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2552

Hua Medicine (Shanghai) SEHK:2552 Stock Report

Last Price

HK$3.84

Market Cap

HK$3.7b

7D

0.8%

1Y

-19.5%

Updated

27 Jun, 2022

Data

Company Financials +
2552 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health5/6
Dividends0/6

2552 Stock Overview

Hua Medicine (Shanghai) Ltd. operates as a clinical-stage drug development company that focuses on therapies for the treatment of diabetes in China.

Hua Medicine (Shanghai) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hua Medicine (Shanghai)
Historical stock prices
Current Share PriceHK$3.84
52 Week HighHK$5.38
52 Week LowHK$2.40
Beta1.26
1 Month Change-1.54%
3 Month Change6.67%
1 Year Change-19.50%
3 Year Change-44.99%
5 Year Changen/a
Change since IPO-53.62%

Recent News & Updates

Apr 22
Companies Like Hua Medicine (Shanghai) (HKG:2552) Can Afford To Invest In Growth

Companies Like Hua Medicine (Shanghai) (HKG:2552) Can Afford To Invest In Growth

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

Shareholder Returns

2552HK PharmaceuticalsHK Market
7D0.8%8.4%2.1%
1Y-19.5%-43.3%-23.3%

Return vs Industry: 2552 exceeded the Hong Kong Pharmaceuticals industry which returned -43.3% over the past year.

Return vs Market: 2552 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 2552's price volatile compared to industry and market?
2552 volatility
2552 Average Weekly Movement9.5%
Pharmaceuticals Industry Average Movement6.1%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 2552 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 2552's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011146Li Chenhttps://www.huamedicine.com

Hua Medicine (Shanghai) Ltd. operates as a clinical-stage drug development company that focuses on therapies for the treatment of diabetes in China. It develops Dorzagliatin or HMS5552, an oral drug for the treatment of Type 2 Diabetes (T2D); and Dorzagliatin in combination with Metformin, Sitagliptin, and Empagliflozin that is in Phase I clinical trial for treatment of T2D. The company also offers Dorzagliatin in combination with Pioglitazone for NASH; in combination with GLP-1 for Alzheimer diseases; and in combination with late stage T2D and Type 1 Diabetes.

Hua Medicine (Shanghai) Fundamentals Summary

How do Hua Medicine (Shanghai)'s earnings and revenue compare to its market cap?
2552 fundamental statistics
Market CapCN¥3.15b
Earnings (TTM)-CN¥325.73m
Revenue (TTM)CN¥6.49m

486.3x

P/S Ratio

-9.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2552 income statement (TTM)
RevenueCN¥6.49m
Cost of RevenueCN¥0
Gross ProfitCN¥6.49m
Other ExpensesCN¥332.22m
Earnings-CN¥325.73m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.34
Gross Margin100.00%
Net Profit Margin-5,019.01%
Debt/Equity Ratio0%

How did 2552 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 2552 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2552?

Other financial metrics that can be useful for relative valuation.

2552 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/Revenue388.6x
Enterprise Value/EBITDA-8.3x
PEG Ration/a

Price to Book Ratio vs Peers

How does 2552's PB Ratio compare to its peers?

2552 PB Ratio vs Peers
The above table shows the PB ratio for 2552 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average1.2x
1681 Consun Pharmaceutical Group
1.1x10.3%HK$3.3b
2877 China Shineway Pharmaceutical Group
0.7x10.3%HK$4.9b
6622 Zhaoke Ophthalmology
0.8x55.3%HK$2.2b
6600 SciClone Pharmaceuticals (Holdings)
2.1x-8.5%HK$5.6b
2552 Hua Medicine (Shanghai)
7x90.8%HK$3.7b

Price-To-Book vs Peers: 2552 is expensive based on its Price-To-Book Ratio (7x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

How does 2552's PE Ratio compare vs other companies in the HK Pharmaceuticals Industry?

Price-To-Book vs Industry: 2552 is expensive based on its Price-To-Book Ratio (7x) compared to the Hong Kong Pharmaceuticals industry average (1x)


Price to Book Ratio vs Fair Ratio

What is 2552's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2552 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio7x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate 2552's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 2552 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2552 (HK$3.84) is trading below our estimate of fair value (HK$44.02)

Significantly Below Fair Value: 2552 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2552's PEG Ratio to determine if it is good value.


Discover undervalued companies

Future Growth

How is Hua Medicine (Shanghai) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


90.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2552 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 2552 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2552 is expected to become profitable in the next 3 years.

Revenue vs Market: 2552's revenue (64.2% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 2552's revenue (64.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2552's Return on Equity is forecast to be very high in 3 years time (51.6%).


Discover growth companies

Past Performance

How has Hua Medicine (Shanghai) performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


25.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2552 is currently unprofitable.

Growing Profit Margin: 2552 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2552 is unprofitable, but has reduced losses over the past 5 years at a rate of 25% per year.

Accelerating Growth: Unable to compare 2552's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2552 is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.1%).


Return on Equity

High ROE: 2552 has a negative Return on Equity (-72.33%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Hua Medicine (Shanghai)'s financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 2552's short term assets (CN¥704.6M) exceed its short term liabilities (CN¥106.9M).

Long Term Liabilities: 2552's short term assets (CN¥704.6M) exceed its long term liabilities (CN¥346.3M).


Debt to Equity History and Analysis

Debt Level: 2552 is debt free.

Reducing Debt: 2552 currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2552 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 2552 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Hua Medicine (Shanghai) 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

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2552's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2552'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 2552's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2552's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2552 has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.2yrs

Average management tenure


CEO

Li Chen (59 yo)

12yrs

Tenure

CN¥23,856,000

Compensation

Dr. Li Chen, Ph.D. is the Co-Founder of Hua Medicine (Shanghai) Ltd. and serves as its Chief Scientific Officer and served as its President until May 19, 2016 and has been its Chief Executive Officer since...


CEO Compensation Analysis

Compensation vs Market: Li's total compensation ($USD3.57M) is above average for companies of similar size in the Hong Kong market ($USD393.76K).

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


Leadership Team

Experienced Management: 2552's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: 2552's board of directors are considered experienced (3.8 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.


Top Shareholders

Company Information

Hua Medicine (Shanghai) Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hua Medicine (Shanghai) Ltd.
  • Ticker: 2552
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: HK$3.701b
  • Shares outstanding: 963.73m
  • Website: https://www.huamedicine.com

Number of Employees


Location

  • Hua Medicine (Shanghai) Ltd.
  • Building A
  • Room 2005
  • Beijing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.