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CSPC Pharmaceutical Group

SEHK:1093
Snowflake Description

Outstanding track record with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1093
SEHK
HK$78B
Market Cap
  1. Home
  2. HK
  3. Pharmaceuticals & Biotech
Company description

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. The last earnings update was 55 days ago. More info.


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1093 Share Price and Events
7 Day Returns
7.5%
SEHK:1093
-2.2%
HK Pharmaceuticals
-1.1%
HK Market
1 Year Returns
-40.6%
SEHK:1093
-30%
HK Pharmaceuticals
-6.5%
HK Market
1093 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CSPC Pharmaceutical Group (1093) 7.5% 17.7% -15.6% -40.6% 91.2% 113%
HK Pharmaceuticals -2.2% 10.4% -10.2% -30% 45.4% 24.6%
HK Market -1.1% 3.4% -7.7% -6.5% 17.4% 4.2%
1 Year Return vs Industry and Market
  • 1093 underperformed the Pharmaceuticals industry which returned -30% over the past year.
  • 1093 underperformed the Market in Hong Kong which returned -6.5% over the past year.
Price Volatility
1093
Industry
5yr Volatility vs Market
Related Companies

1093 Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CSPC Pharmaceutical Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CSPC Pharmaceutical Group.

SEHK:1093 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1093
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 25%) (0.1%))
0.822
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.822 * 5.96%)
6.9%

Discounted Cash Flow Calculation for SEHK:1093 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CSPC Pharmaceutical Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1093 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 6.9%)
2020 4,046.09 Analyst x10 3,784.93
2021 5,095.14 Analyst x7 4,458.60
2022 6,851.33 Analyst x3 5,608.41
2023 7,372.41 Analyst x2 5,645.41
2024 7,795.08 Est @ 5.73% 5,583.78
2025 8,154.75 Est @ 4.61% 5,464.37
2026 8,467.14 Est @ 3.83% 5,307.47
2027 8,745.07 Est @ 3.28% 5,127.85
2028 8,998.55 Est @ 2.9% 4,935.90
2029 9,235.21 Est @ 2.63% 4,738.73
Present value of next 10 years cash flows CN¥50,655.46
SEHK:1093 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥9,235.21 × (1 + 2%) ÷ (6.9% – 2%)
CN¥192,359.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥192,359.26 ÷ (1 + 6.9%)10
CN¥98,702.58
SEHK:1093 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥50,655.46 + CN¥98,702.58
CN¥149,358.04
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥149,358.04 / 6,236.34
CN¥23.95
SEHK:1093 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1093)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥23.95 x 1.137
HK$27.23
Value per share (HKD) From above. HK$27.23
Current discount Discount to share price of HK$13.46
= -1 x (HK$13.46 - HK$27.23) / HK$27.23
50.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CSPC Pharmaceutical Group is available for.
Intrinsic value
>50%
Share price is HK$13.46 vs Future cash flow value of HK$27.23
Current Discount Checks
For CSPC Pharmaceutical Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CSPC Pharmaceutical Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CSPC Pharmaceutical Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CSPC Pharmaceutical Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CSPC Pharmaceutical Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1093 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.53
SEHK:1093 Share Price ** SEHK (2019-07-15) in HKD HK$13.46
SEHK:1093 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥11.84
Hong Kong Pharmaceuticals Industry PE Ratio Median Figure of 31 Publicly-Listed Pharmaceuticals Companies 12.19x
Hong Kong Market PE Ratio Median Figure of 1,503 Publicly-Listed Companies 10.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CSPC Pharmaceutical Group.

