DB:83B

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

3SBio Inc. develops, manufactures, markets, and sells biopharmaceuticals in the People’s Republic of China. More Details


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has 3SBio's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 83B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

83B

-3.2%

DE Biotechs

-7.3%

DE Market


1 Year Return

-54.9%

83B

-8.0%

DE Biotechs

-7.7%

DE Market

Return vs Industry: 83B underperformed the German Biotechs industry which returned -6.3% over the past year.

Return vs Market: 83B underperformed the German Market which returned -6.6% over the past year.


Shareholder returns

83BIndustryMarket
7 Day-3.1%-3.2%-7.3%
30 Day-17.5%-15.4%-7.7%
90 Day-25.0%-14.5%-4.5%
1 Year-54.9%-54.9%-7.9%-8.0%-4.8%-7.7%
3 Year-50.2%-50.4%-5.3%-6.2%-9.2%-17.2%
5 Year-27.3%-27.6%36.1%34.5%11.4%-4.5%

Price Volatility Vs. Market

How volatile is 3SBio's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is 3SBio undervalued compared to its fair value and its price relative to the market?

25.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 83B (€0.78) is trading below our estimate of fair value (€1.05)

Significantly Below Fair Value: 83B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 83B is good value based on its PE Ratio (11.7x) compared to the XE Biotechs industry average (33.5x).

PE vs Market: 83B is good value based on its PE Ratio (11.7x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: 83B is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 83B is good value based on its PB Ratio (1.5x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is 3SBio forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 83B's forecast earnings growth (8.8% per year) is above the savings rate (0.2%).

Earnings vs Market: 83B's earnings (8.8% per year) are forecast to grow slower than the German market (25.7% per year).

High Growth Earnings: 83B's earnings are forecast to grow, but not significantly.

Revenue vs Market: 83B's revenue (10.2% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 83B's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 83B's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has 3SBio performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 83B has high quality earnings.

Growing Profit Margin: 83B's current net profit margins (25.2%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: 83B's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: 83B's earnings growth over the past year (25%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: 83B earnings growth over the past year (25%) exceeded the Biotechs industry 15.2%.


Return on Equity

High ROE: 83B's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is 3SBio's financial position?


Financial Position Analysis

Short Term Liabilities: 83B's short term assets (CN¥6.9B) exceed its short term liabilities (CN¥1.7B).

Long Term Liabilities: 83B's short term assets (CN¥6.9B) exceed its long term liabilities (CN¥4.5B).


Debt to Equity History and Analysis

Debt Level: 83B's debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: 83B's debt to equity ratio has increased from 12.8% to 38.1% over the past 5 years.

Debt Coverage: 83B's debt is well covered by operating cash flow (43.3%).

Interest Coverage: 83B's interest payments on its debt are well covered by EBIT (86.8x coverage).


Balance Sheet


Next Steps

Dividend

What is 3SBio current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 83B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 83B's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 83B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 83B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 83B is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 83B's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Jing Lou (57 yo)

no data

Tenure

CN¥193,964,000

Compensation

Dr. Jing Lou, M.D., Ph.D. is a Co-Founder of 3SBio Inc. and has been its Executive Chairman of the Board since April 1, 2012 and also serves as its Chief Executive Officer and President. Dr. Lou served as ...


CEO Compensation Analysis

Compensation vs Market: Jing's total compensation ($USD28.99M) is above average for companies of similar size in the German market ($USD1.53M).

Compensation vs Earnings: Jing's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jing Lou
Co-Founderno dataCN¥193.96m1.96%
CN¥ 39.7m
Dongmei Su
Senior VP & Executive Director8.33yrsCN¥3.35m0.96%
CN¥ 19.5m
Fei Wang
Chief Financial Officer0.50yrno datano data
Weihong Xiao
Chief Operating Officer4.58yrsno datano data
Lu Xia
Director of Investor Relationsno datano datano data
Hui Dang
Director of Risk and Compliance Management4.5yrsno datano data
Thomas Folinsbee
Director of Corporate Developmentno datano datano data
Xin Ma
Vice President of the Human Resources Departmentno datano datano data
Fei You
Director of the Finance Department & Financial Controller9.58yrsno datano data
Junlin Wang
President of Guojian4.5yrsno datano data
Suet Wing Leung
Company Secretary2.17yrsno datano data

4.5yrs

Average Tenure

49yo

Average Age

Experienced Management: 83B's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jing Lou
Co-Founderno dataCN¥193.96m1.96%
CN¥ 39.7m
Dongmei Su
Senior VP & Executive Director8.33yrsCN¥3.35m0.96%
CN¥ 19.5m
David Parkinson
Independent Non-Executive Director5.33yrsCN¥269.00kno data
Bin Huang
Non-Executive Director5.92yrsCN¥1.07m1.27%
CN¥ 25.7m
Tianruo Pu
Independent Non-Executive Director5.33yrsCN¥269.00kno data
Ke Tang
Non-Executive Director0.58yrno datano data
Lap Yan Wong
Independent Non-Executive Director1yrCN¥62.00kno data

5.3yrs

Average Tenure

51yo

Average Age

Experienced Board: 83B's board of directors are considered experienced (5.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

3SBio Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 3SBio Inc.
  • Ticker: 83B
  • Exchange: DB
  • Founded: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$18.339b
  • Listing Market Cap: HK$2.029b
  • Shares outstanding: 2.54b
  • Website: https://www.3sbio.com

Number of Employees


Location

  • 3SBio Inc.
  • No. 3 A1, Road 10
  • Shenyang Economy and Technology Developm
  • Shenyang
  • Liaoning Province
  • 110027
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1530SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2015
83BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015
1530SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2015
1530SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2015
TRSB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2015

Biography

3SBio Inc. develops, manufactures, markets, and sells biopharmaceuticals in the People’s Republic of China. The company provides TPIAO, a recombinant human thrombopoietin for chemotherapy-induced thrombope ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 22:37
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.