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Dawnrays Pharmaceutical (Holdings)

SEHK:2348
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2348
SEHK
HK$2B
Market Cap
  1. Home
  2. HK
  3. Pharmaceuticals & Biotech
Company description

Dawnrays Pharmaceutical (Holdings) Limited, an investment holding company, develops, manufactures, and sells non-patented pharmaceutical medicines in Mainland China and internationally. The last earnings update was 191 days ago. More info.


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2348 Share Price and Events
7 Day Returns
-2%
SEHK:2348
4.2%
HK Pharmaceuticals
1.7%
HK Market
1 Year Returns
-35.3%
SEHK:2348
-20.2%
HK Pharmaceuticals
-9.5%
HK Market
2348 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dawnrays Pharmaceutical (Holdings) (2348) -2% -9.4% -1.4% -35.3% -52.3% -48.2%
HK Pharmaceuticals 4.2% 1.9% 21.2% -20.2% 48.1% 31.2%
HK Market 1.7% 3.7% 14.2% -9.5% 29.3% 20.7%
1 Year Return vs Industry and Market
  • 2348 underperformed the Pharmaceuticals industry which returned -20.2% over the past year.
  • 2348 underperformed the Market in Hong Kong which returned -9.5% over the past year.
Price Volatility
2348
Industry
5yr Volatility vs Market

Value

 Is Dawnrays Pharmaceutical (Holdings) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Dawnrays Pharmaceutical (Holdings) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dawnrays Pharmaceutical (Holdings).

SEHK:2348 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2348
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 25%) (4.06%))
0.838
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.838 * 6.65%)
7.57%

Discounted Cash Flow Calculation for SEHK:2348 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Dawnrays Pharmaceutical (Holdings) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2348 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.57%)
2019 319.69 Est @ 3.91% 297.18
2020 330.37 Est @ 3.34% 285.49
2021 340.08 Est @ 2.94% 273.19
2022 349.12 Est @ 2.66% 260.71
2023 357.71 Est @ 2.46% 248.32
2024 366.03 Est @ 2.32% 236.20
2025 374.18 Est @ 2.23% 224.46
2026 382.27 Est @ 2.16% 213.17
2027 390.34 Est @ 2.11% 202.35
2028 398.46 Est @ 2.08% 192.01
Present value of next 10 years cash flows CN¥2,433.07
SEHK:2348 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥398.46 × (1 + 2%) ÷ (7.57% – 2%)
CN¥7,296.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥7,296.25 ÷ (1 + 7.57%)10
CN¥3,515.95
SEHK:2348 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥2,433.07 + CN¥3,515.95
CN¥5,949.02
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥5,949.02 / 1,586.38
CN¥3.75
SEHK:2348 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2348)
1.173
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.75 x 1.173
HK$4.4
Value per share (HKD) From above. HK$4.40
Current discount Discount to share price of HK$1.45
= -1 x (HK$1.45 - HK$4.40) / HK$4.40
67%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Dawnrays Pharmaceutical (Holdings) is available for.
Intrinsic value
>50%
Share price is HK$1.45 vs Future cash flow value of HK$4.4
Current Discount Checks
For Dawnrays Pharmaceutical (Holdings) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Dawnrays Pharmaceutical (Holdings)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Dawnrays Pharmaceutical (Holdings)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Dawnrays Pharmaceutical (Holdings)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dawnrays Pharmaceutical (Holdings)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2348 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in CNY CN¥0.20
SEHK:2348 Share Price ** SEHK (2019-03-21) in HKD HK$1.45
SEHK:2348 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.853 CN¥1.24
Hong Kong Pharmaceuticals Industry PE Ratio Median Figure of 30 Publicly-Listed Pharmaceuticals Companies 14.2x
Hong Kong Market PE Ratio Median Figure of 1,498 Publicly-Listed Companies 10.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Dawnrays Pharmaceutical (Holdings).

SEHK:2348 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2348 Share Price ÷ EPS (both in CNY)

= 1.24 ÷ 0.20

6.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dawnrays Pharmaceutical (Holdings) is good value based on earnings compared to the HK Pharmaceuticals industry average.
  • Dawnrays Pharmaceutical (Holdings) is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Dawnrays Pharmaceutical (Holdings)'s expected growth come at a high price?
Raw Data
SEHK:2348 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
3.9%per year
Hong Kong Pharmaceuticals Industry PEG Ratio Median Figure of 16 Publicly-Listed Pharmaceuticals Companies 1.28x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Dawnrays Pharmaceutical (Holdings), we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Dawnrays Pharmaceutical (Holdings)'s assets?
Raw Data
SEHK:2348 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in CNY CN¥1.20
SEHK:2348 Share Price * SEHK (2019-03-21) in HKD HK$1.45
SEHK:2348 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.853 CN¥1.24
Hong Kong Pharmaceuticals Industry PB Ratio Median Figure of 35 Publicly-Listed Pharmaceuticals Companies 1.33x
Hong Kong Market PB Ratio Median Figure of 2,138 Publicly-Listed Companies 0.99x
SEHK:2348 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2348 Share Price ÷ Book Value per Share (both in CNY)

