reports
With a more favourable environment, SHANGHAI PHARMA improves to Positi...
SHANGHAI PHARMA (HK), a company active in the Health Care Providers industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Positive. As of the analysis date March 29, 2022, the closing price was HKD 15.68 and its potential was esti...
- Jay Lee
Morningstar | China to audit 77 drugmakers, government likely to speed...
On the morning of June 4 2019, China’s Ministry of Finance, or MOF, announced it and the Medical Insurance Administration will jointly audit the accounting practices of 77 drugmakers during June and July. The stocks of Chinese drugmakers have fallen sharply following the news as the market braces for more policy uncertainty. Among our coverage, the list includes narrow-moat Shanghai Pharmaceuticals, CR Sanjiu (a listed subsidiary of narrow-moat CR Pharmaceuticals), and one unlisted subsidiar...
- Jay Lee
China to audit 77 drugmakers, government likely to speed up pricing re...
On the morning of June 4 2019, China’s Ministry of Finance, or MOF, announced it and the Medical Insurance Administration will jointly audit the accounting practices of 77 drugmakers during June and July. The stocks of Chinese drugmakers have fallen sharply following the news as the market braces for more policy uncertainty. Among our coverage, the list includes narrow-moat Shanghai Pharmaceuticals, CR Sanjiu (a listed subsidiary of narrow-moat CR Pharmaceuticals), and one unlisted subsidiary...
- Jay Lee
Morningstar | Shanghai Pharmaceuticals Posts Strong 1Q Growth in Distr...
Narrow-moat Shanghai Pharmaceuticals, or SPH, posted solid first-quarter results, with its distribution segment modestly outperforming our expectations. This was partially tempered by a contraction in gross margins. Our fair value estimates are unchanged at HKD 22.5 per H-share and CNY 19.5 per A-share. While the A-shares are in line with our fair value, the H-shares trade at a 28% discount, and we believe they offer attractive long-term value for patient investors. Revenue grew to CNY 46 billi...
- Jay Lee
Shanghai Pharmaceuticals Posts Strong 1Q Growth in Distribution; H-Sha...
Narrow-moat Shanghai Pharmaceuticals, or SPH, posted solid first-quarter results, with its distribution segment modestly outperforming our expectations. This was partially tempered by a contraction in gross margins. Our fair value estimates are unchanged at HKD 22.5 per H-share and CNY 19.5 per A-share. While the A-shares are in line with our fair value, the H-shares trade at a 28% discount, and we believe they offer attractive long-term value for patient investors. Revenue grew to CNY 46 billio...
- Jay Lee
Morningstar | Shanghai Pharmaceuticals: A Chinese Drug Distributor, Ma...
Shanghai Pharmaceuticals Holding is a vertically integrated drug distributor and operates a large drug manufacturer and retail pharmacy chain. Chinese healthcare industries have grown faster than GDP, and will continue to grow due to aging demographics, increased urbanization, a larger middle class, and rising disease rates.Distribution is 72% of operating profit as of 2018. After its acquisition of Cardinal’s China operations, it will be the second largest distributor in China. Over 65% of it...
- Jay Lee
Shanghai Pharmaceuticals: A Chinese Drug Distributor, Manufacturer, an...
Shanghai Pharmaceutical announced annual results that were in line with our expectations, with organic revenue growth and net profit on top of our full-year estimates. However, core operating margins and profit fell below our expectations due to higher SG&A costs. We lower our fair value estimate to HKD 22.5 per H-share from HKD 24.0 and CNY 19.5 per A-share from CNY 21.0. The H-shares trade at a 23% discount to our fair value estimate. The company reported annual revenue of CNY 159.1 billio...
- Jay Lee
Morningstar | Shanghai Pharmaceuticals Faces Increasing Margin Pressur...
Shanghai Pharmaceutical announced annual results that were in line with our expectations, with organic revenue growth and net profit on top of our full-year estimates. However, core operating margins and profit fell below our expectations due to higher SG&A costs. We lower our fair value estimate to HKD 22.5 per H-share from HKD 24.0 and CNY 19.5 per A-share from CNY 21.0. The H-shares trade at a 23% discount to our fair value estimate. The company reported annual revenue of CNY 159.1 billion, ...
- Jay Lee
Morningstar | Shanghai Pharmaceuticals Faces Increasing Margin Pressur...
Shanghai Pharmaceutical announced annual results that were in line with our expectations, with organic revenue growth and net profit on top of our full-year estimates. However, core operating margins and profit fell below our expectations due to higher SG&A costs. We lower our fair value estimate to HKD 22.5 per H-share from HKD 24.0 and CNY 19.5 per A-share from CNY 21.0. The H-shares trade at a 23% discount to our fair value estimate. The company reported annual revenue of CNY 159.1 billion, ...
- Jay Lee
Shanghai Pharmaceuticals Faces Increasing Margin Pressure; FVE Lowered...
Shanghai Pharmaceutical announced annual results that were in line with our expectations, with organic revenue growth and net profit on top of our full-year estimates. However, core operating margins and profit fell below our expectations due to higher SG&A costs. We lower our fair value estimate to HKD 22.5 per H-share from HKD 24.0 and CNY 19.5 per A-share from CNY 21.0. The H-shares trade at a 23% discount to our fair value estimate. The company reported annual revenue of CNY 159.1 billio...
- Jay Lee
Morningstar | Fudan Zhangjiang Applies for Listing in China; Chinese H...
