Shenzhen Hepalink Pharmaceutical Group Co., Ltd.

XSEC:002399 Stock Report

Market Cap: CN¥14.5b

Shenzhen Hepalink Pharmaceutical Group Valuation

Is 002399 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 002399 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002399 (CN¥10.93) is trading below our estimate of fair value (CN¥328.05)

Significantly Below Fair Value: 002399 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002399?

Key metric: As 002399 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 002399. This is calculated by dividing 002399's market cap by their current revenue.
What is 002399's PS Ratio?
PS Ratio2.9x
SalesCN¥5.45b
Market CapCN¥14.45b

Price to Sales Ratio vs Peers

How does 002399's PS Ratio compare to its peers?

The above table shows the PS ratio for 002399 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
600867 Tonghua Dongbao Pharmaceutical
6.7x24.4%CN¥16.3b
600420 Shanghai Shyndec Pharmaceutical
1.4x7.6%CN¥16.1b
600216 Zhejiang Medicine
1.7x9.5%CN¥15.3b
300026 Tianjin Chase Sun PharmaceuticalLtd
2.1x8.9%CN¥11.9b
002399 Shenzhen Hepalink Pharmaceutical Group
2.9x5.5%CN¥14.5b

Price-To-Sales vs Peers: 002399 is good value based on its Price-To-Sales Ratio (2.9x) compared to the peer average (3x).

Price to Sales Ratio vs Industry

How does 002399's PS Ratio compare vs other companies in the CN Pharmaceuticals Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
600664 Harbin Pharmaceutical Group
0.6xn/aUS$1.28b
000411 Zhejiang Int'l GroupLtd
0.2xn/aUS$777.77m
000153 Anhui Fengyuan Pharmaceutical
0.7xn/aUS$410.69m
600781 FUREN Group PharmaceuticalLtd
0.3xn/aUS$66.91m
002399 2.9xIndustry Avg. 3.6xNo. of Companies35PS02.85.68.411.214+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 002399 is good value based on its Price-To-Sales Ratio (2.9x) compared to the CN Pharmaceuticals industry average (3.5x).

Price to Sales Ratio vs Fair Ratio

What is 002399's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

002399 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.9x
Fair PS Ratio2.4x

Price-To-Sales vs Fair Ratio: 002399 is expensive based on its Price-To-Sales Ratio (2.9x) compared to the estimated Fair Price-To-Sales Ratio (2.4x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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