SEHK:2616

Stock Analysis Report

Executive Summary

CStone Pharmaceuticals, a clinical-stage biotechnology company, focuses on developing and commercializing immuno-oncology and molecularly targeted drugs to address unmet medical needs in cancer treatment.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.

Share Price & News

How has CStone Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-10.4%

2616

-0.4%

HK Biotechs

0.3%

HK Market


1 Year Return

n/a

2616

0.1%

HK Biotechs

1.3%

HK Market

Return vs Industry: Insufficient data to determine how 2616 performed against the Hong Kong Biotechs industry.

Return vs Market: Insufficient data to determine how 2616 performed against the Hong Kong Market.


Shareholder returns

2616IndustryMarket
7 Day-10.4%-0.4%0.3%
30 Day-13.3%1.6%0.5%
90 Day-15.0%-4.7%-4.6%
1 Yearn/a0.5%0.1%4.9%1.3%
3 Yearn/a43.2%40.0%15.3%3.7%
5 Yearn/a42.3%39.7%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CStone Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

2.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2616's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2616's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2616 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 2616 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 2616's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2616 is good value based on its PB Ratio (2.9x) compared to the HK Biotechs industry average (3.1x).


Next Steps

Future Growth

How is CStone Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2616 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2616 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2616 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2616's revenue (144.2% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 2616's revenue (144.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2616 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has CStone Pharmaceuticals performed over the past 5 years?

-381.6%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2616 is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

Accelerating Growth: Unable to compare 2616's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2616 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (1.6%).


Return on Equity

High ROE: 2616 has a negative Return on Equity (-68.26%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 2616 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 2616 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is CStone Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: 2616's short term assets (CN¥3.4B) exceeds its short term liabilities (CN¥84.4M)

Long Term Liabilities: 2616's short term assets (3.4B) exceeds its long term liabilities (10.4M)


Debt to Equity History and Analysis

Debt Level: 2616 is debt free.

Reducing Debt: 2616 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: 2616 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2616's debt is covered by short term assets (assets are 3827479844812877103.075790x debt).


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: 2616 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 2616 has sufficient cash runway for 2.268193 years if free cash flow continues to reduce at historical rates of -45.1% each year.


Next Steps

Dividend

What is CStone Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage0.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 2616's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2616's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 2616's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2616'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 2616's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of CStone Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average board tenure


CEO

Frank Jiang (58yo)

0yrs

Tenure

CN¥141,294,000

Compensation

Dr. Frank Ningjun Jiang, MD, Ph.D., is Chairman of Board at CStone Pharmaceuticals and has been Its Director since November 3, 2016. Dr. Jiang serves as Chief Executive Officer at CStone Pharmaceuticals Co ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Frank's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Frank's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

0.6yrs

Average Tenure

Experienced Board: 2616's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Richard L. Yeh

    Chief Financial Officer

    • Tenure: 1.3yrs
  • Frank Jiang (58yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥141.29m
  • Sanhu Wang

    Senior Vice President of Government Affairs

    • Tenure: 0.3yrs

Board Members

  • Frank Jiang (58yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥141.29m
  • Paul Bunn

    Member of Scientific Advisory Board

    • Tenure: 0.6yrs
  • Elizabeth Jaffee

    Member of Scientific Advisory Board

    • Tenure: 0.6yrs
  • Richard Finn

    Member of Scientific Advisory Board

    • Tenure: 0.6yrs
  • Weiping Zou

    Member of Scientific Advisory Board

    • Tenure: 0.3yrs

Company Information

CStone Pharmaceuticals's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CStone Pharmaceuticals
  • Ticker: 2616
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$10.936b
  • Shares outstanding: 1.01b
  • Website: https://www.cstonepharma.com

Number of Employees


Location

  • CStone Pharmaceuticals
  • Buillding 25
  • 1000 Zhangheng Road
  • Shanghai
  • 201203
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2616SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2019
PH4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2019

Biography

CStone Pharmaceuticals, a clinical-stage biotechnology company, focuses on developing and commercializing immuno-oncology and molecularly targeted drugs to address unmet medical needs in cancer treatment.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 13:04
End of Day Share Price2019/10/22 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.