SEHK:1093 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1093 Share Price ÷ EPS (both in CNY)

= 11.84 ÷ 0.53

22.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CSPC Pharmaceutical Group is overvalued based on earnings compared to the HK Pharmaceuticals industry average.
  • CSPC Pharmaceutical Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does CSPC Pharmaceutical Group's expected growth come at a high price?
Raw Data
SEHK:1093 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
16.5%per year
Hong Kong Pharmaceuticals Industry PEG Ratio Median Figure of 18 Publicly-Listed Pharmaceuticals Companies 1.06x
Hong Kong Market PEG Ratio Median Figure of 477 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:1093 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.13x ÷ 16.5%

1.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CSPC Pharmaceutical Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CSPC Pharmaceutical Group's assets?
Raw Data
SEHK:1093 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥2.41
SEHK:1093 Share Price * SEHK (2019-07-15) in HKD HK$13.46
SEHK:1093 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥11.84
Hong Kong Pharmaceuticals Industry PB Ratio Median Figure of 37 Publicly-Listed Pharmaceuticals Companies 1.39x
Hong Kong Market PB Ratio Median Figure of 2,190 Publicly-Listed Companies 0.92x
SEHK:1093 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1093 Share Price ÷ Book Value per Share (both in CNY)

= 11.84 ÷ 2.41

4.91x

* Primary Listing of CSPC Pharmaceutical Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CSPC Pharmaceutical Group is overvalued based on assets compared to the HK Pharmaceuticals industry average.
X
Value checks
We assess CSPC Pharmaceutical Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. CSPC Pharmaceutical Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1093 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CSPC Pharmaceutical Group expected to grow at an attractive rate?
  • CSPC Pharmaceutical Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • CSPC Pharmaceutical Group's earnings growth is expected to exceed the Hong Kong market average.
  • CSPC Pharmaceutical Group's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1093 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1093 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 16.5%
SEHK:1093 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 15.5%
Hong Kong Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 15.4%
Hong Kong Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 15.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1093 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1093 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 41,935 8,072 5,878 1
2022-12-31 38,762 7,284 6,506 2
2021-12-31 31,023 6,062 5,728 21
2020-12-31 26,715 5,335 4,787 29
2019-12-31 22,289 3,672 3,877 30
SEHK:1093 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 19,098 3,338
2018-12-31 18,468 3,889 3,210
2018-09-30 17,647 3,038
2018-06-30 16,070 3,404 2,793
2018-03-31 13,959 2,443
2017-12-31 12,877 2,738 2,307
2017-09-30 12,203 2,195
2017-06-30 11,659 2,811 2,068
2017-03-31 11,382 1,979
2016-12-31 11,076 2,611 1,881
2016-09-30 10,441 1,711
2016-06-30 10,118 2,147 1,607

