Hua Medicine (Shanghai)
Market Cap
HK$4.3b
Last Updated
2021/06/12 13:25 UTC
Data Sources
Company Financials +
Executive Summary
Hua Medicine (Shanghai) Ltd. operates as a drug development company that focuses on therapies for the treatment of diabetes in China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Share Price & News
How has Hua Medicine (Shanghai)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2552 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: 2552's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-7.4%
2552
2.4%
HK Pharmaceuticals
0.02%
HK Market
1 Year Return
0.4%
2552
21.2%
HK Pharmaceuticals
25.6%
HK Market
Return vs Industry: 2552 underperformed the Hong Kong Pharmaceuticals industry which returned 21.2% over the past year.
Return vs Market: 2552 underperformed the Hong Kong Market which returned 25.6% over the past year.
Shareholder returns
| 2552 | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.4% | 2.4% | 0.02% |
| 30 Day | -8.0% | 14.4% | 3.4% |
| 90 Day | -5.5% | 12.3% | -0.3% |
| 1 Year | 0.4%0.4% | 23.0%21.2% | 30.5%25.6% |
| 3 Year | n/a | -11.8%-16.7% | 6.7%-4.6% |
| 5 Year | n/a | 122.8%101.9% | 62.5%34.6% |
Long-Term Price Volatility Vs. Market
How volatile is Hua Medicine (Shanghai)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
The Hua Medicine (Shanghai) (HKG:2552) Share Price Is Up 16% And Shareholders Are Holding On1 month ago | Simply Wall St
Is Hua Medicine (Shanghai) Ltd. (HKG:2552) Popular Amongst Institutions?2 months ago | Simply Wall St
Companies Like Hua Medicine (Shanghai) (HKG:2552) Can Afford To Invest In GrowthValuation
Is Hua Medicine (Shanghai) 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: 2552 (HK$4.49) is trading below our estimate of fair value (HK$38.41)
Significantly Below Fair Value: 2552 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2552 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Pharmaceuticals industry average.
PE vs Market: 2552 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 2552's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 2552 is overvalued based on its PB Ratio (4.8x) compared to the HK Pharmaceuticals industry average (1.3x).
Future Growth
How is Hua Medicine (Shanghai) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
68.9%
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's is expected to become profitable in the next 3 years.
Revenue vs Market: 2552 is forecast to have no revenue next year.
High Growth Revenue: 2552 is forecast to have no revenue next 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 (66.6%).
Past Performance
How has Hua Medicine (Shanghai) performed over the past 5 years?
11.6%
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 11.6% 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 (9.2%).
Return on Equity
High ROE: 2552 has a negative Return on Equity (-53.67%), as it is currently unprofitable.
Financial Health
How is Hua Medicine (Shanghai)'s financial position?
Financial Position Analysis
Short Term Liabilities: 2552's short term assets (CN¥1.0B) exceed its short term liabilities (CN¥106.5M).
Long Term Liabilities: 2552's short term assets (CN¥1.0B) exceed its long term liabilities (CN¥359.5M).
Debt to Equity History and Analysis
Debt Level: 2552 is debt free.
Reducing Debt: 2552 had no debt 5 years ago.
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 3 years 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.
Dividend
What is Hua Medicine (Shanghai) current dividend yield, its reliability and sustainability?
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.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 2552's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Li Chen (57 yo)
11yrs
Tenure
CN¥28,107,000
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 ($USD4.39M) is above average for companies of similar size in the Hong Kong market ($USD300.31K).
Compensation vs Earnings: Li's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: 2552's management team is considered experienced (2.2 years average tenure).
Board Members
Experienced Board: 2552's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
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 company bio, 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
- Market Cap: HK$4.284b
- Shares outstanding: 954.07m
- Website: https://www.huamedicine.com
Number of Employees
Location
- Hua Medicine (Shanghai) Ltd.
- Building 2
- Lane 36, Xuelin Road
- Shanghai
- 201203
- China
Listings
Biography
Hua Medicine (Shanghai) Ltd. operates as a 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/12 13:25 |
| End of Day Share Price | 2021/06/11 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.