Hansoh Pharmaceutical Group

SEHK:3692

Snowflake Description

Exceptional growth potential with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

3692

SEHK

HK$133B

Market Cap

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Last updated 2019/07/16 13:10

Company description

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Hansoh Pharmaceutical Group has significant price volatility in the past 3 months.

3692 Share Price and Events

7 Day Returns

SEHK:3692

1.6%

HK Pharmaceuticals

0.6%

HK Market

1 Year Returns

SEHK:3692

-27.6%

HK Pharmaceuticals

-5.9%

HK Market

3692 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Hansoh Pharmaceutical Group (3692)	0%	20.5%	-	-	-	-
HK Pharmaceuticals	1.6%	11.8%	-8.6%	-27.6%	51.6%	27.9%
HK Market	0.6%	3.7%	-8.2%	-5.9%	17.2%	4.8%

1 Year Return vs Industry and Market

No trading data on 3692.
No trading data on 3692.

Price Volatility

Industry

5yr Volatility vs Market

Related Companies

Sorry, no analysis for Hansoh Pharmaceutical Group's competitors could be found in our database.

3692 Value

Is Hansoh Pharmaceutical Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Hansoh Pharmaceutical Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hansoh Pharmaceutical Group.

SEHK:3692 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 5 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	6.9%
Perpetual Growth Rate	10-Year HK Government Bond Rate	2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3692
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6%
Pharmaceuticals Unlevered Beta	Simply Wall St/ S&P Global	0.73
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.733 (1 + (1- 25%) (0%))	0.821
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.82
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (0.821 * 5.96%)	6.9%

Discounted Cash Flow Calculation for SEHK:3692 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hansoh Pharmaceutical Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:3692 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CNY, Millions)	Source	Present Value Discounted (@ 6.9%)
2020	2,200.00	Analyst x2	2,058.03
2021	2,983.50	Analyst x2	2,610.85
2022	5,565.32	Analyst x1	4,555.90
2023	7,193.67	Est @ 29.26%	5,508.87
2024	8,710.24	Est @ 21.08%	6,239.80
2025	10,047.99	Est @ 15.36%	6,733.61
2026	11,188.61	Est @ 11.35%	7,014.11
2027	12,144.91	Est @ 8.55%	7,122.28
2028	12,944.51	Est @ 6.58%	7,101.31
2029	13,618.87	Est @ 5.21%	6,989.12
Present value of next 10 years cash flows			CN¥55,933.88

SEHK:3692 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₉ × (1 + g) ÷ (Discount Rate – g) = CN¥13,618.87 × (1 + 2%) ÷ (6.9% – 2%)	CN¥283,759.86
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CN¥283,759.86 ÷ (1 + 6.9%)¹⁰	CN¥145,623.70

SEHK:3692 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CN¥55,933.88 + CN¥145,623.70	CN¥201,557.58
Equity Value per Share (CNY)	= Total value / Shares Outstanding = CN¥201,557.58 / 5,788.61	CN¥34.82

SEHK:3692 Discount to Share Price
	Calculation	Result
Exchange Rate	CNY/HKD (Reporting currency to currency of SEHK:3692)	1.138
Value per Share (HKD)	= Value per Share in CNY x Exchange Rate (CNY/HKD) = CN¥34.82 x 1.138	HK$39.63
Value per share (HKD)	From above.	HK$39.63
Current discount	Discount to share price of HK$23.50 = -1 x (HK$23.50 - HK$39.63) / HK$39.63	40.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Hansoh Pharmaceutical Group is available for.

41%

Share price is HK$23.5 vs Future cash flow value of HK$39.63

Current Discount Checks

For Hansoh Pharmaceutical Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Hansoh Pharmaceutical Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Hansoh Pharmaceutical Group's share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hansoh Pharmaceutical Group's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Hansoh Pharmaceutical Group's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:3692 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CNY	CN¥0.33
SEHK:3692 Share Price **	SEHK (2019-07-16) in HKD	HK$23.5
SEHK:3692 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.879	CN¥20.65
Hong Kong Pharmaceuticals Industry PE Ratio	Median Figure of 31 Publicly-Listed Pharmaceuticals Companies	12.69x
Hong Kong Market PE Ratio	Median Figure of 1,503 Publicly-Listed Companies	10.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hansoh Pharmaceutical Group.

