China Medical System Holdings
Market Cap
HK$20.4b
Last Updated
2020/11/27 10:29 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
867 passed our risk checks.
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
-2.4%
867
-0.8%
HK Pharmaceuticals
1.1%
HK Market
1 Year Return
-25.9%
867
3.1%
HK Pharmaceuticals
8.2%
HK Market
Return vs Industry: 867 underperformed the Hong Kong Pharmaceuticals industry which returned 3.1% over the past year.
Return vs Market: 867 underperformed the Hong Kong Market which returned 8.2% over the past year.
Shareholder returns
| 867 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | -0.8% | 1.1% |
| 30 Day | -1.3% | -2.1% | 7.2% |
| 90 Day | -5.7% | -11.2% | 5.2% |
| 1 Year | -22.9%-25.9% | 4.8%3.1% | 12.6%8.2% |
| 3 Year | -40.8%-46.9% | -4.5%-10.0% | 0.4%-10.0% |
| 5 Year | n/a | 28.9%18.7% | 30.6%8.5% |
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$8.25) is trading below our estimate of fair value (HK$23.87)
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 (8.4x) compared to the HK Pharmaceuticals industry average (10.8x).
PE vs Market: 867 is good value based on its PE Ratio (8.4x) 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 (1.7x) 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 (13.6% 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%)
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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 -12.5%.
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
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Dividend
What is China Medical System Holdings's current dividend yield, its reliability and sustainability?
4.51%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 867's dividend (4.51%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).
High Dividend: 867's dividend (4.51%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.6%).
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).
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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 ($USD539.60K) is about average for companies of similar size in the Hong Kong market ($USD664.06K).
Compensation vs Earnings: Kong's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | no data | CN¥3.55m | 45.39% CN¥ 9.3b | |
| CFO, VP & Executive Director | 13.92yrs | CN¥2.58m | 0.29% CN¥ 59.8m | |
| COO, VP | 13.92yrs | CN¥3.28m | 2.66% CN¥ 543.2m | |
| Independent Non-Executive Director | 10.42yrs | CN¥191.00k | no data | |
| Independent Non-Executive Director | 2.92yrs | CN¥191.00k | no data | |
| Independent Non-Executive Director | 0.67yr | no data | no 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: SZSC
- Founded: 1995
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: HK$20.384b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2M7C | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2007 |
| 867 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2007 |
| CHSY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2007 |
| 867 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2007 |
| 867 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 10:29 |
| End of Day Share Price | 2020/11/26 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.