SHSC:2186

Stock Analysis Report

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Executive Summary

Luye Pharma Group Ltd. develops, produces, markets, and sells pharmaceutical products worldwide. More Details


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

How has Luye Pharma Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2186 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2186's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

4.0%

2186

-0.4%

HK Pharmaceuticals

-0.5%

HK Market


1 Year Return

-27.2%

2186

3.0%

HK Pharmaceuticals

7.6%

HK Market

Return vs Industry: 2186 underperformed the Hong Kong Pharmaceuticals industry which returned 3% over the past year.

Return vs Market: 2186 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

2186IndustryMarket
7 Day4.0%-0.4%-0.5%
30 Day-4.1%-2.8%5.3%
90 Day0.4%-10.7%4.2%
1 Year-26.3%-27.2%4.7%3.0%11.9%7.6%
3 Year-9.3%-13.5%-5.1%-10.6%-1.2%-11.4%
5 Year-39.1%-43.3%30.7%20.3%29.7%7.9%

Long-Term Price Volatility Vs. Market

How volatile is Luye Pharma Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Luye Pharma Group undervalued compared to its fair value and its price relative to the market?

41.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2186 (HK$4.47) is trading below our estimate of fair value (HK$7.62)

Significantly Below Fair Value: 2186 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2186 is good value based on its PE Ratio (9.5x) compared to the HK Pharmaceuticals industry average (10.7x).

PE vs Market: 2186 is good value based on its PE Ratio (9.5x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 2186 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 2186 is overvalued based on its PB Ratio (1.6x) compared to the HK Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is Luye Pharma Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2186's forecast earnings growth (11.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 2186's earnings (11.7% per year) are forecast to grow slower than the Hong Kong market (21.9% per year).

High Growth Earnings: 2186's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2186's revenue (10.6% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 2186's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2186's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Luye Pharma Group performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2186 has a high level of non-cash earnings.

Growing Profit Margin: 2186's current net profit margins (20.6%) are lower than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: 2186's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: 2186's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2186 had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-11.9%).


Return on Equity

High ROE: 2186's Return on Equity (17.1%) is considered low.


Next Steps

Financial Health

How is Luye Pharma Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2186's short term assets (CN¥9.2B) exceed its short term liabilities (CN¥6.3B).

Long Term Liabilities: 2186's short term assets (CN¥9.2B) exceed its long term liabilities (CN¥5.4B).


Debt to Equity History and Analysis

Debt Level: 2186's debt to equity ratio (114.6%) is considered high.

Reducing Debt: 2186's debt to equity ratio has increased from 11.1% to 114.6% over the past 5 years.

Debt Coverage: 2186's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: 2186's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Luye Pharma Group current dividend yield, its reliability and sustainability?

2.16%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2186's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2186's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2186's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2186's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2186 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2186's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Dian Bo Liu (54 yo)

17.33yrs

Tenure

CN¥3,759,000

Compensation

Mr. Dian Bo Liu is a Co-Founder of Luye Pharma Group Ltd. in 1994 and serves as its Head of Corporate Directions & Strategies and has been its Chief Executive Officer since July 2003. Mr. Liu is responsibl...


CEO Compensation Analysis

Compensation vs Market: Dian Bo's total compensation ($USD571.67K) is about average for companies of similar size in the Hong Kong market ($USD562.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dian Bo Liu
Co-Founder17.33yrsCN¥3.76mno data
Rong Bing Yang
Co-Founder & Vice Executive Chairman5.67yrsCN¥2.71mno data
Hui Xian Yuan
Co-Founder & Executive Director17.33yrsCN¥1.35mno data
Yuan Yuan Zhu
Executive Director6.67yrsCN¥681.00kno data
Yuan Chong Liu
Chief Financial Officer8.83yrsno datano data
Yun Li Xue
Senior VP & GM of Shandong Luyeno datano datano data
You Xin Li
Head of R&D and Senior VPno datano datano data
Hua Jiang
Head of International Business & VPno datano datano data
Siu Kuen Lai
Company Secretary6.67yrsno datano data
Zhi Fan
Chief Engineer of Shandong Luye Pharmaceutical Co Ltdno datano datano data
Li Ping Loh
Assistant Company Secretaryno datano datano data

8.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 2186's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dian Bo Liu
Co-Founder17.33yrsCN¥3.76mno data
Rong Bing Yang
Co-Founder & Vice Executive Chairman5.67yrsCN¥2.71mno data
Hui Xian Yuan
Co-Founder & Executive Director17.33yrsCN¥1.35mno data
Yuan Yuan Zhu
Executive Director6.67yrsCN¥681.00kno data
Yuk Lam Lo
Independent Non-Executive Director6.42yrsCN¥432.00kno data
Man Kit Leung
Independent Non-Executive Director6.42yrsCN¥485.00kno data
Rui Lin Song
Non-Executive Director3.67yrsCN¥700.00kno data
Sze Chung Choy
Independent Non-Executive Director6.42yrsCN¥432.00kno data
Huaqiao Zhang
Independent Non-Executive Director6.42yrsCN¥432.00kno data

6.4yrs

Average Tenure

58yo

Average Age

Experienced Board: 2186's board of directors are considered experienced (6.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Luye Pharma Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luye Pharma Group Ltd.
  • Ticker: 2186
  • Exchange: SHSC
  • Founded: 1994
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$14.523b
  • Shares outstanding: 3.25b
  • Website: https://www.luye.cn

Number of Employees


Location

  • Luye Pharma Group Ltd.
  • No. 15 Chuang Ye Road
  • High-tech Industrial Development Zone
  • Yantai
  • Shandong Province
  • 264003
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2186SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2014
LUPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
2186SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2014
2186SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2014

Biography

Luye Pharma Group Ltd. develops, produces, markets, and sells pharmaceutical products worldwide. The company offers Lipusu for ovarian cancer and treatment for metastatic carcinoma of ovary; CMNa, a chemic...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:17
End of Day Share Price2020/11/25 00:00
Earnings2020/06/30
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.