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Shanghai Pharmaceuticals Holding

Market Cap

HK$59.0b

Last Updated

2021/04/14 10:22 UTC

Data Sources

Company Financials +

Executive Summary

Shanghai Pharmaceuticals Holding Co., Ltd., an investment holding company, researches, develops, manufactures, distributes, and retails pharmaceutical and healthcare products in the People’s Republic of China. More Details


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Shanghai Pharmaceuticals Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2607 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2607's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

2607

-1.1%

HK Healthcare

-2.5%

HK Market


1 Year Return

11.9%

2607

23.3%

HK Healthcare

26.4%

HK Market

Return vs Industry: 2607 underperformed the Hong Kong Healthcare industry which returned 25.3% over the past year.

Return vs Market: 2607 underperformed the Hong Kong Market which returned 29.5% over the past year.


Shareholder returns

2607IndustryMarket
7 Day1.6%-1.1%-2.5%
30 Day8.2%9.9%-1.8%
90 Day14.5%9.3%0.5%
1 Year15.8%11.9%26.5%23.3%31.2%26.4%
3 Year-16.8%-23.7%-37.6%-41.6%6.0%-5.2%
5 Year9.9%-3.2%-39.1%-44.7%47.3%22.5%

Long-Term Price Volatility Vs. Market

How volatile is Shanghai Pharmaceuticals Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shanghai Pharmaceuticals Holding undervalued compared to its fair value and its price relative to the market?

12.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2607 (HK$15.5) is trading above our estimate of fair value (HK$8.27)

Significantly Below Fair Value: 2607 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2607 is good value based on its PE Ratio (12.6x) compared to the HK Healthcare industry average (20.6x).

PE vs Market: 2607 is poor value based on its PE Ratio (12.6x) compared to the Hong Kong market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: 2607 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 2607's PB Ratio (1.3x) is in line with the HK Healthcare industry average.


Future Growth

How is Shanghai Pharmaceuticals Holding forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2607's forecast earnings growth (11.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 2607's earnings (11.4% per year) are forecast to grow slower than the Hong Kong market (19.7% per year).

High Growth Earnings: 2607's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2607's revenue (11% per year) is forecast to grow slower than the Hong Kong market (13.8% per year).

High Growth Revenue: 2607's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2607's Return on Equity is forecast to be low in 3 years time (11.7%).


Past Performance

How has Shanghai Pharmaceuticals Holding performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2607 has high quality earnings.

Growing Profit Margin: 2607's current net profit margins (2.3%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 2607's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: 2607's earnings growth over the past year (10.2%) exceeds its 5-year average (8% per year).

Earnings vs Industry: 2607 earnings growth over the past year (10.2%) exceeded the Healthcare industry 1%.


Return on Equity

High ROE: 2607's Return on Equity (10.2%) is considered low.


Financial Health

How is Shanghai Pharmaceuticals Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 2607's short term assets (CN¥107.6B) exceed its short term liabilities (CN¥88.1B).

Long Term Liabilities: 2607's short term assets (CN¥107.6B) exceed its long term liabilities (CN¥6.3B).


Debt to Equity History and Analysis

Debt Level: 2607's debt to equity ratio (63.3%) is considered high.

Reducing Debt: 2607's debt to equity ratio has increased from 31% to 63.3% over the past 5 years.

Debt Coverage: 2607's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: 2607's interest payments on its debt are well covered by EBIT (49.4x coverage).


Balance Sheet


Dividend

What is Shanghai Pharmaceuticals Holding current dividend yield, its reliability and sustainability?

2.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2607's dividend (2.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.97%).

High Dividend: 2607's dividend (2.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.01%).


Stability and Growth of Payments

Stable Dividend: 2607's dividends per share have been stable in the past 10 years.

Growing Dividend: 2607's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), 2607's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2607's dividends in 3 years are forecast to be well covered by earnings (32.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Man Cho (59 yo)

7.83yrs

Tenure

CN¥6,411,000

Compensation

Mr. Man Cho has been the President of Shanghai Pharmaceuticals Holding Co., Ltd. since June 5, 2013 and serves as its Executive Director. Mr. Cho is a Director of Oncternal Therapeutics, Inc. since Decembe...


CEO Compensation Analysis

Compensation vs Market: Man's total compensation ($USD979.18K) is above average for companies of similar size in the Hong Kong market ($USD584.14K).

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


Leadership Team

Experienced Management: 2607's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: 2607's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shanghai Pharmaceuticals Holding Co., Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanghai Pharmaceuticals Holding Co., Ltd
  • Ticker: 2607
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: CN¥49.623b
  • Listing Market Cap: CN¥58.959b
  • Shares outstanding: 2.84b
  • Website: https://www.sphchina.com

Number of Employees


Location

  • Shanghai Pharmaceuticals Holding Co., Ltd
  • Shanghai Pharmaceutical Building
  • No.200 Taicang Road
  • Shanghai
  • Shanghai Province
  • 200020
  • China

Listings


Biography

Shanghai Pharmaceuticals Holding Co., Ltd., an investment holding company, researches, develops, manufactures, distributes, and retails pharmaceutical and healthcare products in the People’s Republic of Ch...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/14 10:22
End of Day Share Price2021/04/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.