SEHK:2348

Stock Analysis Report

Dawnrays Pharmaceutical (Holdings)

Executive Summary

Dawnrays Pharmaceutical (Holdings) Limited, an investment holding company, develops, manufactures, and sells non-patented pharmaceutical medicines in Mainland China and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Dawnrays Pharmaceutical (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2348 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

2348

-4.4%

HK Pharmaceuticals

-3.2%

HK Market


1 Year Return

-15.4%

2348

5.6%

HK Pharmaceuticals

-10.2%

HK Market

Return vs Industry: 2348 underperformed the Hong Kong Pharmaceuticals industry which returned 8.1% over the past year.

Return vs Market: 2348 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

2348IndustryMarket
7 Day-7.7%-4.4%-3.2%
30 Day-9.0%-4.9%-3.3%
90 Day-4.3%1.0%0.2%
1 Year-10.7%-15.4%7.7%5.6%-6.9%-10.2%
3 Year-30.6%-40.5%40.1%33.4%11.7%0.4%
5 Year-33.4%-45.3%44.8%33.1%11.1%-7.3%

Price Volatility Vs. Market

How volatile is Dawnrays Pharmaceutical (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dawnrays Pharmaceutical (Holdings) 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: 2348 (HK$1.32) is trading below our estimate of fair value (HK$2.71)

Significantly Below Fair Value: 2348 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2348 is good value based on its PE Ratio (6.6x) compared to the Pharmaceuticals industry average (12x).

PE vs Market: 2348 is good value based on its PE Ratio (6.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2348's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2348 is good value based on its PB Ratio (1x) compared to the HK Pharmaceuticals industry average (1.3x).


Next Steps

Future Growth

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

18.7%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dawnrays Pharmaceutical (Holdings) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2348 has high quality earnings.

Growing Profit Margin: 2348's current net profit margins (30.6%) are lower than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: 2348's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: 2348's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2348 had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (23%).


Return on Equity

High ROE: 2348's Return on Equity (14.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dawnrays Pharmaceutical (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 2348's short term assets (CN¥1.6B) exceed its short term liabilities (CN¥538.5M).

Long Term Liabilities: 2348's short term assets (CN¥1.6B) exceed its long term liabilities (CN¥138.7M).


Debt to Equity History and Analysis

Debt Level: 2348's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: 2348's debt to equity ratio has reduced from 20.2% to 10% over the past 5 years.

Debt Coverage: 2348's debt is well covered by operating cash flow (134.5%).

Interest Coverage: 2348 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2348 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2348's debt is covered by short term assets (assets are 8.3x debt).


Next Steps

Dividend

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

5.56%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.3%markettop25%6.4%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 2348's dividend (5.56%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 2348's dividend (5.56%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 2348's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2348's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), 2348's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

14.5yrs

Average management tenure


CEO

Shaojun Chen (41yo)

3.8yrs

Tenure

CN¥5,493,000

Compensation

Mr. Shaojun Chen 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 prom ...


CEO Compensation Analysis

Compensation vs Market: Shaojun's total compensation ($USD781.51K) is above average for companies of similar size in the Hong Kong market ($USD290.18K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kei Li
Co-Founder & Chairman0yrsCN¥982.00k6.77% CN¥142.8m
Shaojun Chen
CEO & Executive Director3.8yrsCN¥5.49m0.54% CN¥11.4m
Yung Hung
Co-Founder & Executive Director17.3yrsCN¥597.39k0.040% CN¥848.7k
Yi WU
Financial Controller1.8yrsno datano data

14.5yrs

Average Tenure

62.5yo

Average Age

Experienced Management: 2348's management team is seasoned and experienced (14.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kei Li
Co-Founder & Chairman0yrsCN¥982.00k6.77% CN¥142.8m
Shaojun Chen
CEO & Executive Director3.8yrsCN¥5.49m0.54% CN¥11.4m
Yung Hung
Co-Founder & Executive Director17.3yrsCN¥597.39k0.040% CN¥848.7k
Hao Ede
Independent Non-executive Director4.7yrsCN¥94.00kno data
Hong Leung
Non-Executive Director14.3yrsCN¥228.00kno data
Tung Lo
Independent Non-Executive Director9.3yrsno datano data
Ming Lam
Independent Non-Executive Director1.8yrsno datano data

7.0yrs

Average Tenure

51yo

Average Age

Experienced Board: 2348's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 2348 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

Dawnrays Pharmaceutical (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dawnrays Pharmaceutical (Holdings) Limited
  • Ticker: 2348
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$2.109b
  • Shares outstanding: 1.55b
  • Website: https://www.dawnrays.com

Number of Employees


Location

  • Dawnrays Pharmaceutical (Holdings) Limited
  • Units 3001-02, CNT Tower
  • 30th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2348SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2003

Biography

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-allergic, anti-HBV, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:53
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.