SHSC: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 Analysis

Undervalued established dividend payer.


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

Stable Share Price: 1099 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.1%

1099

-4.6%

HK Healthcare

-3.3%

HK Market


1 Year Return

-27.9%

1099

-27.4%

HK Healthcare

-9.6%

HK Market

Return vs Industry: 1099 matched the Hong Kong Healthcare industry which returned -26.9% over the past year.

Return vs Market: 1099 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1099IndustryMarket
7 Day-5.1%-4.6%-3.3%
30 Day-8.9%-7.0%-3.8%
90 Day-3.6%-5.8%-0.2%
1 Year-26.1%-27.9%-25.7%-27.4%-6.3%-9.6%
3 Year-26.5%-31.1%-33.3%-37.2%11.2%-0.05%
5 Year0.8%-7.7%-27.2%-33.2%12.7%-6.0%

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

No news available

Valuation

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

37.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1099 (HK$25.2) is trading below our estimate of fair value (HK$40.31)

Significantly Below Fair Value: 1099 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1099 is good value based on its PE Ratio (11.1x) compared to the Healthcare industry average (16x).

PE vs Market: 1099 is poor value based on its PE Ratio (11.1x) compared to the Hong Kong market (9.9x).


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 good value based on its PB Ratio (1.4x) 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?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1099's forecast earnings growth (13.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 1099's earnings (13.3% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 1099's revenue (10.4% per year) is forecast to grow faster than the Hong Kong market (9.7% per year).

High Growth Revenue: 1099's revenue (10.4% 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 (14.5%).


Next Steps

Past Performance

How has Sinopharm Group performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1099 has high quality earnings.

Growing Profit Margin: 1099's current net profit margins (1.6%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: 1099's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: 1099's earnings growth over the past year (14.3%) is below its 5-year average (15.3% per year).

Earnings vs Industry: 1099 earnings growth over the past year (14.3%) exceeded the Healthcare industry 10.4%.


Return on Equity

High ROE: 1099's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sinopharm Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1099's short term assets (CN¥248.9B) exceed its short term liabilities (CN¥198.3B).

Long Term Liabilities: 1099's short term assets (CN¥248.9B) exceed its long term liabilities (CN¥14.8B).


Debt to Equity History and Analysis

Debt Level: 1099's debt to equity ratio (63.3%) is considered high.

Reducing Debt: 1099's debt to equity ratio has reduced from 81.2% to 63.3% over the past 5 years.

Debt Coverage: 1099's debt is not well covered by operating cash flow (4.5%).

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 5.3x debt).


Next Steps

Dividend

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

2.64%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%6.4%industryaverage2.7%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: 1099's dividend (2.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 1099's dividend (2.64%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


Stability and Growth of Payments

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 (29.2%), 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 (29.5% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Yong Liu (50yo)

2.3yrs

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's total compensation ($USD1.13M) is about average for companies of similar size in the Hong Kong market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhiming Li
Chairman2.9yrsCN¥10.94m0.0056% CN¥4.3m
Yong Liu
President & Executive Director2.3yrsCN¥7.92m0.0045% CN¥3.5m
Qingming Yu
Executive Director1.7yrsCN¥15.89m0.0032% CN¥2.5m
Yijian Wu
Company Secretary1.2yrsno datano data
Wanyong Lian
Vice President0yrsno datano data
Dongjiu Li
Vice President2.1yrsno datano data
Xiuchang Jiang
CFO & Vice President9.8yrsno datano data
Wei Liu
Joint Company Secretary8.5yrsno datano data
Shuangjun Xu
Non-Executive Vice President8.9yrsno datano data
Wanjun Ma
Vice President9.4yrsno datano data

8.5yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 1099's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhiming Li
Chairman2.9yrsCN¥10.94m0.0056% CN¥4.3m
Yong Liu
President & Executive Director2.3yrsCN¥7.92m0.0045% CN¥3.5m
Qingming Yu
Executive Director1.7yrsCN¥15.89m0.0032% CN¥2.5m
Fang Yao
Chairman of Supervisory Committee9.1yrsno datano data
Ping Ma
Non-Executive Director3.3yrsno datano data
Qiyu Chen
Vice Chairman6.3yrsno datano data
Fumin Zhuo
Independent Non Executive Director3.9yrsCN¥300.00kno data
Jindong Deng
Non-Executive Director12.5yrsno datano data
Wee Seng Tan
Independent Non-Executive Director5.4yrsCN¥300.00kno data
Tze Shan Yu
Independent Non-Executive Director5.4yrsCN¥300.00kno data

4.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1099's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 1099 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.9%.


Top Shareholders

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: SHSC
  • Founded: 2003
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: HK$77.448b
  • Shares outstanding: 3.12b
  • 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 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, 2018, this segment had 5,183 retail pharmacies. Its Medical Devices segment distributes medical devices. Its Other Business segment engages in the production, sale, and financial leasing 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, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 16:09
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.