Sino Biopharmaceutical (1177.HK)
Healthcare · HKEX · Hong Kong
Fundamentals
Valuation and ratings
Sino Biopharmaceutical trades at HK$4.93, which is 18% above the HK$4.02 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 68 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 34.6 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 Sino Biopharmaceutical
Sino Biopharmaceutical Limited, an investment holding company, operates as a research and development pharmaceutical conglomerate in the People's Republic of China. It operates through three segments: Modernised Chinese Medicines and Chemical Medicines, Investment, and Others. The company offers oncology medicines, including anlotinib hydrochloride capsules under Focus V brand, penpulimab injection under Annike brand, efbemalenograstin alfa injection under Yilishu brand, benmelstobart injection under Andewei brand, unecritinib fumarate capsules under Anboni brand, envonalkib citrate capsule under Anluoqing brand, garsorasib tablets under Anfangning brand, bevacizumab injection under Anbeisi brand, culmerciclib capsule under Saitanxin brand, zongertinib tablets under Hernexeos brand, rovadicitinib tablet under Anxu brand,rituximab injection under Delituo brand, trastuzumab for injection under Saituo brand, and pertuzumab injection, under Paletan brand; liver disease medications, such as magnesium isoglycyrrhizinate injection under Tianqing Ganmei brand and entecavir dispersible tablets under Runzhong brand; and respiratory system medicines comprising budesonide suspension for inhalation under Tianqing suchang brand. It also provides surgery/analgesia medicines, including flurbiprofen cataplasms under the brand Zepolas, limaprost tablets under the brand Kailitong, and recombinant human coagulation factor VIII for injection under the brand Anqixin. In addition, the company develops liver disease drugs, such as Lanifibranor and TQA2225; respiratory system drugs comprising TDI01, TQC2731, TCR1672, TQC3721, and TQH3906; and surgery/analgesia drugs, including PL-5, an antimicrobial peptide, TRD205, an AT2R inhibitor, and TRD208. Further, it is involved in the long-term investments; and healthcare and hospital business. The company was incorporated in 2000 and is headquartered in Wan Chai, Hong Kong.
1177.HK passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Sino Biopharmaceutical (1177.HK) undervalued?
Against our discounted cash flow estimate of HK$4.02, 1177.HK at HK$4.93 is 18% 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 1177.HK's P/E ratio?
1177.HK trades at 34.6 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.