OTCPK:SHWG.F

Stock Analysis Report

Shandong Weigao Group Medical Polymer

Executive Summary

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.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Shandong Weigao Group Medical Polymer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHWG.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SHWG.F

11.3%

US Medical Equipment

5.3%

US Market


1 Year Return

n/a

SHWG.F

-4.5%

US Medical Equipment

-10.7%

US Market

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.


Shareholder returns

SHWG.FIndustryMarket
7 Day0%11.3%5.3%
30 Day0%-8.5%-13.6%
90 Day0%-15.6%-19.8%
1 Yearn/a-3.8%-4.5%-8.9%-10.7%
3 Year98.6%98.6%47.0%43.0%15.5%8.0%
5 Year40.1%40.1%78.8%60.2%35.2%20.4%

Price Volatility Vs. Market

How volatile is Shandong Weigao Group Medical Polymer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHWG.F ($1.11) is trading above our estimate of fair value ($0.62)

Significantly Below Fair Value: SHWG.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHWG.F is good value based on its PE Ratio (22.1x) compared to the Medical Equipment industry average (32.7x).

PE vs Market: SHWG.F is poor value based on its PE Ratio (22.1x) compared to the US market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: SHWG.F is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SHWG.F is good value based on its PB Ratio (2.5x) compared to the US Medical Equipment industry average (2.6x).


Next Steps

Future Growth

How is Shandong Weigao Group Medical Polymer forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHWG.F's forecast earnings growth (16.7% per year) is above the savings rate (1.7%).

Earnings vs Market: SHWG.F's earnings (16.7% per year) are forecast to grow faster than the US market (12.4% per year).

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

Revenue vs Market: SHWG.F's revenue (15% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: SHWG.F's revenue (15% 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 (13.5%).


Next Steps

Past Performance

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

15.1%

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 (18.3%) are higher than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: SHWG.F's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: SHWG.F's earnings growth over the past year (40.2%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: SHWG.F earnings growth over the past year (40.2%) exceeded the Medical Equipment industry 4.5%.


Return on Equity

High ROE: SHWG.F's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SHWG.F's short term assets (CN¥11.1B) exceed its short term liabilities (CN¥3.9B).

Long Term Liabilities: SHWG.F's short term assets (CN¥11.1B) exceed its long term liabilities (CN¥5.0B).


Debt to Equity History and Analysis

Debt Level: SHWG.F's debt to equity ratio (34.4%) is considered satisfactory.

Reducing Debt: SHWG.F's debt to equity ratio has increased from 2.9% to 34.4% over the past 5 years.

Debt Coverage: SHWG.F's debt is well covered by operating cash flow (42.6%).

Interest Coverage: SHWG.F's interest payments on its debt are well covered by EBIT (18.9x coverage).


Balance Sheet

Inventory Level: SHWG.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SHWG.F's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHWG.F's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.06%).

High Dividend: SHWG.F's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (5.59%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), SHWG.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHWG.F's dividends in 3 years are forecast to be well covered by earnings (26.9% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Jing Long (44yo)

1.58s

Tenure

CN¥2,325,000

Compensation

Mr. Long Jing has been Chief Executive Officer and Executive Director of Shandong Weigao Group Medical Polymer Company Limited since August 29, 2018. Mr. Jing serves as a Vice-General Manager of Shandong W ...


CEO Compensation Analysis

Compensation vs Market: Jing's total compensation ($USD332.54K) is below average for companies of similar size in the US market ($USD7.57M).

Compensation vs Earnings: Jing's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hua Wei Zhang
Chairman & Compliance Officer4yrsCN¥2.31m0.72% CN¥40.2m
Jing Long
CEO & Executive Director1.58yrsCN¥2.33mno data
Jian Bo Gong
Executive Director7yrsCN¥10.89mno data
Xue Feng Wu
Chief Financial Officer3.08yrsno datano data
Miu Ling Wong
Company Secretary13.83yrsno datano data
Hong Feng Ju
Vice-General Manager of the Production and Supply Chainno datano datano data

3.1yrs

Average Tenure

47yo

Average Age

Experienced Management: SHWG.F's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hua Wei Zhang
Chairman & Compliance Officer4yrsCN¥2.31m0.72% CN¥40.2m
Jing Long
CEO & Executive Director1.58yrsCN¥2.33mno data
Jian Bo Gong
Executive Director7yrsCN¥10.89mno data
Shu Hua Zhou
Non Executive Director19.25yrsno data0.34% CN¥19.0m
Yi Wang
Executive Director19.25yrsCN¥1.27m0.52% CN¥29.1m
Xiao Yun Chen
Supervisorno datano datano data
Dong Mei Bi
Chairman of the Board of Supervisorsno datano datano data
Ming Zhong Fu
Independent Non-Executive Director8.42yrsCN¥108.00kno data
Jin Xia Wang
Independent Non-Executive Director7.83yrsCN¥108.00kno data
Wai Hung Lo
Independent Non Executive Director10.58yrsCN¥154.00kno data

8.4yrs

Average Tenure

57yo

Average Age

Experienced Board: SHWG.F's board of directors are considered experienced (8.4 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

Shandong Weigao Group Medical Polymer Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shandong Weigao Group Medical Polymer Company Limited
  • Ticker: SHWG.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: HK$43.641b
  • Listing Market Cap: HK$5.618b
  • Shares outstanding: 4.52b
  • Website: https://www.weigaogroup.com

Number of Employees


Location

  • Shandong Weigao Group Medical Polymer Company Limited
  • Torch Hi-Tech Science Park
  • 18 Xingshan Road
  • Weihai
  • Shandong Province
  • 264210
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1066SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDFeb 2004
UK2DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURFeb 2004
SHWG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDFeb 2004
1066SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2004
1066SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2004
SHWG.YOTCPK (Pink Sheets LLC)ADS REP SHS HUSUSDNov 2010

Biography

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. The company operates through Medical Device Products, Orthopaedic Products, Interventional Products, Pharma Packaging Products, Blood Management Products, and Others segments. It offers vascular and non-vascular access infusion devices, including infusion sets, syringes, puncture needles, and specialized single-use clinical collection kits; wound healing dressings, wound sutures, and wound cleaning and nonvascular catheter supporting extracorporeal devices; and blood collection, storage, separation, and sterilization equipment. The company also provides prefilled syringes and pre-filled flush syringes; blood collection and blood glucose testing devices; and general anesthesia consumables, local anesthesia consumables, anesthesia auxiliary consumables, ICU equipment, and open and minimally invasive surgical equipment. In addition, it engages in the production and sale of orthopedic products; tumor and blood vessel interventional instruments; implantation materials and artificial organs; medical PVC granules, plastic packing bags, and carton boxes; industrial automatic equipment and parts; molds; hemo-dialysis equipment; and type I, type II, and type III medical devices. Further, the company is involved in the finance leasing and factoring business; wholesale of type I medical devices, surgical devices, and other disposal medical products; and provision of asset management and enterprise consulting services, as well as logistics and storage services. Shandong Weigao Group Medical Polymer Company Limited offers its products under the Jierui, Wego Ortho, Yahua, Bangde, and Hai Xing brands. The company also export its products. It serves hospitals, blood stations, and other medical units; and distributors. The company was founded in 2000 and is based in Weihai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/17 01:53
End of Day Share Price2019/12/18 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.