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2M7C

China Medical System Holdings DB:2M7C Stock Report

Last Price

HK$1.46

Market Cap

HK$3.7b

7D

10.6%

1Y

-35.4%

Updated

26 Jun, 2022

Data

Company Financials +
2M7C fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends6/6

2M7C Stock Overview

China Medical System Holdings Limited, an investment holding company, manufactures, sells, markets, and promotes pharmaceutical products in the People’s Republic of China.

China Medical System Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Medical System Holdings
Historical stock prices
Current Share PriceHK$1.46
52 Week HighHK$2.30
52 Week LowHK$1.08
Beta0.60
1 Month Change8.15%
3 Month Change4.29%
1 Year Change-35.40%
3 Year Change86.94%
5 Year Change-1.88%
Change since IPO414.57%

Recent News & Updates

Shareholder Returns

2M7CDE PharmaceuticalsDE Market
7D10.6%-1.2%-0.1%
1Y-35.4%5.9%-22.0%

Return vs Industry: 2M7C underperformed the German Pharmaceuticals industry which returned 5.9% over the past year.

Return vs Market: 2M7C underperformed the German Market which returned -22% over the past year.

Price Volatility

Is 2M7C's price volatile compared to industry and market?
2M7C volatility
2M7C Average Weekly Movement7.7%
Pharmaceuticals Industry Average Movement5.7%
Market Average Movement5.6%
10% most volatile stocks in DE Market10.2%
10% least volatile stocks in DE Market2.9%

Stable Share Price: 2M7C is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2M7C's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

FoundedEmployeesCEOWebsite
19955,292Kong Lamhttps://www.cms.net.cn

China Medical System Holdings Limited, an investment holding company, manufactures, sells, markets, and promotes pharmaceutical products in the People’s Republic of China. The company’s products include Plendil for the treatment of hypertension and stable angina pectoris; XinHuoSu for the treatment of acute heart failure; Deanxit for the treating mild-to-moderate depression, anxiety, and psychosomatic affections; Ursofalk for the treatment of cholesterol gallstones in the gallbladder, cholestatic liver disease, and biliary reflux gastritis; Salofalk for treating Ulcerative Colitis and Crohn’s disease; Bioflor for the treatment of diarrhea; Combizym for dyspepsia; Augentropfen Stulln Mono eye drops to treat senile macula degeneration and asthenopia; and Hirudoid for blunt traumata with or without hematomas and superficial phlebitis insofar. Its products also comprise DanShenTong capsules for treating acne, tonsillitis, otitis externa, boils, carbuncle, traumatic infection, burn infection, mastitis, cellulitis, osteomyelitis, etc.; XiDaKang, a protein hydrolysate oral solution; YiNuoShu for treating respiratory diseases; Ganfule capsules for the treatment of primary cancer of the liver; Imdur for the treatment of coronary heart disease, chronic heart failure, and myocardial infarction, as well as for prevention of vasospasm and mixed angina; and Parlodel tablets for the endocrine and neuro system indications.

China Medical System Holdings Fundamentals Summary

How do China Medical System Holdings's earnings and revenue compare to its market cap?
2M7C fundamental statistics
Market CapCN¥26.09b
Earnings (TTM)CN¥3.02b
Revenue (TTM)CN¥8.34b

8.6x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2M7C income statement (TTM)
RevenueCN¥8.34b
Cost of RevenueCN¥2.09b
Gross ProfitCN¥6.25b
Other ExpensesCN¥3.23b
EarningsCN¥3.02b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.23
Gross Margin74.93%
Net Profit Margin36.19%
Debt/Equity Ratio13.1%

How did 2M7C perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2M7C 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 2M7C?

Other financial metrics that can be useful for relative valuation.

2M7C 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/Revenue2.8x
Enterprise Value/EBITDA7x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does 2M7C's PE Ratio compare to its peers?