SEHK:3692 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:3692 Share Price ÷ EPS (both in CNY) = 20.65 ÷ 0.33	61.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Hansoh Pharmaceutical Group is overvalued based on earnings compared to the HK Pharmaceuticals industry average.
Hansoh Pharmaceutical Group is overvalued based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does Hansoh Pharmaceutical Group's expected growth come at a high price?

Raw Data

SEHK:3692 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	61.91x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts	24.2%per year
Hong Kong Pharmaceuticals Industry PEG Ratio	Median Figure of 18 Publicly-Listed Pharmaceuticals Companies	1.09x
Hong Kong Market PEG Ratio	Median Figure of 477 Publicly-Listed Companies	0.8x

*Line of best fit is calculated by linear regression .

SEHK:3692 PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 61.91x ÷ 24.2%	2.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Hansoh Pharmaceutical Group is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Hansoh Pharmaceutical Group's assets?

Raw Data

SEHK:3692 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CNY	CN¥0.43
SEHK:3692 Share Price *	SEHK (2019-07-16) in HKD	HK$23.5
SEHK:3692 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.879	CN¥20.65
Hong Kong Pharmaceuticals Industry PB Ratio	Median Figure of 37 Publicly-Listed Pharmaceuticals Companies	1.4x
Hong Kong Market PB Ratio	Median Figure of 2,190 Publicly-Listed Companies	0.92x

SEHK:3692 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:3692 Share Price ÷ Book Value per Share (both in CNY) = 20.65 ÷ 0.43	47.74x

* Primary Listing of Hansoh Pharmaceutical Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Hansoh Pharmaceutical Group is overvalued based on assets compared to the HK Pharmaceuticals industry average.

Value checks

We assess Hansoh Pharmaceutical Group's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

3692 Future Performance

How is Hansoh Pharmaceutical Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

24.2%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Hansoh Pharmaceutical Group expected to grow at an attractive rate?

Hansoh Pharmaceutical Group's earnings growth is expected to exceed the low risk savings rate of 2%.

Growth vs Market Checks

Hansoh Pharmaceutical Group's earnings growth is expected to exceed the Hong Kong market average.
Hansoh Pharmaceutical Group's revenue growth is expected to exceed the Hong Kong market average.

Annual Growth Rates Comparison

Raw Data

SEHK:3692 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:3692 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts	24.2%
SEHK:3692 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts	21%
Hong Kong Pharmaceuticals Industry Earnings Growth Rate	Market Cap Weighted Average	15.4%
Hong Kong Pharmaceuticals Industry Revenue Growth Rate	Market Cap Weighted Average	15.1%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.3%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

SEHK:3692 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (6 months ago)	See Below
Future Estimates	Average of up to 5 Analyst Estimates (S&P Global)	See Below

All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3692 Future Estimates Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2023-12-31	6,688
2022-12-31	19,137	5,965	5,316	1
2021-12-31	14,730	3,698	4,191	5
2020-12-31	12,104	2,891	3,346	5
2019-12-31	9,718	2,684	2,575	5

SEHK:3692 Past Financials Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	7,722	2,072	1,903
2017-12-31	6,186	1,402	1,595
2016-12-31	5,433	1,247	1,476

*GAAP earnings excluding extraordinary items.

High Growth Checks

Hansoh Pharmaceutical Group's earnings are expected to grow significantly at over 20% yearly.
Hansoh Pharmaceutical Group's revenue is expected to grow significantly at over 20% yearly.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

SEHK:3692 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (6 months ago)	See Below
Future Estimates	Average of up to 5 Analyst Estimates (S&P Global)	See Below

All data from Hansoh Pharmaceutical Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3692 Future Estimates Data
Date (Data in CNY Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2023-12-31
2022-12-31	0.93	0.93	0.93	1.00
2021-12-31	0.72	0.72	0.72	2.00
2020-12-31	0.58	0.59	0.58	2.00
2019-12-31	0.46	0.46	0.46	2.00

SEHK:3692 Past Financials Data
Date (Data in CNY Millions)	EPS *
2018-12-31	0.33
2017-12-31
2016-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Hansoh Pharmaceutical Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Show me more growth companies in the Pharmaceuticals industry

Future performance checks

We assess Hansoh Pharmaceutical Group's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hansoh Pharmaceutical Group has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3692 Past Performance

How has Hansoh Pharmaceutical Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Hansoh Pharmaceutical Group's growth in the last year to its industry (Pharmaceuticals).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Insufficient data to establish if Hansoh Pharmaceutical Group's year on year earnings growth rate was positive over the past 5 years.
Unable to compare Hansoh Pharmaceutical Group's 1-year earnings growth to the 5-year average due to insufficient past data.
Hansoh Pharmaceutical Group's earnings growth has exceeded the HK Pharmaceuticals industry average in the past year (19.3% vs 18.9%).

