SEHK:1530

Stock Analysis Report

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Market Cap

HK$26.8b

Last Updated

2021/06/14 10:19 UTC

Data Sources

Company Financials +

Executive Summary

3SBio Inc. researches, develops, manufactures, markets, and sells biopharmaceutical products in the People’s Republic of China. More Details

Rewards

Trading at 9.4% below our estimate of its fair value

Earnings are forecast to grow 16.11% per year

Risk Analysis

No risks detected for 1530 from our risk checks.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

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 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1530's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

12.2%

1530

3.6%

HK Biotechs

0.09%

HK Market


1 Year Return

8.2%

1530

61.0%

HK Biotechs

25.9%

HK Market

Return vs Industry: 1530 underperformed the Hong Kong Biotechs industry which returned 61% over the past year.

Return vs Market: 1530 underperformed the Hong Kong Market which returned 25.9% over the past year.


Shareholder returns

1530IndustryMarket
7 Day12.2%3.6%0.09%
30 Day36.8%13.1%3.4%
90 Day40.5%24.0%-0.4%
1 Year8.2%8.2%61.2%61.0%30.7%25.9%
3 Year-44.4%-44.6%-9.3%-11.0%6.7%-4.6%
5 Year38.8%38.2%71.4%65.3%62.3%34.4%

Long-Term 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?

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1530 (HK$10.52) is trading below our estimate of fair value (HK$11.61)

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


Price To Earnings Ratio

PE vs Industry: 1530's PE Ratio (26.3x) is in line with the Hong Kong Biotechs industry average.

PE vs Market: 1530 is poor value based on its PE Ratio (26.3x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1530 is poor value based on its PEG Ratio (1.6x)


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 (4.2x).


Future Growth

How is 3SBio forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1530's forecast earnings growth (16.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 1530's earnings (16.1% per year) are forecast to grow slower than the Hong Kong market (19.3% per year).

High Growth Earnings: 1530's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1530's revenue (9.6% per year) is forecast to grow slower than the Hong Kong market (12.7% per year).

High Growth Revenue: 1530's revenue (9.6% 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 (11.5%).


Past Performance

How has 3SBio performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1530 has high quality earnings.

Growing Profit Margin: 1530's current net profit margins (15%) are lower than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: 1530's earnings have grown by 13.2% 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 (-14.3%) over the past year, making it difficult to compare to the Biotechs industry average (43.1%).


Return on Equity

High ROE: 1530's Return on Equity (5.9%) is considered low.


Financial Health

How is 3SBio's financial position?


Financial Position Analysis

Short Term Liabilities: 1530's short term assets (CN¥6.7B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: 1530's short term assets (CN¥6.7B) exceed its long term liabilities (CN¥3.1B).


Debt to Equity History and Analysis

Debt Level: 1530's debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: 1530's debt to equity ratio has increased from 8.4% to 22% over the past 5 years.

Debt Coverage: 1530's debt is well covered by operating cash flow (46.8%).

Interest Coverage: 1530 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.15%

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 recent payouts.

High Dividend: Unable to evaluate 1530'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 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?

5.2yrs

Average management tenure


CEO

Jing Lou (57 yo)

no data

Tenure

CN¥3,904,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Jing's total compensation ($USD610.13K) is about average for companies of similar size in the Hong Kong market ($USD699.06K).

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


Leadership Team

Experienced Management: 1530's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: 1530's board of directors are considered experienced (6 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: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$26.812b
  • Shares outstanding: 2.55b
  • Website: https://www.3sbio.com

Number of Employees


Location

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

Listings


Biography

3SBio Inc. researches, develops, manufactures, markets, and sells biopharmaceutical products in the People’s Republic of China. The company provides TPIAO, a recombinant human thrombopoietin to treat chemo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 10:19
End of Day Share Price2021/06/11 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.