= 1.24 ÷ 1.20

1.03x

* Primary Listing of Dawnrays Pharmaceutical (Holdings).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dawnrays Pharmaceutical (Holdings) is good value based on assets compared to the HK Pharmaceuticals industry average.
X
Value checks
We assess Dawnrays Pharmaceutical (Holdings)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Dawnrays Pharmaceutical (Holdings) has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Dawnrays Pharmaceutical (Holdings) expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Dawnrays Pharmaceutical (Holdings), future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dawnrays Pharmaceutical (Holdings) expected to grow at an attractive rate?
  • Dawnrays Pharmaceutical (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Dawnrays Pharmaceutical (Holdings)'s earnings growth is positive but not above the Hong Kong market average.
  • Unable to compare Dawnrays Pharmaceutical (Holdings)'s revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:2348 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2348 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 3.9%
Hong Kong Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
Hong Kong Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 13.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2348 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2348 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:2348 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-06-30 946 336 310
2018-03-31 914 364 302
2017-12-31 882 391 293
2017-09-30 832 350 288
2017-06-30 839 310 283
2017-03-31 832 315 275
2016-12-31 824 320 266
2016-09-30 870 314 273
2016-06-30 915 308 279
2016-03-31 950 303 291
2015-12-31 985 298 302
2015-09-30 924 322 280

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dawnrays Pharmaceutical (Holdings)'s earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Dawnrays Pharmaceutical (Holdings) is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2348 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Dawnrays Pharmaceutical (Holdings) Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2348 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:2348 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-06-30 0.20
2018-03-31 0.19
2017-12-31 0.18
2017-09-30 0.18
2017-06-30 0.18
2017-03-31 0.17
2016-12-31 0.17
2016-09-30 0.17
2016-06-30 0.17
2016-03-31 0.18
2015-12-31 0.19
2015-09-30 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Dawnrays Pharmaceutical (Holdings) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Dawnrays Pharmaceutical (Holdings)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Dawnrays Pharmaceutical (Holdings) has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Dawnrays Pharmaceutical (Holdings) performed over the past 5 years?

  • Dawnrays Pharmaceutical (Holdings)'s last earnings update was 191 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Dawnrays Pharmaceutical (Holdings)'s growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Dawnrays Pharmaceutical (Holdings)'s year on year earnings growth rate has been positive over the past 5 years.
  • Dawnrays Pharmaceutical (Holdings)'s 1-year earnings growth is less than its 5-year average (9.5% vs 14.2%)
  • Dawnrays Pharmaceutical (Holdings)'s earnings growth has not exceeded the HK Pharmaceuticals industry average in the past year (9.5% vs 18.5%).
Earnings and Revenue History
Dawnrays Pharmaceutical (Holdings)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Dawnrays Pharmaceutical (Holdings) Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2348 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 945.89 310.20 178.19
2018-03-31 914.19 301.59 174.38
2017-12-31 882.48 292.98 170.58
2017-09-30 832.18 288.19 142.59
2017-06-30 839.42 283.41 172.13
2017-03-31 831.89 274.66 167.83
2016-12-31 824.35 265.92 163.52
2016-09-30 869.52 272.67 158.95
2016-06-30 914.69 279.42 154.39
2016-03-31 949.85 290.81 161.90
2015-12-31 985.00 302.20 169.41
2015-09-30 923.84 279.91 168.52
2015-06-30 862.67 257.62 167.63
2015-03-31 823.24 231.38 164.02
2014-12-31 783.80 205.15 160.42
2014-09-30 830.87 190.90 168.24
2014-06-30 877.95 176.66 176.06
2014-03-31 896.46 164.88 175.21
2013-12-31 914.97 153.10 174.36
2013-09-30 911.23 143.97 172.46
2013-06-30 907.49 134.84 170.57
2013-03-31 882.01 124.67 164.18
2012-12-31 856.54 114.51 157.78
2012-09-30 865.99 114.33 152.04
2012-06-30 875.43 114.15 146.30
2012-03-31 978.24 130.23 151.47

