Narrow-moat Sinopharm’s 2023 revenue grew 8.0% year over year, largely in line with our forecast of 7.7%. Net profit did beat our estimate, but this was due to lesser minority interest. While core performance was well within our projection, we marginally lower our fair value estimate to HKD 29.40 per share from HKD 30.70, after some slight tweaks to our margin assumptions.
Sinopharm offers more value-added services, raising operating margin.
The current cycle of interest-rate cuts in China reverses, leading to higher short-term interest servicing costs for Sinopharm.
|
Metric
|
01099
|
CAH
|
MCK
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.73 | 15.09 | 19.11 |
Price/Book Value | 0.82 | — | — |
Price/Sales | 0.10 | 0.12 | 0.24 |
Price/Cash Flow | 3.41 | 10.75 | 15.65 |
|
Metric
|
01099
|
CAH
|
MCK
|
|---|---|---|---|
Quick Ratio | 1.05 | 0.43 | 0.48 |
Current Ratio | 1.39 | 0.98 | 0.92 |
Interest Coverage | 7.35 | 18.37 | 14.72 |
|
Metric
|
01099
|
CAH
|
MCK
|
|---|---|---|---|
Return on Assets (Normalized) | 4.43% | 3.89% | 6.00% |
Return on Equity (Normalized) | 24.34% | — | — |
Return on Invested Capital (Normalized) | 9.74% | 89.85% | 66.76% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
MCK
| McKesson Corp | Gczxysymk | Mjrjdvh | $71.0 Bil | |
COR
| Cencora Inc | Ywmmfmq | Nzcmk | $48.0 Bil | |
CAH
| Cardinal Health Inc | Xylzlqsv | Gvltb | $25.1 Bil | |
SHTDF
| Sinopharm Group Co Ltd | — | Lmfqqh | $8.6 Bil | |
SHTDY
| Sinopharm Group Co Ltd ADR | — | Njtrrr | $8.6 Bil | |
SHPMF
| Shanghai Pharmaceuticals Holding Co Ltd Class H | — | Lxqdjbw | $8.2 Bil | |
SHPMY
| Shanghai Pharmaceuticals Holding Co Ltd ADR repr Class H | — | Zcfcgz | $8.2 Bil | |
AMFPF
| Amplifon SpA Az nom Post Frazionamento | — | Knhzfc | $7.6 Bil | |
MEPDF
| Medipal Holdings Corp | — | Pddky | $3.3 Bil | |
MAHLY
| Medipal Holdings Corp ADR | — | Fpz | $3.3 Bil |
