SEHK:1513

Stock Analysis Report

Executive Summary

Livzon Pharmaceutical Group Inc. engages in the research, development, production, and distribution of pharmaceutical products in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

15.0%

SEHK:1513

10.9%

HK Pharmaceuticals

3.3%

HK Market


1 Year Return

-18.0%

SEHK:1513

-16.0%

HK Pharmaceuticals

-10.5%

HK Market

1513 underperformed the Pharmaceuticals industry which returned -14.2% over the past year.

1513 underperformed the Market in Hong Kong which returned -9.5% over the past year.


Share holder returns

1513IndustryMarket
7 Day15.0%10.9%3.3%
30 Day2.1%1.2%-8.0%
90 Day0.3%2.0%-5.9%
1 Year-13.5%-18.0%-14.5%-16.0%-7.2%-10.5%
3 Year18.6%7.8%60.0%51.9%15.1%3.7%
5 Year41.9%26.4%31.5%21.2%9.0%-9.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Livzon Pharmaceutical Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Livzon Pharmaceutical Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Livzon Pharmaceutical Group is overvalued based on earnings compared to the HK Pharmaceuticals industry average.

Livzon Pharmaceutical Group is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Livzon Pharmaceutical Group is poor value based on expected growth next year.


Price Based on Value of Assets

Livzon Pharmaceutical Group is overvalued based on assets compared to the HK Pharmaceuticals industry average.


Next Steps

Future Growth

How is Livzon Pharmaceutical Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Livzon Pharmaceutical Group's revenue is expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).

Livzon Pharmaceutical Group's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

Livzon Pharmaceutical Group's revenue growth is expected to exceed the Hong Kong market average.

Livzon Pharmaceutical Group's earnings growth is expected to exceed the Hong Kong market average.

Livzon Pharmaceutical Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Livzon Pharmaceutical Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

32.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Livzon Pharmaceutical Group has delivered over 20% year on year earnings growth in the past 5 years.

Livzon Pharmaceutical Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Livzon Pharmaceutical Group's 1-year earnings growth is negative, it can't be compared to the HK Pharmaceuticals industry average.


Return on Equity

Livzon Pharmaceutical Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Livzon Pharmaceutical Group used its assets less efficiently than the HK Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Livzon Pharmaceutical Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Livzon Pharmaceutical Group's financial position?


Financial Position Analysis

Livzon Pharmaceutical Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Livzon Pharmaceutical Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Livzon Pharmaceutical Group's level of debt (0%) 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 (31.9% vs 0% today).

Debt is well covered by operating cash flow (561038.3%, greater than 20% of total debt).

Livzon Pharmaceutical Group earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 29726x debt.


Next Steps

Dividend

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

2.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Livzon Pharmaceutical Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Livzon Pharmaceutical Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.19%).

Livzon Pharmaceutical Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Livzon Pharmaceutical Group only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Yanggang Tang (49yo)

0.7yrs

Tenure

CN¥2,663,900

Compensation

Mr. Yanggang Tang has been President of Livzon Pharmaceutical Group since December 28, 2018 and serves as its Executive Director since February 14, 2019 and served as its Executive Vice President from July ...


CEO Compensation Analysis

Yanggang's remuneration is about average for companies of similar size in Hong Kong.

Insufficient data for Yanggang to compare compensation growth.


Management Age and Tenure

5.2yrs

Average Tenure

53yo

Average Age

The average tenure for the Livzon Pharmaceutical Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

51yo

Average Age

The tenure for the Livzon Pharmaceutical Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCN¥7,816,18627 Jun 19
UBS Asset Management
EntityCompany
Shares403,910
Max PriceCN¥19.35
SellCN¥8,378,09307 Mar 19
UBS Asset Management
EntityCompany
Shares391,539.2
Max PriceCN¥21.40
SellCN¥1,234,78921 Nov 18
UBS Asset Management
EntityCompany
Shares59,020
Max PriceCN¥20.92
BuyCN¥4,590,36418 Sep 18
UBS Asset Management
EntityCompany
Shares229,710
Max PriceCN¥19.98

Ownership Breakdown


Management Team

  • Yanxia Si (51yo)

    VP & CFO

    • Tenure: 5.2yrs
    • Compensation: CN¥2.51m
  • Guoxiang Xu (56yo)

    Vice Chairman & VP of Sales

    • Tenure: 0.3yrs
    • Compensation: CN¥3.50m
  • Maolin Wang (53yo)

    Chief Supervisor & Chief Supervisor of the Legal Supervision Head Office

    • Tenure: 0.0yrs
    • Compensation: CN¥405.80k
  • Daotian Fu (56yo)

    VP of Biologicals Development & Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥3.64m
  • Liang Yang (36yo)

    Company Secretary

    • Tenure: 5.2yrs
    • Compensation: CN¥1.92m
  • Peng Zhou (56yo)

    Vice President

    • Tenure: 2.8yrs
    • Compensation: CN¥3.26m
  • Yanggang Tang (49yo)

    President & Executive Director

    • Tenure: 0.7yrs
    • Compensation: CN¥2.66m

Board Members

  • Qingfeng Qiu (48yo)

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥72.00k
  • Baoguo Zhu (56yo)

    Chairman of the Board

    • Tenure: 17.6yrs
    • Compensation: CN¥90.00k
  • Desheng Tao (54yo)

    Vice Chairman

    • Tenure: 5.0yrs
    • Compensation: CN¥3.82m
  • Guoxiang Xu (56yo)

    Vice Chairman & VP of Sales

    • Tenure: 0.3yrs
    • Compensation: CN¥3.50m
  • Maolin Wang (53yo)

    Chief Supervisor & Chief Supervisor of the Legal Supervision Head Office

    • Tenure: 0.0yrs
    • Compensation: CN¥405.80k
  • Daotian Fu (56yo)

    VP of Biologicals Development & Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥3.64m
  • Yanjun Xu (46yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥96.00k
  • Zhihua Zheng (48yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥96.00k
  • Yun Xie (48yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥96.00k
  • Yanggang Tang (49yo)

    President & Executive Director

    • Tenure: 0.7yrs
    • Compensation: CN¥2.66m

Company Information

Livzon Pharmaceutical Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Livzon Pharmaceutical Group Inc.
  • Ticker: 1513
  • Exchange: SEHK
  • Founded: 1985
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CN¥21.707b
  • Listing Market Cap: CN¥24.156b
  • Shares outstanding: 934.76m
  • Website: https://www.livzon.com.cn

Number of Employees


Location

  • Livzon Pharmaceutical Group Inc.
  • Headquarters Building
  • 38 Chuangye North Road
  • Zhuhai
  • Guangdong Province
  • 519090
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
513SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYJun 1995
513XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYJun 1995
1513SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDJan 2014
LP6DB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURJan 2014
1513SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDJan 2014
LVZP.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDJan 2014
1513SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDJan 2014

Biography

Livzon Pharmaceutical Group Inc. engages in the research, development, production, and distribution of pharmaceutical products in the People’s Republic of China. Its products primarily include Chinese and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:51
End of Day Share Price2019/08/20 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.