SEHK:1681

Stock Analysis Report

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Market Cap

HK$4.4b

Last Updated

2021/06/14 10:12 UTC

Data Sources

Company Financials +

Executive Summary

Consun Pharmaceutical Group Limited, an investment holding company, researches and develops, manufactures, and sells Chinese medicines and medical contrast medium products in the People’s Republic of China. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Consun Pharmaceutical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1681 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1681's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

1681

2.5%

HK Pharmaceuticals

0.09%

HK Market


1 Year Return

66.7%

1681

21.2%

HK Pharmaceuticals

25.9%

HK Market

Return vs Industry: 1681 exceeded the Hong Kong Pharmaceuticals industry which returned 21.2% over the past year.

Return vs Market: 1681 exceeded the Hong Kong Market which returned 25.9% over the past year.


Shareholder returns

1681IndustryMarket
7 Day1.1%2.5%0.09%
30 Day11.6%10.3%3.4%
90 Day65.2%12.7%-0.4%
1 Year76.9%66.7%23.1%21.2%30.7%25.9%
3 Year-19.9%-31.3%-11.8%-16.7%6.7%-4.6%
5 Year70.2%36.5%122.1%101.1%62.3%34.4%

Long-Term Price Volatility Vs. Market

How volatile is Consun Pharmaceutical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Consun Pharmaceutical Group 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: 1681 (HK$5.5) is trading below our estimate of fair value (HK$14.75)

Significantly Below Fair Value: 1681 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1681 is good value based on its PE Ratio (7.4x) compared to the Hong Kong Pharmaceuticals industry average (14.3x).

PE vs Market: 1681 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1681 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1681 is overvalued based on its PB Ratio (1.6x) compared to the HK Pharmaceuticals industry average (1.3x).


Future Growth

How is Consun Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1681's forecast earnings growth (12.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 1681's earnings (12.1% per year) are forecast to grow slower than the Hong Kong market (19.3% per year).

High Growth Earnings: 1681's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1681's revenue (13% per year) is forecast to grow faster than the Hong Kong market (12.7% per year).

High Growth Revenue: 1681's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1681's Return on Equity is forecast to be high in 3 years time (21.7%)


Past Performance

How has Consun Pharmaceutical Group performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1681 has high quality earnings.

Growing Profit Margin: 1681's current net profit margins (28.5%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 1681's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: 1681's earnings growth over the past year (526.6%) exceeds its 5-year average (-2.3% per year).

Earnings vs Industry: 1681 earnings growth over the past year (526.6%) exceeded the Pharmaceuticals industry 9.2%.


Return on Equity

High ROE: 1681's Return on Equity (19.1%) is considered low.


Financial Health

How is Consun Pharmaceutical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1681's short term assets (CN¥2.7B) exceed its short term liabilities (CN¥1.3B).

Long Term Liabilities: 1681's short term assets (CN¥2.7B) exceed its long term liabilities (CN¥101.9M).


Debt to Equity History and Analysis

Debt Level: 1681's debt to equity ratio (21.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1681's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1681's debt is well covered by operating cash flow (157.8%).

Interest Coverage: 1681 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Consun Pharmaceutical Group current dividend yield, its reliability and sustainability?

5.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1681's dividend (5.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.86%).

High Dividend: 1681's dividend (5.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.89%).


Stability and Growth of Payments

Stable Dividend: 1681 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1681's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), 1681's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1681's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Qian Li (55 yo)

no data

Tenure

CN¥14,848,000

Compensation

Ms. Qian Li has been Vice Chairman and President at Consun Pharmaceutical Group Limited since November 2020. Ms. Li served as the Chief Executive Officer of Consun Pharmaceutical Group Limited (alternate n...


CEO Compensation Analysis

Compensation vs Market: Qian's total compensation ($USD2.32M) is above average for companies of similar size in the Hong Kong market ($USD300.07K).

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


Leadership Team

Experienced Management: 1681's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1681's board of directors are not considered experienced ( 2.1 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

Consun Pharmaceutical Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Consun Pharmaceutical Group Limited
  • Ticker: 1681
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$4.401b
  • Shares outstanding: 800.13m
  • Website: https://www.chinaconsun.com

Number of Employees


Location

  • Consun Pharmaceutical Group Limited
  • 71, Dongpeng Avenue
  • Eastern section
  • Guangzhou
  • Guangdong Province
  • China

Listings


Biography

Consun Pharmaceutical Group Limited, an investment holding company, researches and develops, manufactures, and sells Chinese medicines and medical contrast medium products in 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 Analysis2021/06/14 10:12
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.