Skip to Content

3SBio Inc 01530

Rating as of

Morningstar’s Analysis

Valuation
Currency in HKD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

3SBio’s Full Year Results in Line, Shares Undervalued but Margin Pressure and Growth Remain Concerns

Jay Lee Equity Analyst

Analyst Note

| Jay Lee |

Narrow-moat 3SBio reported revenue and earnings that were in line with our expectations. Our fair value estimate is unchanged at HKD 11.70 per share. 3SBio’s pipeline is still early-stage, and slowing growth in the existing portfolio and pressure on margins will continue to weigh on sentiment for the foreseeable future. However, shares are trading at a 40% discount to our fair value and near the five-year lows, and we generally believe that a price below HKD 7.00 offers considerably more upside than downside.

Read Full Analysis

Company Profile

Business Description

3SBio Inc, or 3SBio, is one of the largest and most established biotech drugmakers in China. In 2020, it reported revenue of CNY 5.6 billion. Approximately 75% of its revenue is derived from three core drugs: TPIAO (rhTPO), Yisaipu (biosimilar of etanercept, a TNF-alpha inhibitor), and EPIAO (rhEPO), which are all older generation biologics. The company has a pipeline of 32 products, of which 22 are biologics and 10 are small molecules, but most of the candidates are still early-stage.

Contact
No. 3 A1, Road 10, Shenyang Economy and Technology Development Zone
Shenyang, 110027, Cayman Islands
T +86 2425386000
Sector Healthcare
Industry Biotechnology
Most Recent Earnings
Fiscal Year End Dec 31, 2021
Stock Type
Employees 5,584

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.