SEHK:3933

Stock Analysis Report

United Laboratories International Holdings

Executive Summary

The United Laboratories International Holdings Limited, an investment holding company, manufactures and sells pharmaceutical products.

Rewards

Trading at 57.3% below its fair value

Earnings are forecast to grow 9.09% per year

Earnings grew by 1291.2% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record and good value.

Share Price & News

How has United Laboratories International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3933's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

3933

4.3%

HK Pharmaceuticals

1.5%

HK Market


1 Year Return

25.8%

3933

12.9%

HK Pharmaceuticals

5.9%

HK Market

Return vs Industry: 3933 exceeded the Hong Kong Pharmaceuticals industry which returned 17% over the past year.

Return vs Market: 3933 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

3933IndustryMarket
7 Day7.9%4.3%1.5%
30 Day4.6%8.6%4.2%
90 Day32.6%5.1%8.7%
1 Year27.9%25.8%15.1%12.9%9.8%5.9%
3 Year21.0%18.1%51.5%44.3%27.7%14.7%
5 Year45.7%42.2%45.3%33.5%21.4%1.2%

Price Volatility Vs. Market

How volatile is United Laboratories International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is United Laboratories International Holdings 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: 3933 (HK$5.62) is trading below our estimate of fair value (HK$13.15)

Significantly Below Fair Value: 3933 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3933 is good value based on its PE Ratio (9.2x) compared to the Pharmaceuticals industry average (11.6x).

PE vs Market: 3933 is good value based on its PE Ratio (9.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 3933 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 3933 is overvalued based on its PB Ratio (1.3x) compared to the HK Pharmaceuticals industry average (1.2x).


Next Steps

Future Growth

How is United Laboratories International Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3933's forecast earnings growth (9.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 3933's earnings (9.1% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 3933's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3933's revenue (6.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 3933's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3933's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has United Laboratories International Holdings performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3933 has high quality earnings.

Growing Profit Margin: 3933's current net profit margins (11.4%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: 3933's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: 3933's earnings growth over the past year (1291.2%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: 3933 earnings growth over the past year (1291.2%) exceeded the Pharmaceuticals industry 23%.


Return on Equity

High ROE: 3933's Return on Equity (14%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is United Laboratories International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3933's short term assets (CN¥7.6B) do not cover its short term liabilities (CN¥8.0B).

Long Term Liabilities: 3933's short term assets (CN¥7.6B) exceed its long term liabilities (CN¥936.4M).


Debt to Equity History and Analysis

Debt Level: 3933's debt to equity ratio (70.1%) is considered high.

Reducing Debt: 3933's debt to equity ratio has reduced from 90.6% to 70.1% over the past 5 years.

Debt Coverage: 3933's debt is well covered by operating cash flow (32.4%).

Interest Coverage: 3933's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 3933 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3933's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is United Laboratories International Holdings's current dividend yield, its reliability and sustainability?

1.16%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.2%markettop25%6.0%industryaverage1.6%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: 3933's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 3933's dividend (1.2%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 3933 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 3933 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 3933 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3933'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 United Laboratories International Holdings's salary, the management and board of directors tenure and is there insider trading?

9.2yrs

Average board tenure


CEO

United Laboratories International Holdings has no CEO, or we have no data on them.


Board Age and Tenure

9.2yrs

Average Tenure

54yo

Average Age

Experienced Board: 3933's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellHK$4,788,20926 Sep 19
Siu Chit Choy
EntityIndividual
Role
Member of the Board of Directors
Global Director of Intermediate & Bulk Medicine and Executive Director
Shares1,110,000
Max PriceHK$4.31
SellHK$14,891,99625 Sep 19
Siu Chit Choy
EntityIndividual
Role
Member of the Board of Directors
Global Director of Intermediate & Bulk Medicine and Executive Director
Shares3,400,000
Max PriceHK$4.38
BuyHK$15,655,44711 Apr 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares3,034,000
Max PriceHK$5.16

Ownership Breakdown

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


Management Team

  • Su Yan Zhu (54yo)

