Sinopharm Group

SEHK:1099

Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

1099

SEHK

HK$102B

Market Cap

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Last updated 2019/03/20 12:52

Company description

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. The last earnings update was 181 days ago. More info.

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1099 Share Price and Events

7 Day Returns

-2.4%

SEHK:1099

-2.3%

HK Healthcare

1.7%

HK Market

1 Year Returns

-8.7%

SEHK:1099

18.3%

HK Healthcare

-9.4%

HK Market

1099 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Sinopharm Group (1099)	-2.4%	-4.1%	7.2%	-8.7%	10.5%	60.3%
HK Healthcare	-2.3%	-2.4%	10.3%	18.3%	52%	99.3%
HK Market	1.7%	5.9%	13.7%	-9.4%	29.8%	22.4%

1 Year Return vs Industry and Market

1099 underperformed the Healthcare industry which returned 18.3% over the past year.

Price Volatility

1099

Industry

5yr Volatility vs Market

Related Companies

Sorry, no analysis for Sinopharm Group's competitors could be found in our database.

Value

Is Sinopharm Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Sinopharm Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sinopharm Group.

SEHK:1099 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 19 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	8.1%
Perpetual Growth Rate	10-Year HK Government Bond Rate	2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1099
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6%
Healthcare Unlevered Beta	Simply Wall St/ S&P Global	0.74
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.736 (1 + (1- 25%) (54.89%))	1.026
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.03
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (1.026 * 5.96%)	8.12%

Discounted Cash Flow Calculation for SEHK:1099 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sinopharm Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1099 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CNY, Millions)	Source	Present Value Discounted (@ 8.12%)
2019	8,990.00	Analyst x5	8,315.08
2020	9,509.50	Analyst x6	8,135.26
2021	11,438.00	Analyst x1	9,050.45
2022	12,981.94	Est @ 13.5%	9,500.94
2023	14,286.59	Est @ 10.05%	9,670.80
2024	15,377.48	Est @ 7.64%	9,627.77
2025	16,291.81	Est @ 5.95%	9,434.45
2026	17,067.79	Est @ 4.76%	9,141.79
2027	17,739.41	Est @ 3.94%	8,788.20
2028	18,334.64	Est @ 3.36%	8,401.17
Present value of next 10 years cash flows			CN¥90,065.91

SEHK:1099 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = CN¥18,334.64 × (1 + 2%) ÷ (8.12% – 2%)	CN¥305,895.43
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CN¥305,895.43 ÷ (1 + 8.12%)¹⁰	CN¥140,165.30

SEHK:1099 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CN¥90,065.91 + CN¥140,165.30	CN¥230,231.21
Equity Value per Share (CNY)	= Total value / Shares Outstanding = CN¥230,231.21 / 2,965.52	CN¥77.64

SEHK:1099 Discount to Share Price
	Calculation	Result
Exchange Rate	CNY/HKD (Reporting currency to currency of SEHK:1099)	1.17
Value per Share (HKD)	= Value per Share in CNY x Exchange Rate (CNY/HKD) = CN¥77.64 x 1.17	HK$90.8
Value per share (HKD)	From above.	HK$90.80
Current discount	Discount to share price of HK$34.15 = -1 x (HK$34.15 - HK$90.80) / HK$90.80	62.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Sinopharm Group is available for.

^>50%

Share price is HK$34.15 vs Future cash flow value of HK$90.8

Current Discount Checks

For Sinopharm Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Sinopharm Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Sinopharm Group's share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sinopharm Group's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Sinopharm Group's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:1099 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-06-30) in CNY	CN¥1.88
SEHK:1099 Share Price **	SEHK (2019-03-20) in HKD	HK$34.15
SEHK:1099 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.855	CN¥29.2
Hong Kong Healthcare Industry PE Ratio	Median Figure of 20 Publicly-Listed Healthcare Companies	24.38x
Hong Kong Market PE Ratio	Median Figure of 1,496 Publicly-Listed Companies	11.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sinopharm Group.

SEHK:1099 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:1099 Share Price ÷ EPS (both in CNY) = 29.2 ÷ 1.88	15.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Sinopharm Group is good value based on earnings compared to the HK Healthcare industry average.
Sinopharm Group is overvalued based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does Sinopharm Group's expected growth come at a high price?

