SEHK:2005

Stock Analysis Report

Executive Summary

SSY Group Limited, an investment holding company, researches, develops, manufactures, and sells various pharmaceutical products to hospitals and distributors in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2005 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

2005

-1.4%

HK Pharmaceuticals

-0.6%

HK Market


1 Year Return

-3.6%

2005

8.1%

HK Pharmaceuticals

-7.6%

HK Market

Return vs Industry: 2005 underperformed the Hong Kong Pharmaceuticals industry which returned 8.1% over the past year.

Return vs Market: 2005 exceeded the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

2005IndustryMarket
7 Day-3.2%-1.4%-0.6%
30 Day-15.0%-3.0%-1.4%
90 Day4.2%3.6%2.0%
1 Year-2.2%-3.6%10.2%8.1%-4.2%-7.6%
3 Year184.6%172.5%41.3%34.6%12.9%1.5%
5 Year129.9%103.4%48.3%36.3%13.1%-5.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SSY Group undervalued compared to its fair value and its price relative to the market?

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2005 (HK$6.74) is trading below our estimate of fair value (HK$8.8)

Significantly Below Fair Value: 2005 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2005 is poor value based on its PE Ratio (20x) compared to the Pharmaceuticals industry average (12x).

PE vs Market: 2005 is poor value based on its PE Ratio (20x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2005 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 2005 is overvalued based on its PB Ratio (4.4x) compared to the HK Pharmaceuticals industry average (1.3x).


Next Steps

Future Growth

How is SSY Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2005's forecast earnings growth (18.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 2005's earnings (18.3% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: 2005's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2005's revenue (14.2% per year) is forecast to grow faster than the Hong Kong market (9.6% per year).

High Growth Revenue: 2005's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2005's Return on Equity is forecast to be high in 3 years time (24%)


Next Steps

Past Performance

How has SSY Group performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2005 has a high level of non-cash earnings.

Growing Profit Margin: 2005's current net profit margins (23%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: 2005's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: 2005's earnings growth over the past year (23.4%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: 2005 earnings growth over the past year (23.4%) exceeded the Pharmaceuticals industry 23%.


Return on Equity

High ROE: 2005's Return on Equity (21.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SSY Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2005's short term assets (HK$3.2B) exceed its short term liabilities (HK$1.6B).

Long Term Liabilities: 2005's short term assets (HK$3.2B) exceed its long term liabilities (HK$976.5M).


Debt to Equity History and Analysis

Debt Level: 2005's debt to equity ratio (32.7%) is considered satisfactory.

Reducing Debt: 2005's debt to equity ratio has reduced from 45.8% to 32.7% over the past 5 years.

Debt Coverage: 2005's debt is well covered by operating cash flow (38.9%).

Interest Coverage: 2005's interest payments on its debt are well covered by EBIT (41.1x coverage).


Balance Sheet

Inventory Level: 2005 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2005's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.3%markettop25%6.3%industryaverage1.6%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: 2005's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 2005's dividend (1.48%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 2005's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2005's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), 2005's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2005's dividends in 3 years are forecast to be well covered by earnings (35.4% payout ratio).


Next Steps

Management

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

13.0yrs

Average board tenure


CEO

Jiguang Qu (64yo)

HK$16,806,000

Compensation

Mr. Jiguang Qu has been the Chairman and General Manager of Shijiazhuang Siyao Pharmaceutical Ltd. from January 2000. Mr. Qu serves as the Chairman and Chief Executive Officer of SSY Group Limited. He is  ...


CEO Compensation Analysis

Compensation vs Market: Jiguang's total compensation ($USD2.16M) is above average for companies of similar size in the Hong Kong market ($USD560.84K).

Compensation vs Earnings: Jiguang's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Jiguang Qu
Chairman & CEO0yrsHK$16.81m8.1% HK$1.7b
Xianjun Wang
Executive Director13.4yrsHK$2.52m0.81% HK$164.6m
Xuejun Su
Executive Director5.2yrsHK$1.49m0.81% HK$164.6m
Kwok Chow
Independent Non Executive Director14.3yrsHK$180.00kno data
Chong Shun Leung
Independent Non Executive Director14.3yrsHK$180.00kno data
Yibing Wang
Independent Non Executive Director12.6yrsHK$180.00kno data
Hao Feng
Non-Executive Director2.3yrsHK$180.00kno data

13.0yrs

Average Tenure

54yo

Average Age

Experienced Board: 2005's board of directors are seasoned and experienced ( 13 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 been diluted in the past year, with total shares outstanding growing by 3.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: SSY Group Limited
  • Ticker: 2005
  • Exchange: SEHK
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$20.438b
  • Shares outstanding: 3.03b
  • Website: https://www.ssygroup.com.hk

Number of Employees


Location

  • SSY Group Limited
  • Central Plaza
  • 49th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2005SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2005
LJUI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2005
2005SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2005
2005SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2005

Biography

SSY Group Limited, an investment holding company, researches, develops, manufactures, and sells various pharmaceutical products to hospitals and distributors in the People’s Republic of China. The company offers intravenous infusion solutions, including non-PVC soft bag, upright soft bag, PP plastic bottle, and glass bottle infusion solutions. It also provides small volume injections, oral preparations, Chinese medicine preparations, and biological preparations, as well as bulk pharmaceutical products and medical materials. In addition, the company is involved in the research, development, and consulting of pharmaceutical technology; provision of logistics services for pharmaceutical products; and food, beverages, and catering business. It sells its products under Shimen brand name. The company was formerly known as Lijun International Pharmaceutical (Holding) Co., Ltd. and changed its name to SSY Group Limited in May 2015. The company is headquartered in Wanchai, Hong Kong. SSY Group Limited is a subsidiary of China Pharmaceutical Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:56
End of Day Share Price2020/02/24 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.