    VP & Executive Director

    • Tenure: 9.2yrs
    • Compensation: CN¥2.28m
  • Xian Hong Zou (54yo)

    VP & Executive Director

    • Tenure: 9.2yrs
    • Compensation: CN¥2.26m
  • Shou Wu (52yo)

    Head of Production Plant -Zhongshan

    • Siu Chit Choy (46yo)

      Global Director of Intermediate & Bulk Medicine and Executive Director

      • Tenure: 6.6yrs
      • Compensation: CN¥3.07m
    • Wing Hon Leung (57yo)

      Vice Chairman

      • Tenure: 6.8yrs
      • Compensation: CN¥3.17m
    • Hoi Shan Tsoi (41yo)

      Executive Chairman

      • Tenure: 6.8yrs
      • Compensation: CN¥3.27m
    • Yu Ping Fang (56yo)

      VP, GM of China Sales Division & Executive Director

      • Tenure: 9.2yrs
      • Compensation: CN¥2.28m

    Board Members

    • Su Yan Zhu (54yo)

      VP & Executive Director

      • Tenure: 9.2yrs
      • Compensation: CN¥2.28m
    • Ming Song (57yo)

      Independent Non-Executive Director

      • Tenure: 12.7yrs
      • Compensation: CN¥204.00k
    • Xian Hong Zou (54yo)

      VP & Executive Director

      • Tenure: 9.2yrs
      • Compensation: CN¥2.26m
    • Siu Chit Choy (46yo)

      Global Director of Intermediate & Bulk Medicine and Executive Director

      • Tenure: 6.6yrs
      • Compensation: CN¥3.07m
    • Wing Hon Leung (57yo)

      Vice Chairman

      • Tenure: 6.8yrs
      • Compensation: CN¥3.17m
    • Hoi Shan Tsoi (41yo)

      Executive Chairman

      • Tenure: 6.8yrs
      • Compensation: CN¥3.27m
    • Peng Oon Chong (70yo)

      Independent Non-Executive Director

      • Tenure: 10.8yrs
      • Compensation: CN¥204.00k
    • Yu Ping Fang (56yo)

      VP, GM of China Sales Division & Executive Director

      • Tenure: 9.2yrs
      • Compensation: CN¥2.28m
    • Xiao Nan Fu (49yo)

      Independent Non-Executive Director

      • Tenure: 7.1yrs
      • Compensation: CN¥204.00k

    Company Information

    The United Laboratories International Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: The United Laboratories International Holdings Limited
    • Ticker: 3933
    • Exchange: SEHK
    • Founded: 1990
    • Industry: Pharmaceuticals
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: HK$9.618b
    • Shares outstanding: 1.64b
    • Website: https://www.tul.com.cn

    Number of Employees


    Location

    • The United Laboratories International Holdings Limited
    • 6 Fuk Wang Street
    • Yuen Long Industrial Estate
    • Yuen Long
    • New Territories
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    3933SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2007
    UNJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007
    ULIH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2007
    3933SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2007

    Biography

    The United Laboratories International Holdings Limited, an investment holding company, manufactures and sells pharmaceutical products. It operates in three segments: Intermediate Products, Bulk Medicine, and Finished Products. The company offers oral antibiotics, antimicrobials for injection, anti-cold products, cough medicines, ophthalmic drugs, antiviral drugs, anti-hepatitis B drugs, diabetes drugs, skin drugs for external use, cardiovascular and cerebrovascular drugs, nervous system drugs, vitamins, and vacant gelatin capsules, as well as non-antibiotics finished products and soft capsule casings. It also provides chemical pharmaceuticals and food products. In addition, the company manufactures and sells organic fertilizers; holds trademarks; trades in pharmaceutical products; and offers management services. It has operations in the People's Republic of China, Europe, India, Hong Kong, the Middle East, South America, other Asian regions, and other regions. The company was founded in 1990 and is headquartered in Yuen Long, Hong Kong. The United Laboratories International Holdings Limited is a subsidiary of Heren Far East Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 12:42
    End of Day Share Price2020/01/17 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.