Raw Data

SEHK:1099 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	15.52x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts	13.8%per year
Hong Kong Healthcare Industry PEG Ratio	Median Figure of 6 Publicly-Listed Healthcare Companies	1.13x
Hong Kong Market PEG Ratio	Median Figure of 467 Publicly-Listed Companies	0.81x

*Line of best fit is calculated by linear regression .

SEHK:1099 PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 15.52x ÷ 13.8%	1.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Sinopharm Group is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Sinopharm Group's assets?

Raw Data

SEHK:1099 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-06-30) in CNY	CN¥13.15
SEHK:1099 Share Price *	SEHK (2019-03-20) in HKD	HK$34.15
SEHK:1099 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.855	CN¥29.2
Hong Kong Healthcare Industry PB Ratio	Median Figure of 35 Publicly-Listed Healthcare Companies	1.94x
Hong Kong Market PB Ratio	Median Figure of 2,138 Publicly-Listed Companies	0.99x

SEHK:1099 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:1099 Share Price ÷ Book Value per Share (both in CNY) = 29.2 ÷ 13.15	2.22x

* Primary Listing of Sinopharm Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Sinopharm Group is overvalued based on assets compared to the HK Healthcare industry average.

Show me more potentially undervalued companies in the Healthcare industry

Value checks

We assess Sinopharm Group's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

13.8%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Sinopharm Group expected to grow at an attractive rate?

Sinopharm Group's earnings growth is expected to exceed the low risk savings rate of 2%.

Growth vs Market Checks

Sinopharm Group's earnings growth is expected to exceed the Hong Kong market average.
Sinopharm Group's revenue growth is expected to exceed the Hong Kong market average.

Annual Growth Rates Comparison

Raw Data

SEHK:1099 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:1099 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts	13.8%
SEHK:1099 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts	10.6%
Hong Kong Healthcare Industry Earnings Growth Rate	Market Cap Weighted Average	-1.2%
Hong Kong Healthcare Industry Revenue Growth Rate	Market Cap Weighted Average	12.3%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.8%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	10.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

SEHK:1099 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (8 months ago)	See Below
Future Estimates	Average of up to 19 Analyst Estimates (S&P Global)	See Below

All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1099 Future Estimates Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2022-12-31
2021-12-31	435,611			1
2020-12-31	384,974	10,403	7,426	18
2019-12-31	345,789	10,894	6,409	19
2018-12-31	311,976	4,107	5,719	18

SEHK:1099 Past Financials Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *
2018-06-30	287,436	3,597	5,194
2018-03-31	282,576	2,632	5,237
2017-12-31	277,717	1,667	5,280
2017-09-30	273,537	-790	5,070
2017-06-30	269,356	-3,247	4,861
2017-03-31	264,691		4,996
2016-12-31	258,388	9,258	4,635
2016-09-30	251,401	11,117	4,515
2016-06-30	244,414	12,975	4,394
2016-03-31	234,499		3,885
2015-12-31	228,673	13,412	3,772
2015-09-30	222,513	9,472	3,548

*GAAP earnings excluding extraordinary items.

High Growth Checks

Sinopharm Group's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
Sinopharm Group's revenue is expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

SEHK:1099 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (8 months ago)	See Below
Future Estimates	Average of up to 19 Analyst Estimates (S&P Global)	See Below

All data from Sinopharm Group Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1099 Future Estimates Data
Date (Data in CNY Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31	2.62	3.06	2.37	14.00
2019-12-31	2.33	2.63	2.19	15.00
2018-12-31	2.04	2.22	1.85	15.00

SEHK:1099 Past Financials Data
Date (Data in CNY Millions)	EPS *
2018-06-30	1.88
2018-03-31	1.90
2017-12-31	1.91
2017-09-30	1.84
2017-06-30	1.76
2017-03-31	1.81
2016-12-31	1.68
2016-09-30	1.63
2016-06-30	1.59
2016-03-31	1.41
2015-12-31	1.36
2015-09-30	1.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Sinopharm Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Show me more growth companies in the Healthcare industry

Future performance checks

We assess Sinopharm Group's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sinopharm Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

How has Sinopharm Group performed over the past 5 years?

Sinopharm Group's last earnings update was 181 days ago.

