SEHK:1093

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

CSPC Pharmaceutical Group Limited, an investment holding company, manufactures and sells pharmaceutical products in the People’s Republic of China, other Asian regions, the Americas, Europe, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1093's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

1093

-4.1%

HK Pharmaceuticals

-0.7%

HK Market


1 Year Return

-19.6%

1093

2.1%

HK Pharmaceuticals

0.4%

HK Market

Return vs Industry: 1093 underperformed the Hong Kong Pharmaceuticals industry which returned 2.1% over the past year.

Return vs Market: 1093 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1093IndustryMarket
7 Day-4.1%-4.1%-0.7%
30 Day-9.2%-5.0%4.9%
90 Day-17.0%-16.2%1.2%
1 Year-18.2%-19.6%3.8%2.1%4.6%0.4%
3 Year20.4%16.1%-0.3%-6.2%-7.1%-17.2%
5 Year150.4%135.2%35.9%24.9%15.0%-4.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1093 (HK$8.44) is trading below our estimate of fair value (HK$8.52)

Significantly Below Fair Value: 1093 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1093 is poor value based on its PE Ratio (21.1x) compared to the HK Pharmaceuticals industry average (10.7x).

PE vs Market: 1093 is poor value based on its PE Ratio (21.1x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1093 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 1093 is overvalued based on its PB Ratio (4.4x) compared to the HK Pharmaceuticals industry average (1x).


Next Steps

Future Growth

How is CSPC Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1093's forecast earnings growth (14.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 1093's earnings (14.3% per year) are forecast to grow slower than the Hong Kong market (22.1% per year).

High Growth Earnings: 1093's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1093's revenue (14.4% per year) is forecast to grow faster than the Hong Kong market (13.2% per year).

High Growth Revenue: 1093's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1093's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has CSPC Pharmaceutical Group performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1093 has high quality earnings.

Growing Profit Margin: 1093's current net profit margins (17.6%) are higher than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: 1093's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: 1093's earnings growth over the past year (20.1%) is below its 5-year average (23.9% per year).

Earnings vs Industry: 1093 earnings growth over the past year (20.1%) exceeded the Pharmaceuticals industry -10.2%.


Return on Equity

High ROE: 1093's Return on Equity (20.3%) is considered high.


Next Steps

Financial Health

How is CSPC Pharmaceutical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1093's short term assets (CN¥16.5B) exceed its short term liabilities (CN¥7.9B).

Long Term Liabilities: 1093's short term assets (CN¥16.5B) exceed its long term liabilities (CN¥557.4M).


Debt to Equity History and Analysis

Debt Level: 1093's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: 1093's debt to equity ratio has reduced from 26.9% to 0.6% over the past 5 years.

Debt Coverage: 1093's debt is well covered by operating cash flow (3693.3%).

Interest Coverage: 1093 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is CSPC Pharmaceutical Group current dividend yield, its reliability and sustainability?

0.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1093's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1093's dividend (0.88%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.96%).


Stability and Growth of Payments

Stable Dividend: 1093 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1093 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1093 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1093's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Dongchen Cai (66 yo)

no data

Tenure

CN¥12,149,000

Compensation

Mr. Dongchen Cai serves as an Executive Chairman and Chief Executive Officer of CSPC Pharmaceutical Group Limited (formerly, China Pharmaceutical Group Limited) and has been its Executive Director since Ap ...


CEO Compensation Analysis

Compensation vs Market: Dongchen's total compensation ($USD1.81M) is above average for companies of similar size in the Hong Kong market ($USD837.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dongchen Cai
Executive Chairman & CEOno dataCN¥12.15m22.97%
CN¥ 23.1b
Cuilong Zhang
Vice-Chairman1.42yrsCN¥6.53mno data
Kin Man Chak
Executive Director14.83yrsCN¥4.86m0.000060%
CN¥ 60.3k
Weidong Pan
Executive Director14yrsCN¥3.91mno data
Huaiyu Wang
Executive Director10yrsCN¥3.89mno data
Zhenguo Wang
Executive Director8.75yrsCN¥6.09mno data
Chunlei Li
Executive Director2.83yrsCN¥4.78mno data
Qingxi Wang
Executive Director2.17yrsCN¥2.74mno data
Ka Sze Lee
Non-Executive Director & Company Secretary5yrsCN¥334.00kno data
Jinxu Wang
Senior Vice Presidentno dataCN¥2.12mno data

2.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 1093's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dongchen Cai
Executive Chairman & CEOno dataCN¥12.15m22.97%
CN¥ 23.1b
Cuilong Zhang
Vice-Chairman1.42yrsCN¥6.53mno data
Kin Man Chak
Executive Director14.83yrsCN¥4.86m0.000060%
CN¥ 60.3k
Weidong Pan
Executive Director14yrsCN¥3.91mno data
Huaiyu Wang
Executive Director10yrsCN¥3.89mno data
Zhenguo Wang
Executive Director8.75yrsCN¥6.09mno data
Chunlei Li
Executive Director2.83yrsCN¥4.78mno data
Qingxi Wang
Executive Director2.17yrsCN¥2.74mno data
Ka Sze Lee
Non-Executive Director & Company Secretary5yrsCN¥334.00kno data
Yuk Lam Lo
Independent Non-Executive Director6.33yrsCN¥106.00kno data
Siu Keung Chan
Independent Non-Executive Director16.08yrsCN¥238.00kno data
Bo Wang
Independent Non-Executive Director7.83yrsCN¥106.00kno data

7.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1093'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

CSPC Pharmaceutical Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CSPC Pharmaceutical Group Limited
  • Ticker: 1093
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$100.418b
  • Shares outstanding: 11.95b
  • Website: https://www.cspc.com.hk

Number of Employees


Location

  • CSPC Pharmaceutical Group Limited
  • No. 226 Huanghe Street
  • Shijiazhuang
  • Hebei Province
  • 50035
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHJT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
1093SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1994
CVGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
1093SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1994
1093SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1994
CSPC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADSUSUSDMay 2018

Biography

CSPC Pharmaceutical Group Limited, an investment holding company, manufactures and sells pharmaceutical products in the People’s Republic of China, other Asian regions, the Americas, Europe, and internatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 12:38
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.