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Lee's Pharmaceutical Holdings

SEHK:950
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
950
SEHK
HK$3B
Market Cap
  1. Home
  2. HK
  3. Pharmaceuticals & Biotech
Company description

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 last earnings update was 13 days ago. More info.


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  • Lee's Pharmaceutical Holdings has significant price volatility in the past 3 months.
950 Share Price and Events
7 Day Returns
3.7%
SEHK:950
-2.3%
HK Pharmaceuticals
-1.3%
HK Market
1 Year Returns
-51%
SEHK:950
-38.2%
HK Pharmaceuticals
-15.9%
HK Market
950 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lee's Pharmaceutical Holdings (950) 3.7% -11.6% -25.8% -51% -9.1% -44.4%
HK Pharmaceuticals -2.3% -9.9% -12.7% -38.2% 42.9% 23.9%
HK Market -1.3% -2.7% -10.1% -15.9% 19.1% 4.6%
1 Year Return vs Industry and Market
  • 950 underperformed the Pharmaceuticals industry which returned -38.2% over the past year.
  • 950 underperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
950
Industry
5yr Volatility vs Market

Value

 Is Lee's Pharmaceutical Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lee's Pharmaceutical Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lee's Pharmaceutical Holdings.

SEHK:950 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:950
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.64 (1 + (1- 25%) (4.19%))
0.772
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:950 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lee's Pharmaceutical Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:950 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 7.32%)
2019 138.62 Est @ 9.67% 129.16
2020 148.83 Est @ 7.37% 129.21
2021 157.40 Est @ 5.76% 127.33
2022 164.69 Est @ 4.63% 124.14
2023 171.02 Est @ 3.84% 120.11
2024 176.65 Est @ 3.29% 115.60
2025 181.78 Est @ 2.9% 110.84
2026 186.57 Est @ 2.63% 106.00
2027 191.13 Est @ 2.44% 101.18
2028 195.55 Est @ 2.31% 96.45
Present value of next 10 years cash flows HK$1,160.01
SEHK:950 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$195.55 × (1 + 2%) ÷ (7.32% – 2%)
HK$3,749.32
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$3,749.32 ÷ (1 + 7.32%)10
HK$1,849.37
SEHK:950 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$1,160.01 + HK$1,849.37
HK$3,009.38
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$3,009.38 / 592.31
HK$5.08
SEHK:950 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$5.08
Current discount Discount to share price of HK$5.27
= -1 x (HK$5.27 - HK$5.08) / HK$5.08
-3.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Lee's Pharmaceutical Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lee's Pharmaceutical Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lee's Pharmaceutical Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:950 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in HKD HK$0.67
SEHK:950 Share Price ** SEHK (2019-06-17) in HKD HK$5.27
Hong Kong Pharmaceuticals Industry PE Ratio Median Figure of 30 Publicly-Listed Pharmaceuticals Companies 12.42x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lee's Pharmaceutical Holdings.

SEHK:950 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:950 Share Price ÷ EPS (both in HKD)

= 5.27 ÷ 0.67

7.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lee's Pharmaceutical Holdings is good value based on earnings compared to the HK Pharmaceuticals industry average.
  • Lee's Pharmaceutical Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Lee's Pharmaceutical Holdings's expected growth come at a high price?
Raw Data
SEHK:950 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
4.4%per year
Hong Kong Pharmaceuticals Industry PEG Ratio Median Figure of 17 Publicly-Listed Pharmaceuticals Companies 0.98x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Lee's Pharmaceutical Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Lee's Pharmaceutical Holdings's assets?
Raw Data
SEHK:950 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in HKD HK$3.73
SEHK:950 Share Price * SEHK (2019-06-17) in HKD HK$5.27
Hong Kong Pharmaceuticals Industry PB Ratio Median Figure of 37 Publicly-Listed Pharmaceuticals Companies 1.47x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:950 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:950 Share Price ÷ Book Value per Share (both in HKD)