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CSPC Pharmaceutical Group's earnings are expected to grow by 16.5% yearly, however this is not considered high growth (20% yearly).
  • CSPC Pharmaceutical Group's revenue is expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1093 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from CSPC Pharmaceutical Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1093 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.94 0.94 0.94 1.00
2022-12-31 1.04 1.20 0.88 2.00
2021-12-31 0.91 1.01 0.81 19.00
2020-12-31 0.77 0.83 0.68 28.00
2019-12-31 0.62 0.66 0.54 29.00
SEHK:1093 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.53
2018-12-31 0.51
2018-09-30 0.49
2018-06-30 0.45
2018-03-31 0.40
2017-12-31 0.38
2017-09-30 0.36
2017-06-30 0.34
2017-03-31 0.33
2016-12-31 0.32
2016-09-30 0.29
2016-06-30 0.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CSPC Pharmaceutical Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess CSPC Pharmaceutical Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CSPC Pharmaceutical Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1093 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CSPC Pharmaceutical Group's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CSPC Pharmaceutical Group has delivered over 20% year on year earnings growth in the past 5 years.
  • CSPC Pharmaceutical Group's 1-year earnings growth exceeds its 5-year average (36.6% vs 27.2%)
  • CSPC Pharmaceutical Group's earnings growth has exceeded the HK Pharmaceuticals industry average in the past year (36.6% vs 18.9%).
Earnings and Revenue History
CSPC Pharmaceutical Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CSPC Pharmaceutical Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1093 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 19,098.09 3,337.94 7,516.83 1,554.36
2018-12-31 18,468.16 3,209.91 7,120.85 1,390.42
2018-09-30 17,647.19 3,037.83 6,655.02 543.13
2018-06-30 16,069.83 2,793.02 5,824.50 306.84
2018-03-31 13,959.02 2,443.39 4,839.47 911.88
2017-12-31 12,876.52 2,307.17 4,177.35 678.91
2017-09-30 12,202.60 2,194.78 3,746.79 276.53
2017-06-30 11,659.06 2,067.81 3,409.95 281.96
2017-03-31 11,382.08 1,978.53 3,202.48
2016-12-31 11,075.77 1,881.19 2,992.44
2016-09-30 10,440.89 1,711.26 2,725.38
2016-06-30 10,118.48 1,607.47 2,575.90
2016-03-31 9,656.43 1,473.28 2,418.52
2015-12-31 9,544.89 1,395.05 2,347.19
2015-09-30 9,284.44 1,305.11 2,201.74
2015-06-30 9,072.25 1,191.56 2,044.69
2015-03-31 8,919.40 1,125.60 1,937.87
2014-12-31 8,762.07 1,014.53 1,871.36
2014-09-30 8,422.76 896.42 1,748.22
2014-06-30 8,196.76 849.06 1,686.33
2014-03-31 8,000.88 813.52 1,626.70
2013-12-31 7,768.12 759.51 1,499.77
2013-09-30 7,344.53 1,966.93 1,397.67
2013-06-30 6,155.56 1,927.20 1,212.26
2013-03-31 4,818.00 1,805.96 1,019.02
2012-12-31 3,334.66 1,738.92 798.32
2012-09-30 5,187.47 -213.46 829.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CSPC Pharmaceutical Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • CSPC Pharmaceutical Group used its assets more efficiently than the HK Pharmaceuticals industry average last year based on Return on Assets.
  • CSPC Pharmaceutical Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CSPC Pharmaceutical Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CSPC Pharmaceutical Group has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1093 Health

 How is CSPC Pharmaceutical Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CSPC Pharmaceutical Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CSPC Pharmaceutical Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CSPC Pharmaceutical Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CSPC Pharmaceutical Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 195.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CSPC Pharmaceutical Group Company Filings, last reported 3 months ago.

SEHK:1093 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31
2018-12-31 15,498.34 70.45 5,238.86
2018-09-30 14,652.30 824.52 4,525.04
2018-06-30 14,081.65 792.41 4,348.80
2018-03-31
2017-12-31 12,830.61 822.01 4,741.14
2017-09-30
2017-06-30 9,676.00 941.89 2,707.01
2017-03-31 9,029.50 1,008.41 2,866.38
2016-12-31 9,125.75 1,019.15 2,896.94
2016-09-30
2016-06-30 7,741.12 1,347.61 1,873.14
2016-03-31 7,332.95 1,217.28 1,913.89
2015-12-31 7,382.60 1,225.53 1,926.85
2015-09-30
2015-06-30 6,709.02 1,814.01 1,499.91
2015-03-31 6,518.07 980.22 1,174.73
2014-12-31 6,519.74 980.47 1,175.03
2014-09-30 5,965.15 1,032.31 790.02
2014-06-30 6,054.57 1,047.78 801.86
2014-03-31 6,088.38 1,073.98 952.26
2013-12-31 5,931.47 1,046.30 927.72
2013-09-30 5,524.13 1,302.31 753.31
2013-06-30 5,542.30 1,306.59 755.79
2013-03-31 5,415.73 1,854.60 1,161.42
2012-12-31 5,439.55 1,950.12 1,166.53
2012-09-30 4,725.56 1,566.25 780.08
  • CSPC Pharmaceutical Group's level of debt (0.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (17.6% vs 0.5% today).
  • Debt is well covered by operating cash flow (5520.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 144.6x coverage).
X
Financial health checks
We assess CSPC Pharmaceutical Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CSPC Pharmaceutical Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1093 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.3%
Current annual income from CSPC Pharmaceutical Group dividends. Estimated to be 2.14% next year.
If you bought HK$2,000 of CSPC Pharmaceutical Group shares you are expected to receive HK$26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CSPC Pharmaceutical Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • CSPC Pharmaceutical Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1093 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
Hong Kong Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 1.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1093 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.48 1.00
2021-12-31 0.31 14.00
2020-12-31 0.26 22.00
2019-12-31 0.20 22.00
SEHK:1093 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-17 0.153 1.375
2018-03-19 0.120 0.890
2017-04-19 0.096 0.883
2017-03-20 0.106 1.182
2016-04-21 0.092 1.421
2016-03-21 0.092 1.568
2015-05-26 0.080 1.414
2014-04-10 0.063 1.206
2013-04-18 0.078 2.102
2013-03-28 0.080 2.703
2012-11-30 0.000 0.000
2012-09-04 0.000 0.000
2012-08-15 0.000 0.000
2012-05-04 0.000 0.000
2012-03-30 0.000 0.000
2011-03-30 0.195 9.703
2010-04-09 0.202 5.334
2009-04-23 0.176 4.656
2009-04-08 0.176 5.308