2M7C PE Ratio vs Peers
The above table shows the PE ratio for 2M7C vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.5x
DMP Dermapharm Holding
12x-3.7%€2.5b
PSG PharmaSGP Holding
25.6x12.5%€286.8m
BAYN Bayer
25.8x8.7%€56.8b
MRK MERCK Kommanditgesellschaft auf Aktien
22.5x4.8%€71.7b
2M7C China Medical System Holdings
8.6x8.0%€30.6b

Price-To-Earnings vs Peers: 2M7C is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (21.5x).


Price to Earnings Ratio vs Industry

How does 2M7C's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

Price-To-Earnings vs Industry: 2M7C is good value based on its Price-To-Earnings Ratio (8.6x) compared to the German Pharmaceuticals industry average (22.5x)


Price to Earnings Ratio vs Fair Ratio

What is 2M7C'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.

2M7C PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.6x
Fair PE Ratio31.4x

Price-To-Earnings vs Fair Ratio: 2M7C is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (31.4x).


Share Price vs Fair Value

What is the Fair Price of 2M7C when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2M7C (€1.46) is trading below our estimate of fair value (€4.57)

Significantly Below Fair Value: 2M7C is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 2M7C is poor value based on its PEG Ratio (1.1x)


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Future Growth

How is China Medical System Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2M7C's forecast earnings growth (8% per year) is above the savings rate (-0.05%).

Earnings vs Market: 2M7C's earnings (8% per year) are forecast to grow slower than the German market (8.3% per year).

High Growth Earnings: 2M7C's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2M7C's revenue (11.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 2M7C's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2M7C's Return on Equity is forecast to be high in 3 years time (22.2%)


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Past Performance

How has China Medical System Holdings 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


14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2M7C has high quality earnings.

Growing Profit Margin: 2M7C's current net profit margins (36.2%) are lower than last year (36.4%).


Past Earnings Growth Analysis

Earnings Trend: 2M7C's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 2M7C's earnings growth over the past year (19.2%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: 2M7C earnings growth over the past year (19.2%) exceeded the Pharmaceuticals industry 17.9%.


Return on Equity

High ROE: 2M7C's Return on Equity (23.5%) is considered high.


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Financial Health

How is China Medical System Holdings'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: 2M7C's short term assets (CN¥7.4B) exceed its short term liabilities (CN¥2.1B).

Long Term Liabilities: 2M7C's short term assets (CN¥7.4B) exceed its long term liabilities (CN¥879.6M).


Debt to Equity History and Analysis

Debt Level: 2M7C has more cash than its total debt.

Reducing Debt: 2M7C's debt to equity ratio has reduced from 26% to 13.1% over the past 5 years.

Debt Coverage: 2M7C's debt is well covered by operating cash flow (148.5%).

Interest Coverage: 2M7C earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is China Medical System Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2M7C's dividend (4.62%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 2M7C's dividend (4.62%) is in the top 25% of dividend payers in the German market (4.53%)


Stability and Growth of Payments

Stable Dividend: 2M7C's dividends per share have been stable in the past 10 years.

Growing Dividend: 2M7C's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.2%), 2M7C's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (52.2%), 2M7C's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

10.0yrs

Average board tenure


CEO

Kong Lam (56 yo)

no data

Tenure

CN¥4,540,000

Compensation

Dr. Lam Kong founded and serves as the Chairman and Chief Executive Officer of China Medical System Holdings Limited and has been its Executive Director since December 18, 2006. Mr. Lam serves as President...


CEO Compensation Analysis

Compensation vs Market: Kong's total compensation ($USD678.70K) is below average for companies of similar size in the German market ($USD2.46M).

Compensation vs Earnings: Kong's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 2M7C's board of directors are seasoned and experienced ( 10 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

China Medical System Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Medical System Holdings Limited
  • Ticker: 2M7C
  • Exchange: DB
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: HK$30.610b
  • Listing Market Cap: HK$3.697b
  • Shares outstanding: 2.45b
  • Website: https://www.cms.net.cn

Number of Employees


Location

  • China Medical System Holdings Limited
  • Island Place Tower
  • Unit 2106
  • North Point
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.