OTCPK:SHWG.Y

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Excellent balance sheet and good value.


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.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

SHWG.Y

-3.8%

US Medical Equipment

-2.4%

US Market


1 Year Return

98.6%

SHWG.Y

14.0%

US Medical Equipment

12.0%

US Market

Return vs Industry: SHWG.Y exceeded the US Medical Equipment industry which returned 13.7% over the past year.

Return vs Market: SHWG.Y exceeded the US Market which returned 10.9% over the past year.


Shareholder returns

SHWG.YIndustryMarket
7 Day-1.4%-3.8%-2.4%
30 Day-12.3%-3.7%-6.5%
90 Day0%11.0%8.4%
1 Year100.3%98.6%15.0%14.0%14.5%12.0%
3 Year177.4%167.7%66.4%62.1%34.8%25.8%
5 Year231.5%210.9%134.4%116.6%82.1%61.6%

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

No news available

Valuation

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

39.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHWG.Y ($8.3) is trading below our estimate of fair value ($13.26)

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


Price To Earnings Ratio

PE vs Industry: SHWG.Y is good value based on its PE Ratio (33x) compared to the US Medical Equipment industry average (48.8x).

PE vs Market: SHWG.Y is poor value based on its PE Ratio (33x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: SHWG.Y is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SHWG.Y is good value based on its PB Ratio (3.6x) compared to the US Medical Equipment industry average (3.7x).


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 11 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHWG.Y's forecast earnings growth (19.2% per year) is above the savings rate (2.2%).

Earnings vs Market: SHWG.Y's earnings (19.2% per year) are forecast to grow slower than the US market (23% per year).

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

Revenue vs Market: SHWG.Y's revenue (16.6% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SHWG.Y's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHWG.Y's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

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

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHWG.Y has high quality earnings.

Growing Profit Margin: SHWG.Y's current net profit margins (17.9%) are lower than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: SHWG.Y's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: SHWG.Y's earnings growth over the past year (6.7%) is below its 5-year average (13.1% per year).

Earnings vs Industry: SHWG.Y earnings growth over the past year (6.7%) exceeded the Medical Equipment industry 1.8%.


Return on Equity

High ROE: SHWG.Y's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SHWG.Y's short term assets (CN¥12.5B) exceed its short term liabilities (CN¥3.9B).

Long Term Liabilities: SHWG.Y's short term assets (CN¥12.5B) exceed its long term liabilities (CN¥4.3B).


Debt to Equity History and Analysis

Debt Level: SHWG.Y's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: SHWG.Y's debt to equity ratio has increased from 9.9% to 24.2% over the past 5 years.

Debt Coverage: SHWG.Y's debt is well covered by operating cash flow (51.6%).

Interest Coverage: SHWG.Y's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHWG.Y's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: SHWG.Y's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (5.03%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.3%), SHWG.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHWG.Y's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jing Long (45 yo)

2.08yrs

Tenure

CN¥2,333,000

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 served as Vice-General Manager of Shandong Wei ...


CEO Compensation Analysis

Compensation vs Market: Jing's total compensation ($USD341.66K) is below average for companies of similar size in the US market ($USD7.46M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hua Wei Zhang
Chairman & Compliance Officer4.5yrsCN¥2.22m0.72%
CN¥ 63.7m
Jing Long
CEO & Executive Director2.08yrsCN¥2.33mno data
Yi Wang
Executive Vice Chairmanno dataCN¥1.86m0.41%
CN¥ 36.2m
Jian Bo Gong
Executive Director7.5yrsCN¥11.53mno data
Xue Feng Wu
Chief Financial Officer3.58yrsno datano data
Hong Feng Ju
Vice-General Manager of the Production & Supply Chain4.67yrsno datano data
Miu Ling Wong
Company Secretary14.33yrsno datano data

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: SHWG.Y's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hua Wei Zhang
Chairman & Compliance Officer4.5yrsCN¥2.22m0.72%
CN¥ 63.7m
Jing Long
CEO & Executive Director2.08yrsCN¥2.33mno data
Yi Wang
Executive Vice Chairmanno dataCN¥1.86m0.41%
CN¥ 36.2m
Jian Bo Gong
Executive Director7.5yrsCN¥11.53mno data
Shu Hua Zhou
Non Executive Director19.75yrsno data0.34%
CN¥ 30.1m
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 Director8.92yrsCN¥108.00kno data
Jin Xia Wang
Independent Non-Executive Director8.33yrsCN¥108.00kno data
Wai Hung Lo
Independent Non Executive Director11.08yrsCN¥158.00kno data
Chun Liang Yue
Employee Representative Supervisorno datano datano data

8.6yrs

Average Tenure

56yo

Average Age

Experienced Board: SHWG.Y's board of directors are considered experienced (8.6 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.Y
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: HK$68.920b
  • Listing Market Cap: HK$8.893b
  • 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 thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 05:32
End of Day Share Price2020/09/24 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.