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1521

Frontage Holdings SEHK:1521 Stock Report

Last Price

HK$2.51

Market Cap

HK$5.5b

7D

-3.5%

1Y

-58.0%

Updated

10 Aug, 2022

Data

Company Financials +
1521 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

1521 Stock Overview

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

Frontage Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Frontage Holdings
Historical stock prices
Current Share PriceHK$2.51
52 Week HighHK$6.15
52 Week LowHK$1.98
Beta0.60
1 Month Change-23.48%
3 Month Change-1.18%
1 Year Change-58.03%
3 Year Change-21.56%
5 Year Changen/a
Change since IPO-25.07%

Recent News & Updates

Jun 08
Is It Too Late To Consider Buying Frontage Holdings Corporation (HKG:1521)?

Is It Too Late To Consider Buying Frontage Holdings Corporation (HKG:1521)?

While Frontage Holdings Corporation ( HKG:1521 ) might not be the most widely known stock at the moment, it received a...

Shareholder Returns

1521HK Life SciencesHK Market
7D-3.5%3.8%1.5%
1Y-58.0%-38.9%-22.7%

Return vs Industry: 1521 underperformed the Hong Kong Life Sciences industry which returned -38.9% over the past year.

Return vs Market: 1521 underperformed the Hong Kong Market which returned -22.7% over the past year.

Price Volatility

Is 1521's price volatile compared to industry and market?
1521 volatility
1521 Average Weekly Movement7.1%
Life Sciences Industry Average Movement7.6%
Market Average Movement6.6%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1521 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1521's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20181,322n/ahttps://www.frontagelab.com

Frontage Holdings Corporation, a contract research organization, provides laboratory and related services to pharmaceutical, biotechnology, and agrochemical companies, as well as bioequivalence studies. It offers laboratory testing services, such as method development and validation, and sample analysis and central laboratory services; chemistry, manufacturing, and control services, including assistance in drug product development and analysis, and delivery and supply of clinical trial materials; and drug metabolism and pharmacokinetic services that include study designs, execution of studies, and interpretation of the data through structural optimization in early discovery, pharmacokinetic studies in rodents, non- GLP bioanalytical studies, etc. The company also provides safety and toxicology services comprising in-vitro and in-vivo studies; bioequivalence services, which consist of designing, coordinating, and reporting of bioequivalence studies; chemistry services comprising contract research and custom synthesis services; and clinical services, such as early stage clinical, BE/BA, biometric, and data management services. It operates in the United States, the People’s Republic of China, Europe, India, Japan, South Korea, and Australia.

Frontage Holdings Fundamentals Summary

How do Frontage Holdings's earnings and revenue compare to its market cap?
1521 fundamental statistics
Market CapUS$698.99m
Earnings (TTM)US$18.43m
Revenue (TTM)US$184.44m

35.8x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1521 income statement (TTM)
RevenueUS$184.44m
Cost of RevenueUS$117.74m
Gross ProfitUS$66.70m
Other ExpensesUS$48.27m
EarningsUS$18.43m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0089
Gross Margin36.16%
Net Profit Margin9.99%
Debt/Equity Ratio0.003%

How did 1521 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 1521 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1521?

Other financial metrics that can be useful for relative valuation.

1521 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.3x
Enterprise Value/EBITDA14.4x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does 1521's PE Ratio compare to its peers?

1521 PE Ratio vs Peers
The above table shows the PE ratio for 1521 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.5x
6118 Austar Lifesciences
3.9xn/aHK$1.3b
1873 Viva Biotech Holdings
11.7x36.0%HK$4.0b
8225 China Health Group
9xn/aHK$318.5m
2269 WuXi Biologics (Cayman)
73.2x23.4%HK$317.7b
1521 Frontage Holdings
35.8x27.9%HK$5.5b

Price-To-Earnings vs Peers: 1521 is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the peer average (26.5x).


Price to Earnings Ratio vs Industry

How does 1521's PE Ratio compare vs other companies in the Asian Life Sciences Industry?

Price-To-Earnings vs Industry: 1521 is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the Hong Kong Life Sciences industry average (12.1x)


Price to Earnings Ratio vs Fair Ratio

What is 1521's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1521 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.8x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: 1521 is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).


Share Price vs Fair Value

What is the Fair Price of 1521 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1521 (HK$2.51) is trading below our estimate of fair value (HK$8.45)

Significantly Below Fair Value: 1521 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Frontage Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1521's forecast earnings growth (27.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1521's earnings (27.9% per year) are forecast to grow faster than the Hong Kong market (16.7% per year).

High Growth Earnings: 1521's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1521's revenue (18.2% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1521's revenue (18.2% per year) is forecast to grow slower 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 (11.3%).


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Past Performance

How has Frontage Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1521 has high quality earnings.

Growing Profit Margin: 1521's current net profit margins (10%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: 1521's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: 1521's earnings growth over the past year (7.5%) is below its 5-year average (15.2% per year).

Earnings vs Industry: 1521 earnings growth over the past year (7.5%) underperformed the Life Sciences industry 34.5%.


Return on Equity

High ROE: 1521's Return on Equity (5.9%) is considered low.


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Financial Health

How is Frontage Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1521's short term assets ($211.1M) exceed its short term liabilities ($73.0M).

Long Term Liabilities: 1521's short term assets ($211.1M) exceed its long term liabilities ($79.8M).


Debt to Equity History and Analysis

Debt Level: 1521 has more cash than its total debt.

Reducing Debt: 1521's debt to equity ratio has reduced from 19.4% to 0% over the past 5 years.

Debt Coverage: 1521's debt is well covered by operating cash flow (404990.9%).

Interest Coverage: 1521's interest payments on its debt are well covered by EBIT (36.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


25.02%

Forecast Dividend Yield

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1521 has not reported any payouts.


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Management

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

2.4yrs

Average management tenure


CEO

Frontage Holdings has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 1521's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: 1521's board of directors are considered experienced (4.3 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

Frontage Holdings Corporation's 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
  • Implied Market Cap: HK$5.487b
  • Shares outstanding: 2.06b
  • Website: https://www.frontagelab.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.