SEHK:2289

Stock Analysis Report

Charmacy Pharmaceutical

Executive Summary

Charmacy Pharmaceutical Co., Ltd. distributes pharmaceutical products in the People's Republic of China.

Snowflake

Fundamentals

Adequate balance sheet unattractive dividend payer.

Risks

  • Charmacy Pharmaceutical is not covered by any analysts.

Share Price & News

How has Charmacy Pharmaceutical's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

SEHK:2289

1.9%

HK Healthcare

0.7%

HK Market


1 Year Return

-16.0%

SEHK:2289

-25.9%

HK Healthcare

-5.3%

HK Market

2289 outperformed the Healthcare industry which returned -26.1% over the past year.

2289 underperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

2289IndustryMarket
7 Day1.6%1.9%0.7%
30 Day-3.4%5.6%4.9%
90 Day-1.4%-4.4%-3.7%
1 Year-11.9%-16.0%-24.4%-25.9%-1.8%-5.3%
3 Year-6.6%-19.3%-27.8%-32.2%16.4%4.6%
5 Yearn/a-20.8%-27.7%18.0%-1.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.7x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Charmacy Pharmaceutical's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Charmacy Pharmaceutical's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Charmacy Pharmaceutical is good value based on earnings compared to the HK Healthcare industry average.

Charmacy Pharmaceutical is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Charmacy Pharmaceutical, we can't assess if its growth is good value.


Price Based on Value of Assets

Charmacy Pharmaceutical is overvalued based on assets compared to the HK Healthcare industry average.


Next Steps

Future Growth

How is Charmacy Pharmaceutical expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Charmacy Pharmaceutical is high growth as no revenue estimate data is available.

Charmacy Pharmaceutical's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Charmacy Pharmaceutical's revenue growth to the Hong Kong market average as no estimate data is available.

Charmacy Pharmaceutical's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Charmacy Pharmaceutical's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Charmacy Pharmaceutical will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Charmacy Pharmaceutical performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Charmacy Pharmaceutical's year on year earnings growth rate has been positive over the past 5 years.

Charmacy Pharmaceutical's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Charmacy Pharmaceutical's 1-year earnings growth is negative, it can't be compared to the HK Healthcare industry average.


Return on Equity

Charmacy Pharmaceutical has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Charmacy Pharmaceutical used its assets less efficiently than the HK Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Charmacy Pharmaceutical's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Charmacy Pharmaceutical's financial position?


Financial Position Analysis

Charmacy Pharmaceutical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Charmacy Pharmaceutical's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Charmacy Pharmaceutical's level of debt (108.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (132.2% vs 108.8% today).

Debt is not well covered by operating cash flow (9.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

What is Charmacy Pharmaceutical's current dividend yield, its reliability and sustainability?

4.61%

Current Dividend Yield


Dividend Yield and Payments Analysis

Charmacy Pharmaceutical's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Charmacy Pharmaceutical's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

Charmacy Pharmaceutical has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Charmacy Pharmaceutical has only been paying a dividend for 3 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Chuanglong Yao (49yo)

19.5yrs

Tenure

CN¥714,886

Compensation

Mr. Chuanglong Yao has been the Chairman and Chief Executive Officer at Chuangmei Pharmaceutical Co., Ltd. since May 2015 and March 2000 respectively. Mr. Yao is responsible for the overall management of G ...


CEO Compensation Analysis

Chuanglong's remuneration is lower than average for companies of similar size in Hong Kong.

Chuanglong's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

41.5yo

Average Age

The tenure for the Charmacy Pharmaceutical management team is about average.


Board Age and Tenure

4.0yrs

Average Tenure

45.5yo

Average Age

The tenure for the Charmacy Pharmaceutical board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chuanglong Yao (49yo)

    Chairman & CEO

    • Tenure: 19.5yrs
    • Compensation: CN¥714.89k
  • Yuyan Zheng (44yo)

    Chief Marketing Officer

    • Tenure: 4.3yrs
    • Compensation: CN¥537.18k
  • Zhixiong Lin (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥535.73k
  • Zhijie Lin (35yo)

    Chief Logistics Officer & Supervisor

    • Tenure: 2yrs
    • Compensation: CN¥188.00k
  • Zhixiong Xiang (39yo)

    Chief Human Resources Officer

    • Tenure: 3.1yrs
    • Compensation: CN¥86.00k
  • Jianfeng Dong (36yo)

    E-Commerce Operations Director

    • Tenure: 2.9yrs
    • Compensation: CN¥41.00k

Board Members

  • Chuanglong Yao (49yo)

    Chairman & CEO

    • Tenure: 19.5yrs
    • Compensation: CN¥714.89k
  • Yuyan Zheng (44yo)

    Chief Marketing Officer

    • Tenure: 4.3yrs
    • Compensation: CN¥537.18k
  • Zhixiong Lin (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥535.73k
  • Anthony Wan (44yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥122.32k
  • Tao Zhou (36yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥50.00k
  • Guan Suzhe Guan (49yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥50.00k
  • Ling Zhang (47yo)

    Chairman of the Board of Supervisors

    • Tenure: 4.3yrs
  • Xiyue Zheng (39yo)

    Employee Representative Supervisor

    • Tenure: 4.3yrs
  • Zhijie Lin (35yo)

    Chief Logistics Officer & Supervisor

    • Tenure: 2yrs
    • Compensation: CN¥188.00k
  • Weisheng Li (55yo)

    Non-Executive Director

    • Tenure: 2.3yrs

Company Information

Charmacy Pharmaceutical Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Charmacy Pharmaceutical Co., Ltd.
  • Ticker: 2289
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: HK$777.600m
  • Shares outstanding: 108.00m
  • Website: https://www.chmyy.com

Number of Employees


Location

  • Charmacy Pharmaceutical Co., Ltd.
  • No. 235, Song Shan North Road
  • Longhu District
  • Shantou
  • Guangdong Province
  • 515041
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2289SEHK (The Stock Exchange of Hong Kong Ltd.)Domestic SharesHKHKDNo data
2289SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2015

Biography

Charmacy Pharmaceutical Co., Ltd. distributes pharmaceutical products in the People's Republic of China. The company offers western medicines, Chinese patent medicines, and healthcare products to downstrea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 12:52
End of Day Share Price2019/09/17 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.