SEHK:1558

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

YiChang HEC ChangJiang Pharmaceutical

Executive Summary

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. More Details


Snowflake Analysis

Good value with adequate balance sheet.

Share Price & News

How has YiChang HEC ChangJiang Pharmaceutical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1558's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

1558

-4.1%

HK Pharmaceuticals

-0.7%

HK Market


1 Year Return

-58.6%

1558

2.1%

HK Pharmaceuticals

0.4%

HK Market

Return vs Industry: 1558 underperformed the Hong Kong Pharmaceuticals industry which returned 2.1% over the past year.

Return vs Market: 1558 underperformed the Hong Kong Market which returned 0.3% over the past year.


Shareholder returns

1558IndustryMarket
7 Day-2.8%-4.1%-0.7%
30 Day1.6%-5.0%4.9%
90 Day-14.3%-16.2%1.2%
1 Year-57.7%-58.6%3.8%2.1%4.6%0.4%
3 Year-2.4%-11.0%-0.3%-6.2%-7.1%-17.2%
5 Yearn/a35.9%24.9%15.0%-4.5%

Price Volatility Vs. Market

How volatile is YiChang HEC ChangJiang Pharmaceutical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is YiChang HEC ChangJiang Pharmaceutical undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1558 (HK$9.95) is trading below our estimate of fair value (HK$36.31)

Significantly Below Fair Value: 1558 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1558 is good value based on its PE Ratio (4.9x) compared to the HK Pharmaceuticals industry average (10.8x).

PE vs Market: 1558 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

PEG Ratio: 1558 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 1558 is overvalued based on its PB Ratio (1.6x) compared to the HK Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is YiChang HEC ChangJiang Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1558's forecast earnings growth (4.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 1558's earnings (4.3% per year) are forecast to grow slower than the Hong Kong market (22.2% per year).

High Growth Earnings: 1558's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1558's revenue (10.7% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 1558's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1558's Return on Equity is forecast to be high in 3 years time (21.4%)


Next Steps

Past Performance

How has YiChang HEC ChangJiang Pharmaceutical performed over the past 5 years?

41.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1558 has a high level of non-cash earnings.

Growing Profit Margin: 1558's current net profit margins (29.9%) are lower than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: 1558's earnings have grown significantly by 41% per year over the past 5 years.

Accelerating Growth: 1558's earnings growth over the past year (22.5%) is below its 5-year average (41% per year).

Earnings vs Industry: 1558 earnings growth over the past year (22.5%) exceeded the Pharmaceuticals industry -10.2%.


Return on Equity

High ROE: 1558's Return on Equity (31.4%) is considered high.


Next Steps

Financial Health

How is YiChang HEC ChangJiang Pharmaceutical's financial position?


Financial Position Analysis

Short Term Liabilities: 1558's short term assets (CN¥4.7B) exceed its short term liabilities (CN¥2.4B).

Long Term Liabilities: 1558's short term assets (CN¥4.7B) exceed its long term liabilities (CN¥3.1B).


Debt to Equity History and Analysis

Debt Level: 1558's debt to equity ratio (66.5%) is considered high.

Reducing Debt: 1558's debt to equity ratio has increased from 45.1% to 66.5% over the past 5 years.

Debt Coverage: 1558's debt is well covered by operating cash flow (62.8%).

Interest Coverage: 1558's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


Next Steps

Dividend

What is YiChang HEC ChangJiang Pharmaceutical current dividend yield, its reliability and sustainability?

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1558's dividend (4.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1558's dividend (4.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.9%).


Stability and Growth of Payments

Stable Dividend: 1558 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1558's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.4%), 1558's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1558's dividends in 3 years are forecast to be well covered by earnings (20.6% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Juncai Jiang (38 yo)

5.42yrs

Tenure

CN¥393,000

Compensation

Mr. Juncai Jiang has been General Manager and Executive Director of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. since joining in May 2015. Mr. Jiang served as Deputy Head of the traditional Chinese med ...


CEO Compensation Analysis

Compensation vs Market: Juncai's total compensation ($USD58.61K) is below average for companies of similar size in the Hong Kong market ($USD462.71K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Juncai Jiang
GM & Executive Director5.42yrsCN¥393.00k0.0076%
CN¥ 664.6k
Yangui Chen
Head of the Sales Department & Executive Director5.42yrsCN¥447.00k0.0076%
CN¥ 661.1k
Danjin Wang
Deputy GM & Executive Director14.58yrsCN¥307.00k0.0076%
CN¥ 668.9k
Shuang Li
Deputy GM & Executive Director2.33yrsCN¥308.00k0.0076%
CN¥ 664.6k
Qiang Zhang
CFO & Head of Finance Department1.58yrsno datano data
Shengchao Wang
Chief of Quality Division & Employee Representative Supervisor3.25yrsno data0.0036%
CN¥ 318.7k
Wing Shan Ng
Joint Company Secretary5.25yrsno datano data
Qiyun Peng
Joint Company Secretary2yrsCN¥197.00kno data

5.3yrs

Average Tenure

39yo

Average Age

Experienced Management: 1558's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Juncai Jiang
GM & Executive Director5.42yrsCN¥393.00k0.0076%
CN¥ 664.6k
Yangui Chen
Head of the Sales Department & Executive Director5.42yrsCN¥447.00k0.0076%
CN¥ 661.1k
Danjin Wang
Deputy GM & Executive Director14.58yrsCN¥307.00k0.0076%
CN¥ 668.9k
Shuang Li
Deputy GM & Executive Director2.33yrsCN¥308.00k0.0076%
CN¥ 664.6k
Shengchao Wang
Chief of Quality Division & Employee Representative Supervisor3.25yrsno data0.0036%
CN¥ 318.7k
Edward Huang
Non-Executive Director1.58yrsno datano data
Xinfa Tang
Chairman5.42yrsno data0.015%
CN¥ 1.3m
Jianxin Tang
Independent Non-Executive Director5.42yrsCN¥100.00kno data
Jinlong Tang
Chairman of the Board of Supervisors1.33yrsno datano data
Ling Xiang
Independent Non Executive Director0.33yrno datano data
Dayao Zhao
Independent Non-Executive Director1yrCN¥170.00kno data
Xuechen Li
Independent Non-Executive Director0.083yrno datano data

2.8yrs

Average Tenure

44yo

Average Age

Experienced Board: 1558'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: 1558 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

YiChang HEC ChangJiang Pharmaceutical Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: YiChang HEC ChangJiang Pharmaceutical Co., Ltd.
  • Ticker: 1558
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$8.756b
  • Shares outstanding: 879.97m
  • Website: https://cj.hec.cn

Number of Employees


Location

  • YiChang HEC ChangJiang Pharmaceutical Co., Ltd.
  • No. 38, Binjiang Road
  • Yidu
  • Yichang
  • Hubei Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1558SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2015
1558SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2015

Biography

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. develops, manufactures, and sells pharmaceutical products in the therapeutic areas of anti-virus, endocrine and metabolic diseases, and cardiovascular diseas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 12:57
End of Day Share Price2020/10/29 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.