OTCPK:SHTD.F

Stock Analysis Report

Executive Summary

Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and healthcare products in the People’s Republic of China.

Snowflake

Fundamentals

Undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-9.6%

OTCPK:SHTD.F

0.8%

US Healthcare

1.3%

US Market


1 Year Return

-30.0%

OTCPK:SHTD.F

-8.2%

US Healthcare

2.0%

US Market

SHTD.F underperformed the Healthcare industry which returned -8.2% over the past year.

SHTD.F underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

SHTD.FIndustryMarket
7 Day-9.6%0.8%1.3%
30 Day-0.7%-1.5%3.9%
90 Day-4.4%-0.5%3.4%
1 Year-30.0%-30.0%-6.8%-8.2%4.2%2.0%
3 Year-30.3%-30.3%30.2%24.9%47.2%37.6%
5 Year-10.1%-10.1%63.6%53.9%60.5%42.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sinopharm Group undervalued based on future cash flows and its price relative to the stock market?

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sinopharm Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sinopharm Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sinopharm Group is good value based on earnings compared to the US Healthcare industry average.

Sinopharm Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sinopharm Group is good value based on expected growth next year.


Price Based on Value of Assets

Sinopharm Group is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Sinopharm Group expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sinopharm Group's revenue is expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

Sinopharm Group's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).

Sinopharm Group's revenue growth is expected to exceed the United States of America market average.

Sinopharm Group's earnings growth is positive but not above the United States of America market average.

Sinopharm Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sinopharm Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sinopharm Group performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sinopharm Group's year on year earnings growth rate has been positive over the past 5 years.

Sinopharm Group's 1-year earnings growth is less than its 5-year average (15.8% vs 16.1%)

Sinopharm Group's earnings growth has exceeded the US Healthcare industry average in the past year (15.8% vs 5.6%).


Return on Equity

Sinopharm Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sinopharm Group used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Sinopharm Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sinopharm Group's financial position?


Financial Position Analysis

Sinopharm Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sinopharm Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sinopharm Group's level of debt (97.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (87.9% vs 97.2% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.4x debt.


Next Steps

Dividend

What is Sinopharm Group's current dividend yield, its reliability and sustainability?

2.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sinopharm Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Sinopharm Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Sinopharm Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Sinopharm Group only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

What is the CEO of Sinopharm Group's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

Yong Liu (50yo)

1.8yrs

Tenure

CN¥7,918,000

Compensation

Mr. Yong Liu serves as the Chief Legal Advisor at Sinopharm Group Co. Ltd. and served as its Joint Company Secretary since October 28, 2016 until August 24, 2018. Mr. Liu is Executive Director of Sinopharm ...


CEO Compensation Analysis

Yong's remuneration is lower than average for companies of similar size in United States of America.

Yong's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

8.1yrs

Average Tenure

51.5yo

Average Age

The average tenure for the Sinopharm Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

54.5yo

Average Age

The tenure for the Sinopharm Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Wei Liu (61yo)

    Joint Company Secretary

    • Tenure: 8.1yrs
  • Robert Li (53yo)

    Vice President

    • Tenure: 1.7yrs
  • Yong Liu (50yo)

    President & Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥7.92m
  • Wanyong Lian (48yo)

    Vice President

    • Tenure: 0yrs
  • Zhiming Li (56yo)

    Chairman

    • Tenure: 2.5yrs
    • Compensation: CN¥10.94m
  • Shuangjun Xu (50yo)

    Non-Executive Vice President

    • Tenure: 8.5yrs
  • Xiuchang Jiang (55yo)

    CFO & Vice President

    • Tenure: 9.3yrs
  • Wanjun Ma (50yo)

    Vice President

    • Tenure: 9yrs
  • Yijian Wu (49yo)

    Company Secretary

    • Tenure: 0.8yrs
  • Qingming Yu (55yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥15.89m

Board Members

  • Fang Yao (50yo)

    Chairman of Supervisory Committee

    • Tenure: 8.7yrs
  • Qiyu Chen (47yo)

    Vice Chairman

    • Tenure: 5.8yrs
  • Fumin Zhuo (68yo)

    Independent Non Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥300.00k
  • Yong Liu (50yo)

    President & Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥7.92m
  • Jindong Deng (54yo)

    Non-Executive Director

    • Tenure: 12.1yrs
  • Wee Seng Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥300.00k
  • Zhiming Li (56yo)

    Chairman

    • Tenure: 2.5yrs
    • Compensation: CN¥10.94m
  • Hailson Yu (63yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥300.00k
  • Zhengdong Liu (49yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥300.00k
  • Qingming Yu (55yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥15.89m

Company Information

Sinopharm Group Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sinopharm Group Co. Ltd.
  • Ticker: SHTD.F
  • Exchange: OTCPK
  • Founded: 2003
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: HK$79.328b
  • Listing Market Cap: HK$10.140b
  • Shares outstanding: 2.97b
  • Website: https://www.sinopharmgroup.com.cn

Number of Employees


Location

  • Sinopharm Group Co. Ltd.
  • Sinopharm Plaza
  • No. 1001 Zhongshan Road (West)
  • Shanghai
  • 200051
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1099SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2009
SHTD.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDSep 2009
X2SDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 2009
1099SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 2009
1099SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 2009
SHTD.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2012

Biography

Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and healthcare products in the People’s Republic of China. Its Pharmaceutical Distribution se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:08
End of Day Share Price2019/09/10 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.