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Dawnrays Pharmaceutical (Holdings) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Dawnrays Pharmaceutical (Holdings) used its assets more efficiently than the HK Pharmaceuticals industry average last year based on Return on Assets.
  • Dawnrays Pharmaceutical (Holdings)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dawnrays Pharmaceutical (Holdings)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Dawnrays Pharmaceutical (Holdings) has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Dawnrays Pharmaceutical (Holdings)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Dawnrays Pharmaceutical (Holdings)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dawnrays Pharmaceutical (Holdings) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Dawnrays Pharmaceutical (Holdings)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Dawnrays Pharmaceutical (Holdings)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 22.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Dawnrays Pharmaceutical (Holdings) Company Filings, last reported 8 months ago.

SEHK:2348 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 1,899.35 80.28 1,303.69
2018-03-31 1,899.35 80.28 1,303.69
2017-12-31 1,806.16 0.00 1,080.83
2017-09-30 1,806.16 0.00 1,080.83
2017-06-30 1,706.24 0.00 920.35
2017-03-31 1,706.24 0.00 920.35
2016-12-31 1,636.76 9.10 884.29
2016-09-30 1,636.76 9.10 884.29
2016-06-30 1,520.99 8.50 772.52
2016-03-31 1,520.99 8.50 772.52
2015-12-31 1,473.88 8.85 696.25
2015-09-30 1,473.88 8.85 696.25
2015-06-30 1,339.20 160.40 592.39
2015-03-31 1,339.20 160.40 592.39
2014-12-31 1,248.28 188.27 691.03
2014-09-30 1,248.28 188.27 691.03
2014-06-30 1,156.18 233.77 355.40
2014-03-31 1,156.18 233.77 355.40
2013-12-31 1,091.74 248.18 217.94
2013-09-30 1,091.74 248.18 217.94
2013-06-30 1,027.93 233.60 199.83
2013-03-31 1,027.93 233.60 199.83
2012-12-31 982.11 201.75 166.86
2012-09-30 982.11 201.75 166.86
2012-06-30 934.45 196.18 159.50
2012-03-31 934.45 196.18 159.50
  • Dawnrays Pharmaceutical (Holdings)'s level of debt (4.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (22.7% vs 4.2% today).
  • Debt is well covered by operating cash flow (419%, greater than 20% of total debt).
  • Dawnrays Pharmaceutical (Holdings) earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Dawnrays Pharmaceutical (Holdings)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dawnrays Pharmaceutical (Holdings) has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Dawnrays Pharmaceutical (Holdings)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.85%
Current annual income from Dawnrays Pharmaceutical (Holdings) dividends.
If you bought HK$2,000 of Dawnrays Pharmaceutical (Holdings) shares you are expected to receive HK$97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Dawnrays Pharmaceutical (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
  • Dawnrays Pharmaceutical (Holdings)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2348 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 924 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2348 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
SEHK:2348 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2018-04-16 0.060 4.021
2018-03-22 0.060 3.384
2017-08-22 0.052 2.905
2017-04-13 0.055 2.777
2017-03-24 0.057 2.867
2016-04-13 0.062 2.932
2016-03-17 0.062 2.461
2015-08-18 0.047 1.940
2015-04-10 0.044 1.556
2015-03-17 0.044 1.920
2014-08-15 0.037 1.518
2014-04-10 0.035 1.501
2014-03-18 0.035 1.610
2013-04-12 0.027 2.100
2013-03-22 0.028 3.230
2012-08-24 0.012 1.765
2012-03-23 0.036 4.927
2011-08-22 0.040 4.306
2011-03-14 0.040 3.519
2010-08-27 0.029 2.073
2010-04-12 0.030 3.190
2009-08-21 0.025 4.953
2009-04-02 0.026 6.859
2009-03-26 0.026 7.626
2009-03-23 0.025 7.477

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Dawnrays Pharmaceutical (Holdings)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Dawnrays Pharmaceutical (Holdings)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Dawnrays Pharmaceutical (Holdings) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dawnrays Pharmaceutical (Holdings) has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Dawnrays Pharmaceutical (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shaojun Chen
COMPENSATION CN¥9,374,000
AGE 40
TENURE AS CEO 2.9 years
CEO Bio

Mr. Chen Shaojun has been the Chief Executive Officer at Dawnrays Pharmaceutical Holdings Ltd. since April 18, 2016 and executive director since January 8, 2018. Mr. Chen has long specialized in sales promotion, network building, brand upgrading, planning and managing of business development in China pharmaceutical market. He is also the general manager of Dawnrays Pharma (Hong Kong) Limited, a subsidiary of the Company. He has accumulated almost 20 years of rich successful experience in respect of pharmaceutical sales and marketing and corporate development and management. Mr. Chen served as an Executive Vice President at Dawnrays Pharmaceutical Holdings Ltd. since December 2014 until April 2016. Mr. Chen joined sales and marketing department of Suzhou Dawnrays Pharmaceutical Company Limited, a subsidiary of Dawnrays Pharmaceutical Holdings in August 2002 as area manager and was responsible for developing area market of new specific medicines of the Company and its subsidiaries and managing its sales business. He also served corporate senior management position.

