SEHK:3692

Stock Analysis Report

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Executive Summary

Hansoh Pharmaceutical Group Company Limited engages in the research and development, manufacture, marketing, and sale of pharmaceuticals and active pharmaceutical ingredients.

Rewards

Earnings are forecast to grow 19.72% per year

Earnings grew by 34.4% over the past year

Risk Analysis

No risks detected for 3692 from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3692 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.0%

3692

1.0%

HK Pharmaceuticals

1.2%

HK Market


1 Year Return

n/a

3692

-2.6%

HK Pharmaceuticals

-9.9%

HK Market

Return vs Industry: Insufficient data to determine how 3692 performed against the Hong Kong Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how 3692 performed against the Hong Kong Market.


Shareholder returns

3692IndustryMarket
7 Day5.0%1.0%1.2%
30 Day11.8%2.7%-3.7%
90 Day21.7%-0.2%-6.8%
1 Yearn/a-1.0%-2.6%-7.0%-9.9%
3 Yearn/a9.6%4.8%-4.8%-14.4%
5 Yearn/a18.6%10.0%-15.1%-28.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

66.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3692 (HK$33.65) is trading above our estimate of fair value (HK$12.11)

Significantly Below Fair Value: 3692 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3692 is poor value based on its PE Ratio (66.4x) compared to the Pharmaceuticals industry average (10.3x).

PE vs Market: 3692 is poor value based on its PE Ratio (66.4x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: 3692 is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: 3692 is overvalued based on its PB Ratio (13.7x) compared to the HK Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is Hansoh Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3692's forecast earnings growth (19.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 3692's earnings (19.7% per year) are forecast to grow faster than the Hong Kong market (16.6% per year).

High Growth Earnings: 3692's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3692's revenue (17.4% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 3692's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3692's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

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

34.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 3692 has high quality earnings.

Growing Profit Margin: 3692's current net profit margins (29.4%) are higher than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 3692's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 3692's past year earnings growth to its 5-year average.

Earnings vs Industry: 3692 earnings growth over the past year (34.4%) exceeded the Pharmaceuticals industry 2.7%.


Return on Equity

High ROE: 3692's Return on Equity (19.6%) is considered low.


Next Steps

Financial Health

How is Hansoh Pharmaceutical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3692's short term assets (CN¥17.4B) exceed its short term liabilities (CN¥6.2B).

Long Term Liabilities: 3692's short term assets (CN¥17.4B) exceed its long term liabilities (CN¥290.6M).


Debt to Equity History and Analysis

Debt Level: 3692 is debt free.

Reducing Debt: 3692 has not had any debt for past 5 years.

Debt Coverage: 3692 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3692 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.41%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3692's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3692'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 3692's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3692'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 3692'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?

4.4yrs

Average management tenure


CEO

Huijuan Zhong (58yo)

4.42yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Huijuan Zhong
Chairlady4.42yrsno datano data
Min Hu
VP & CFOno datano datano data
Aifeng Lyu
Executive Director4.17yrsno datano data
Yuan Sun
Executive Director4.42yrsno datano data
Gongzheng Wu
Senior Vice President8.17yrsno datano data
Chunhua Zhong
Senior Vice President7.33yrsno datano data
Chuanhe Xu
Senior Vice President11.17yrsno datano data
Rudi Bao
Senior Vice President3.58yrsno datano data
Shengli Zhong
Joint Company Secretary & Senior VP1.75yrsno datano data
Yan Wing Li
Joint Company Secretary0.83yrno datano data

4.4yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 3692's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Huijuan Zhong
Chairlady4.42yrsno datano data
Aifeng Lyu
Executive Director4.17yrsno datano data
Yuan Sun
Executive Director4.42yrsno datano data
Guoqiang Lin
Independent Non-Executive Director1yrno datano data
Sheung Wai Chan
Independent Non-Executive Director1yrno datano data
Cuifang Ma
Non-Executive Director4.17yrsno datano data
Dongtao Yang
Independent Non-Executive Director1yrno datano data

4.2yrs

Average Tenure

58yo

Average Age

Experienced Board: 3692's board of directors are considered experienced (4.2 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.


Ownership Breakdown

Dilution of Shares: 3692 only recently listed within the past 12 months.


Top Shareholders

Company Information

Hansoh Pharmaceutical Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hansoh Pharmaceutical Group Company Limited
  • Ticker: 3692
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$199.174b
  • Shares outstanding: 5.92b
  • Website: https://www.hspharm.com

Number of Employees


Location

  • Hansoh Pharmaceutical Group Company Limited
  • 9 Dongjin Road
  • Economic and Technical Development Zone
  • Lianyungang
  • Jiangsu Province
  • 222069
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3692SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary ShareHKHKDJun 2019
3KYDB (Deutsche Boerse AG)YesOrdinary ShareDEEURJun 2019
3692SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary ShareHKHKDJun 2019
3692SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary ShareHKHKDJun 2019

Biography

Hansoh Pharmaceutical Group Company Limited engages in the research and development, manufacture, marketing, and sale of pharmaceuticals and active pharmaceutical ingredients. 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 for the treatment of chronic myelogenous leukemia; and Oulanning, Ameining, Pulaile, Zefei, Xinwei, Xintai, Tanneng, Zetan, Hengjie, Hengsen, Fulaimei, Fulaidi, Fulairui, Ruiyisheng, Hansoh Xinfu, Xinmei, Ruibote, and Zexin, 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. It has a cooperation agreement with Viela Bio, Inc. to develop CD19 monoclonal antibody inebilizumab for the treatment of neuromyelitis optica spectrum disorder, as well as other autoimmune diseases and hematological malignancies. The company was founded in 1995 and is headquartered in Lianyungang, the People’s Republic of China. Hansoh Pharmaceutical Group Company Limited is a subsidiary of Stellar Infinity Company Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 14:00
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.