= 5.27 ÷ 3.73

1.41x

* Primary Listing of Lee's Pharmaceutical Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lee's Pharmaceutical Holdings is good value based on assets compared to the HK Pharmaceuticals industry average.
X
Value checks
We assess Lee's Pharmaceutical Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Lee's Pharmaceutical Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Lee's Pharmaceutical Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lee's Pharmaceutical Holdings expected to grow at an attractive rate?
  • Lee's Pharmaceutical Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Lee's Pharmaceutical Holdings's earnings growth is positive but not above the Hong Kong market average.
  • Lee's Pharmaceutical Holdings's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:950 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:950 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 4.4%
SEHK:950 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 13.3%
Hong Kong Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 8.4%
Hong Kong Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 13%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:950 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:950 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,649 1
2020-12-31 1,459 1
2019-12-31 1,283 1
SEHK:950 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,139 395
2018-12-31 1,138 321 418
2018-09-30 1,126 243
2018-06-30 1,101 447 233
2018-03-31 1,064 256
2017-12-31 1,009 366 233
2017-09-30 981 245
2017-06-30 955 358 256
2017-03-31 930 245
2016-12-31 930 395 252
2016-09-30 911 259
2016-06-30 894 309 247

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lee's Pharmaceutical Holdings's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • Lee's Pharmaceutical Holdings's revenue is expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:950 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Lee's Pharmaceutical Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:950 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
SEHK:950 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-03-31 0.67
2018-12-31 0.71
2018-09-30 0.41
2018-06-30 0.39
2018-03-31 0.43
2017-12-31 0.39
2017-09-30 0.41
2017-06-30 0.43
2017-03-31 0.42
2016-12-31 0.43
2016-09-30 0.44
2016-06-30 0.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lee's Pharmaceutical Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lee's Pharmaceutical Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lee's Pharmaceutical Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lee's Pharmaceutical Holdings's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lee's Pharmaceutical Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Lee's Pharmaceutical Holdings's 1-year earnings growth exceeds its 5-year average (54.1% vs 13.3%)
  • Lee's Pharmaceutical Holdings's earnings growth has exceeded the HK Pharmaceuticals industry average in the past year (54.1% vs 18%).
Earnings and Revenue History
Lee's Pharmaceutical Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lee's Pharmaceutical Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:950 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,138.66 395.05 402.92 156.16
2018-12-31 1,137.63 418.27 410.67 153.17
2018-09-30 1,125.69 243.14 379.34 123.45
2018-06-30 1,101.50 233.26 377.24 111.91
2018-03-31 1,064.23 256.36 393.44 95.60
2017-12-31 1,008.52 232.56 371.34 85.06
2017-09-30 980.93 244.67 348.23 77.14
2017-06-30 954.84 255.65 347.35 72.25
2017-03-31 930.48 245.28 348.26 74.02
2016-12-31 929.82 252.00 350.74 67.89
2016-09-30 910.64 258.67 336.87 60.85
2016-06-30 893.98 247.44 332.18 49.67
2016-03-31 917.37 241.71 347.65 41.24
2015-12-31 922.15 229.05 368.78 38.88
2015-09-30 975.98 220.90 414.63 31.93
2015-06-30 990.40 208.78 434.69 37.39
2015-03-31 979.32 191.18 425.70 40.46
2014-12-31 955.21 192.83 408.55 37.96
2014-09-30 874.17 175.40 378.00 45.44
2014-06-30 804.90 163.79 351.27 40.28
2014-03-31 754.72 160.26 325.73 37.72
2013-12-31 696.95 150.47 301.36 32.26
2013-09-30 658.37 139.76 283.45 25.95
2013-06-30 613.32 133.09 262.93 25.04
2013-03-31 572.89 121.51 257.20 18.02
2012-12-31 534.33 113.81 242.55 16.30
2012-09-30 517.80 112.57 233.60 13.19
2012-06-30 490.84 105.02 225.38 11.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lee's Pharmaceutical Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lee's Pharmaceutical Holdings used its assets more efficiently than the HK Pharmaceuticals industry average last year based on Return on Assets.
  • Lee's Pharmaceutical Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lee's Pharmaceutical Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lee's Pharmaceutical Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Lee's Pharmaceutical Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lee's Pharmaceutical Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lee's Pharmaceutical Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lee's Pharmaceutical Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lee's Pharmaceutical Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 7.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lee's Pharmaceutical Holdings Company Filings, last reported 2 months ago.