CEO Compensation
  • Insufficient data for Shaojun to compare compensation growth.
  • Shaojun's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Dawnrays Pharmaceutical (Holdings) management team in years:

13.5
Average Tenure
69
Average Age
  • The average tenure for the Dawnrays Pharmaceutical (Holdings) management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Kei Li

TITLE
Co-Founder & Chairman
COMPENSATION
CN¥997K
AGE
69
TENURE
24.2 yrs

Shaojun Chen

TITLE
CEO & Executive Director
COMPENSATION
CN¥9M
AGE
40
TENURE
2.9 yrs

Yung Hung

TITLE
Co-Founder & Executive Director
COMPENSATION
CN¥637K
AGE
74
TENURE
24.2 yrs

Yi WU

TITLE
Financial Controller
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the Dawnrays Pharmaceutical (Holdings) board of directors in years:

6.1
Average Tenure
50
Average Age
  • The tenure for the Dawnrays Pharmaceutical (Holdings) board of directors is about average.
Board of Directors

Kei Li

TITLE
Co-Founder & Chairman
COMPENSATION
CN¥997K
AGE
69

Shaojun Chen

TITLE
CEO & Executive Director
COMPENSATION
CN¥9M
AGE
40
TENURE
1.2 yrs

Yung Hung

TITLE
Co-Founder & Executive Director
COMPENSATION
CN¥637K
AGE
74
TENURE
16.4 yrs

Tony Lo

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥177K
AGE
49
TENURE
8.4 yrs

Ronald Ede

TITLE
Independent Non-executive Director
COMPENSATION
CN¥177K
AGE
59
TENURE
3.8 yrs

Hong Leung

TITLE
Non-Executive Director
COMPENSATION
CN¥147K
AGE
44
TENURE
13.3 yrs

Joan Lam

TITLE
Independent Non-Executive Director
AGE
50
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Dawnrays Pharmaceutical (Holdings) insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
17. Jan 19 Buy Shaojun Chen Individual 16. Jan 19 16. Jan 19 1,500,000 HK$1.46 HK$2,189,999
13. Sep 18 Buy FMR LLC Company 10. Sep 18 10. Sep 18 691,000 HK$2.11 HK$1,454,557
12. Sep 18 Sell UBS Asset Management Company 07. Sep 18 07. Sep 18 -2,236,000 HK$2.12 HK$-4,744,125
03. Sep 18 Buy Kei Li Individual 31. Aug 18 31. Aug 18 310,000 HK$2.13 HK$659,214
30. Aug 18 Buy Kei Li Individual 30. Aug 18 30. Aug 18 509,000 HK$2.09 HK$1,065,182
30. Aug 18 Buy Kei Li Individual 29. Aug 18 29. Aug 18 736,000 HK$1.97 HK$1,451,098
30. Aug 18 Buy Shaojun Chen Individual 28. Aug 18 28. Aug 18 400,000 HK$1.90 HK$760,000
19. Jun 18 Buy Shaojun Chen Individual 15. Jun 18 15. Jun 18 800,000 HK$2.21 HK$1,771,997
20. Apr 18 Buy Kei Li Individual 20. Apr 18 20. Apr 18 106,000 HK$2.25 HK$238,489
20. Apr 18 Buy Kei Li Individual 19. Apr 18 19. Apr 18 62,000 HK$2.20 HK$136,121
17. Apr 18 Buy Kei Li Individual 17. Apr 18 17. Apr 18 240,000 HK$2.23 HK$535,680
29. Mar 18 Buy Kei Li Individual 27. Mar 18 27. Mar 18 64,000 HK$2.17 HK$139,200
29. Mar 18 Buy Kei Li Individual 29. Mar 18 29. Mar 18 48,000 HK$2.16 HK$103,841
26. Mar 18 Buy Kei Li Individual 26. Mar 18 26. Mar 18 172,000 HK$2.14 HK$368,940
X
Management checks
We assess Dawnrays Pharmaceutical (Holdings)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Dawnrays Pharmaceutical (Holdings) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Can Dawnrays Pharmaceutical (Holdings) Limited's (HKG:2348) ROE Continue To Surpass The Industry Average?

