SEHK:950

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Lee's Pharmaceutical Holdings

Executive Summary

Lee's Pharmaceutical Holdings Limited, an investment holding company, develops, manufactures, markets, and sells pharmaceutical products primarily in the People's Republic of China.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 950's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

24.1%

950

3.1%

HK Pharmaceuticals

2.8%

HK Market


1 Year Return

3.6%

950

25.6%

HK Pharmaceuticals

-1.0%

HK Market

Return vs Industry: 950 underperformed the Hong Kong Pharmaceuticals industry which returned 25.6% over the past year.

Return vs Market: 950 exceeded the Hong Kong Market which returned -1% over the past year.


Shareholder returns

950IndustryMarket
7 Day24.1%3.1%2.8%
30 Day33.3%9.5%8.6%
90 Day53.3%21.6%12.0%
1 Year5.1%3.6%27.9%25.6%3.1%-1.0%
3 Year-9.5%-13.4%37.6%29.8%7.1%-4.4%
5 Year-53.2%-56.7%55.6%43.5%8.7%-9.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lee's Pharmaceutical Holdings undervalued compared to its fair value and its price relative to the market?

26.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 950 (HK$5.41) is trading above our estimate of fair value (HK$2.96)

Significantly Below Fair Value: 950 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 950 is poor value based on its PE Ratio (27x) compared to the HK Pharmaceuticals industry average (12.3x).

PE vs Market: 950 is poor value based on its PE Ratio (27x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 950's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 950's PB Ratio (1.4x) is in line with the HK Pharmaceuticals industry average.


Next Steps

Future Growth

How is Lee's Pharmaceutical Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 950's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 950's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 950's revenue (12.7% per year) is forecast to grow faster than the Hong Kong market (10.9% per year).

High Growth Revenue: 950's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 950's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Lee's Pharmaceutical Holdings performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 950 has a large one-off loss of HK$62.8M impacting its March 31 2020 financial results.

Growing Profit Margin: 950's current net profit margins (9.8%) are lower than last year (34.6%).


Past Earnings Growth Analysis

Earnings Trend: 950's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: 950's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 950 had negative earnings growth (-70%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (6%).


Return on Equity

High ROE: 950's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is Lee's Pharmaceutical Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 950's short term assets (HK$1.4B) exceed its short term liabilities (HK$908.5M).

Long Term Liabilities: 950's short term assets (HK$1.4B) exceed its long term liabilities (HK$254.3M).


Debt to Equity History and Analysis

Debt Level: 950's debt to equity ratio (5.8%) is considered satisfactory.

Reducing Debt: 950's debt to equity ratio has increased from 5.1% to 5.8% over the past 5 years.

Debt Coverage: 950's debt is well covered by operating cash flow (276.1%).

Interest Coverage: 950 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Lee's Pharmaceutical Holdings's current dividend yield, its reliability and sustainability?

1.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 950's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.3%).

High Dividend: 950's dividend (1.04%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.79%).


Stability and Growth of Payments

Stable Dividend: 950's dividend payments have been volatile in the past 10 years.

Growing Dividend: 950's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), 950's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 950's dividends in 3 years are forecast to be well covered by earnings (16.4% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Benjamin Li (57yo)

no data

Tenure

HK$15,341,000

Compensation

Dr. Xiaoyi Li, also known as Benjamin, Ph.D., serves as the Chief Executive Officer, Chief Technical Officer, and Executive Director of CVie Therapeutics Company Limited. Dr. Li joined the Lee's Pharmaceut ...


CEO Compensation Analysis

Compensation vs Market: Benjamin's total compensation ($USD1.98M) is above average for companies of similar size in the Hong Kong market ($USD321.70K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Siu Fong Lee
Chairman & Compliance Officerno dataHK$16.57m0.23% HK$7.9m
Xiaoyi Li
CEO, CTO & Executive Directorno dataHK$15.34m10.06% HK$347.9m
Wanee Leelalertsuphakun
MD, Chief Marketing & Sales Officer and Executive Directorno dataHK$17.46m0.70% HK$24.1m
Yiu Ming Chow
CFO & Company Secretary5.75yrsno datano data
Yueshen Chen
Chief Operating Officer8.5yrsno datano data
Zhenhua Zhang
Director of Human Resources & Development2.83yrsno datano data
Zhongyu Jiao
Chief Officer of Enterprise Development Department of the Groupno datano datano data
Tsui Victor
Chief Manufacturing Officer8.5yrsno datano data

8.5yrs

Average Tenure

55yo

Average Age

Experienced Management: 950's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siu Fong Lee
Chairman & Compliance Officerno dataHK$16.57m0.23% HK$7.9m
Xiaoyi Li
CEO, CTO & Executive Directorno dataHK$15.34m10.06% HK$347.9m
Wanee Leelalertsuphakun
MD, Chief Marketing & Sales Officer and Executive Directorno dataHK$17.46m0.70% HK$24.1m
Yau Ching Chan
Independent Non-Executive Director18.5yrsHK$144.00k0.088% HK$3.1m
Wah Keung Tsim
Independent Non-Executive Director15.83yrsHK$144.00k0.051% HK$1.8m
Yat Cheong Lam
Independent Non-Executive Director16yrsHK$144.00k0.051% HK$1.8m
Simon Miles Ball
Non-Executive Director2.58yrsHK$144.00k0.0079% HK$273.5k

15.9yrs

Average Tenure

58yo

Average Age

Experienced Board: 950's board of directors are seasoned and experienced ( 15.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 950 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.


Top Shareholders

Company Information

Lee's Pharmaceutical Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lee's Pharmaceutical Holdings Limited
  • Ticker: 950
  • Exchange: SEHK
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$3.458b
  • Shares outstanding: 588.13m
  • Website: https://www.leespharm.com

Number of Employees


Location

  • Lee's Pharmaceutical Holdings Limited
  • Building 20E
  • 1st Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
950SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2002
950SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2002
950SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2002

Biography

Lee's Pharmaceutical Holdings Limited, an investment holding company, develops, manufactures, markets, and sells pharmaceutical products primarily in the People's Republic of China. The company focuses on various disease areas, including cardiovascular, woman health, pediatrics, rare diseases, oncology, ophthalmology, dermatology, obstetrics, and urology. It operates through Proprietary Products and Licensed-In Products segments. The Proprietary Products segment manufactures and sells self-developed pharmaceutical products, such as Livaracine to treat blood clots and deep vein thrombosis; Yallaferon for viral infection; Slounase for hemostasis; and Eyprotor for corneal ulcers. The Licensed-In Products segment trades licensed-in pharmaceutical products, such as Carnitene for the treatment of carnitine deficiency; Ferplex to treat iron deficiency anemia; Zanidip and Rasilez for hypertension; Aloxi and Sancuso for chemotherapy induced nausea and vomiting; Veloderm for burns and wounds healing; Gaslon N for gastric ulcer and gastritis. It also offers UNIDROX for urinary and respiratory tract infections; Levocarnitine oral solution to treat primary and secondary carnitine deficiency; Mictonorm for urinary incontinence; Trittico for insomnia/depression; Episil to treat oral mucositis pain; Dicoflor and VSL#3 for probiotics; Zingo for topical local analgesics; Omacor to treat for Omega-3-acid ethyl esters; and Readyfusor for post-operative pain management. The company also provides Treprostinil injection for pulmonary arterial hypertension. The company is headquartered in Sha Tin, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 12:43
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
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.