SEHK:1521

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Executive Summary

Frontage Holdings Corporation, a contract research organization, provides research, analytical, and development services to pharmaceutical, biotechnology, and agrochemical companies, as well as bioequivalence studies.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Frontage Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1521's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

1521

7.8%

HK Life Sciences

5.8%

HK Market


1 Year Return

30.0%

1521

63.3%

HK Life Sciences

-4.0%

HK Market

Return vs Industry: 1521 underperformed the Hong Kong Life Sciences industry which returned 63.3% over the past year.

Return vs Market: 1521 exceeded the Hong Kong Market which returned -4% over the past year.


Shareholder returns

1521IndustryMarket
7 Day2.9%7.8%5.8%
30 Day7.1%15.3%4.0%
90 Day-15.8%8.3%-2.6%
1 Year30.0%30.0%63.3%63.3%-0.6%-4.0%
3 Yearn/a156.9%154.3%1.3%-9.2%
5 Yearn/a57.4%53.8%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is Frontage Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Frontage Holdings undervalued compared to its fair value and its price relative to the market?

53.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1521 (HK$4.2) is trading above our estimate of fair value (HK$2.82)

Significantly Below Fair Value: 1521 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1521 is poor value based on its PE Ratio (53x) compared to the Life Sciences industry average (44.4x).

PE vs Market: 1521 is poor value based on its PE Ratio (53x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1521 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 1521 is good value based on its PB Ratio (4.1x) compared to the HK Life Sciences industry average (6x).


Next Steps

Future Growth

How is Frontage Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1521's forecast earnings growth (22.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1521's earnings (22.6% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1521's revenue (22.2% per year) is forecast to grow faster than the Hong Kong market (10.6% per year).

High Growth Revenue: 1521's revenue (22.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1521's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Frontage Holdings performed over the past 5 years?

63.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 1521 has a high level of non-cash earnings.

Growing Profit Margin: 1521's current net profit margins (18.3%) are higher than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1521's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 1521's past year earnings growth to its 5-year average.

Earnings vs Industry: 1521 earnings growth over the past year (63.9%) exceeded the Life Sciences industry 62.3%.


Return on Equity

High ROE: 1521's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Frontage Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1521's short term assets ($242.4M) exceed its short term liabilities ($29.1M).

Long Term Liabilities: 1521's short term assets ($242.4M) exceed its long term liabilities ($20.9M).


Debt to Equity History and Analysis

Debt Level: 1521's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1521's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1521's debt is well covered by operating cash flow (3745.6%).

Interest Coverage: 1521 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Frontage Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1521's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1521's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1521's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1521's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1521'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?

2.2yrs

Average management tenure


CEO

Zeke Li (64yo)

2.08yrs

Tenure

Dr. Zhihe Li, also known as Zeke, MD, Ph.D, has been Senior Vice President of China Operations at Frontage Laboratories, Inc., since September 14, 2015. Dr. Li serves as Vice President at Hangzhou Tigermed ...


Leadership Team

NamePositionTenureCompensationOwnership
Zhihe Li
Chairman & CEO2.08yrsno data2.6% $220.1m
Yifeng Gao
Chief Financial Officer1.42yrsno datano data
Hugh Davis
Chief Business Officer2.17yrsno datano data
Zhongping Lin
EVP for Bioanalytical Services2.17yrsno datano data
Dongmei Wang
EVP for Global CMC Services2.17yrsno datano data
Tianyi Zhang
Senior Vice President2.17yrsno datano data
Abdul Mutlib
Executive Vice President2.17yrsno datano data
Ying Chang
Company Secretary2yrsno datano data

2.2yrs

Average Tenure

55yo

Average Age

Experienced Management: 1521's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhihe Li
Chairman & CEO2.08yrsno data2.6% $220.1m
Song Li
Honorary Chairman6.17yrsno data1.73% $146.5m
Yifan Li
Independent Non Executive Director2.17yrsno datano data
Erh Fei Liu
Independent Non-executive Director2.17yrsno datano data
Jingsong Wang
Independent Non-executive Director2.17yrsno datano data
Jun Gao
Non Executive Director2.17yrsno datano data

2.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 1521's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Frontage Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Frontage Holdings Corporation
  • Ticker: 1521
  • Exchange: SEHK
  • Founded: 2018
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$8.472b
  • Shares outstanding: 2.02b
  • Website: https://www.frontagelab.com

Number of Employees


Location

  • Frontage Holdings Corporation
  • 700 Pennsylvania Drive
  • Exton
  • Pennsylvania
  • 19341
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1521SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2019
1521SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2019
FGHQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2019

Biography

Frontage Holdings Corporation, a contract research organization, provides research, analytical, and development services to pharmaceutical, biotechnology, and agrochemical companies, as well as bioequivalence studies. The company offers laboratory services that support drug discovery and development, such as drug metabolism and pharmacokinetics, safety and toxicology, and bioanalytical services, as well as chemistry, manufacturing, and controls; agrochemical services; and associated services supporting clinical studies, including early stage clinical and biometrics. It operates in the United States, Canada, the People’s Republic of China, Europe, India, Japan, Korea, Israel, and Australia. The company was incorporated in 2018 and is headquartered in Exton, Pennsylvania. Frontage Holdings Corporation is a subsidiary of Hong Kong Tigermed Co., Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 14:14
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.