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Sinopharm Group's growth in the last year to its industry (Healthcare).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Sinopharm Group's year on year earnings growth rate has been positive over the past 5 years.
Sinopharm Group's 1-year earnings growth is less than its 5-year average (6.8% vs 19.3%)
Sinopharm Group's earnings growth has exceeded the HK Healthcare industry average in the past year (6.8% vs 5%).

Earnings and Revenue History

Sinopharm Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Sinopharm Group Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1099 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions)	Revenue	Net Income *	G+A Expenses
2018-06-30	287,435.67	5,193.68	12,828.30
2018-03-31	282,576.35	5,236.80	12,207.48
2017-12-31	277,717.02	5,279.92	11,586.67
2017-09-30	273,536.65	5,070.49	11,211.18
2017-06-30	269,356.28	4,861.06	10,835.70
2017-03-31	264,690.51	4,996.12	10,875.41
2016-12-31	258,387.69	4,635.20	10,744.22
2016-09-30	251,401.06	4,514.54	10,511.51
2016-06-30	244,414.43	4,393.88	10,278.80
2016-03-31	234,498.73	3,885.30	9,963.99
2015-12-31	228,672.93	3,772.22	9,754.72
2015-09-30	222,512.99	3,547.71	9,504.17
2015-06-30	216,353.04	3,323.21	9,253.63
2015-03-31	207,865.08	3,037.20	8,889.99
2014-12-31	200,131.26	2,874.82	8,681.04
2014-09-30	190,883.36	2,719.28	8,446.76
2014-06-30	181,635.46	2,563.74	8,212.48
2014-03-31	174,250.80	2,406.87	7,899.07
2013-12-31	166,866.15	2,250.00	7,585.66
2013-09-30	158,435.94	2,211.10	7,176.19
2013-06-30	150,005.73	2,172.20	6,766.72
2013-03-31	143,253.69	2,075.79	6,552.17
2012-12-31	136,501.66	1,979.38	6,337.62
2012-09-30	128,644.35	1,857.21	6,025.20
2012-06-30	120,787.04	1,735.05	5,712.78
2012-03-31	111,505.92	1,647.83	5,300.10

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Sinopharm Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Sinopharm Group used its assets more efficiently than the HK Healthcare industry average last year based on Return on Assets.
Sinopharm Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the Healthcare industry

Past performance checks

We assess Sinopharm Group's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sinopharm Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is Sinopharm Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sinopharm Group's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Sinopharm Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Sinopharm Group's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Sinopharm Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

Low level of unsold assets.
Debt is covered by short term assets, assets are 3.4x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Sinopharm Group Company Filings, last reported 8 months ago.

SEHK:1099 Past Debt and Equity Data
Date (Data in CNY Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-06-30	53,444.45	48,089.99	23,354.13
2018-03-31	53,444.45	48,089.99	23,354.13
2017-12-31	51,269.65	35,688.01	30,338.69
2017-09-30	51,269.65	35,688.01	30,338.69
2017-06-30	47,866.83	43,347.71	20,071.85
2017-03-31	47,866.83	43,347.71	20,071.85
2016-12-31	44,532.44	33,497.88	26,796.67
2016-09-30	44,532.44	33,497.88	26,796.67
2016-06-30	42,885.24	34,131.20	27,852.22
2016-03-31	40,655.71	28,812.19	21,147.69
2015-12-31	40,878.68	28,963.48	21,196.45
2015-09-30	40,878.68	28,963.48	21,196.45
2015-06-30	37,934.51	31,675.89	18,174.74
2015-03-31	36,289.63	29,455.45	16,423.80
2014-12-31	36,289.63	29,455.45	16,423.80
2014-09-30	36,289.63	29,455.45	16,423.80
2014-06-30	30,027.47	26,425.99	12,428.02
2014-03-31	30,027.47	26,425.99	12,428.02
2013-12-31	28,611.35	25,141.34	14,876.03
2013-09-30	28,611.35	25,141.34	14,876.03
2013-06-30	27,082.47	21,650.25	13,497.64
2013-03-31	27,082.47	21,650.25	13,497.64
2012-12-31	22,948.66	16,139.78	10,351.09
2012-09-30	22,948.66	16,139.78	10,351.09
2012-06-30	21,528.34	14,452.29	10,285.69
2012-03-31	21,528.34	14,452.29	10,285.69

Sinopharm Group's level of debt (90%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (80% vs 90% today).
Debt is not well covered by operating cash flow (7.5%, less than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).