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of CSPC Pharmaceutical Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess CSPC Pharmaceutical Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CSPC Pharmaceutical Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CSPC Pharmaceutical Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1093 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dongchen Cai
COMPENSATION CN¥13,925,000
AGE 65
CEO Bio

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 April 25, 1997. Mr. Cai has over 20 years of management experience in the pharmaceutical industry. He served as Factory Manager of Hebei Pharmaceutical Factory (HPF) since 1984. He joined HPF, the PRC in 1972 as a technician. He is a Senior Engineer. He serves as the Chairman of CSPC Holdings Company Limited. He serves as Chairman of China Charmaine Pharmaceutical Company Limited. He serves as Chairman at CSPC Cenway (Tianjin) Pharmaceuticals Co., Ltd. Mr. Cai graduated from Hebei Pharmaceutical Finance College, the People's Republic of China (the 'PRC') in 1972. He holds MBA Degree from Nankai University.

CEO Compensation
  • Dongchen's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dongchen's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team

Dongchen Cai

TITLE
Executive Chairman & CEO
COMPENSATION
CN¥14M
AGE
65

Cuilong Zhang

TITLE
Vice-Chairman
COMPENSATION
CN¥4M
AGE
50
TENURE
0.2 yrs

Kin Chak

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
53

Weidong Pan

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
49

Huaiyu Wang

TITLE
Executive Director
COMPENSATION
CN¥4M
AGE
56

Zhenguo Wang

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
49

Jinxu Wang

TITLE
Senior Vice President
COMPENSATION
CN¥3M
AGE
48

Hua Lu

TITLE
Executive Director
COMPENSATION
CN¥4M
AGE
47

Chunlei Li

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
43

Qingxi Wang

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
53
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the CSPC Pharmaceutical Group board of directors in years:

3.8
Average Tenure
51.5
Average Age
  • The tenure for the CSPC Pharmaceutical Group board of directors is about average.
Board of Directors

