SHSC:867

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China Medical System Holdings

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has China Medical System Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 867 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 867's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-6.1%

867

-0.4%

HK Pharmaceuticals

-0.5%

HK Market


1 Year Return

-30.4%

867

3.0%

HK Pharmaceuticals

7.6%

HK Market

Return vs Industry: 867 underperformed the Hong Kong Pharmaceuticals industry which returned 3% over the past year.

Return vs Market: 867 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

867IndustryMarket
7 Day-6.1%-0.4%-0.5%
30 Day-4.1%-2.8%5.3%
90 Day-7.2%-10.7%4.2%
1 Year-27.5%-30.4%4.7%3.0%11.9%7.6%
3 Year-44.6%-50.2%-5.1%-10.6%-1.2%-11.4%
5 Year-16.6%-28.0%30.7%20.3%29.7%7.9%

Long-Term Price Volatility Vs. Market

How volatile is China Medical System Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

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$8.12) is trading below our estimate of fair value (HK$23.81)

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


Price To Earnings Ratio

PE vs Industry: 867 is good value based on its PE Ratio (8.2x) compared to the HK Pharmaceuticals industry average (10.7x).

PE vs Market: 867 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 867 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 867 is overvalued based on its PB Ratio (1.6x) compared to the HK Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is China Medical System Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 867's forecast earnings growth (8.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 867's earnings (8.5% per year) are forecast to grow slower than the Hong Kong market (21.9% per year).

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

Revenue vs Market: 867's revenue (9.2% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 867's revenue (9.2% 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 (21.8%)


Next Steps

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 (33.3%) are lower than last year (35.9%).


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 (0.4%) is below its 5-year average (14.6% per year).

Earnings vs Industry: 867 earnings growth over the past year (0.4%) exceeded the Pharmaceuticals industry -11.9%.


Return on Equity

High ROE: 867's Return on Equity (20.1%) is considered high.


Next Steps

Financial Health

How is China Medical System Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 867's short term assets (CN¥4.1B) exceed its short term liabilities (CN¥884.2M).

Long Term Liabilities: 867's short term assets (CN¥4.1B) exceed its long term liabilities (CN¥746.8M).


Debt to Equity History and Analysis

Debt Level: 867's debt to equity ratio (6.7%) is considered satisfactory.

Reducing Debt: 867's debt to equity ratio has reduced from 10.1% to 6.7% over the past 5 years.

Debt Coverage: 867's debt is well covered by operating cash flow (379.1%).

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


Balance Sheet


Next Steps

Dividend

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

4.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 867's dividend (4.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 867's dividend (4.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


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 (40.4%), 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 (35.3% payout ratio).


Next Steps

Management

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

10.4yrs

Average board tenure


CEO

Kong Lam (55 yo)

no data

Tenure

CN¥3,548,000

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 ($USD539.58K) is about average for companies of similar size in the Hong Kong market ($USD657.61K).

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


Board Members

NamePositionTenureCompensationOwnership
Kong Lam
Founderno dataCN¥3.55m45.39%
CN¥ 9.1b
Yanling Chen
CFO, VP & Executive Director13.92yrsCN¥2.58m0.29%
CN¥ 58.8m
Hongbing Chen
COO, VP13.92yrsCN¥3.28m2.66%
CN¥ 534.6m
Chi Keung Wu
Independent Non-Executive Director10.42yrsCN¥191.00kno data
Chong Shun Leung
Independent Non-Executive Director2.92yrsCN¥191.00kno data
Laura Ying Luo
Independent Non-Executive Director0.67yrno datano data

10.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 867's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 867 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Medical System Holdings Limited
  • Ticker: 867
  • Exchange: SHSC
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$20.063b
  • Shares outstanding: 2.47b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2M7CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007
867SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2007
CHSY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2007
867SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2007
867SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2007

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:21
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.