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.

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

4.3%

2289

3.0%

HK Healthcare

2.2%

HK Market


1 Year Return

-11.0%

2289

-26.0%

HK Healthcare

-1.3%

HK Market

Return vs Industry: 2289 exceeded the Hong Kong Healthcare industry which returned -26% over the past year.

Return vs Market: 2289 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

2289IndustryMarket
7 Day4.3%3.0%2.2%
30 Day1.4%0.1%-2.9%
90 Day9.0%-3.2%-5.8%
1 Year-6.7%-11.0%-24.4%-26.0%2.3%-1.3%
3 Year-5.1%-18.0%-32.7%-36.7%15.6%3.9%
5 Yearn/a-28.7%-34.9%20.1%0.06%

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?

16.92x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 2289 (HK$7.3) is trading above our estimate of fair value (HK$4.86)

Significantly Undervalued: 2289 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 2289 is poor value based on its PE Ratio (16.9x) compared to the Healthcare industry average (16.2x).

PE vs Market: 2289 is poor value based on its PE Ratio (16.9x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate 2289's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: 2289 is overvalued based on its PB Ratio (1.5x) compared to the HK Healthcare industry average (1.4x).


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

Earnings vs Savings Rate: 2289's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: 2289's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: 2289's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 2289's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2289's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 2289's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: 2289's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: 2289's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2289 had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Healthcare industry average (7.2%).


Return on Equity

High ROE: 2289's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: 2289's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: 2289's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Charmacy Pharmaceutical's financial position?


Financial Position Analysis

Short Term Liabilities: 2289's short term assets (CN¥2.0B) exceeds its short term liabilities (CN¥1.8B)

Long Term Liabilities: 2289's short term assets (2.0B) exceeds its long term liabilities (109.2M)


Debt to Equity History and Analysis

Debt Level: 2289's debt to equity ratio (108.8%) is considered high

Reducing Debt: 2289's debt to equity ratio has reduced from 132.2% to 108.8% over the past 5 years.

Debt Coverage: 2289's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: 2289's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 2289 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2289's debt is covered by short term assets (assets are 3.708400x debt).


Next Steps

  • Explore more healthy companies in the Healthcare industry.

Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 2289's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 2289's dividend (4.55%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 2289 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2289 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77%), 2289's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Chuanglong Yao (49yo)

19.6yrs

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

Compensation vs. Market: Chuanglong's total compensation ($USD100.86K) is about average for companies of similar size in the Hong Kong market ($USD211.63K).

Compensation vs Earnings: Chuanglong's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

41.5yo

Average Age

Experienced Management: 2289's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

45.5yo

Average Age

Experienced Board: 2289's board of directors are considered experienced (4.1 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.


Ownership Breakdown


Management Team

  • Chuanglong Yao (49yo)

    Chairman & CEO

    • Tenure: 19.6yrs
    • Compensation: CN¥714.89k
  • Yuyan Zheng (44yo)

    Chief Marketing Officer

    • Tenure: 4.4yrs
    • Compensation: CN¥537.18k
  • Zhixiong Lin (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥535.73k
  • Zhijie Lin (35yo)

    Chief Logistics Officer & Supervisor

    • Tenure: 2.1yrs
    • Compensation: CN¥188.00k
  • Zhixiong Xiang (39yo)

    Chief Human Resources Officer

    • Tenure: 3.2yrs
    • Compensation: CN¥86.00k
  • Jianfeng Dong (36yo)

    E-Commerce Operations Director

    • Tenure: 3yrs
    • Compensation: CN¥41.00k

Board Members

  • Chuanglong Yao (49yo)

    Chairman & CEO

    • Tenure: 19.6yrs
    • Compensation: CN¥714.89k
  • Yuyan Zheng (44yo)

    Chief Marketing Officer

    • Tenure: 4.4yrs
    • Compensation: CN¥537.18k
  • Zhixiong Lin (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 4.4yrs
    • 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: 4.4yrs
  • Xiyue Zheng (39yo)

    Employee Representative Supervisor

    • Tenure: 4.4yrs
  • Zhijie Lin (35yo)

    Chief Logistics Officer & Supervisor

    • Tenure: 2.1yrs
    • 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 Analysis2019/10/14 12:51
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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