SEHK:719

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Shandong Xinhua Pharmaceutical

Market Cap

HK$5.3b

Last Updated

2021/06/18 10:23 UTC

Data Sources

Company Financials

Executive Summary

Shandong Xinhua Pharmaceutical Company Limited, through its subsidiaries, develops, manufactures, and sells bulk pharmaceuticals, preparations, and chemical products. More Details


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 719 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 719's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.0%

719

-4.9%

HK Pharmaceuticals

-1.5%

HK Market


1 Year Return

1.5%

719

7.5%

HK Pharmaceuticals

21.7%

HK Market

Return vs Industry: 719 underperformed the Hong Kong Pharmaceuticals industry which returned 7.5% over the past year.

Return vs Market: 719 underperformed the Hong Kong Market which returned 21.7% over the past year.


Shareholder returns

719IndustryMarket
7 Day-5.0%-4.9%-1.5%
30 Day-9.8%-0.4%-0.9%
90 Day-7.4%3.5%-2.5%
1 Year4.6%1.5%8.8%7.5%26.2%21.7%
3 Year-20.8%-26.0%-14.5%-19.3%9.7%-1.9%
5 Year21.8%12.7%105.7%86.3%56.3%29.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shandong Xinhua Pharmaceutical undervalued compared to its fair value and its price relative to the market?

0.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 719 (HK$4.18) is trading below our estimate of fair value (HK$4.21)

Significantly Below Fair Value: 719 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 719 is good value based on its PE Ratio (6.3x) compared to the Hong Kong Pharmaceuticals industry average (13.2x).

PE vs Market: 719 is good value based on its PE Ratio (6.3x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 719's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 719 is good value based on its PB Ratio (0.6x) compared to the HK Pharmaceuticals industry average (1.3x).


Future Growth

How is Shandong Xinhua Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.2%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Shandong Xinhua Pharmaceutical has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Shandong Xinhua Pharmaceutical performed over the past 5 years?

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 719 has high quality earnings.

Growing Profit Margin: 719's current net profit margins (5.6%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: 719's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: 719's earnings growth over the past year (9.2%) is below its 5-year average (21.7% per year).

Earnings vs Industry: 719 earnings growth over the past year (9.2%) underperformed the Pharmaceuticals industry 9.2%.


Return on Equity

High ROE: 719's Return on Equity (10.2%) is considered low.


Financial Health

How is Shandong Xinhua Pharmaceutical's financial position?


Financial Position Analysis

Short Term Liabilities: 719's short term assets (CN¥2.9B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: 719's short term assets (CN¥2.9B) exceed its long term liabilities (CN¥1.6B).


Debt to Equity History and Analysis

Debt Level: 719's debt to equity ratio (49.7%) is considered high.

Reducing Debt: 719's debt to equity ratio has reduced from 74% to 49.7% over the past 5 years.

Debt Coverage: 719's debt is well covered by operating cash flow (23%).

Interest Coverage: 719's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Dividend

What is Shandong Xinhua Pharmaceutical current dividend yield, its reliability and sustainability?

4.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 719's dividend (4.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.87%).

High Dividend: 719's dividend (4.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6%).


Stability and Growth of Payments

Stable Dividend: 719's dividend payments have been volatile in the past 10 years.

Growing Dividend: 719's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), 719's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

12.5yrs

Average management tenure


CEO

Deping Du (50 yo)

no data

Tenure

CN¥1,133,279

Compensation

Mr. Deping Du serves as the General Manager at Shandong Xinhua Pharmaceutical Co. Ltd. Mr. Du served as Deputy General Manager of Shandong Xinhua Pharmaceutical Co. Ltd. since December 22, 2008. He is a Se...


CEO Compensation Analysis

Compensation vs Market: Deping's total compensation ($USD157.52K) is below average for companies of similar size in the Hong Kong market ($USD432.20K).

Compensation vs Earnings: Deping's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 719's management team is seasoned and experienced (12.5 years average tenure).


Board Members

Experienced Board: 719's board of directors are considered experienced (7.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Shandong Xinhua Pharmaceutical Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shandong Xinhua Pharmaceutical Company Limited
  • Ticker: 719
  • Exchange: SEHK
  • Founded: 1943
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$5.340b
  • Shares outstanding: 627.37m
  • Website: https://www.xhzy.com

Number of Employees


Location

  • Shandong Xinhua Pharmaceutical Company Limited
  • Chemical Industry Area
  • Zibo Hi-tech Industry Development Zone
  • Zibo
  • Shandong Province
  • 255086
  • China

Listings


Biography

Shandong Xinhua Pharmaceutical Company Limited, through its subsidiaries, develops, manufactures, and sells bulk pharmaceuticals, preparations, and chemical products. It operates through Chemical Bulk Drug...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 10:23
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.