Earnings and Revenue History

Hansoh Pharmaceutical Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Hansoh Pharmaceutical Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3692 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions)	Revenue	Net Income *	G+A Expenses	R&D Expenses
2018-12-31	7,722.28	1,903.05	3,998.84	881.29
2017-12-31	6,185.54	1,595.47	3,318.28	575.54
2016-12-31	5,432.96	1,476.03	2,916.01	403.07

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Hansoh Pharmaceutical Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
Hansoh Pharmaceutical Group used its assets more efficiently than the HK Pharmaceuticals industry average last year based on Return on Assets.
Unable to establish if Hansoh Pharmaceutical Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.

Past performance checks

We assess Hansoh Pharmaceutical Group's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hansoh Pharmaceutical Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3692 Health

How is Hansoh Pharmaceutical Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hansoh Pharmaceutical Group's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Hansoh Pharmaceutical Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Hansoh Pharmaceutical Group's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Hansoh Pharmaceutical Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Hansoh Pharmaceutical Group has no debt, it does not need to be covered by short term assets.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Hansoh Pharmaceutical Group Company Filings, last reported 6 months ago.

SEHK:3692 Past Debt and Equity Data
Date (Data in CNY Millions)	Total Equity	Cash & Short Term Investments
2018-12-31	2,467.90	3,496.61
2017-12-31	4,518.69	1,742.77
2016-12-31	2,974.34	1,354.29

Hansoh Pharmaceutical Group has no debt.
Hansoh Pharmaceutical Group has not taken on any debt in the past 5 years.
Hansoh Pharmaceutical Group has no debt, it does not need to be covered by operating cash flow.
Hansoh Pharmaceutical Group has no debt, therefore coverage of interest payments is not a concern.

Show me more healthy companies in the Pharmaceuticals industry

Financial health checks

We assess Hansoh Pharmaceutical Group's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

3692 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

Current annual income from Hansoh Pharmaceutical Group dividends. Estimated to be 0.66% next year.

If you bought HK$2,000 of Hansoh Pharmaceutical Group shares you are expected to receive HK$0 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Unable to evaluate Hansoh Pharmaceutical Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Hansoh Pharmaceutical Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

SEHK:3692 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 5 Analyst Estimates (S&P Global)	See Below
Hong Kong Pharmaceuticals Industry Average Dividend Yield	Market Cap Weighted Average of 26 Stocks	1.7%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 978 Stocks	3.6%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.2%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	2.1%
Hong Kong Top 25% Dividend Yield	75th Percentile	5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3692 Future Dividends Estimate Data
Date (Data in CN¥)	Dividend per Share (annual)	Avg. No. Analysts
2023-12-31
2022-12-31	0.19	1.00
2021-12-31	0.16	4.00
2020-12-31	0.13	4.00
2019-12-31	0.10	4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to perform a dividend volatility check as Hansoh Pharmaceutical Group has not reported any payouts.
Unable to verify if Hansoh Pharmaceutical Group's dividend has been increasing as the company has not reported any payouts.

Current Payout to shareholders

What portion of Hansoh Pharmaceutical Group's earnings are paid to the shareholders as a dividend.

Unable to calculate sustainability of dividends as Hansoh Pharmaceutical Group has not reported any payouts.

Future Payout to shareholders

No need to calculate the sustainability of Hansoh Pharmaceutical Group's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.

