SEHK:1066

Stock Analysis Report

Shandong Weigao Group Medical Polymer

Executive Summary

Shandong Weigao Group Medical Polymer Company Limited engages in the research and development, production, and sale of single-use medical devices in the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Shandong Weigao Group Medical Polymer's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

1066

1.3%

HK Medical Equipment

2.2%

HK Market


1 Year Return

19.7%

1066

8.1%

HK Medical Equipment

-1.3%

HK Market

Return vs Industry: 1066 exceeded the Hong Kong Medical Equipment industry which returned 8.1% over the past year.

Return vs Market: 1066 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1066IndustryMarket
7 Day0.7%1.3%2.2%
30 Day-2.0%-1.0%-2.9%
90 Day14.2%19.0%-5.8%
1 Year21.6%19.7%9.3%8.1%2.3%-1.3%
3 Year71.5%62.7%10.9%7.5%15.6%3.9%
5 Year24.8%14.8%3.3%-1.8%20.1%0.06%

Price Volatility Vs. Market

How volatile is Shandong Weigao Group Medical Polymer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shandong Weigao Group Medical Polymer undervalued based on future cash flows and its price relative to the stock market?

19.44x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 1066 (HK$8.46) is trading above our estimate of fair value (HK$7.88)

Significantly Undervalued: 1066 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 1066 is poor value based on its PE Ratio (19.4x) compared to the Medical Equipment industry average (15.7x).

PE vs Market: 1066 is poor value based on its PE Ratio (19.4x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 1066 is poor value based on its PEG Ratio (1.3x)


Price Based on Value of Assets

PB vs Industry: 1066 is overvalued based on its PB Ratio (2.2x) compared to the HK Medical Equipment industry average (1.6x).


Next Steps

Future Growth

How is Shandong Weigao Group Medical Polymer expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1066's forecast earnings growth (14.8% per year) is above the savings rate (2%).

Earnings vs Market: 1066's earnings (14.8% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 1066's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1066's revenue (13.6% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1066's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1066's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Shandong Weigao Group Medical Polymer performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1066's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: 1066's earnings growth over the past year (40.2%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: 1066 earnings growth over the past year (40.2%) underperformed the Medical Equipment industry 50.2%.


Return on Equity

High ROE: 1066's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: 1066 has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: 1066 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Shandong Weigao Group Medical Polymer's financial position?


Financial Position Analysis

Short Term Liabilities: 1066's short term assets (CN¥11.1B) exceeds its short term liabilities (CN¥3.9B)

Long Term Liabilities: 1066's short term assets (11.1B) exceeds its long term liabilities (5.0B)


Debt to Equity History and Analysis

Debt Level: 1066's debt to equity ratio (34.4%) is considered satisfactory

Reducing Debt: 1066's debt to equity ratio has increased from 2.9% to 34.4% over the past 5 years.

Debt Coverage: 1066's debt is well covered by operating cash flow (42.6%).

Interest Coverage: 1066's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet

Inventory Level: 1066 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1066's debt is covered by short term assets (assets are 1.988060x debt).


Next Steps

Dividend

What is Shandong Weigao Group Medical Polymer's current dividend yield, its reliability and sustainability?

1.77%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Shandong Weigao Group Medical Polymer before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%2.3%markettop25%6.3%industryaverage1.6%forecastin3Years1.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1066's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1066's dividend (1.54%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 1066's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1066's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), 1066's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1066's dividends in 3 years are forecast to be well covered by earnings (27.8% payout ratio).


Next Steps

Management

What is the CEO of Shandong Weigao Group Medical Polymer's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Jing Long (44yo)

1.2yrs

Tenure

CN¥2,325,000

Compensation

Mr. Long Jing has been Chief Executive Officer and Executive Director of Shandong Weigao Group Medical Polymer Company Limited since August 29, 2018. Mr. Jing serves as a Vice-General Manager of Shandong W ...


CEO Compensation Analysis

Compensation vs. Market: Jing has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

2.7yrs

Average Tenure

47yo

Average Age

Experienced Management: 1066's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

57yo

Average Age

Experienced Board: 1066's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hua Wei Zhang (55yo)

    Chairman & Compliance Officer

    • Tenure: 3.6yrs
    • Compensation: CN¥2.31m
  • Phillis Wong (50yo)

    Company Secretary

    • Tenure: 13.4yrs
  • Hong Feng Ju (44yo)

    Vice-General Manager of the Production and Supply Chain

    • Tenure: 0yrs
  • Jian Bo Gong (51yo)

    Executive Director

    • Tenure: 6.6yrs
    • Compensation: CN¥10.89m
  • Jing Long (44yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥2.33m
  • Xue Feng Wu (41yo)

    Chief Financial Officer

    • Tenure: 2.7yrs

Board Members

  • Shu Hua Zhou (62yo)

    Non Executive Director

    • Tenure: 18.8yrs
  • Hua Wei Zhang (55yo)

    Chairman & Compliance Officer

    • Tenure: 3.6yrs
    • Compensation: CN¥2.31m
  • Yi Wang (59yo)

    Executive Director

    • Tenure: 18.8yrs
    • Compensation: CN¥1.27m
  • Xiao Yun Chen (45yo)

    Supervisor

    • Tenure: 0yrs
  • Dong Mei Bi (55yo)

    Chairman of the Board of Supervisors

    • Tenure: 0yrs
  • Ming Zhong Fu (68yo)

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: CN¥108.00k
  • Jin Xia Wang (64yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥108.00k
  • Wai Hung Lo (59yo)

    Independent Non Executive Director

    • Tenure: 10.2yrs
    • Compensation: CN¥154.00k
  • Jian Bo Gong (51yo)

    Executive Director

    • Tenure: 6.6yrs
    • Compensation: CN¥10.89m
  • Jing Long (44yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥2.33m

Company Information

Shandong Weigao Group Medical Polymer Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shandong Weigao Group Medical Polymer Company Limited
  • Ticker: 1066
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: HK$37.897b
  • Shares outstanding: 4.52b
  • Website: https://www.weigaogroup.com

Number of Employees


Location

  • Shandong Weigao Group Medical Polymer Company Limited
  • Torch Hi-Tech Science Park
  • 18 Xingshan Road
  • Weihai
  • Shandong Province
  • 264210
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1066SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDFeb 2004
UK2DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURFeb 2004
SHWG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDFeb 2004
1066SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2004
1066SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2004
SHWG.YOTCPK (Pink Sheets LLC)ADS REP SHS HUSUSDNov 2010

Biography

Shandong Weigao Group Medical Polymer Company Limited engages in the research and development, production, and sale of single-use medical devices in the People’s Republic of China. The company operates thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:38
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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