New Risk • Jun 08
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Announcement • Apr 25
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that it expects to receive CNY 300 million in funding Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced a private placement of not more than 30% of total share capital of A Shares at a price per share of not less than 80% of the average price in the 20 trading days before the pricing reference date to raise gross proceeds of not more than CNY 300,000,000 on April 23, 2026. The transaction involves not more than 35 investors. The transaction has been approved at the 29th Meeting of the 2nd Directorate and is subject to obtain approval by the Company’s Annual Shareholders Meeting of 2025. The shares cannot be transferred within 6 months from the issuance closing date. Announcement • Apr 24
Beijing Sun-Novo Pharmaceutical Research Co., Ltd., Annual General Meeting, May 15, 2026 Beijing Sun-Novo Pharmaceutical Research Co., Ltd., Annual General Meeting, May 15, 2026, at 14:30 China Standard Time. Location: Building 29, Yard No. 79, Shuangying West Road, Science and Technology Park, Changping District, Beijing China Reported Earnings • Apr 24
First quarter 2026 earnings released: EPS: CN¥0.18 (vs CN¥0.27 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.18 (down from CN¥0.27 in 1Q 2025). Revenue: CN¥197.1m (down 15% from 1Q 2025). Net income: CN¥20.6m (down 30% from 1Q 2025). Profit margin: 11% (down from 13% in 1Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 5% per year. Announcement • Mar 30
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report Q1, 2026 Results on Apr 24, 2026 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report Q1, 2026 results on Apr 24, 2026 Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥64.35, the stock trades at a trailing P/E ratio of 35.9x. Average forward P/E is 36x in the Life Sciences industry in China. Total loss to shareholders of 18% over the past three years. Reported Earnings • Mar 05
Full year 2025 earnings released: EPS: CN¥1.79 (vs CN¥1.58 in FY 2024) Full year 2025 results: EPS: CN¥1.79 (up from CN¥1.58 in FY 2024). Revenue: CN¥1.22b (up 13% from FY 2024). Net income: CN¥196.1m (up 11% from FY 2024). Profit margin: 16% (in line with FY 2024). Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 7% per year. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥72.10, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 37x in the Life Sciences industry in China. Total loss to shareholders of 4.6% over the past three years. Announcement • Dec 26
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report Fiscal Year 2025 Results on Apr 27, 2026 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report fiscal year 2025 results on Apr 27, 2026 Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥68.55, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 32x in the Life Sciences industry in China. Negligible returns to shareholders over past three years. Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.31 (vs CN¥0.52 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.31 (down from CN¥0.52 in 3Q 2024). Revenue: CN¥265.5m (down 25% from 3Q 2024). Net income: CN¥33.5m (down 43% from 3Q 2024). Profit margin: 13% (down from 17% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 8% per year, which means it is performing significantly worse than earnings. Announcement • Sep 30
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Reported Earnings • Sep 03
Second quarter 2025 earnings released: EPS: CN¥0.91 (vs CN¥0.68 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.91 (up from CN¥0.68 in 2Q 2024). Revenue: CN¥359.5m (up 16% from 2Q 2024). Net income: CN¥100.3m (up 32% from 2Q 2024). Profit margin: 28% (up from 24% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 6% per year. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥81.65, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 37x in the Life Sciences industry in China. Total returns to shareholders of 11% over the past three years. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥66.54, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 35x in the Life Sciences industry in China. Total loss to shareholders of 7.1% over the past three years. Announcement • Jun 30
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Valuation Update With 7 Day Price Move • Jun 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥45.20, the stock trades at a trailing P/E ratio of 36.8x. Average forward P/E is 31x in the Life Sciences industry in China. Total loss to shareholders of 30% over the past three years. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥53.10, the stock trades at a trailing P/E ratio of 43.2x. Average forward P/E is 28x in the Life Sciences industry in China. Total loss to shareholders of 18% over the past three years. New Risk • May 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (13% net profit margin). Announcement • May 14
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced a financing transaction Beijing Sun-Novo Pharmaceutical Research Co., Ltd has announced a private placement to issue A Shares having a par value of CNY 1 per share on May 12, 2025. The transaction will include participation from 35 Investors. The shares issued in the transaction will have a lockup period of 6 months from the date of issuance. The transaction has been approved by the board of directors of the company in the 19th Meeting of Second Board of Directors and by the and seeks the approval of shareholders, The Shanghai Stock Exchange and the China Securities Regulatory commission. Board Change • May 13
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Director Now Time was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Apr 25
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 13% Last year net profit margin: 22% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (9.5% average weekly change). Profit margins are more than 30% lower than last year (13% net profit margin). Reported Earnings • Apr 11