Financial health checks

We assess Sinopharm Group's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.95%

Current annual income from Sinopharm Group dividends. Estimated to be 2.42% next year.

If you bought HK$2,000 of Sinopharm Group shares you are expected to receive HK$39 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Sinopharm Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (1.96%).
Sinopharm Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.3%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

SEHK:1099 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 19 Analyst Estimates (S&P Global)	See Below
Hong Kong Healthcare Industry Average Dividend Yield	Market Cap Weighted Average of 12 Stocks	2%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 922 Stocks	3.4%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.1%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	2%
Hong Kong Top 25% Dividend Yield	75th Percentile	5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1099 Future Dividends Estimate Data
Date (Data in CN¥)	Dividend per Share (annual)	Avg. No. Analysts
2022-12-31	0.00	1.00
2021-12-31	0.00	1.00
2020-12-31	0.80	16.00
2019-12-31	0.70	18.00
2018-12-31	0.60	15.00

SEHK:1099 Past Annualized Dividends Data
Date (Data in CN¥)	Dividend per share (annual)	Avg. Yield (%)
2018-05-09	0.570	1.891
2017-04-20	0.500	1.735
2017-03-24	0.500	1.566
2016-06-16	0.410	1.280
2015-06-18	0.310	1.208
2014-06-20	0.260	1.140
2013-04-19	0.250	1.498
2012-03-23	0.190	1.024
2011-03-25	0.160	0.910
2010-04-16	0.010	0.040
2010-03-24	0.010	0.032

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Whilst dividend payments have been stable, Sinopharm Group has been paying a dividend for less than 10 years.
Dividend payments have increased, but Sinopharm Group only paid a dividend in the past 9 years.

Current Payout to shareholders

What portion of Sinopharm Group's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (3.3x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (6x coverage).

Income/ dividend checks

We assess Sinopharm Group's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Sinopharm Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Yong Liu

COMPENSATION	CN¥5,876,000
AGE	49
TENURE AS CEO	1.3 years

CEO Bio

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 Group Co. Ltd. since December 18, 2017. Mr. Liu serves as General Manager of Beijing Sinopharm Tianyuan Property Management Co., Ltd. He joined Sinopharm Group in January 2003. He is a Chief Pharmacist and a Practicing Pharmacist. He has been General Counsel of Sinopharm Group Co. Ltd. since January 2014. He serves as General Manager of Sinopharm Holding Beijing Co.,Ltd. He serves as Executive Director of Sinopharm Group Medicine Logistic Co., Ltd. and Shanghai Huyong Medicine Co., Ltd. He has been the General Manager and the Chairman of Sinopharm Shenyang since April 2003 and January 2009 respectively. He serves as Chairman of China National Accord Medicines Corporation Ltd., (formerly known as Shenzhen Accord Pharmaceutical Co. Ltd.) since October 2017. Mr. Liu has been the President of Sinopharm Group Co. Ltd. since November 21, 2017. He served as Vice President and Secretary to the Board at Sinopharm Group Co. Ltd. since January 9, 2009 until November 21, 2017 and October 28, 2016 until November 21, 2017 respectively. He has over 24 years of working experience, over 21 years of which is management experience in the pharmaceutical and healthcare products industry. He was employed at Shanghai Pharmaceutical Station from July 1992 to July 1999 and served as the Deputy General Manager at the Marketing Department of China National Pharmaceutical Group Shanghai Corporation (China National Pharmaceutical Group Corporation) and the Deputy General Manager of Shanghai Guoda Drug Chain Store Co., Ltd. (Shanghai Guoda Drugstore Chain Co., Ltd. and Shanghai GuoDa Chain Store) from July 1999 to April 2003. He served as the General Manager and Secretary of Party Committee of Sinopharm Holding Shenyang Co., Ltd. (Sinopharm Holding Shengyang Co., Ltd.) from January 2003 to November 2009. He served as Deputy President/Deputy General Manager of Sinopharm Group Co. Ltd. since January 9, 2009. He has also been the Chairman of Sinopharm Group Chemical Reagent Co., Ltd. and Sinopharm Holding Henan Co., Ltd. (Sinopharm Henan) since February 2009. He serves as Chairman of Sinopharm Holding Beijing Tianxingpuxin BioMed Co., Ltd., Sinopharm Holding Beijing Co., Ltd., Sinopharm Holding Beijing Kangchen Bio-medicine Co., Ltd., Sinopharm Holding Guizhou Co., Ltd., Sinopharm Holding Yunnan Co., Ltd., Sinopharm Medicine Holding Beijing Huahong Co., Ltd., Sinopharm Online Co., Ltd. and China National Medicines Co., Ltd. He serves as the Chairman of Sinopharm Holding Beijing Huahong Biological Medicine Co.Ltd., Sinopharm Holding Guoda Drugstore Co., Ltd., Sinopharm Health On-line Co., Ltd., Sinopharm Holding Xinan Co., Ltd., Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd., Sinopharm Holding Hunan Co., Ltd., Sinopharm Holding Chongqing Co., Ltd., Sinopharm Holding Jiling Co., Ltd., Sinopharm Holding Anhui Co., Ltd., Sinopharm Group Shanghai Likang Pharmaceutical Co., Ltd., Sinopharm Holding Shandong Co., Ltd., and Sinopharm Holding Shengyang Co., Ltd. He serves as a Director of Sinopharm Guohua Network Technology Co., Ltd., Sichuan Medicine Co., Ltd., and Sinopharm Group Shanxi Co., Ltd. He has been Non-Independent Director of China National Accord Medicines Corporation Ltd. since January 18, 2017. Mr. Liu received a Bachelor's degree in Science, majoring in Business Administration of Pharmaceutical Enterprises, from China Pharmaceutical University in July 1992 and a Master's degree in Business Administration from Fudan University in January 2000. Mr. Liu holds a Doctor Degree, Pharmacist-in-Charge and Licensed Pharmacist.