SEHK:950 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,238.07 130.87 429.59
2018-12-31 2,238.07 130.87 429.59
2018-09-30
2018-06-30 1,881.10 155.01 527.86
2018-03-31 1,796.93 100.01 455.23
2017-12-31 1,796.93 100.01 455.23
2017-09-30
2017-06-30 1,675.94 112.40 460.73
2017-03-31 1,634.72 135.05 504.98
2016-12-31 1,634.72 135.05 504.98
2016-09-30
2016-06-30 1,567.18 97.47 408.27
2016-03-31 1,516.83 67.94 394.15
2015-12-31 1,516.83 67.94 394.15
2015-09-30
2015-06-30 1,497.86 64.03 677.17
2015-03-31 998.87 52.27 392.91
2014-12-31 998.87 52.27 392.91
2014-09-30
2014-06-30 903.45 60.71 382.07
2014-03-31 852.06 69.62 379.06
2013-12-31 852.06 69.62 379.06
2013-09-30
2013-06-30 676.78 26.89 244.61
2013-03-31 593.28 32.37 333.90
2012-12-31 593.28 32.37 333.90
2012-09-30
2012-06-30 503.95 37.59 330.13
  • Lee's Pharmaceutical Holdings's level of debt (5.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (8.2% vs 5.8% today).
  • Debt is well covered by operating cash flow (245.5%, greater than 20% of total debt).
  • Lee's Pharmaceutical Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Lee's Pharmaceutical Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lee's Pharmaceutical Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.24%
Current annual income from Lee's Pharmaceutical Holdings dividends. Estimated to be 1.33% next year.
If you bought HK$2,000 of Lee's Pharmaceutical Holdings shares you are expected to receive HK$45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lee's Pharmaceutical Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Lee's Pharmaceutical Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:950 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Hong Kong Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 1.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:950 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.08 2.00
2020-12-31 0.07 2.00
2019-12-31 0.06 1.00
SEHK:950 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-12 0.118 1.991
2019-03-28 0.118 1.631
2018-08-30 0.104 1.645
2018-03-22 0.104 1.068
2017-04-11 0.112 1.531
2017-03-23 0.112 1.533
2016-04-14 0.104 1.598
2016-03-23 0.104 1.863
2015-04-02 0.093 0.946
2015-03-26 0.093 0.835
2014-03-25 0.075 0.736
2014-03-20 0.075 0.901
2013-03-25 0.058 0.881
2013-03-20 0.058 1.010
2012-03-26 0.042 0.982
2011-08-22 0.032 1.150
2011-03-24 0.030 1.038
2010-08-23 0.026 0.825
2010-03-05 0.024 0.794
2009-08-14 0.019 1.380

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Lee's Pharmaceutical Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.6x coverage).
X
Income/ dividend checks
We assess Lee's Pharmaceutical Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lee's Pharmaceutical Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lee's Pharmaceutical Holdings has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Lee's Pharmaceutical Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Benjamin Li
COMPENSATION HK$13,265,000
AGE 55
CEO Bio

Dr. Xiaoyi Li, also known as Benjamin, Ph.D., serves as the Chief Technical Officer and Chief Executive Officer of CVie Therapeutics Company Limited. Dr. Li joined the Lee's Pharmaceutical Holdings Limited in February 1994 and has since been responsible for the research and development of the Lee's Pharmaceutical Holdings Limited. Dr. Li serves as an Executive Director of Lee's Pharmaceutical Holdings Ltd. He serves as a Director of Hefei Siu-Fung USTC Pharmaceutical Company Ltd. ('Zhaoke'). Dr. Li holds a Ph.D. of Pharmacology from the University of Illinois at Chicago and was a Post Doctoral fellow with Warner-Lambert.

