SEHK:1099

Stock Analysis Report

Executive Summary

Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and healthcare products in the People’s Republic of China.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Sinopharm Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

1099

0.8%

HK Healthcare

0.3%

HK Market


1 Year Return

-29.5%

1099

-25.2%

HK Healthcare

1.3%

HK Market

Return vs Industry: 1099 underperformed the Hong Kong Healthcare industry which returned -25.2% over the past year.

Return vs Market: 1099 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1099IndustryMarket
7 Day-1.5%0.8%0.3%
30 Day-5.7%-0.7%0.5%
90 Day-15.1%-2.8%-4.6%
1 Year-27.8%-29.5%-23.6%-25.2%4.9%1.3%
3 Year-27.2%-31.7%-32.4%-36.5%15.3%3.7%
5 Year-5.9%-13.8%-31.2%-37.3%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sinopharm Group undervalued compared to its fair value and its price relative to the market?

33.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1099 (HK$25.65) is trading below our estimate of fair value (HK$38.49)

Significantly Below Fair Value: 1099 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1099 is good value based on its PE Ratio (11.4x) compared to the Healthcare industry average (16.6x).

PE vs Market: 1099 is poor value based on its PE Ratio (11.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1099 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1099 is overvalued based on its PB Ratio (1.6x) compared to the HK Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Sinopharm Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1099's forecast earnings growth (14.1% per year) is above the savings rate (2%).

Earnings vs Market: 1099's earnings (14.1% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 1099's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1099's revenue (10.9% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1099's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1099's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Sinopharm Group performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1099's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: 1099's earnings growth over the past year (7.2%) is below its 5-year average (16.4% per year).

Earnings vs Industry: 1099 earnings growth over the past year (7.2%) exceeded the Healthcare industry 5.6%.


Return on Equity

High ROE: 1099's Return on Equity (13.9%) is considered low.


Return on Assets

ROA vs Industry: 1099's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: 1099 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sinopharm Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1099's short term assets (CN¥237.3B) exceeds its short term liabilities (CN¥191.7B)

Long Term Liabilities: 1099's short term assets (237.3B) exceeds its long term liabilities (11.2B)


Debt to Equity History and Analysis

Debt Level: 1099's debt to equity ratio (97.2%) is considered high

Reducing Debt: 1099's debt to equity ratio has increased from 87.9% to 97.2% over the past 5 years.

Debt Coverage: 1099's debt is not well covered by operating cash flow (2.5%).

Interest Coverage: 1099's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: 1099 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1099's debt is covered by short term assets (assets are 3.405160x debt).


Next Steps

Dividend

What is Sinopharm Group's current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.3%markettop25%6.2%industryaverage2.6%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1099's dividend (2.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1099's dividend (2.55%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1099's dividends per share have been stable in the past 10 years.

Growing Dividend: 1099's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.1%), 1099's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1099's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

What is the CEO of Sinopharm Group's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Yong Liu (50yo)

1.9yrs

Tenure

CN¥7,918,000

Compensation

Mr. Yong Liu serves as the Chief Legal Advisor at Sinopharm Group Co. Ltd. and served as its Joint Company Secretary since October 28, 2016 until August 24, 2018. Mr. Liu is Executive Director of Sinopharm ...


CEO Compensation Analysis

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


Management Age and Tenure

8.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 1099's management team is seasoned and experienced (8.2 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

52yo

Average Age

Experienced Board: 1099's board of directors are considered experienced (5.1 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.


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Ownership Breakdown


Management Team

  • Wei Liu (61yo)

    Joint Company Secretary

    • Tenure: 8.2yrs
  • Robert Li (53yo)

    Vice President

    • Tenure: 1.8yrs
  • Yong Liu (50yo)

    President & Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥7.92m
  • Wanyong Lian (48yo)

    Vice President

    • Tenure: 0yrs
  • Zhiming Li (56yo)

    Chairman

    • Tenure: 2.6yrs
    • Compensation: CN¥10.94m
  • Shuangjun Xu (50yo)

    Non-Executive Vice President

    • Tenure: 8.6yrs
  • Xiuchang Jiang (55yo)

    CFO & Vice President

    • Tenure: 9.4yrs
  • Wanjun Ma (50yo)

    Vice President

    • Tenure: 9.1yrs
  • Yijian Wu (49yo)

    Company Secretary

    • Tenure: 0.8yrs
  • Qingming Yu (55yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥15.89m

Board Members

  • Fang Yao (50yo)

    Chairman of Supervisory Committee

    • Tenure: 8.8yrs
  • Qiyu Chen (47yo)

    Vice Chairman

    • Tenure: 5.9yrs
  • Yong Liu (50yo)

    President & Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥7.92m
  • Jindong Deng (54yo)

    Non-Executive Director

    • Tenure: 12.2yrs
  • Wee Seng Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥300.00k
  • Zhiming Li (56yo)

    Chairman

    • Tenure: 2.6yrs
    • Compensation: CN¥10.94m
  • Hailson Yu (63yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥300.00k
  • Zhengdong Liu (49yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
  • Zhengdong Liu (49yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥300.00k
  • Qingming Yu (55yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥15.89m

Company Information

Sinopharm Group Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sinopharm Group Co. Ltd.
  • Ticker: 1099
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: HK$77.455b
  • Shares outstanding: 2.97b
  • Website: https://www.sinopharmgroup.com.cn

Number of Employees


Location

  • Sinopharm Group Co. Ltd.
  • Sinopharm Plaza
  • No. 1001 Zhongshan Road (West)
  • Shanghai
  • 200051
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1099SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2009
SHTD.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDSep 2009
X2SDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 2009
1099SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 2009
1099SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 2009
SHTD.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2012

Biography

Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and healthcare products in the People’s Republic of China. Its Pharmaceutical Distribution se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:48
End of Day Share Price2019/10/23 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.