Full year 2024 earnings released: EPS: CN¥1.58 (vs CN¥1.65 in FY 2023) Full year 2024 results: EPS: CN¥1.58 (down from CN¥1.65 in FY 2023). Revenue: CN¥1.08b (up 16% from FY 2023). Net income: CN¥177.4m (down 4.0% from FY 2023). Profit margin: 17% (down from 20% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Apr 09
Beijing Sun-Novo Pharmaceutical Research Co., Ltd., Annual General Meeting, Apr 29, 2025 Beijing Sun-Novo Pharmaceutical Research Co., Ltd., Annual General Meeting, Apr 29, 2025, at 14:30 China Standard Time. Location: Building 29, Yard No. 79, Shuangying West Road, Science and Technology Park, Changping District, Beijing China New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥37.05, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 29x in the Life Sciences industry in China. Total loss to shareholders of 42% over the past three years. Announcement • Mar 28
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Reported Earnings • Mar 02
Full year 2024 earnings released: EPS: CN¥1.61 (vs CN¥1.65 in FY 2023) Full year 2024 results: EPS: CN¥1.61 (down from CN¥1.65 in FY 2023). Revenue: CN¥1.08b (up 16% from FY 2023). Net income: CN¥180.3m (down 2.4% from FY 2023). Profit margin: 17% (down from 20% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥45.77, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 31x in the Life Sciences industry in China. Total loss to shareholders of 27% over the past three years. Announcement • Dec 27
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report Fiscal Year 2024 Results on Apr 09, 2025 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report fiscal year 2024 results on Apr 09, 2025 Announcement • Dec 26
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. (SHSE:688621) announces an Equity Buyback for CNY 100 million worth of its shares. Beijing Sun-Novo Pharmaceutical Research Co., Ltd. (SHSE:688621) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The shares will be repurchased at no more than CNY 63.39 per share. The purpose of the program is to use the repurchased shares for employee stock ownership plan or equity incentive plan. If the company fails to implement the above purposes within 3 years after the company discloses the results of the share repurchase and the announcement of the share change there is a risk of initiating the cancellation procedure for the un transferred shares. The program will be funded from the company's own funds and/or self-raised funds, including the special loan for share repurchase provided by China Postal Savings Bank Co., Ltd., of which the amount of the special loan shall not exceed CNY 90 million. The program will be valid for 12 months. Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.52 (vs CN¥0.48 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.52 (up from CN¥0.48 in 3Q 2023). Revenue: CN¥353.8m (up 53% from 3Q 2023). Net income: CN¥59.1m (up 11% from 3Q 2023). Profit margin: 17% (down from 23% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to CN¥39.00, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 22x in the Life Sciences industry in China. Total loss to shareholders of 66% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥19.53 per share. New Risk • Sep 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.9% average weekly change). High level of non-cash earnings (26% accrual ratio). Announcement • Sep 30
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥36.29, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 21x in the Life Sciences industry in China. Total loss to shareholders of 72% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥19.53 per share. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.68 (vs CN¥0.62 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.68 (up from CN¥0.62 in 2Q 2023). Revenue: CN¥310.6m (up 36% from 2Q 2023). Net income: CN¥75.8m (up 8.2% from 2Q 2023). Profit margin: 24% (down from 31% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥32.44, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 19x in the Life Sciences industry in China. Total loss to shareholders of 59% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥29.04 per share. Announcement • Jun 29
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.65 (vs CN¥0.43 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.65 (up from CN¥0.43 in 1Q 2023). Revenue: CN¥252.3m (up 8.5% from 1Q 2023). Net income: CN¥72.8m (up 52% from 1Q 2023). Profit margin: 29% (up from 21% in 1Q 2023). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 31% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Life Sciences industry in China. Announcement • Apr 27
Beijing Sun-Novo Pharmaceutical Research Co., Ltd., Annual General Meeting, May 16, 2024 Beijing Sun-Novo Pharmaceutical Research Co., Ltd., Annual General Meeting, May 16, 2024, at 15:30 China Standard Time. Location: The Company's Meeting Room, Beijing China Announcement • Mar 29
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Reported Earnings • Feb 27
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥1.73 (up from CN¥1.39 in FY 2022). Revenue: CN¥953.9m (up 41% from FY 2022). Net income: CN¥194.0m (up 24% from FY 2022). Profit margin: 20% (down from 23% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) missed analyst estimates by 22%. Revenue is forecast to grow 27% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Life Sciences industry in China. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥66.20, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 20x in the Life Sciences industry in China. Total loss to shareholders of 17% over the past year. Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: CN¥0.48 (vs CN¥0.37 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.48 (up from CN¥0.37 in 3Q 2022). Revenue: CN¥231.0m (up 35% from 3Q 2022). Net income: CN¥53.1m (up 28% from 3Q 2022). Profit margin: 23% (down from 24% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Life Sciences industry in China. Announcement • Oct 16