CEO Compensation
  • Benjamin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Benjamin's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Lee's Pharmaceutical Holdings management team in years:

7.4
Average Tenure
53
Average Age
  • The average tenure for the Lee's Pharmaceutical Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Siu Fong Lee

TITLE
Chairman & Compliance Officer
COMPENSATION
HK$10M
AGE
61

Benjamin Li

TITLE
CEO, CTO & Executive Director
COMPENSATION
HK$13M
AGE
55

Wanee Leelalertsuphakun

TITLE
MD, Chief Marketing & Sales Officer and Executive Director
COMPENSATION
HK$13M
AGE
64
TENURE
15.8 yrs

Jason Chow

TITLE
CFO & Company Secretary
AGE
45
TENURE
4.7 yrs

Yueshen Chen

TITLE
Chief Operating Officer
AGE
59
TENURE
7.4 yrs

Zhenhua Zhang

TITLE
Director of Human Resources & Development
AGE
45
TENURE
1.8 yrs

Zhongyu Jiao

TITLE
Chief Officer of Enterprise Development Department of the Group
AGE
48

Tsui Victor

TITLE
Chief Manufacturing Officer
AGE
51
TENURE
7.4 yrs
Board of Directors Tenure

Average tenure and age of the Lee's Pharmaceutical Holdings board of directors in years:

14.8
Average Tenure
56
Average Age
  • The average tenure for the Lee's Pharmaceutical Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Siu Fong Lee

TITLE
Chairman & Compliance Officer
COMPENSATION
HK$10M
AGE
61

Benjamin Li

TITLE
CEO, CTO & Executive Director
COMPENSATION
HK$13M
AGE
55

Wanee Leelalertsuphakun

TITLE
MD, Chief Marketing & Sales Officer and Executive Director
COMPENSATION
HK$13M
AGE
64

Bob Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$144K
AGE
55
TENURE
17.4 yrs

Karl Tsim

TITLE
Independent Non-Executive Director
COMPENSATION
HK$144K
AGE
59
TENURE
14.8 yrs

Yat Cheong Lam

TITLE
Independent Non-Executive Director
COMPENSATION
HK$144K
AGE
56
TENURE
14.9 yrs