CEO Compensation

Insufficient data for Yong to compare compensation growth.
Yong's remuneration is higher than average for companies of similar size in Hong Kong.

Management Team Tenure

Average tenure and age of the Sinopharm Group management team in years:

7.6

Average Tenure

Average Age

The average tenure for the Sinopharm Group management team is over 5 years, this suggests they are a seasoned and experienced team.

Management Team

Zhiming Li

TITLE

Chairman

COMPENSATION

CN¥9M

AGE

55

Yong Liu

TITLE

President & Executive Director

COMPENSATION

CN¥6M

AGE

49

TENURE

1.3 yrs

Yijian Wu

53

TENURE

1.2 yrs

Xiuchang Jiang

Average Age

The tenure for the Sinopharm Group board of directors is about average.

Board of Directors

Zhiming Li

TITLE

Chairman

COMPENSATION

CN¥9M

AGE

55

TENURE

2 yrs

Yong Liu

62

TENURE

4.5 yrs

Zhengdong Liu

62

TENURE

4.5 yrs

Who owns this company?

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (HK$)	Value (HK$)
19. Mar 19	Sell	J.P. Morgan Asset Management, Inc.	Company	14. Mar 19	14. Mar 19	-1,814,043	HK$34.98	HK$-63,460,303
15. Mar 19	Sell	JPMorgan Chase & Co, Private Banking and Investment Banking Investments	Company	12. Mar 19	12. Mar 19	-18,400	HK$36.05	HK$-663,357
15. Mar 19	Buy	JPMorgan Chase & Co, Private Banking and Investment Banking Investments	Company	12. Mar 19	12. Mar 19	926,368	HK$36.05	HK$33,397,421
15. Mar 19	Sell	JPMorgan Chase & Co, Brokerage and Securities Investments	Company	12. Mar 19	12. Mar 19	-3,565	HK$36.05	HK$-128,525
15. Mar 19	Buy	J.P. Morgan Asset Management, Inc.	Company	12. Mar 19	12. Mar 19	2,795,056	HK$36.05	HK$100,767,365
12. Jan 19	Sell	Matthews International Capital Management, LLC	Company	11. Jan 19	11. Jan 19	-1,109,200	HK$33.09	HK$-36,703,871
11. Dec 18	Sell	OppenheimerFunds, Inc.	Company	07. Dec 18	07. Dec 18	-1,214,000	HK$34.97	HK$-42,449,453
24. Oct 18	Buy	J.P. Morgan Asset Management, Inc.	Company	19. Oct 18	19. Oct 18	35,434	HK$35.82	HK$1,269,118
19. Oct 18	Sell	J.P. Morgan Asset Management, Inc.	Company	16. Oct 18	16. Oct 18	-814,948	HK$35.71	HK$-29,100,410
02. Oct 18	Sell	OppenheimerFunds, Inc.	Company	27. Sep 18	27. Sep 18	-1,570,000	HK$37.73	HK$-59,228,410
26. Sep 18	Sell	OppenheimerFunds, Inc.	Company	21. Sep 18	21. Sep 18	-1,279,200	HK$38.06	HK$-48,682,770
21. Sep 18	Sell	J.P. Morgan Asset Management, Inc.	Company	18. Sep 18	18. Sep 18	-1,376,188	HK$37.36	HK$-51,416,168
18. Sep 18	Sell	OppenheimerFunds, Inc.	Company	11. Sep 18	11. Sep 18	-406,800	HK$37.28	HK$-15,165,546
03. Aug 18	Sell	OppenheimerFunds, Inc.	Company	01. Aug 18	01. Aug 18	-1,270,000	HK$33.83	HK$-42,964,860
27. Jul 18	Sell	JPMorgan Chase & Co, Brokerage and Securities Investments	Company	24. Jul 18	24. Jul 18	-233,640	HK$32.35	HK$-7,558,161