Dongchen Cai

TITLE
Executive Chairman & CEO
COMPENSATION
CN¥14M
AGE
65

Cuilong Zhang

TITLE
Vice-Chairman
COMPENSATION
CN¥4M
AGE
50
TENURE
0.2 yrs

Kin Chak

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
53
TENURE
13.6 yrs

Weidong Pan

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
49
TENURE
12.8 yrs

Huaiyu Wang

TITLE
Executive Director
COMPENSATION
CN¥4M
AGE
56
TENURE
8.8 yrs

Zhenguo Wang

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
49
TENURE
7.5 yrs

Hua Lu

TITLE
Executive Director
COMPENSATION
CN¥4M
AGE
47
TENURE
3.8 yrs

Chunlei Li

TITLE
Executive Director
COMPENSATION
CN¥5M
AGE
43
TENURE
1.6 yrs

Qingxi Wang

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
53
TENURE
0.9 yrs

Carmelo Lee

TITLE
Non-Executive Director & Company Secretary
COMPENSATION
CN¥350K
AGE
59
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
20. May 19 Sell Citigroup Inc.,Banking and Securities Investments Company 15. May 19 15. May 19 -5,215,853 HK$13.86 HK$-72,289,632
02. Jan 19 Buy Massive Top Limited Company 31. Dec 18 31. Dec 18 2,000,000 HK$11.30 HK$22,599,793
28. Dec 18 Buy Massive Top Limited Company 27. Dec 18 27. Dec 18 2,200,000 HK$11.19 HK$24,627,235
27. Dec 18 Buy Massive Top Limited Company 24. Dec 18 24. Dec 18 2,000,000 HK$10.88 HK$21,760,007
24. Dec 18 Buy Massive Top Limited Company 21. Dec 18 21. Dec 18 1,800,000 HK$11.00 HK$19,800,006
22. Dec 18 Buy Massive Top Limited Company 20. Dec 18 20. Dec 18 2,000,000 HK$10.88 HK$21,760,401
11. Dec 18 Buy Citigroup Inc.,Banking and Securities Investments Company 06. Dec 18 06. Dec 18 1,935,734 HK$14.45 HK$27,980,841
10. Dec 18 Buy Massive Top Limited Company 07. Dec 18 07. Dec 18 2,000,000 HK$13.21 HK$26,411,593
10. Dec 18 Buy Dongchen Cai Individual 07. Dec 18 07. Dec 18 1,000,000 HK$13.12 HK$13,120,002
08. Oct 18 Buy Massive Top Limited Company 05. Oct 18 05. Oct 18 2,000,000 HK$15.60 HK$31,199,202
X
Management checks
We assess CSPC Pharmaceutical Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CSPC Pharmaceutical Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1093 News

Simply Wall St News

Should You Be Impressed By CSPC Pharmaceutical Group Limited's (HKG:1093) ROE?

By way of learning-by-doing, we'll look at ROE to gain a better understanding CSPC Pharmaceutical Group Limited (HKG:1093). … CSPC Pharmaceutical Group has a ROE of 21%, based on the last twelve months. … See our latest analysis for CSPC Pharmaceutical Group?

Simply Wall St -

Should You Sell When CSPC Pharmaceutical Group Limited's (HKG:1093) Insiders Do?

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. … CSPC Pharmaceutical Group's insiders have divested from. … Generally, insiders selling shares in their own firm sends a bearish signal

Simply Wall St -

Is CSPC Pharmaceutical Group Limited (HKG:1093) Attractive At Its Current PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While this makes 1093 appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

Buy CSPC Pharmaceutical Group Limited (HKG:1093) When Everyone Panics

Longstanding stocks such as CSPC Pharmaceutical Group Limited has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … View our latest analysis for CSPC Pharmaceutical Group. … 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

Simply Wall St -

What Do Analysts Think About CSPC Pharmaceutical Group Limited's (HKG:1093) Profit Margin?

With analysts forecasting … CSPC Pharmaceutical Group Limited (HKG:1093) to … earnings growth of 21.40% annualised

Simply Wall St -

How CSPC Pharmaceutical Group Limited (HKG:1093) Delivered A Better ROE Than Its Industry

and looking to gauge the potential return on investment in CSPC Pharmaceutical Group Limited (HKG:1093). … CSPC Pharmaceutical Group Limited (HKG:1093) outperformed the pharmaceuticals industry on the basis of its ROE – producing a higher 19.80% relative to the peer average of 13.71% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Does CSPC Pharmaceutical Group Limited's (HKG:1093) PE Ratio Signal A Selling Opportunity?