We'll use ROE to examine Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348), by way of a worked example. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.16 in profit. … View our latest analysis for Dawnrays Pharmaceutical (Holdings)?

Simply Wall St -

What Kind Of Investor Owns Most Of Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348)?

Every investor in Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) should be aware of the most powerful shareholder groups. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … With a market capitalization of HK$2.5b, Dawnrays Pharmaceutical (Holdings) is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Does Dawnrays Pharmaceutical (Holdings) Limited's (HKG:2348) P/E Ratio Signal A Buying Opportunity?

We'll look at Dawnrays Pharmaceutical (Holdings) Limited's (HKG:2348) P/E ratio and reflect on what it tells us about the company's share price. … Dawnrays Pharmaceutical (Holdings) has a P/E ratio of 6.85, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Who Has Been Buying Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … Dawnrays Pharmaceutical (Holdings) Insider Transactions Over The Last Year.

Simply Wall St -

Is Dawnrays Pharmaceutical (Holdings) Limited's (HKG:2348) ROE Of 16% Impressive?

To keep the lesson grounded in practicality, we'll use ROE to better understand Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348). … Our data shows Dawnrays Pharmaceutical (Holdings) has a return on equity of 16% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Insiders Own Shares In Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348)?

A look at the shareholders of Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) can tell us which group is most powerful. … With a market capitalization of HK$2.8b, Dawnrays Pharmaceutical (Holdings) is a small cap stock, so it might not be well known by many institutional investors. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is Dawnrays Pharmaceutical (Holdings) Limited's (HKG:2348) CEO Salary Justified?

In 2016 Shaojun Chen was appointed CEO of Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348). … At the time of writing our data says that Dawnrays Pharmaceutical (Holdings) Limited has a market cap of HK$2.7b, and is paying total annual CEO compensation of CN¥9m. … Thus we can conclude that Shaojun Chen receives more in total compensation than the median of a group of companies in the same market, and of similar size to Dawnrays Pharmaceutical (Holdings) Limited

Simply Wall St -

Is Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) A Smart Pick For Income Investors?

Over the past 10 years, Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … Does Dawnrays Pharmaceutical (Holdings) tick all the boxes of a great dividend stock? … View our latest analysis for Dawnrays Pharmaceutical (Holdings)

Simply Wall St -

Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348): The Best Of Both Worlds

I've been keeping an eye on Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) because I'm attracted to its fundamentals. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on Dawnrays Pharmaceutical (Holdings) here

Simply Wall St -

Only 3 Days Left To Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348)’s Ex-Dividend Date, Should You Buy?

See our latest analysis for Dawnrays Pharmaceutical (Holdings) Here's how I find good dividend stocks When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is its annual yield among the top 25% of dividend-paying companies? … Relative to peers, Dawnrays Pharmaceutical (Holdings) has a yield of 3.26%, which is high for Pharmaceuticals stocks but still below the market's top dividend payers. … Next Steps: Whilst there are few things you may like about Dawnrays Pharmaceutical (Holdings) from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

Company Info

Description

Dawnrays Pharmaceutical (Holdings) Limited, an investment holding company, develops, manufactures, and sells non-patented pharmaceutical medicines in Mainland China and internationally. The company operates in two segments, Intermediates and Bulk Medicines, and Finished Drugs. It offers antibiotics, including pharmaceutical intermediates, bulk medicines, powder for injections, and oral antibiotics; and system specific medicines for various therapeutic areas comprising cardiovascular system, anti-HBV, anti-allergic, digestive system, urinary system, anti-pyretic analgesic, respiratory, and endocrine system drugs in the form of tablets, capsules, and granules. The company was founded in 1995 and is headquartered in Wanchai, Hong Kong. Dawnrays Pharmaceutical (Holdings) Limited is a subsidiary of Fortune United Group Limited.

Details
Name: Dawnrays Pharmaceutical (Holdings) Limited
2348
Exchange: SEHK
Founded: 1995
HK$2,316,117,720
1,586,382,000
Website: http://www.dawnrays.com
Address: Dawnrays Pharmaceutical (Holdings) Limited
Units 3001-02, CNT Tower,
30th Floor,
Wanchai,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2348 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 11. Jul 2003
Number of employees
Current staff
Staff numbers
852
Dawnrays Pharmaceutical (Holdings) employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 12:40
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2018/03/22
Last earnings filing: 2018/09/11
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.