27. Jul 18	Sell	J.P. Morgan Asset Management, Inc.	Company	24. Jul 18	24. Jul 18	-80,000	HK$32.35	HK$-2,587,968
26. Jul 18	Buy	J.P. Morgan Asset Management, Inc.	Company	23. Jul 18	23. Jul 18	153,151	HK$32.37	HK$4,957,115
23. Jul 18	Sell	J.P. Morgan Asset Management, Inc.	Company	18. Jul 18	18. Jul 18	-26,548	HK$33.29	HK$-883,661
24. Jul 18	Sell	Hongyu Zhang	Individual	06. Jun 18	06. Jun 18	-30,000	HK$35.97	HK$-1,079,100
25. Jul 18	Sell	OppenheimerFunds, Inc.	Company	20. Jul 18	20. Jul 18	-1,887,200	HK$33.00	HK$-62,277,595
19. Jul 18	Sell	JPMorgan Chase & Co, Brokerage and Securities Investments	Company	16. Jul 18	16. Jul 18	-860,203	HK$33.27	HK$-28,619,986
25. Jun 18	Sell	FIL Limited	Company	20. Jun 18	20. Jun 18	-2,090,400	HK$32.82	HK$-68,609,850
11. Jun 18	Buy	FIL Limited	Company	06. Jun 18	06. Jun 18	189,600	HK$35.83	HK$6,794,164
31. May 18	Sell	FIL Limited	Company	28. May 18	28. May 18	-45,600	HK$35.09	HK$-1,600,040
04. May 18	Buy	FIL Limited	Company	30. Apr 18	30. Apr 18	1,320,800	HK$33.43	HK$44,150,252
11. Apr 18	Buy	BlackRock, Inc.	Company	06. Apr 18	06. Apr 18	8,776,800	HK$43.42	HK$381,079,901
27. Mar 18	Sell	FIL Limited	Company	22. Mar 18	22. Mar 18	-478,800	HK$36.67	HK$-17,556,159

Management checks

We assess Sinopharm Group's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

If You Had Bought Sinopharm Group (HKG:1099) Stock Five Years Ago, You Could Pocket A 62% Gain Today

To wit, the Sinopharm Group share price has climbed 62% in five years, easily topping the market return of 22% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Sinopharm Group managed to grow its earnings per share at 16% a year.

Simply Wall St - 2 days ago – Full article

How Much Are Sinopharm Group Co. Ltd. (HKG:1099) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Sinopharm Group Co. … The Last 12 Months Of Insider Transactions At Sinopharm Group. … Over the last year, we can see that the biggest insider sale was by Hongyu Zhang for HK$1.1m worth of shares, at about HK$35.97 per share.

Simply Wall St - 2 weeks ago – Full article

Is Sinopharm Group Co. Ltd. (HKG:1099) Potentially Underrated?

Help shape the future of investing tools and receive a $20 prize! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Sinopharm Group Co.

Simply Wall St - 3 weeks ago – Full article

Does Sinopharm Group Co. Ltd. (HKG:1099) Have A Good P/E Ratio?

Sinopharm Group has a P/E ratio of 16.07, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 16.07 = CN¥30.23 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥1.88

Simply Wall St - 1 month ago – Full article

Is Sinopharm Group Co. Ltd.'s (HKG:1099) ROE Of 15% Impressive?