On March 11, Shanghai Fudan Zhangjiang Bio-Pharmaceutical, or FD-ZJ, announced plans to issue A shares on the Sci-Tech Innovation Board at the Shanghai Stock Exchange. This announcement caused FD-ZJ’s share price to rally 26% and galvanized the entire Chinese healthcare sector. Narrow-moat Shanghai Pharmaceuticals Holding owns 23% of FD-ZJ; SPH’s A shares rallied 10%, although its H shares experienced a modest increase of 4%. While we believe SPH’s H shares are undervalued, this listing an...
- Jay Lee
Fudan Zhangjiang Applies for Listing in China; Chinese Healthcare Stoc...
On March 11, Shanghai Fudan Zhangjiang Bio-Pharmaceutical, or FD-ZJ, announced plans to issue A shares on the Sci-Tech Innovation Board at the Shanghai Stock Exchange. This announcement caused FD-ZJ’s share price to rally 26% and galvanized the entire Chinese healthcare sector. Narrow-moat Shanghai Pharmaceuticals Holding owns 23% of FD-ZJ; SPH’s A shares rallied 10%, although its H shares experienced a modest increase of 4%. While we believe SPH’s H shares are undervalued, this listing an...
- Jay Lee
Morningstar | SPH Company report, 2019-03-08
SPH is a vertically integrated drug distributor that also operates a large drug manufacturer and retail pharmacy chain. Chinese healthcare industries have grown faster than gross domestic product, or GDP, and will continue to grow due to aging demographics, increased urbanization, a larger middle class, and rising disease rates.Distribution is 65% of operating profit as of 2017. After SPH's acquisition of Cardinal’s China operations, it will be the second-largest distributor in China. Over 65%...
- Jay Lee
SPH Company report, 2019-03-08
Shanghai Pharmaceuticals Holding Co, or SPH, announced third-quarter results that for the most part were on top of our expectations. We maintain our fair value estimate of HKD 24.0 per share, or a 2018 adjusted P/E of 14 times and an enterprise value/EBITDA of 8 times. We believe the H-share market is pricing this company at approximately a 30% discount to our evaluation. After adjusting for our estimates of the integration of Cardinal Health’s China operations, revenue is flat to the same per...
- Jay Lee
Morningstar | Shanghai Pharmaceutical’s Earnings in Line, Interest E...
Shanghai Pharmaceuticals Holding Co, or SPH, announced third-quarter results that for the most part were on top of our expectations. We maintain our fair value estimate of HKD 24.0 per share, or a 2018 adjusted P/E of 14 times and an enterprise value/EBITDA of 8 times. We believe the H-share market is pricing this company at approximately a 30% discount to our evaluation. After adjusting for our estimates of the integration of Cardinal Health’s China operations, revenue is flat to the same pe...
- Jay Lee
Shanghai Pharmaceutical’s Earnings in Line, Interest Expenses Warran...
Shanghai Pharmaceuticals Holding Co, or SPH, announced third-quarter results that for the most part were on top of our expectations. We maintain our fair value estimate of HKD 24.0 per share, or a 2018 adjusted P/E of 14 times and an enterprise value/EBITDA of 8 times. We believe the H-share market is pricing this company at approximately a 30% discount to our evaluation. After adjusting for our estimates of the integration of Cardinal Health’s China operations, revenue is flat to the same per...
- Jay Lee
Morningstar | Initiating Coverage of SPH With Narrow Moat Rating, FVE ...
We initiate coverage on Shanghai Pharmaceuticals Holding Co Ltd, or SPH (HK: 2607, SSE: 601607) with a narrow moat rating and a fair value estimate of HKD 24.00 per share. This implies a 2018 adjusted P/E of 14 times and an enterprise value/EBITDA ratio of 8 times. The market is currently pricing SPH at a 27% discount to our fair value estimate. SPH is a top three drug distributor in China and is vertically integrated with a large drugmaking segment and a retail distribution franchise. The larg...
- Jay Lee
Morningstar | Initiating Coverage of SPH With Narrow Moat Rating, FVE ...
We initiate coverage on Shanghai Pharmaceuticals Holding Co Ltd, or SPH (HK: 2607, SSE: 601607) with a narrow moat rating and a fair value estimate of HKD 24.00 per share. This implies a 2018 adjusted P/E of 14 times and an enterprise value/EBITDA ratio of 8 times. The market is currently pricing SPH at a 27% discount to our fair value estimate. SPH is a top three drug distributor in China and is vertically integrated with a large drugmaking segment and a retail distribution franchise. The larg...
- Jay Lee
Initiating Coverage of SPH With Narrow Moat Rating, FVE of HKD 24.00 p...
We initiate coverage on Shanghai Pharmaceuticals Holding Co Ltd, or SPH (HK: 2607, SSE: 601607) with a narrow moat rating and a fair value estimate of HKD 24.00 per share. This implies a 2018 adjusted P/E of 14 times and an enterprise value/EBITDA ratio of 8 times. The market is currently pricing SPH at a 27% discount to our fair value estimate. SPH is a top three drug distributor in China and is vertically integrated with a large drugmaking segment and a retail distribution franchise. The large...
- Jay Lee
Initiating Coverage of SPH With Narrow Moat Rating, FVE of HKD 24.00 p...
We initiate coverage on Shanghai Pharmaceuticals Holding Co Ltd, or SPH (HK: 2607, SSE: 601607) with a narrow moat rating and a fair value estimate of HKD 24.00 per share. This implies a 2018 adjusted P/E of 14 times and an enterprise value/EBITDA ratio of 8 times. The market is currently pricing SPH at a 27% discount to our fair value estimate. SPH is a top three drug distributor in China and is vertically integrated with a large drugmaking segment and a retail distribution franchise. The large...
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