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867

China Medical System HoldingsSEHK:867 Stock Report

Market Cap

HK$34.1b

7D

-5.5%

1Y

62.3%

Updated

28 Sep, 2021

Data

Company Financials +
867 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends5/6

867 Overview

China Medical System Holdings Limited, an investment holding company, manufactures, sells, markets, and promotes pharmaceutical products in the People’s Republic of China.

China Medical System Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Medical System Holdings
Historical stock prices
Current Share PriceHK$13.88
52 Week HighHK$7.37
52 Week LowHK$22.80
Beta0.58
1 Month Change-5.58%
3 Month Change-32.13%
1 Year Change62.34%
3 Year Change32.70%
5 Year Change7.10%
Change since IPO361.44%

Recent News & Updates

Shareholder Returns

867HK PharmaceuticalsHK Market
7D-5.5%-0.7%-0.0001%
1Y62.3%-12.1%7.3%

Return vs Industry: 867 exceeded the Hong Kong Pharmaceuticals industry which returned -12.1% over the past year.

Return vs Market: 867 exceeded the Hong Kong Market which returned 7.3% over the past year.

Price Volatility

Is 867's price volatile compared to industry and market?
867 volatility
867 Beta0.58
Industry Beta0.59
Market Beta1

Stable Share Price: 867 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 867's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19954,884Kong Lamhttps://www.cms.net.cn

China Medical System Holdings Limited, an investment holding company, manufactures, sells, markets, and promotes pharmaceutical products in the People’s Republic of China. It offers products under the direct and agency networks. The company’s products include Plendil for the treatment of hypertension and stable angina pectoris; XinHuoSu for the treatment of acute heart failure; Deanxit for the treating mild-to-moderate depression, anxiety, and psychosomatic affections; Ursofalk for the treatment of cholesterol gallstones in the gallbladder, cholestatic liver disease, and biliary reflux gastritis; Salofalk for treating Ulcerative Colitis and Crohn’s disease; Bioflor for the treatment of diarrhea; Combizym for dyspepsia; Augentropfen Stulln Mono eye drops to treat senile macula degeneration and asthenopia; and Hirudoid for blunt traumata with or without hematomas and superficial phlebitis insofar.

China Medical System Holdings Fundamentals Summary

How do China Medical System Holdings's earnings and revenue compare to its market cap?
867 fundamental statistics
Market CapCN¥28.29b
Earnings (TTM)CN¥2.88b
Revenue (TTM)CN¥7.68b

9.9x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
867 income statement (TTM)
RevenueCN¥7.68b
Cost of RevenueCN¥1.97b
Gross ProfitCN¥5.71b
ExpensesCN¥2.84b
EarningsCN¥2.88b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.17
Gross Margin74.40%
Net Profit Margin37.48%
Debt/Equity Ratio8.8%

How did 867 perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

40%

Payout Ratio

Valuation

Is China Medical System 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: 867 (HK$13.88) is trading below our estimate of fair value (HK$36.67)

Significantly Below Fair Value: 867 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 867 is poor value based on its PE Ratio (9.9x) compared to the Hong Kong Pharmaceuticals industry average (9.7x).

PE vs Market: 867 is poor value based on its PE Ratio (9.9x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 867 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 867 is overvalued based on its PB Ratio (2.3x) compared to the HK Pharmaceuticals industry average (1x).


Future Growth

How is China Medical System Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 867's forecast earnings growth (10.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 867's earnings (10.9% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 867's earnings are forecast to grow, but not significantly.

Revenue vs Market: 867's revenue (12.1% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 867's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 867's Return on Equity is forecast to be high in 3 years time (24.3%)


Past Performance

How has China Medical System Holdings performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 867 has high quality earnings.

Growing Profit Margin: 867's current net profit margins (37.5%) are higher than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: 867's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 867's earnings growth over the past year (39%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: 867 earnings growth over the past year (39%) exceeded the Pharmaceuticals industry 23.8%.


Return on Equity

High ROE: 867's Return on Equity (23.5%) is considered high.


Financial Health

How is China Medical System Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 867's short term assets (CN¥5.8B) exceed its short term liabilities (CN¥1.4B).

Long Term Liabilities: 867's short term assets (CN¥5.8B) exceed its long term liabilities (CN¥850.5M).


Debt to Equity History and Analysis

Debt Level: 867's debt to equity ratio (8.8%) is considered satisfactory.

Reducing Debt: 867's debt to equity ratio has reduced from 29.3% to 8.8% over the past 5 years.

Debt Coverage: 867's debt is well covered by operating cash flow (247.2%).

Interest Coverage: 867 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is China Medical System Holdings's current dividend yield, its reliability and sustainability?

4.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 867's dividend (4.06%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.3%).

High Dividend: 867's dividend (4.06%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.92%).


Stability and Growth of Payments

Stable Dividend: 867's dividends per share have been stable in the past 10 years.

Growing Dividend: 867's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), 867's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 867's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).


Next Steps

Management

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

11.3yrs

Average board tenure


CEO

Kong Lam (56 yo)

no data

Tenure

CN¥4,379,000

Compensation

Dr. Lam Kong founded and serves as the Chairman and Chief Executive Officer of China Medical System Holdings Limited and has been its Executive Director since December 18, 2006. Mr. Lam serves as President...


CEO Compensation Analysis

Compensation vs Market: Kong's total compensation ($USD678.17K) is about average for companies of similar size in the Hong Kong market ($USD685.75K).

Compensation vs Earnings: Kong's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: 867's board of directors are seasoned and experienced ( 11.3 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

China Medical System Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Medical System Holdings Limited
  • Ticker: 867
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$34.104b
  • Shares outstanding: 2.46b
  • Website: https://www.cms.net.cn

Number of Employees


Location

  • China Medical System Holdings Limited
  • Island Place Tower
  • Unit 2106
  • North Point
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/28 10:06
End of Day Share Price2021/09/28 00:00
Earnings2021/06/30
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.