CanSino Biologics (SEHK:6185) - Share price, News & Analysis

6185 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

6185 Stock Overview

CanSino Biologics Inc. develops, manufactures, and commercializes vaccines in the People’s Republic of China.

Rewards

Trading at 82.6% below our estimate of its fair value

Earnings are forecast to grow 3.9% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Significant insider selling over the past 3 months

CanSino Biologics Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CanSino Biologics
Historical stock prices
Current Share Price	HK$78.10
52 Week High	HK$437.00
52 Week Low	HK$66.70
Beta	0.020
1 Month Change	10.78%
3 Month Change	-49.52%
1 Year Change	-81.16%
3 Year Change	136.67%
5 Year Change	n/a
Change since IPO	125.07%

Shareholder Returns

	6185	HK Pharmaceuticals	HK Market
7D	1.6%	5.1%	-1.2%
1Y	-81.2%	-45.3%	-23.8%

Return vs Industry: 6185 underperformed the Hong Kong Pharmaceuticals industry which returned -43.6% over the past year.

Return vs Market: 6185 underperformed the Hong Kong Market which returned -21.5% over the past year.

Price Volatility

Is 6185's price volatile compared to industry and market?
6185 volatility
6185 Average Weekly Movement	10.6%
Pharmaceuticals Industry Average Movement	6.2%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.6%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 6185 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 6185's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

Founded	Employees	CEO	Website
2009	1,946	Xuefeng Yu	https://www.cansinotech.com

CanSino Biologics Inc. develops, manufactures, and commercializes vaccines in the People’s Republic of China. The company develops Convidecia and the Ad5-nCoV for Inhalation vaccines to recombinant novel coronavirus disease; Ad5-EBOV, an Ebola virus vaccine; and MCV2 and MCV4 vaccines for the prevention of N. meningitides. It also develops DTcP vaccine for infants and DTcP Booster vaccine, which are in Phase I clinical trial for addressing the weaker protection preventing pertussis after primary vaccination.

CanSino Biologics Fundamentals Summary

How do CanSino Biologics's earnings and revenue compare to its market cap?
6185 fundamental statistics
Market Cap	CN¥30.30b
Earnings (TTM)	CN¥2.05b
Revenue (TTM)	CN¥4.33b

8.0x

P/E Ratio

3.8x

P/S Ratio

Is 6185 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6185 income statement (TTM)
Revenue	CN¥4.33b
Cost of Revenue	CN¥1.22b
Gross Profit	CN¥3.11b
Other Expenses	CN¥1.06b
Earnings	CN¥2.05b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.30
Gross Margin	71.79%
Net Profit Margin	47.32%
Debt/Equity Ratio	15.3%

How did 6185 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6185 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6185?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6185. This is calculated by dividing 6185's market cap by their current preferred multiple.
What is 6185's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥30.30b

6185 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.8x
Enterprise Value/EBITDA	12.4x
PEG Ratio	2.1x

Price to Earnings Ratio vs Peers

How does 6185's PE Ratio compare to its peers?

6185 PE Ratio vs Peers

The above table shows the PE ratio for 6185 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.2x

Forward PE

Price-To-Earnings vs Peers: 6185 is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does 6185's PE Ratio compare vs other companies in the Hong Kong Pharmaceuticals Industry?

Price-To-Earnings vs Industry: 6185 is good value based on its Price-To-Earnings Ratio (8x) compared to the Hong Kong Pharmaceuticals industry average (9.2x)

Price to Earnings Ratio vs Fair Ratio

What is 6185's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6185 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8x
Fair PE Ratio	15.8x

Price-To-Earnings vs Fair Ratio: 6185 is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).

Share Price vs Fair Value

What is the Fair Price of 6185 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6185 (HK$78.1) is trading below our estimate of fair value (HK$449.38)

Significantly Below Fair Value: 6185 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 6185 is poor value based on its PEG Ratio (2.1x)

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Future Growth

How is CanSino Biologics forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6185's forecast earnings growth (3.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 6185's earnings (3.9% per year) are forecast to grow slower than the Hong Kong market (16.7% per year).

High Growth Earnings: 6185's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6185's revenue (10.4% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 6185's revenue (10.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6185's Return on Equity is forecast to be low in 3 years time (6.8%).

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Past Performance

How has CanSino Biologics performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

83.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6185 has a high level of non-cash earnings.

Growing Profit Margin: 6185 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 6185 has become profitable over the past 5 years, growing earnings by 83.5% per year.

Accelerating Growth: 6185 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 6185 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.1%).

Return on Equity

High ROE: 6185's Return on Equity (23.7%) is considered high.

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Financial Health

How is CanSino Biologics's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6185's short term assets (CN¥9.1B) exceed its short term liabilities (CN¥2.8B).

Long Term Liabilities: 6185's short term assets (CN¥9.1B) exceed its long term liabilities (CN¥579.4M).

Debt to Equity History and Analysis

Debt Level: 6185 has more cash than its total debt.

Reducing Debt: 6185's debt to equity ratio has reduced from 25.3% to 15.3% over the past 5 years.

Debt Coverage: 6185's debt is well covered by operating cash flow (111.6%).

Interest Coverage: 6185 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is CanSino Biologics's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.20%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6185's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.77%).

High Dividend: 6185's dividend (1.2%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.82%).

Stability and Growth of Payments

Stable Dividend: 6185 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6185 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 6185 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 6185 is not paying a notable dividend for the Hong Kong market.

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Management

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

9.0yrs

Average management tenure

CEO

Xuefeng Yu (57 yo)

13.42yrs

Tenure

Dr. Xuefeng Yu Co-Founded CanSino Biologics Inc. Dr. Yu was appointed as an Executive Director on January 13, 2009 and has served as the Chief Executive Officer of CanSino Biologics Inc. since January 2009...

Leadership Team

Experienced Management: 6185's management team is seasoned and experienced (9 years average tenure).

Board Members

Experienced Board: 6185's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 6185 insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/22 00:00
End of Day Share Price	2022/06/22 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31