Shandong Weigao Group Medical Polymer (OTCPK:SHWG.F) - Share price, News & Analysis

SHWG.F fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

SHWG.F Stock Overview

Shandong Weigao Group Medical Polymer Company Limited engages in the research and development, production, and sale of single-use medical devices in the People’s Republic of China.

Rewards

Trading at 26.1% below our estimate of its fair value

Earnings are forecast to grow 14.88% per year

Earnings have grown 15% per year over the past 5 years

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Shandong Weigao Group Medical Polymer Competitors

Meihua International Medical Technologies

NasdaqGM:MHUA

US$167.6m

Johnson & Johnson

NYSE:JNJ

US$465.4b

Medtronic

NYSE:MDT

US$137.7b

Amgen

NasdaqGS:AMGN

US$130.0b

Price History & Performance

Summary of all time highs, changes and price drops for Shandong Weigao Group Medical Polymer
Historical stock prices
Current Share Price	HK$1.07
52 Week High	HK$2.58
52 Week Low	HK$1.07
Beta	0.51
1 Month Change	-1.39%
3 Month Change	n/a
1 Year Change	n/a
3 Year Change	22.41%
5 Year Change	n/a
Change since IPO	-56.88%

Shareholder Returns

	SHWG.F	US Medical Equipment	US Market
7D	0%	-10.7%	-10.1%
1Y	n/a	-17.5%	-10.8%

Return vs Industry: Insufficient data to determine how SHWG.F performed against the US Medical Equipment industry.

Return vs Market: Insufficient data to determine how SHWG.F performed against the US Market.

Price Volatility

Is SHWG.F's price volatile compared to industry and market?
SHWG.F volatility
SHWG.F Average Weekly Movement	n/a
Medical Equipment Industry Average Movement	9.7%
Market Average Movement	7.7%
10% most volatile stocks in US Market	16.4%
10% least volatile stocks in US Market	2.8%

Stable Share Price: Insufficient data to determine SHWG.F's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine SHWG.F's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
2000	11,123	Rinan Cong	https://www.weigaogroup.com

Shandong Weigao Group Medical Polymer Company Limited engages in the research and development, production, and sale of single-use medical devices in the People’s Republic of China. It operates through Medical Device Products, Orthopaedic Products, Interventional Products, Pharma Packaging Products, Blood Management Products, and Others segments. The company offers vascular and non-vascular access infusion devices, infusion sets, syringes, puncture needles, and specialized single-use clinical collection kits; wound sutures, wound healing dressings, and wound cleaning and nonvascular catheter supporting extracorporeal devices; and blood collection, storage, separation, and sterilization equipment.

Shandong Weigao Group Medical Polymer Fundamentals Summary

How do Shandong Weigao Group Medical Polymer's earnings and revenue compare to its market cap?
SHWG.F fundamental statistics
Market Cap	CN¥30.24b
Earnings (TTM)	CN¥2.24b
Revenue (TTM)	CN¥13.15b

13.5x

P/E Ratio

2.3x

P/S Ratio

Is SHWG.F overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHWG.F income statement (TTM)
Revenue	CN¥13.15b
Cost of Revenue	CN¥5.90b
Gross Profit	CN¥7.25b
Other Expenses	CN¥5.01b
Earnings	CN¥2.24b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.49
Gross Margin	55.14%
Net Profit Margin	17.07%
Debt/Equity Ratio	19.4%

How did SHWG.F perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Shandong Weigao Group Medical Polymer undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

26.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SHWG.F ($1.07) is trading below our estimate of fair value ($1.44)

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

Price To Earnings Ratio

PE vs Industry: SHWG.F is good value based on its PE Ratio (13.5x) compared to the US Medical Equipment industry average (32.7x).

PE vs Market: SHWG.F is good value based on its PE Ratio (13.5x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: SHWG.F is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: SHWG.F is good value based on its PB Ratio (1.6x) compared to the US Medical Equipment industry average (2.4x).

Future Growth

How is Shandong Weigao Group Medical Polymer forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHWG.F's forecast earnings growth (14.9% per year) is above the savings rate (1.9%).

Earnings vs Market: SHWG.F's earnings (14.9% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: SHWG.F's revenue (13% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: SHWG.F's revenue (13% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SHWG.F's Return on Equity is forecast to be low in 3 years time (11.7%).

Past Performance

How has Shandong Weigao Group Medical Polymer performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SHWG.F has high quality earnings.

Growing Profit Margin: SHWG.F's current net profit margins (17.1%) are lower than last year (18%).

Past Earnings Growth Analysis

Earnings Trend: SHWG.F's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: SHWG.F's earnings growth over the past year (7.6%) is below its 5-year average (15% per year).

Earnings vs Industry: SHWG.F earnings growth over the past year (7.6%) underperformed the Medical Equipment industry 19.1%.

Return on Equity

High ROE: SHWG.F's Return on Equity (11.6%) is considered low.

Financial Health

How is Shandong Weigao Group Medical Polymer's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SHWG.F's short term assets (CN¥16.1B) exceed its short term liabilities (CN¥5.1B).

Long Term Liabilities: SHWG.F's short term assets (CN¥16.1B) exceed its long term liabilities (CN¥4.3B).

Debt to Equity History and Analysis

Debt Level: SHWG.F has more cash than its total debt.

Reducing Debt: SHWG.F's debt to equity ratio has increased from 9.8% to 19.4% over the past 5 years.

Debt Coverage: SHWG.F's debt is well covered by operating cash flow (74.8%).

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

Balance Sheet

Dividend

What is Shandong Weigao Group Medical Polymer current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.15%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SHWG.F's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.56%).

High Dividend: SHWG.F's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (4.08%).

Stability and Growth of Payments

Stable Dividend: SHWG.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: SHWG.F's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.5%), SHWG.F's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.8%), SHWG.F's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Healthcare industry.

Management

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

5.8yrs

Average management tenure

CEO

Rinan Cong (40 yo)

1.17yrs

Tenure

Mr. Rinan Cong serves as Chief Executive Officer at Shandong Weigao Group Medical Polymer Company Limited since March 30, 2021 and serves as Executive Director since May 24, 2021. He joined the Company in...

Leadership Team

Experienced Management: SHWG.F's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: SHWG.F's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/13 00:00
End of Day Share Price	2022/04/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31