Simon Miles Ball

TITLE
Non-Executive Director
COMPENSATION
HK$144K
AGE
39
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Lee's Pharmaceutical Holdings insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
04. Jun 19 Buy Xiaoyi Li Individual 03. Jun 19 03. Jun 19 40,500 HK$5.20 HK$210,770
12. Apr 19 Sell Xiaoyi Li Individual 01. Apr 19 01. Apr 19 -10,000 HK$7.15 HK$-71,500
12. Apr 19 Sell Xiaoyi Li Individual 21. Mar 19 21. Mar 19 -10,000 HK$7.05 HK$-70,500
27. Jan 19 Sell Wanee Leelalertsuphakun Individual 23. Jan 19 23. Jan 19 -65,000 HK$6.23 HK$-404,885
27. Jan 19 Sell Wanee Leelalertsuphakun Individual 25. Jan 19 25. Jan 19 -50,000 HK$6.37 HK$-318,600
27. Jan 19 Sell Wanee Leelalertsuphakun Individual 24. Jan 19 24. Jan 19 -20,000 HK$6.32 HK$-126,400
21. Jan 19 Sell Wanee Leelalertsuphakun Individual 16. Jan 19 16. Jan 19 -80,000 HK$5.85 HK$-468,000
21. Jan 19 Sell Wanee Leelalertsuphakun Individual 17. Jan 19 17. Jan 19 -40,000 HK$5.97 HK$-238,600
27. Dec 18 Sell Wanee Leelalertsuphakun Individual 21. Dec 18 21. Dec 18 -50,000 HK$5.48 HK$-274,000
27. Dec 18 Sell Wanee Leelalertsuphakun Individual 20. Dec 18 20. Dec 18 -60,000 HK$5.52 HK$-331,200
05. Nov 18 Sell FMR LLC Company 31. Oct 18 31. Oct 18 -2,844,500 HK$6.00 HK$-17,067,576
30. Oct 18 Buy Xiaoyi Li Individual 29. Oct 18 29. Oct 18 320,000 HK$5.82 HK$1,860,897
30. Oct 18 Buy Xiaoyi Li Individual 26. Oct 18 26. Oct 18 60,500 HK$5.93 HK$358,880
25. Oct 18 Buy Xiaoyi Li Individual 25. Oct 18 25. Oct 18 179,000 HK$6.12 HK$1,095,158
25. Oct 18 Buy Xiaoyi Li Individual 23. Oct 18 23. Oct 18 169,000 HK$6.32 HK$1,067,675
25. Oct 18 Buy Xiaoyi Li Individual 24. Oct 18 24. Oct 18 188,500 HK$6.09 HK$1,148,681
23. Oct 18 Buy FMR LLC Company 18. Oct 18 18. Oct 18 1,056,000 HK$5.82 HK$6,143,917
23. Oct 18 Buy Xiaoyi Li Individual 22. Oct 18 22. Oct 18 196,000 HK$6.18 HK$1,211,281
23. Oct 18 Buy Xiaoyi Li Individual 19. Oct 18 19. Oct 18 300,000 HK$5.99 HK$1,797,990
05. Sep 18 Sell FMR LLC Company 31. Aug 18 31. Aug 18 -768,500 HK$7.02 HK$-5,393,870
16. Jul 18 Sell Wanee Leelalertsuphakun Individual 11. Jul 18 11. Jul 18 -36,000 HK$9.72 HK$-349,812
16. Jul 18 Sell Wanee Leelalertsuphakun Individual 12. Jul 18 12. Jul 18 -48,000 HK$9.99 HK$-479,424
X
Management checks
We assess Lee's Pharmaceutical Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lee's Pharmaceutical Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Look At The Fair Value Of Lee's Pharmaceutical Holdings Limited (HKG:950)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (HK$, Millions) HK$138.52 HK$148.64 HK$157.14 HK$164.38 HK$170.67 HK$176.26 HK$181.36 HK$186.13 HK$190.67 HK$195.07 Growth Rate Estimate Source Est @ 9.59% Est @ 7.31% Est @ 5.72% Est @ 4.6% Est @ 3.82% Est @ 3.28% Est @ 2.9% Est @ 2.63% Est @ 2.44% Est @ 2.31% Present Value (HK$, Millions) Discounted @ 7.32% HK$129.06 HK$129.05 HK$127.12 HK$123.90 HK$119.86 HK$115.34 HK$110.59 HK$105.75 HK$100.94 HK$96.22 Present Value of 10-year Cash Flow (PVCF)= HK$1.16b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … SEHK:950 Intrinsic value, June 9th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Should Lee's Pharmaceutical Holdings Limited (HKG:950) Be Part Of Your Dividend Portfolio?

Could Lee's Pharmaceutical Holdings Limited (HKG:950) be an attractive dividend share to own for the long haul? … For the purpose of this article, we only scrutinise the last decade of Lee's Pharmaceutical Holdings's dividend payments. … First, we like Lee's Pharmaceutical Holdings's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow.

Simply Wall St -

What Kind Of Shareholders Own Lee's Pharmaceutical Holdings Limited (HKG:950)?

