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. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 1521's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

8.7%

1521

11.9%

HK Life Sciences

4.6%

HK Market


1 Year Return

14.1%

1521

155.1%

HK Life Sciences

15.2%

HK Market

Return vs Industry: 1521 underperformed the Hong Kong Life Sciences industry which returned 155.1% over the past year.

Return vs Market: 1521 underperformed the Hong Kong Market which returned 15.2% over the past year.


Shareholder returns

1521IndustryMarket
7 Day8.7%11.9%4.6%
30 Day11.6%23.4%12.2%
90 Day39.9%42.2%18.5%
1 Year14.1%14.1%155.1%155.1%19.7%15.2%
3 Yearn/a163.8%161.9%-2.7%-12.9%
5 Yearn/a200.7%192.7%73.1%43.9%

Long-Term 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?

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1521 (HK$5.01) is trading below our estimate of fair value (HK$6.59)

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


Price To Earnings Ratio

PE vs Industry: 1521 is poor value based on its PE Ratio (96.2x) compared to the XA Life Sciences industry average (60.4x).

PE vs Market: 1521 is poor value based on its PE Ratio (96.2x) compared to the Hong Kong market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 1521 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: 1521's PB Ratio (4.8x) is in line with the HK Life Sciences industry average.


Next Steps

Future Growth

How is Frontage Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

33.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1521's forecast earnings growth (33.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 1521's earnings (33.9% per year) are forecast to grow faster than the Hong Kong market (21.1% per year).

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

Revenue vs Market: 1521's revenue (16.4% per year) is forecast to grow faster than the Hong Kong market (14.2% per year).

High Growth Revenue: 1521's revenue (16.4% 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 (10.1%).


Next Steps

Past Performance

How has Frontage Holdings performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1521 has a large one-off gain of $2.9M impacting its June 30 2020 financial results.

Growing Profit Margin: 1521's current net profit margins (13.3%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: 1521's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: 1521's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1521 had negative earnings growth (-23.8%) over the past year, making it difficult to compare to the Life Sciences industry average (25.8%).


Return on Equity

High ROE: 1521's Return on Equity (5%) 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 ($249.9M) exceed its short term liabilities ($31.8M).

Long Term Liabilities: 1521's short term assets ($249.9M) exceed its long term liabilities ($37.3M).


Debt to Equity History and Analysis

Debt Level: 1521 is debt free.

Reducing Debt: 1521 had no debt 5 years ago.

Debt Coverage: 1521 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1521 has no debt, therefore 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?

2.8yrs

Average management tenure


CEO

Zeke Li (65 yo)

2.67yrs

Tenure

US$599,000

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Zeke's total compensation ($USD599.00K) is about average for companies of similar size in the Hong Kong market ($USD589.00K).

Compensation vs Earnings: Zeke's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zhihe Li
Chairman & CEO2.67yrsUS$599.00k0.86%
$ 87.2m
Jianmin Wang
Chief Financial Officer0.25yrno datano data
Hugh Davis
Chief Business Officer2.75yrsno datano data
Zhongping Lin
EVP for Bioanalytical Services2.75yrsno datano data
Dongmei Wang
EVP for Global CMC Services2.75yrsno datano data
Tianyi Zhang
Senior VP of the Group & GM of Frontage Shanghai2.75yrsno datano data
Abdul Mutlib
Executive Vice President2.75yrsno datano data
Glenn Washer
Executive Vice President for Global Safety & Toxicologyno datano datano data
Ying Chang
Company Secretary2.58yrsno datano data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 1521's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhihe Li
Chairman & CEO2.67yrsUS$599.00k0.86%
$ 87.2m
Song Li
Honorary Chairman6.75yrsno data1.72%
$ 174.1m
Yifan Li
Independent Non Executive Director2.75yrsUS$26.00kno data
Erh Fei Liu
Independent Non-executive Director2.75yrsUS$26.00kno data
Jingsong Wang
Independent Non-executive Director2.75yrsUS$26.00kno data
Jun Gao
Non Executive Director2.75yrsUS$97.00kno data

2.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 1521's board of directors are not considered experienced ( 2.8 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$10.147b
  • Shares outstanding: 2.03b
  • 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 bioequivale...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 10:07
End of Day Share Price2021/01/20 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.