Income/ dividend checks

We assess Hansoh Pharmaceutical Group's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Hansoh Pharmaceutical Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

3692 Management

What is the CEO of Hansoh Pharmaceutical Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Huijuan Zhong

AGE	58
TENURE AS CEO	3.6 years

CEO Bio

Ms. Huijuan Zhong is the Chairlady, Chief Executive Officer, President and Executive Director of Hansoh Pharmaceutical Group Company Limited since December 2, 2015. Ms. Zhong was appointed as a Director of Jiangsu Hansoh in September 1998. Ms. Zhong is primarily responsible for Group’s strategic development and planning, overall operations, sales and decision making, board governance and supervision of key management issues. Ms. Zhong has experience in the pharmaceutical industry in China, with substantial experience in pharmaceutical enterprise operation and management, as well as extensive industry knowledge on the development and expansion of oncology and psychotropic drug portfolio in their respective therapeutic areas. From September 1994 to the 2015, Ms. Zhong served at Lianyungang Drug Administration. Ms. Zhong is the Vice President of the council of Jiangsu Pharmaceutical Association and a standing supervisor of the China Quality Association for Pharmaceuticals. Ms. Zhong was also elected as a representative of the 12th and 13th Jiangsu Provincial People’s Congress.Over the years, Ms. Zhong received numerous awards and recognitions for her contributions to both the pharmaceutical industry and pharmaceutical industrial and commercial enterprises. She received State Council Special Allowance in February 2013. In December 2013, she also received the “All China Federation of Industry Commerce Scientific and Technological Progress Award (first prize)”. In December 2014, Ms. Zhong received the “State Science and Technology Award (second prize)” (2014) from the State Council. In July 1982, Ms. Zhong obtained her undergraduate degree in chemistry from Jiangsu Normal University (formerly known as Xuzhou Normal University in Xuzhou. She then obtained her Executive Master of Business Administration (“EMBA”) from Nanjing University in December 2005.

CEO Compensation

Insufficient data for Huijuan to compare compensation growth.
Insufficient data for Huijuan to establish whether their remuneration is reasonable compared to companies of similar size in Hong Kong.

Management Team Tenure

Average tenure and age of the Hansoh Pharmaceutical Group management team in years:

3.6

Average Tenure

Average Age

The tenure for the Hansoh Pharmaceutical Group management team is about average.

0.1 yrs

Board of Directors Tenure

Average tenure and age of the Hansoh Pharmaceutical Group board of directors in years:

3.3

Average Tenure

Average Age

The tenure for the Hansoh Pharmaceutical Group board of directors is about average.

0.2 yrs

Who owns this company?

Recent Insider Trading

No 3 month individual insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price (HK$)	Value (HK$)

Management checks

We assess Hansoh Pharmaceutical Group's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3692 News

Simply Wall St News

3692 Company Info

Description

Hansoh Pharmaceutical Group Company Limited engages in the research and development, manufacture, marketing, and sale of pharmaceuticals and active pharmaceutical ingredients in the People’s Republic of China, the United States, and internationally. It provides products for therapeutic areas, including central nervous system diseases, oncology, anti-infectives, and diabetes, as well as gastrointestinal area. The company’s principal products include Mailingda, a category 1.1 drug; and Oulanning, Ameining, Pulaile, Zefei, Xinwei, Xintai, Zetan, Hengjie, Hengsen, Fulaidi, Ruibote, and Xinmei, which are generic drugs. It also markets and sells drugs in other therapeutic areas, including in the cardiovascular therapeutic area. The company serves pharmaceutical product distributors. The company was founded in 1995 and is headquartered in Lianyungang, China. Hansoh Pharmaceutical Group Company Limited is a subsidiary of Stellar Infinity Company Ltd.

Details

Name:	Hansoh Pharmaceutical Group Company Limited
Ticker:	3692
Exchange:	SEHK
Founded:	1995
Market Cap:	HK$132,848,627,040
Shares outstanding:	5,788,611,200
Website:	http://www.hspharm.com
Address:	Hansoh Pharmaceutical Group Company Limited 9 Dongjin Road, Economic and Technical Development Zone, Lianyungang, Jiangsu Province, 222069, China

Listings

	Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
	SEHK	3692	Ordinary Share	The Stock Exchange of Hong Kong Ltd.	HK	HKD	14. Jun 2019
	DB	3KY	Ordinary Share	Deutsche Boerse AG	DE	EUR	14. Jun 2019

Number of employees

Current staff

8,828

Hansoh Pharmaceutical Group employees.

Industry

Industry:	Pharmaceuticals
Sector:	Pharmaceuticals & Biotech

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/07/16 13:10
End of day share price update:	2019/07/16 00:00
Last estimates confirmation:	2019/07/16
Last earnings filing:	2019/05/31
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/12/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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