Viva Biotech Holdings (SEHK:1873) - Share price, News & Analysis

1873 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	2/6
Financial Health	1/6
Dividends	0/6

1873 Stock Overview

Viva Biotech Holdings, an investment holding company, provides structure-based drug discovery services to biotechnology and pharmaceutical customers worldwide.

Rewards

Price-To-Earnings ratio (11.8x) is below the Life Sciences industry average (12.2x)

Earnings are forecast to grow 35.96% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Viva Biotech Holdings Competitors

Frontage Holdings

SEHK:1521

HK$5.5b

Austar Lifesciences

SEHK:6118

HK$1.2b

China Health Group

SEHK:8225

HK$308.6m

WuXi Biologics (Cayman)

SEHK:2269

HK$299.8b

Price History & Performance

Summary of all time highs, changes and price drops for Viva Biotech Holdings
Historical stock prices
Current Share Price	HK$2.07
52 Week High	HK$7.10
52 Week Low	HK$2.00
Beta	0.83
1 Month Change	-10.39%
3 Month Change	-8.00%
1 Year Change	-69.91%
3 Year Change	-44.95%
5 Year Change	n/a
Change since IPO	-53.17%

Recent News & Updates

Jul 11

Is It Too Late To Consider Buying Viva Biotech Holdings (HKG:1873)?

While Viva Biotech Holdings ( HKG:1873 ) might not be the most widely known stock at the moment, it saw a double-digit...

Shareholder Returns

	1873	HK Life Sciences	HK Market
7D	-2.4%	-4.4%	-0.2%
1Y	-69.9%	-40.8%	-21.6%

Return vs Industry: 1873 underperformed the Hong Kong Life Sciences industry which returned -40.9% over the past year.

Return vs Market: 1873 underperformed the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 1873's price volatile compared to industry and market?
1873 volatility
1873 Average Weekly Movement	8.1%
Life Sciences Industry Average Movement	7.8%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 1873 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: 1873's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	2,127	Chen Cheney Mao	https://www.vivabiotech.com.cn

Viva Biotech Holdings, an investment holding company, provides structure-based drug discovery services to biotechnology and pharmaceutical customers worldwide. The company provides discovery biology services, include protein expression and purification, structural biology, hit discovery, bioassay, biomolecular interaction, and pharmacokinetics; chemistry services, such as medicinal and synthetic chemistry, analytical chemistry, purification preparation, and computer-aided drug design services, as well as offers chemical technology platforms; and antibody drug research and development services, include antigen preparation, multi-species discovery, monoclonal antibodies, antibodies functional screening and identification, antibody engineering transformation, antibody characteristics, and antibody cell line engineering transformation, as well as offers technology platforms, such as hybridoma, phage and yeast display, mammalian display, VHH antibody technology, high throughput sequencing, computer-aided drug design, HDX-MS, crystal structure determination of protein, and SPR technology. It also provides cell lines, crystal structures, GPCR proteins, antibodies, and proteins.

Viva Biotech Holdings Fundamentals Summary

How do Viva Biotech Holdings's earnings and revenue compare to its market cap?
1873 fundamental statistics
Market Cap	CN¥3.40b
Earnings (TTM)	CN¥287.55m
Revenue (TTM)	CN¥2.10b

11.8x

P/E Ratio

1.6x

P/S Ratio

Is 1873 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1873 income statement (TTM)
Revenue	CN¥2.10b
Cost of Revenue	CN¥1.45b
Gross Profit	CN¥650.98m
Other Expenses	CN¥363.44m
Earnings	CN¥287.55m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.15
Gross Margin	30.94%
Net Profit Margin	13.67%
Debt/Equity Ratio	67.0%

How did 1873 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 1873 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1873?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1873. This is calculated by dividing 1873's market cap by their current preferred multiple.
What is 1873's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥3.40b

1873 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.5x
Enterprise Value/EBITDA	14.5x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does 1873's PE Ratio compare to its peers?

1873 PE Ratio vs Peers

The above table shows the PE ratio for 1873 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	31.8x
1521 Frontage Holdings	38.3x	27.9%	HK$5.5b
6118 Austar Lifesciences	3.8x	n/a	HK$1.2b
8225 China Health Group	9x	n/a	HK$308.6m
2269 WuXi Biologics (Cayman)	76.1x	23.4%	HK$299.8b
1873 Viva Biotech Holdings	11.8x	36.0%	HK$4.0b

Price-To-Earnings vs Peers: 1873 is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (31.8x).

Price to Earnings Ratio vs Industry

How does 1873's PE Ratio compare vs other companies in the Asian Life Sciences Industry?

Price-To-Earnings vs Industry: 1873 is good value based on its Price-To-Earnings Ratio (11.8x) compared to the Hong Kong Life Sciences industry average (12.2x)

Price to Earnings Ratio vs Fair Ratio

What is 1873's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1873 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.8x
Fair PE Ratio	17.4x

Price-To-Earnings vs Fair Ratio: 1873 is good value based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).

Share Price vs Fair Value

What is the Fair Price of 1873 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1873's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1873's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Viva Biotech Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1873's forecast earnings growth (36% per year) is above the savings rate (1.6%).

Earnings vs Market: 1873's earnings (36% per year) are forecast to grow faster than the Hong Kong market (16.8% per year).

High Growth Earnings: 1873's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1873's revenue (27.7% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 1873's revenue (27.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1873's Return on Equity is forecast to be low in 3 years time (12.3%).

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Past Performance

How has Viva Biotech Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1873 has high quality earnings.

Growing Profit Margin: 1873 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 1873's earnings have declined by 1.1% per year over the past 5 years.

Accelerating Growth: 1873 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1873 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Life Sciences industry (34%).

Return on Equity

High ROE: 1873's Return on Equity (7.7%) is considered low.

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Financial Health

How is Viva Biotech Holdings's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1873's short term assets (CN¥2.0B) exceed its short term liabilities (CN¥926.6M).

Long Term Liabilities: 1873's short term assets (CN¥2.0B) do not cover its long term liabilities (CN¥3.2B).

Debt to Equity History and Analysis

Debt Level: 1873's net debt to equity ratio (46.5%) is considered high.

Reducing Debt: 1873's debt to equity ratio has increased from 4.3% to 67% over the past 5 years.

Debt Coverage: 1873's debt is not well covered by operating cash flow (3%).

Interest Coverage: 1873's interest payments on its debt are not well covered by EBIT (1.5x coverage).

Balance Sheet

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Dividend

What is Viva Biotech Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1873's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1873'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 1873's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1873's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1873 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1873 has not reported any payouts.

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Management

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

4.1yrs

Average management tenure

CEO

Chen Cheney Mao (60 yo)

4.08yrs

Tenure

Dr. Chen Cheney Mao, Ph D has been Chairman and Chief Executive Officer of Viva Biotech Holdings since July 03, 2018. He Founded Viva Biotech Holdings.Dr. Mao is the Chairman and Executive Director of Viv...

Leadership Team

Experienced Management: 1873's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: 1873's board of directors are considered experienced (3.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31