SEHK:3320

Stock Analysis Report

China Resources Pharmaceutical Group

Executive Summary

China Resources Pharmaceutical Group Limited, an investment holding company, researches and develops, manufactures, distributes, and retails pharmaceutical and other healthcare products in the People’s Republic of China.


Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has China Resources Pharmaceutical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3320's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.4%

3320

4.6%

HK Pharmaceuticals

4.0%

HK Market


1 Year Return

-60.8%

3320

-10.1%

HK Pharmaceuticals

-20.3%

HK Market

Return vs Industry: 3320 underperformed the Hong Kong Pharmaceuticals industry which returned -10.1% over the past year.

Return vs Market: 3320 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

3320IndustryMarket
7 Day-4.4%4.6%4.0%
30 Day-36.9%-10.1%-11.9%
90 Day-38.6%-8.3%-15.8%
1 Year-60.3%-60.8%-8.4%-10.1%-17.4%-20.3%
3 Year-50.5%-52.1%15.0%9.5%-3.2%-13.0%
5 Yearn/a17.8%8.4%-7.4%-22.3%

Price Volatility Vs. Market

How volatile is China Resources Pharmaceutical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Resources Pharmaceutical Group undervalued compared to its fair value and its price relative to the market?

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3320 (HK$4.35) is trading below our estimate of fair value (HK$7.41)

Significantly Below Fair Value: 3320 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3320 is good value based on its PE Ratio (5.7x) compared to the Pharmaceuticals industry average (10.9x).

PE vs Market: 3320 is good value based on its PE Ratio (5.7x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 3320 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 3320 is good value based on its PB Ratio (0.7x) compared to the HK Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is China Resources Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3320's forecast earnings growth (9.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 3320's earnings (9.2% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).

High Growth Earnings: 3320's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3320's revenue (8.5% per year) is forecast to grow slower than the Hong Kong market (9.1% per year).

High Growth Revenue: 3320's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3320's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has China Resources Pharmaceutical Group performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3320 has high quality earnings.

Growing Profit Margin: 3320's current net profit margins (2.4%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 3320's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: 3320's earnings growth over the past year (23%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: 3320 earnings growth over the past year (23%) exceeded the Pharmaceuticals industry 15.4%.


Return on Equity

High ROE: 3320's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is China Resources Pharmaceutical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3320's short term assets (HK$142.5B) exceed its short term liabilities (HK$114.7B).

Long Term Liabilities: 3320's short term assets (HK$142.5B) exceed its long term liabilities (HK$15.6B).


Debt to Equity History and Analysis

Debt Level: 3320's debt to equity ratio (91.5%) is considered high.

Reducing Debt: 3320's debt to equity ratio has reduced from 98.6% to 91.5% over the past 5 years.

Debt Coverage: 3320's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: 3320's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: 3320 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3320's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is China Resources Pharmaceutical Group's current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3320's dividend (2.99%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 3320's dividend (2.99%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3320 has been paying a dividend for less than 10 years.

Growing Dividend: 3320's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.9%), 3320's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3320's dividends in 3 years are forecast to be well covered by earnings (19.4% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Yuewei Han (51yo)

0.42

Tenure

Mr. Yuewei Han serves as Chief Executive Officer and Executive Director at China Resources Pharmaceutical Group Limited since October 22, 2019. He has been Chief Executive Officer of China Resources Health ...


Leadership Team

NamePositionTenureCompensationOwnership
Yuewei Han
CEO & Executive Director0.42yrno datano data
Xiangming Li
Vice Chairman of the Board0.25yrno datano data
Jingwen Weng
CFO, VP & Executive Director0.67yrno datano data
Lu Ge
Chief Information Officer & VP4.25yrsno datano data
Na Tang
Chief Legal Advisor6yrsno datano data
Jun Wu
Senior Vice President6.25yrsno datano data
Hong Chen
Senior Vice President6.25yrsno datano data
Huijun Yin
Senior Vice President2.75yrsno datano data
Song Jin
Assistant President3.75yrsno datano data
Bingxiang Zhao
Assistant President3.5yrsno datano data

3.6yrs

Average Tenure

48yo

Average Age

Experienced Management: 3320's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yuewei Han
CEO & Executive Director0.42yrno datano data
Xiangming Li
Vice Chairman of the Board0.25yrno datano data
Jingwen Weng
CFO, VP & Executive Director0.67yrno datano data
Tingmei Fu
Independent Non-Executive Director3.75yrsHK$300.00kno data
Zhongliang Yu
Non-Executive Director3.75yrsno datano data
Kejian Zhang
Independent Non-Executive Director3.75yrsHK$368.00kno data
Chuncheng Wang
Non-Executive Chairman1yrHK$5.89mno data
Kin Kwok
Independent Non-Executive Director3.75yrsHK$300.00kno data
Yi Feng
Chairman of China Resources Double-Crane Pharmaceutical Co.1.25yrsno datano data
Mo Han Shing
Independent Non-Executive Director2.58yrsHK$300.00kno data

1.9yrs

Average Tenure

55yo

Average Age

Experienced Board: 3320's board of directors are not considered experienced ( 1.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Resources Pharmaceutical Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Resources Pharmaceutical Group Limited
  • Ticker: 3320
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$27.338b
  • Shares outstanding: 6.28b
  • Website: https://www.crpharm.com

Number of Employees


Location

  • China Resources Pharmaceutical Group Limited
  • China Resources Building
  • 41st Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3320SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2016
640DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2016
3320SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2016
3320SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2016

Biography

China Resources Pharmaceutical Group Limited, an investment holding company, researches and develops, manufactures, distributes, and retails pharmaceutical and other healthcare products in the People’s Republic of China. The company operates through Manufacturing, Distribution, Retail, and Others segments. It offers chemical drugs, Chinese medicines formula granules, and biopharmaceutical drugs, as well as nutritional and healthcare products for a range of therapeutic areas, including cardiovascular, alimentary tract and metabolism, large-volume IV infusion, pediatrics, respiratory system, anti-infection, reproductive health, cold and cough, and dermatology. The company also provides warehousing, logistics, and other value-added pharmaceutical supply chain solutions and related services to pharmaceutical manufacturers and dispensers, such as hospitals, distributors, and retail pharmacies. In addition, it is involved in property holding activities. As of December 31, 2018, the company operated a network of 853 retail pharmacies under the CR Care, Yibaoquanxin, Li’an chain, and Tung Tak Tong brand names. It distributes its products to hospitals and other medical institutions. The company was formerly known as China Resources Medications Group Limited and changed its name to China Resources Pharmaceutical Group Limited in December 2011. China Resources Pharmaceutical Group Limited was founded in 2007 and is headquartered in Wan Chai, Hong Kong. China Resources Pharmaceutical Group Limited is a subsidiary of CRH (Pharmaceutical) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:39
End of Day Share Price2020/03/27 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.