Jiangsu Hengrui Pharmaceuticals (600276.SS)

Healthcare · Shanghai · China

CN¥53.83+14.56% today

Fundamentals

Market capCN¥370.02B

P/E ratio45.7

Dividend yield0.36%

Revenue growth (YoY)+13.0%

Profit margin24.9%

Return on equity14.5%

52-week rangeCN¥45.26 to CN¥74.04

Valuation and ratings

DCF fair valueCN¥34.71

Upside to fair value-35.5%

Moat score85/100

Overall rating44/100, Reduce

Jiangsu Hengrui Pharmaceuticals trades at CN¥53.83, which is 36% above the CN¥34.71 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 85 out of 100, which is a wide moat. 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 45.7 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 Jiangsu Hengrui Pharmaceuticals

Jiangsu Hengrui Pharmaceuticals Co.,Ltd, a pharmaceutical company, researches, develops, manufactures, and commercializes medicines to address unmet clinical needs in China and internationally. The company develops medicines in the areas of oncology, metabolic and cardiovascular, immunological and respiratory, neuroscience, pain management, infectious, respiratory system, hematological, ophthalmology, and autoimmune and other diseases. The company was founded in 1970 and is headquartered in Lianyungang, China.

Industry: Drug Manufacturers - Specialty & GenericEmployees: 20,602HQ: China

600276.SS passes 5 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

Fortress balance sheets

Companies that owe almost nothing. They will survive things that kill their competitors, and they can buy the wreckage afterwards.

Healthcare and pharma

Drug companies are engines that convert one expiring monopoly into the next. The patent cliff is the whole investment case.

China and Hong Kong

Enormous growth, and a structure in which you may not legally own the company you think you bought. Both are true at once.

Mega-cap leaders

The largest companies on earth. Enormously profitable, exhaustively analysed, and mathematically constrained in how much bigger they can get.

Common questions

Is Jiangsu Hengrui Pharmaceuticals (600276.SS) undervalued?

Against our discounted cash flow estimate of CN¥34.71, 600276.SS at CN¥53.83 is 36% 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 600276.SS's P/E ratio?

600276.SS trades at 45.7 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.