CSPC Pharmaceutical Group (1093.HK)
Healthcare · HKEX · Hong Kong
Fundamentals
Valuation and ratings
CSPC Pharmaceutical Group trades at HK$8.54, which is 55% above the HK$3.87 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 63 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 20.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About CSPC Pharmaceutical Group
CSPC Pharmaceutical Group Limited, an investment holding company, engages in the manufacture and sale of pharmaceutical products in Mainland China, other Asian regions, Europe, North America, and internationally. It operates through Finished Drugs, Bulk Products, and Functional Food and Others segments. The company provides NBP soft capsules and injections for acute ischemic stroke; Oulaining capsules and injections to treat mild to moderate memory and mental impairment; Enxi to treat adult idiopathic Parkinson's disease; Duomeisu for lymphoma, multiple myeloma, ovarian and breast cancers, and other malignant tumors; Jinyouli to prevent infection induced by chemotherapy; and Keaili for breast cancer. It also offers Shuluoke, Nuomoling, Weihong, and Xinweihong for various infections; Xuanning for hypertension; Encun to prevent atherosclerotic thrombosis events; Qixiao to treat upper respiratory tract infection; Linmeixin and Shuanglexin for diabetes; Gubang and Gubangjia to treat osteoporosis in postmenopausal women; and Gaoshunsong for arthritis, osteoarthritis, ankylosing spondylitis, frozen shoulder, bursuitis, tenosynovitis, acute gout, dysmenorrhea, toothache and postoperative pain, low back pain, sprain, strain, and other soft tissue injuries. In addition, the company provides Debixin for various ulcer; Qimaite for acute and chronic pains; antibiotics, vitamin C, and caffeine APIs; functional food products; and healthcare services. It has a strategic collaboration with AstraZeneca PLC to advance the discovery and development of novel oral candidates, with the potential to treat diseases across multiple indications and multiple therapies for obesity and type 2 diabetes. The company was formerly known as China Pharmaceutical Group Limited and changed its name to CSPC Pharmaceutical Group Limited in March 2013. CSPC Pharmaceutical Group Limited was incorporated in 1992 and is headquartered in Shijiazhuang, the People's Republic of China.
1093.HK passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is CSPC Pharmaceutical Group (1093.HK) undervalued?
Against our discounted cash flow estimate of HK$3.87, 1093.HK at HK$8.54 is 55% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 1093.HK's P/E ratio?
1093.HK trades at 20.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.