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. (SHSE:688621) agreed to acquire the remaining 30% stake in Chengdu Sintanovo Biotechnology Co., Ltd. from Chengdu Shengpu Pharmaceutical Technology Center (Limited Partnership) for CNY 120 million. Beijing Sun-Novo Pharmaceutical Research Co., Ltd. (SHSE:688621) agreed to acquire the remaining 30% stake in Chengdu Sintanovo Biotechnology Co., Ltd. from Chengdu Shengpu Pharmaceutical Technology Center (Limited Partnership) for CNY 120 million on October 13, 2023. Chengdu Sintanovo Biotechnology Co., Ltd. reported total assets of CNY 146.34 million and net assets of CNY 63.03 million on June 30, 2023. Beijing Sun-Novo Pharmaceutical Research Co., Ltd. board of directors approved the trasnaction. This transaction still needs to be approved by the company’s shareholders’ meeting. New Risk • Oct 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (44% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.9% average weekly change). Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.62 (vs CN¥0.48 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.62 (up from CN¥0.48 in 2Q 2022). Revenue: CN¥228.6m (up 30% from 2Q 2022). Net income: CN¥70.1m (up 30% from 2Q 2022). Profit margin: 31% (in line with 2Q 2022). Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Life Sciences industry in China. Announcement • Jun 28
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. to Report First Half, 2023 Results on Aug 29, 2023 Beijing Sun-Novo Pharmaceutical Research Co., Ltd. announced that they will report first half, 2023 results on Aug 29, 2023 Reported Earnings • Mar 11
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: CN¥1.95 (up from CN¥1.51 in FY 2021). Revenue: CN¥676.6m (up 37% from FY 2021). Net income: CN¥155.9m (up 48% from FY 2021). Profit margin: 23% (up from 21% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 2.6%. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Life Sciences industry in China. Reported Earnings • Feb 10
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: CN¥1.98 (up from CN¥1.51 in FY 2021). Revenue: CN¥679.9m (up 38% from FY 2021). Net income: CN¥158.3m (up 50% from FY 2021). Profit margin: 23% (up from 21% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 4.2%. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Life Sciences industry in China. Board Change • Nov 16
Less than half of directors are independent There are 12 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 12 new directors. No experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Employee Representative Supervisor Jinfeng Zhang is the most experienced director on the board, commencing their role in 2020. Independent Director Xuefeng Hu was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Oct 26
Beijing Sun-Novo Pharmaceutical Research Co., Ltd. (SHSE:688621) agreed to acquire an unknown minority stake in Beijing Langyan Life Technology Holdings Co., Ltd. from Li Qian, Ganzhou Langyi Investment Center (Limited Partnership) and Liu Yujing. Beijing Sun-Novo Pharmaceutical Research Co., Ltd. (SHSE:688621) agreed to acquire an unknown minority stake in Beijing Langyan Life Technology Holdings Co., Ltd. from Li Qian, Ganzhou Langyi Investment Center (Limited Partnership) and Liu Yujing on October 25, 2022. Under the terms, consideration will be paid in form of cash and shares. Reported Earnings • Oct 26
Third quarter 2022 earnings released: EPS: CN¥0.52 (vs CN¥0.44 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.52 (up from CN¥0.44 in 3Q 2021). Revenue: CN¥170.9m (up 46% from 3Q 2021). Net income: CN¥41.5m (up 59% from 3Q 2021). Profit margin: 24% (up from 22% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Life Sciences industry in China. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥90.80, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 35x in the Life Sciences industry in China. Total loss to shareholders of 42% over the past year. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: CN¥0.67 (vs CN¥0.64 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.67 (up from CN¥0.64 in 2Q 2021). Revenue: CN¥176.3m (up 37% from 2Q 2021). Net income: CN¥54.0m (up 41% from 2Q 2021). Profit margin: 31% (in line with 2Q 2021). Over the next year, revenue is forecast to grow 37%, compared to a 39% growth forecast for the industry in China. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥107, the stock trades at a forward P/E ratio of 52x. Average forward P/E is 47x in the Life Sciences industry in China. Total returns to shareholders of 14% over the past year. Reported Earnings • Apr 29
First quarter 2022 earnings released: EPS: CN¥0.42 (vs CN¥0.34 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.42 (up from CN¥0.34 in 1Q 2021). Revenue: CN¥148.0m (up 55% from 1Q 2021). Net income: CN¥33.4m (up 63% from 1Q 2021). Profit margin: 23% (up from 21% in 1Q 2021). The increase in margin was driven by higher revenue. Board Change • Apr 27
Less than half of directors are independent There are 12 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 12 new directors. No experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Employee Representative Supervisor Jinfeng Zhang is the most experienced director on the board, commencing their role in 2020. Independent Director Xuefeng Hu was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Mar 01
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: CN¥1.51 (up from CN¥1.21 in FY 2020). Revenue: CN¥493.6m (up 42% from FY 2020). Net income: CN¥105.7m (up 46% from FY 2020). Profit margin: 21% (in line with FY 2020). Revenue was in line with analyst estimates. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥94.59, the stock trades at a forward P/E ratio of 72x. Average forward P/E is 93x in the Life Sciences industry in China.