Shandong Shanda Wit Science and Technology (SZSE:000915) - Share price, News & Analysis

915 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	6/6
Financial Health	6/6
Dividends	3/6

915 Stock Overview

Shandong Shanda Wit Science and Technology Co., Ltd.

Rewards

Trading at 60% below our estimate of its fair value

Earnings are forecast to grow 22.12% per year

Earnings grew by 22% over the past year

Risk Analysis

Unstable dividend track record

Shandong Shanda Wit Science and Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shandong Shanda Wit Science and Technology
Historical stock prices
Current Share Price	CN¥42.48
52 Week High	CN¥47.11
52 Week Low	CN¥23.86
Beta	0.22
1 Month Change	4.50%
3 Month Change	24.94%
1 Year Change	65.42%
3 Year Change	107.73%
5 Year Change	15.22%
Change since IPO	411.67%

Shareholder Returns

	915	CN Pharmaceuticals	CN Market
7D	-5.6%	1.1%	2.1%
1Y	65.4%	-19.0%	-10.1%

Return vs Industry: 000915 exceeded the CN Pharmaceuticals industry which returned -19% over the past year.

Return vs Market: 000915 exceeded the CN Market which returned -10.1% over the past year.

Price Volatility

Is 915's price volatile compared to industry and market?
915 volatility
915 Average Weekly Movement	7.8%
Pharmaceuticals Industry Average Movement	7.2%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.1%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 000915 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 000915's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	2,774	Jie Yang	https://www.sd-wit.com

Shandong Shanda Wit Science and Technology Co., Ltd. engages in the pharmaceutical and environment protection businesses in China. Its medical products include azithromycin granules, glycyrrhiza zinc granules, compound calcium carbonate, vitamin AD drops, epalrestat tablets, valsartan hydrochlorothiazide gums, roxithromycin, rosiglitazone tartrate tablets, and glimepiride tablets.

Shandong Shanda Wit Science and Technology Fundamentals Summary

How do Shandong Shanda Wit Science and Technology's earnings and revenue compare to its market cap?
915 fundamental statistics
Market Cap	CN¥9.95b
Earnings (TTM)	CN¥427.32m
Revenue (TTM)	CN¥2.14b

23.3x

P/E Ratio

4.6x

P/S Ratio

Is 915 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
915 income statement (TTM)
Revenue	CN¥2.14b
Cost of Revenue	CN¥609.01m
Gross Profit	CN¥1.53b
Other Expenses	CN¥1.11b
Earnings	CN¥427.32m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.82
Gross Margin	71.59%
Net Profit Margin	19.94%
Debt/Equity Ratio	0.3%

How did 915 perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

44%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 915 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 915?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 915. This is calculated by dividing 915's market cap by their current preferred multiple.
What is 915's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥9.95b

915 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	4.2x
Enterprise Value/EBITDA	9.6x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 915's PE Ratio compare to its peers?

915 PE Ratio vs Peers

The above table shows the PE ratio for 915 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.1x

Forward PE

Price-To-Earnings vs Peers: 000915 is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (29.1x).

Price to Earnings Ratio vs Industry

How does 915's PE Ratio compare vs other companies in the Chinese Pharmaceuticals Industry?

Price-To-Earnings vs Industry: 000915 is good value based on its Price-To-Earnings Ratio (23.3x) compared to the CN Pharmaceuticals industry average (32.3x)

Price to Earnings Ratio vs Fair Ratio

What is 915'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.

915 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.3x
Fair PE Ratio	30.3x

Price-To-Earnings vs Fair Ratio: 000915 is good value based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (30.3x).

Share Price vs Fair Value

What is the Fair Price of 915 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000915 (CN¥42.48) is trading below our estimate of fair value (CN¥106.18)

Significantly Below Fair Value: 000915 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 000915 is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is Shandong Shanda Wit Science and Technology forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

22.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000915's forecast earnings growth (22.1% per year) is above the savings rate (3.3%).

Earnings vs Market: 000915's earnings (22.1% per year) are forecast to grow slower than the CN market (24% per year).

High Growth Earnings: 000915's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 000915's revenue (17.9% per year) is forecast to grow faster than the CN market (17.6% per year).

High Growth Revenue: 000915's revenue (17.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 000915's Return on Equity is forecast to be high in 3 years time (20%)

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Past Performance

How has Shandong Shanda Wit Science and Technology performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

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

15.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 000915 has high quality earnings.

Growing Profit Margin: 000915's current net profit margins (19.9%) are higher than last year (17.6%).

Past Earnings Growth Analysis

Earnings Trend: 000915's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: 000915's earnings growth over the past year (22%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: 000915 earnings growth over the past year (22%) exceeded the Pharmaceuticals industry 6.6%.

Return on Equity

High ROE: 000915's Return on Equity (21.4%) is considered high.

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Financial Health

How is Shandong Shanda Wit Science and Technology'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: 000915's short term assets (CN¥2.8B) exceed its short term liabilities (CN¥533.3M).

Long Term Liabilities: 000915's short term assets (CN¥2.8B) exceed its long term liabilities (CN¥90.5M).

Debt to Equity History and Analysis

Debt Level: 000915 has more cash than its total debt.

Reducing Debt: 000915's debt to equity ratio has reduced from 1.4% to 0.3% over the past 5 years.

Debt Coverage: 000915's debt is well covered by operating cash flow (9425.7%).

Interest Coverage: 000915 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Shandong Shanda Wit Science and Technology current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

1.88%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 000915's dividend (1.88%) is higher than the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 000915's dividend (1.88%) is low compared to the top 25% of dividend payers in the CN market (1.93%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 000915 has been paying a dividend for less than 10 years.

Growing Dividend: 000915's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44%), 000915's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.9%), 000915's dividend payments are well covered by cash flows.

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Management

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

1.8yrs

Average board tenure

CEO

Jie Yang (59 yo)

no data

Tenure

CN¥502,700

Compensation

Ms. Jie Yang served as a Vice Chairman of The Board of Directors at Shandong Shanda WIT Science & Technology Co., Ltd and has been its Director since May 16, 2012. Ms. Yang serves as Managing Director of...

Board Members

Experienced Board: 000915's board of directors are not considered experienced ( 1.8 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	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31