SEHK:1530

Stock Analysis Report

Executive Summary

3SBio Inc. develops, manufactures, markets, and sells biopharmaceuticals.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has 3SBio's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1530's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.3%

1530

3.5%

HK Biotechs

3.6%

HK Market


1 Year Return

-44.8%

1530

-19.6%

HK Biotechs

-18.5%

HK Market

Return vs Industry: 1530 underperformed the Hong Kong Biotechs industry which returned -20.7% over the past year.

Return vs Market: 1530 underperformed the Hong Kong Market which returned -20.6% over the past year.


Shareholder returns

1530IndustryMarket
7 Day7.3%3.5%3.6%
30 Day3.3%-0.4%-3.8%
90 Day-23.4%-1.9%-13.2%
1 Year-44.8%-44.8%-19.6%-19.6%-15.5%-18.5%
3 Year-11.4%-11.7%-5.0%-7.3%0.7%-9.5%
5 Yearn/a24.4%22.3%-14.0%-27.8%

Price Volatility Vs. Market

How volatile is 3SBio's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 3SBio undervalued compared to its fair value and its price relative to the market?

17.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1530 (HK$8.64) is trading below our estimate of fair value (HK$10.44)

Significantly Below Fair Value: 1530 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1530 is poor value based on its PE Ratio (20.5x) compared to the Biotechs industry average (20.5x).

PE vs Market: 1530 is poor value based on its PE Ratio (20.5x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1530 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 1530 is good value based on its PB Ratio (2.1x) compared to the HK Biotechs industry average (2.2x).


Next Steps

Future Growth

How is 3SBio forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1530's forecast earnings growth (21.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1530's earnings (21.4% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

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

Revenue vs Market: 1530's revenue (11.9% per year) is forecast to grow faster than the Hong Kong market (9.7% per year).

High Growth Revenue: 1530's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1530's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has 3SBio performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1530 has a large one-off loss of CN¥349.5M impacting its December 31 2019 financial results.

Growing Profit Margin: 1530's current net profit margins (18.3%) are lower than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: 1530's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: 1530's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1530 had negative earnings growth (-23.8%) over the past year, making it difficult to compare to the Biotechs industry average (-23.8%).


Return on Equity

High ROE: 1530's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is 3SBio's financial position?


Financial Position Analysis

Short Term Liabilities: 1530's short term assets (CN¥4.6B) exceed its short term liabilities (CN¥1.6B).

Long Term Liabilities: 1530's short term assets (CN¥4.6B) exceed its long term liabilities (CN¥2.8B).


Debt to Equity History and Analysis

Debt Level: 1530's debt to equity ratio (27%) is considered satisfactory.

Reducing Debt: 1530's debt to equity ratio has reduced from 62.4% to 27% over the past 5 years.

Debt Coverage: 1530's debt is well covered by operating cash flow (50.1%).

Interest Coverage: 1530's interest payments on its debt are well covered by EBIT (57.6x coverage).


Balance Sheet


Next Steps

Dividend

What is 3SBio's current dividend yield, its reliability and sustainability?

0.072%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1530's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1530's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1530's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1530's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1530 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1530'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?

4.0yrs

Average management tenure


CEO

Jing Lou (56yo)

no data

Tenure

CN¥6,450,000

Compensation

Dr. Jing Lou, M.D., Ph.D. is a Co-Founder of 3SBio Inc. and has been its Chairman of the Board since April 1, 2012 and also serves as the Chief Executive Officer and President. Dr. Lou served as the Chief  ...


CEO Compensation Analysis

Compensation vs Market: Jing's total compensation ($USD912.98K) is above average for companies of similar size in the Hong Kong market ($USD495.32K).

Compensation vs Earnings: Jing's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jing Lou
Co-Founderno dataCN¥6.45m1.89% CN¥414.3m
Dongmei Su
Senior VP & Executive Director7.83yrsCN¥2.07m0.96% CN¥210.7m
Dan Lou
Co Founder and Advisor8yrsCN¥710.00kno data
Weihong Xiao
Chief Operating Officer4.08yrsno datano data
Zhenping Zhu
President of Research & Development and Chief Scientific Officer3.25yrsno datano data
Hui Dang
Director of Risk and Compliance Management4yrsno datano data
Thomas Folinsbee
Director of Corporate Developmentno datano datano data
Xin Ma
Vice President of the Human Resources Departmentno datano datano data
Fei You
Director of the Finance Department & Financial Controller9.17yrsno datano data
Junlin Wang
President of Guojian4yrsno datano data

4.0yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 1530's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jing Lou
Co-Founderno dataCN¥6.45m1.89% CN¥414.3m
Dongmei Su
Senior VP & Executive Director7.83yrsCN¥2.07m0.96% CN¥210.7m
David Parkinson
Independent Non-Executive Director4.83yrsCN¥263.00kno data
Bin Huang
Non-Executive Director5.42yrsCN¥1.19m1.27% CN¥278.2m
Tianruo Pu
Independent Non-Executive Director4.83yrsCN¥263.00kno data
Ke Tang
Non-Executive Director0.17yrno datano data
Lap Yan Wong
Independent Non-Executive Director0.50yrno datano data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Board: 1530's board of directors are considered experienced (4.8 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

3SBio Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 3SBio Inc.
  • Ticker: 1530
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$21.932b
  • Shares outstanding: 2.54b
  • Website: https://www.3sbio.com

Number of Employees


Location

  • 3SBio Inc.
  • No. 3 A1, Road 10
  • Shenyang Economy and Technology Development Zone
  • Shenyang
  • Liaoning Province
  • 110027
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1530SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2015
83BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015
1530SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2015
1530SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2015
TRSB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2015

Biography

3SBio Inc. develops, manufactures, markets, and sells biopharmaceuticals. The company provides TPIAO, a recombinant human thrombopoietin for chemotherapy-induced thrombopenia and immune thrombocytopenia; Ruisiyi, a non-steroidal aromatase inhibitor for breast cancer; EPIAO and SEPO recombinant human erythropoietins to treat anemia; Wanwei, a 5-HT3 receptor antagonist antiemetic drug for vomiting; and Intefen, a recombinant human interferon to treat lymphatic or hematopoietic malignancies and viral infections. It also offers Inleusin, a recombinant human interleukin2 for the treatment of renal cell carcinoma, melanoma, and thoracic fluid build-up; Etanercept, a recombinant human type II tumor necrosis factor receptor for rheumatoid arthritis, ankylosing spondylitis, and psoriasis; BYETTA for the glycemic control in patients with type 2 diabetes; and SPARIN, an injectable low-molecular-weight heparin calcium for the treatment of prophylaxis and deep vein thrombosis, as well as for the prevention of clotting during hemodialysis. In addition, the company provides Mandi for the treatment of male-pattern alopecia and alopecia areata; Aiyishu to treat iron-deficiency anemia; Qiming Keli for retinopathy caused by type-2 diabetes; Disu, a bidirectional immunomodulator for the prevention and treatment of chronic bronchitis, cold, and asthma; Jiannipai, a recombinant humanized anti-CD25 monoclonal antibody injection to prevent acute rejection after renal transplantation; and Humulin, a recombinant insulin for diabetes. Further, the company engages in the contract development and manufacturing, trading, project management and consultation, and provision of technology services activities. It has collaboration agreements with Toray Industries, Inc.; Refuge Biotechnologies, Inc.; Samsung Bioepis Co., Ltd.; Verseau Therapeutics, Inc.; and Taiwan Liposome Company, Ltd. 3SBio Inc. was incorporated in 2006 and is headquartered in Shenyang, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 13:10
End of Day Share Price2020/04/09 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.