2%).

Earnings vs Market: 603392's earnings (26.7% per year) are forecast to grow faster than the CN market (23.9% per year).

High Growth Earnings: 603392's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 603392's revenue (24.1% per year) is forecast to grow faster than the CN market (17.5% per year).

High Growth Revenue: 603392's revenue (24.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 603392's Return on Equity is forecast to be very high in 3 years time (41.7%).

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Past Performance

How has Beijing Wantai Biological Pharmacy Enterprise performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

69.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 603392 has a high level of non-cash earnings.

Growing Profit Margin: 603392's current net profit margins (37.8%) are higher than last year (31.2%).

Past Earnings Growth Analysis

Earnings Trend: 603392's earnings have grown significantly by 69.5% per year over the past 5 years.

Accelerating Growth: 603392's earnings growth over the past year (242%) exceeds its 5-year average (69.5% per year).

Earnings vs Industry: 603392 earnings growth over the past year (242%) exceeded the Biotechs industry 11.3%.

Return on Equity

High ROE: 603392's Return on Equity (53.4%) is considered outstanding.

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Financial Health

How is Beijing Wantai Biological Pharmacy Enterprise'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: 603392's short term assets (CN¥6.5B) exceed its short term liabilities (CN¥3.0B).

Long Term Liabilities: 603392's short term assets (CN¥6.5B) exceed its long term liabilities (CN¥168.3M).

Debt to Equity History and Analysis

Debt Level: 603392 has more cash than its total debt.

Reducing Debt: 603392's debt to equity ratio has reduced from 5.8% to 4.9% over the past 5 years.

Debt Coverage: 603392's debt is well covered by operating cash flow (708.7%).

Interest Coverage: 603392 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Beijing Wantai Biological Pharmacy Enterprise current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.089%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 603392's dividend (0.089%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 603392's dividend (0.089%) is low compared to the top 25% of dividend payers in the CN market (1.92%).

Stability and Growth of Payments

Stable Dividend: 603392 is not paying a notable dividend for the CN market, therefore no need to check if payments are stable.

Growing Dividend: 603392 is not paying a notable dividend for the CN market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 603392 is not paying a notable dividend for the CN market.

Cash Payout to Shareholders

Cash Flow Coverage: 603392 is not paying a notable dividend for the CN market.

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Management

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

1.5yrs

Average board tenure

CEO

Zixin Qiu (59 yo)

no data

Tenure

CN¥1,657,400

Compensation

Mr. Zixin Qiu serves as the Chairman and General Manager at Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. and serves as its Board Secretary. He has been with Beijing Wantai Biological Pharmacy En...

Board Members

Experienced Board: 603392's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31