In this article, I am going to take you through some key things to consider in order to identify which multiple is the most relevant for. … 1093’s growing business

Simply Wall St -

CSPC Pharmaceutical Group Limited (HKG:1093) Delivered A Better ROE Than The Industry, Here’s Why

and want to better understand how you can grow your money by investing in CSPC Pharmaceutical Group Limited (HKG:1093). … With an ROE of 19.80%, CSPC Pharmaceutical Group Limited (HKG:1093) outpaced its own industry which delivered a less exciting 13.71% over the past year. … Return on Equity (ROE) weighs CSPC Pharmaceutical Group’s profit against the level of its shareholders’ equity.

Simply Wall St -

Positive Sentiment Around CSPC Pharmaceutical Group Limited (HKG:1093) Is Justified

I will touched on some key aspects you should know on a high level, around its financials and growth prospects going forward. … 1093 also generates a sufficient level of earnings which amply covers its annual interest payment 2344x. … At 6.24 billion shares, that's a HK$143.28B market cap - which is too high for a company that has a 5-year cumulative average growth rate (CAGR) of 11.97% (source: analyst consensus).

Simply Wall St -

Are CSPC Pharmaceutical Group Limited's (HKG:1093) Interest Costs Too High?

Check out our latest analysis for CSPC Pharmaceutical Group How much cash does 1093 generate through its operations? … We can check to see whether 1093 is able to meet its debt obligations by looking at the net interest coverage ratio. … You should continue to research CSPC Pharmaceutical Group to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for 1093’s future growth?

Simply Wall St -

1093 Company Info

Description

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. The company operates through Finished Drugs, Vitamin C, Antibiotics, and Caffeine and Others segments. It offers NBP soft capsules and injections for acute ischemic stroke; Oulaining capsules and injections to treat mild to moderate memory and mental impairment; Xuanning for hypertension; Duomeisu for lymphoma, multiple myeloma, ovarian and breast cancers, and other malignant tumors; Jinyouli to prevent leucopenia and infection induced by chemotherapy; Ailineng for nerve glioma and brain metastases, and adjuvant treatment of malignant pleural and peritoneal effusion; Nuolining for chronic myelocytic and acute lymphoblastic leukemia; and Keaili for breast cancer. The company also provides generic drugs, including Ouyi for anti-inflammatory, Gubang to treat osteoporosis, and Weihong for various infections, as well as Guoweikang, a vitamin C supplement tablets; traditional Chinese medicine; and antibiotics comprising Amoxicillin and Ampicillin capsules, Ceftriaxone and Cefazolin sodium injections, and Meropenum injections. In addition, the company offers antibiotics, vitamin C, and caffeine APIs; and researches and develops various products with focus on the therapeutic areas of cardio-cerebrovascular diseases, metabolic diseases, oncology, psychiatry, and neurology, as well as anti-infection. Further, it provides storage, sourcing, and distribution services; medical services; and sewage products. Additionally, the company engages in the property holding; and sale of pharmaceutical equipment. The company was formerly known as China Pharmaceutical Group Limited and changed its name to CSPC Pharmaceutical Group Limited in March 2013. The company was founded in 1997 and is headquartered in Shijiazhuang, the People’s Republic of China.

Details
Name: CSPC Pharmaceutical Group Limited
1093
Exchange: SEHK
Founded: 1997
HK$78,453,137,109
6,236,338,403
Website: http://www.cspc.com.hk
Address: CSPC Pharmaceutical Group Limited
No. 226 Huanghe Street,
Shijiazhuang,
Hebei Province, 050035,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1093 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 27. Jun 1994
OTCPK CHJT.F Ordinary Shares Pink Sheets LLC US USD 27. Jun 1994
DB CVG Ordinary Shares Deutsche Boerse AG DE EUR 27. Jun 1994
SHSC 1093 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 27. Jun 1994
SZSC 1093 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 27. Jun 1994
OTCPK CSPC.Y UNSPONSORD ADS Pink Sheets LLC US USD 17. May 2018
Number of employees
Current staff
Staff numbers
12,709
CSPC Pharmaceutical Group employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 12:35
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/14
Last earnings filing: 2019/05/21
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.