Our data shows Sinopharm Group has a return on equity of 15% for the last year. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 2 months ago – Full article

Can We See Significant Institutional Ownership On The Sinopharm Group Co. Ltd. (HKG:1099) Share Register?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Sinopharm Group is a pretty big company. … Check out our latest analysis for Sinopharm Group

Simply Wall St - 3 months ago – Full article

Sinopharm Group Co Ltd (HKG:1099): Time For A Financial Health Check

There are a number of reasons that attract investors towards large-cap companies such as Sinopharm Group Co Ltd (HKG:1099), with a market cap of HK$97b. … This article will examine Sinopharm Group’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … See our latest analysis for Sinopharm Group

Simply Wall St - 3 months ago – Full article

Want To Invest In Sinopharm Group Co Ltd (HKG:1099)? Here's How It Performed Lately

For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. … 1099's trailing twelve-month earnings (from 30 June 2018) of CN¥5.2b has … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 19%, indicating the rate at which 1099 is growing has slowed down

Simply Wall St - 3 months ago – Full article

Know This Before Buying Sinopharm Group Co Ltd (HKG:1099) For Its Dividend

Historically, Sinopharm Group Co Ltd (HKG:1099) has been paying a dividend to shareholders. … Let's take a look at Sinopharm Group in more detail. … View our latest analysis for Sinopharm Group

Simply Wall St - 4 months ago – Full article

Does Sinopharm Group Co Ltd's (HKG:1099) October Stock Price Reflect Its Future Growth?

Growth expectations for Sinopharm Group Co Ltd (HKG:1099) are high, but many investors are starting to ask whether its last close at HK$36.3 can still be rationalized by the future potential. … View our latest analysis for Sinopharm Group? … According to the analysts covering the company, the following few years should bring about good growth prospects for Sinopharm Group

Simply Wall St - 4 months ago – Full article

Company Info

Description

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 segment offers distribution, logistics, and other value-added services for domestic and international pharmaceutical and healthcare products manufacturers, and other suppliers. This segment distributes medicines, medical devices, and pharmaceutical products to hospitals, other distributors, retail drug stores, and clinics. The company’s Retail Pharmacy segment operates and franchises a network of retail drug stores. As of December 31, 2017, this segment had 3,834 retail pharmacies, including 2,801 directly operated by the company and 1,033 operated by franchisees. Its Other Business segment engages in the distribution of medical devices; provision of financial leasing services; and production, sale, and distribution of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products; and offers information technology development and medicine consultation, investment, goods and technology import and export, business consultation, health consultation, medical consultation, market information consultation and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, and technology training activities. The company was founded in 2003 and is headquartered in Shanghai, China. Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd.

Details

Name:	Sinopharm Group Co. Ltd.
Ticker:	1099
Exchange:	SEHK
Founded:	2003
Market Cap:	HK$102,458,572,341
Shares outstanding:	2,965,515,842
Website:	http://www.sinopharmgroup.com.cn
Address:	Sinopharm Group Co. Ltd. Sinopharm Plaza, No. 1001 Zhongshan Road (West), Shanghai, 200051, China

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
SEHK	1099	Foreign Shares-Foreign Listed	The Stock Exchange of Hong Kong Ltd.	HK	HKD	23. Sep 2009
OTCPK	SHTD.F	Foreign Shares-Foreign Listed	Pink Sheets LLC	US	USD	23. Sep 2009
DB	X2S	Foreign Shares-Foreign Listed	Deutsche Boerse AG	DE	EUR	23. Sep 2009
SHSC	1099	Foreign Shares-Foreign Listed	Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect	HK	HKD	23. Sep 2009
SZSC	1099	Foreign Shares-Foreign Listed	The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect	HK	HKD	23. Sep 2009
OTCPK	SHTD.Y	ADR	Pink Sheets LLC	US	USD	30. Aug 2012

Number of employees

Current staff

64,413

Sinopharm Group employees.

Industry

Industry:	Health Care Distributors
Sector:	Healthcare

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/03/20 12:52
End of day share price update:	2019/03/20 00:00
Last estimates confirmation:	2019/03/19
Last earnings filing:	2018/09/20
Last earnings reported:	2018/06/30
Last annual earnings reported:	2017/12/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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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