Check out our latest analysis for Lee's Pharmaceutical Holdings SEHK:950 Ownership Summary, May 12th 2019 What Does The Institutional Ownership Tell Us About Lee's Pharmaceutical Holdings? … We can see that Lee's Pharmaceutical Holdings does have institutional investors; and they hold 17% of the stock. … Insider Ownership Of Lee's Pharmaceutical Holdings While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Brief Commentary On Lee's Pharmaceutical Holdings Limited's (HKG:950) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

Does Lee's Pharmaceutical Holdings (HKG:950) Deserve A Spot On Your Watchlist?

In contrast to all that, I prefer to spend time on companies like Lee's Pharmaceutical Holdings (HKG:950), which has not only revenues, but also profits. … One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. … While Lee's Pharmaceutical Holdings did well to grow revenue over the last year, EBIT margins were dampened at the same time.

Simply Wall St -

Lee's Pharmaceutical Holdings (HKG:950) Shareholders Booked A 34% Gain In The Last Three Years

During three years of share price growth, Lee's Pharmaceutical Holdings achieved compound earnings per share growth of 21% per year. … Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business … It might be well worthwhile taking a look at our free report on Lee's Pharmaceutical Holdings's earnings, revenue and cash flow.

Simply Wall St -

How Did Lee's Pharmaceutical Holdings Limited's (HKG:950) 12% ROE Fare Against The Industry?

We'll use ROE to examine Lee's Pharmaceutical Holdings Limited (HKG:950), by way of a worked example. … Our data shows Lee's Pharmaceutical Holdings has a return on equity of 12% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Lee's Pharmaceutical Holdings Limited (HKG:950) Fall With The Market?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Why Lee's Pharmaceutical Holdings Limited's (HKG:950) ROE Of 12.48% Does Not Tell The Whole Story

Lee's Pharmaceutical Holdings Limited (HKG:950) delivered an ROE of 12.48% over the past 12 months, which is relatively in-line with its industry average of 14.22% during the same period. … But what is more interesting is whether 950 can sustain or improve on this level of return. … View our latest analysis for Lee's Pharmaceutical Holdings

Simply Wall St -

Are Lee's Pharmaceutical Holdings Limited's (HKG:950) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like Lee's Pharmaceutical Holdings Limited (HKG:950), with a market cap of HK$6.11b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Company Info

Description

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 and infectious diseases, dermatology, oncology, gynecology, ophthalmology, and others. 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 heart and other cardiovascular diseases; Yallaferon for viral-infected venereal diseases; Slounase for reduction of bleeding; and Eyprotor for corneal ulcers. The Licensed-In Products segment trades licensed-in pharmaceutical products, such as Carnitene for the treatment of cardiac diseases; Ferplex to treat sideropenic anemias; Aloxi for the prevention of nausea and vomiting associated with emetogenic cancer chemotherapy, as well as prevention of post-operative nausea and vomiting; and Zanidip for hypertension. Its licensed-in pharmaceutical products also comprise Dafnegin to treat Candidiasis; Veloderm for burns and wounds healing; Gaslon N for gastric ulcer and gastritis; Hyalofemmet for treating vaginal dryness of various origin; UNIDROX for the treatment of urinary tract infections and respiratory tract infections; Levocarnitine oral solution to treat primary and secondary carnitine deficiency; Remodulin for the treatment of pulmonary arterial hypertension and to diminish symptoms associated with exercise; Mictonorm for urinary incontinence; Trittico for insomnia/depression; Oncaspar for leukemia; Dicoflor and VSL#3 for probiotics; and Zingo to treat topical local analgesics. The company is headquartered in Shatin, Hong Kong.

Details
Name: Lee's Pharmaceutical Holdings Limited
950
Exchange: SEHK
Founded:
HK$3,121,470,237
592,309,343
Website: http://www.leespharm.com
Address: Lee's Pharmaceutical Holdings Limited
Building 20E,
1st Floor,
Shatin,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 950 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 15. Jul 2002
SHSC 950 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 15. Jul 2002
SZSC 950 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 15. Jul 2002
Number of employees
Current staff
Staff numbers
1,028
Lee's Pharmaceutical Holdings employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 12:45
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/06/05
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.