SEHK:1681

Stock Analysis Report

Executive Summary

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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

1681

-4.4%

HK Pharmaceuticals

-3.3%

HK Market


1 Year Return

-34.6%

1681

3.4%

HK Pharmaceuticals

-9.6%

HK Market

Return vs Industry: 1681 underperformed the Hong Kong Pharmaceuticals industry which returned 3.4% over the past year.

Return vs Market: 1681 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

1681IndustryMarket
7 Day-3.0%-4.4%-3.3%
30 Day-3.9%-5.7%-3.8%
90 Day-10.3%1.5%-0.2%
1 Year-30.2%-34.6%5.4%3.4%-6.3%-9.6%
3 Year1.7%-9.9%36.6%30.1%11.2%-0.05%
5 Year-16.9%-29.2%40.2%28.9%12.7%-6.0%

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$3.93) is trading below our estimate of fair value (HK$21.07)

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 (6.1x) compared to the Pharmaceuticals industry average (11.5x).

PE vs Market: 1681 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 1681 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 1681 is overvalued based on its PB Ratio (1.3x) compared to the HK Pharmaceuticals industry average (1.2x).


Next Steps

Future Growth

How is Consun Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1681's forecast earnings growth (13.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1681's earnings (13.1% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

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

Revenue vs Market: 1681's revenue (10.9% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 1681's revenue (10.9% 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 (21.1%)


Next Steps

Past Performance

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

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1681 has high quality earnings.

Growing Profit Margin: 1681's current net profit margins (25.9%) are higher than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: 1681's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: 1681's earnings growth over the past year (15.2%) is below its 5-year average (19.6% per year).

Earnings vs Industry: 1681 earnings growth over the past year (15.2%) underperformed the Pharmaceuticals industry 23%.


Return on Equity

High ROE: 1681's Return on Equity (20.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Consun Pharmaceutical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1681's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: 1681's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥135.1M).


Debt to Equity History and Analysis

Debt Level: 1681's debt to equity ratio (27.7%) is considered satisfactory.

Reducing Debt: 1681's debt to equity ratio has increased from 1.5% to 27.7% over the past 5 years.

Debt Coverage: 1681's debt is well covered by operating cash flow (70.2%).

Interest Coverage: 1681's interest payments on its debt are well covered by EBIT (70.9x coverage).


Balance Sheet

Inventory Level: 1681 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1681's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

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

4.99%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.3%markettop25%6.4%industryaverage1.7%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: 1681's dividend (4.99%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 1681's dividend (4.99%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.42%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.7%), 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 (31.2% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Qian Li (54yo)

CN¥13,752,000

Compensation

Ms. Qian Li serves as the Chief Executive Officer of Consun Pharmaceutical Group Limited (alternate name, GZ Consun) and has been its Executive Director since December 24, 2012 and its Vice Chairlady of th ...


CEO Compensation Analysis

Compensation vs Market: Qian's total compensation ($USD1.96M) is above average for companies of similar size in the Hong Kong market ($USD341.79K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yubao An
Chairman of the Board0yrsCN¥13.76m25.02% CN¥807.8m
Qian Li
Vice Chairlady of the Board & CEO0yrsCN¥13.75m16.21% CN¥523.5m
Quan Zhu
Executive Director7.2yrsCN¥1.35mno data
Ning Tang
VP & Director of GZ Consun and Executive Director1.7yrsCN¥1.10mno data
Tongtao Yang
Chief Financial Officer0yrsno datano data
Peicheng Fang
Chief Investment Officer & President Assistant of GZ Consun0yrsno datano data
Haien Gao
Board Secretary0yrsno datano data
Shangwen Zhou
Vice President of GZ Consun6.6yrsno datano data
Lanfen Fang
Vice President of GZ Consun6.6yrsno datano data
Chi Yau
Company Secretary6.9yrsno datano data

6.6yrs

Average Tenure

52yo

Average Age

Experienced Management: 1681's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yubao An
Chairman of the Board0yrsCN¥13.76m25.02% CN¥807.8m
Qian Li
Vice Chairlady of the Board & CEO0yrsCN¥13.75m16.21% CN¥523.5m
Quan Zhu
Executive Director7.2yrsCN¥1.35mno data
Ning Tang
VP & Director of GZ Consun and Executive Director1.7yrsCN¥1.10mno data
Yuanfu Su
Independent Non-Executive Director6.2yrsCN¥120.00kno data
Zhongshi Feng
Independent Non-Executive Director6.2yrsCN¥120.00kno data
Yujun Chen
Independent Non Executive Director0.8yrsno datano data

3.9yrs

Average Tenure

60yo

Average Age

Experienced Board: 1681's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1681 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

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$3.229b
  • Shares outstanding: 827.95m
  • Website: https://www.chinaconsun.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1681SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013
C1PDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
1681SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013
1681SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013

Biography

Consun Pharmaceutical Group Limited, an investment holding company, researches, manufactures, and sells Chinese medicines and medical contrast medium products in the People’s Republic of China. The company operates in two segments, Consun Pharmaceutical and Yulin Pharmaceutical. It primarily offers uremic clearance granules for treating kidney disease; and medical contrast medium products for magnetic resonance imaging. The company also provides iron dextran oral solution for women and children. In addition, it offers orthopedics, dermatologic, hepatobiliary, and other medicines. The company was founded in 1997 and is headquartered in Guangzhou, 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 Analysis2020/02/27 13:16
End of Day Share Price2020/02/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.