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Sino Biopharmaceutical Ltd 01177

HKD 2.70 −0.11 (3.91%)
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Company Report

Sino Biopharmaceutical Has a Strong Sales Footprint, but Pipeline Needs More Differentiation

Sino Biopharmaceutical, or SBP, is one of the four "Big Pharma" drugmakers in China, and operates in a fast-growing and rapidly changing environment. Drug manufacturing is growing faster than the gross domestic product, and we project it to grow at high single digits over the next decade. Additionally, the industry is undergoing massive regulatory change. The most impactful policy is centralized procurement, which is drastically cutting prices for commonly used chemical generics and has hurt SBP's growth.

Bulls Say, Bears Say

Bulls

High growth industry with supportive government policy for innovative R&D and high-quality manufacturing.

Bears

Among its peers, SBP has suffered the most from centralized procurement.

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Trading Information

Previous Close Price
HKD 2.81
Day Range
HKD 2.702.81
52-Week Range
HKD 2.294.41
Bid/Ask
HKD 2.70 / HKD 2.71
Market Cap
HKD 50.74 Bil
Volume/Avg
85.1 Mil / 53.3 Mil

Key Statistics

Price/Earnings (Normalized)
18.06
Price/Sales
1.73
Dividend Yield (Trailing)
2.85%
Dividend Yield (Forward)
2.85%
Total Yield
3.83%

Company Profile

Sino Biopharmaceutical Co, or SBP, is one of the largest drugmakers in China, with CNY 27 billion revenue in 2021. Its four most important therapeutic areas are oncology, hepatitis, cardio-cerebral, and respiratory medicines. SBP’s current portfolio is mostly generics, and some key drugs are facing severe price reductions. However, it also has a rich pipeline of early-to-market generics and biosimilars, especially in oncology and respiratory treatments.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Large Core
Total Number of Employees
25,806

Competitors

Valuation

Metric
01177
01093
01801
Price/Earnings (Normalized)
18.0611.10
Price/Book Value
1.512.115.06
Price/Sales
1.732.218.69
Price/Cash Flow
7.539.66
Price/Earnings
01177
01093
01801

Financial Strength

Metric
01177
01093
01801
Quick Ratio
0.902.322.59
Current Ratio
1.052.633.00
Interest Coverage
11.55276.31−15.20
Quick Ratio
01177
01093
01801

Profitability

Metric
01177
01093
01801
Return on Assets (Normalized)
6.88%14.29%−2.13%
Return on Equity (Normalized)
14.74%19.78%−3.97%
Return on Invested Capital (Normalized)
9.20%17.91%−4.85%
Return on Assets
01177
01093
01801
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