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YiChang HEC ChangJiang Pharmaceutical Co Ltd
HKEX:1558

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YiChang HEC ChangJiang Pharmaceutical Co Ltd
HKEX:1558
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Price: 15.88 HKD Market Closed
Market Cap: HK$14B

EV/EBIT

17.6
Current
400%
More Expensive
vs 3-y average of 3.5

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
17.6
=
Enterprise Value
HK$13.4B
/
EBIT
¥669m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
17.6
=
Enterprise Value
HK$13.4B
/
EBIT
¥669m

Valuation Scenarios

YiChang HEC ChangJiang Pharmaceutical Co Ltd is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (3.5), the stock would be worth HK$3.17 (80% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-80%
Maximum Upside
+64%
Average Downside
16%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 17.6 HK$15.88
0%
3-Year Average 3.5 HK$3.17
-80%
5-Year Average 3.5 HK$3.17
-80%
Industry Average 23.4 HK$21.13
+33%
Country Average 28.9 HK$26.05
+64%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
HK$13.4B
/
Jan 2025
¥669m
=
17.6
Current
HK$13.4B
/
Dec 2025
¥1.9B
=
7.2
Forward
HK$13.4B
/
Dec 2026
¥2B
=
6.6
Forward
HK$13.4B
/
Dec 2027
¥2.1B
=
6.4
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
CN
YiChang HEC ChangJiang Pharmaceutical Co Ltd
HKEX:1558
14B HKD 17.6 25.5
US
Eli Lilly and Co
NYSE:LLY
835.2B USD 28.9 40
US
Johnson & Johnson
NYSE:JNJ
547.8B USD 21.2 25.8
CH
Roche Holding AG
SIX:ROG
248.4B CHF 13.4 20.1
UK
AstraZeneca PLC
LSE:AZN
216.7B GBP 21.9 28.1
CH
Novartis AG
SIX:NOVN
218.2B CHF 15.6 19.6
US
Merck & Co Inc
NYSE:MRK
276.9B USD 11.4 15
IE
Endo International PLC
LSE:0Y5F
244.4B USD 970 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 9.8 11.4
US
Pfizer Inc
NYSE:PFE
153.5B USD 10.1 19.6
US
Bristol-Myers Squibb Co
NYSE:BMY
118.2B USD 8.8 16.6

Market Distribution

In line with most companies in China
Percentile
32st
Based on 5 337 companies
32st percentile
17.6
Low
0 — 16.6
Typical Range
16.6 — 52.9
High
52.9 —
Distribution Statistics
China
Min 0
30th Percentile 16.6
Median 28.9
70th Percentile 52.9
Max 49 021

YiChang HEC ChangJiang Pharmaceutical Co Ltd
Glance View

Market Cap
14B HKD
Industry
Pharmaceuticals

YiChang HEC ChangJiang Pharmaceutical Co Ltd, situated in the heart of China's burgeoning biotech industry, operates as a dynamic player within the pharmaceutical landscape. Established as a crucial segment of the larger HEC Group, the company has carved a niche in pharmaceutical manufacturing and research. It specializes primarily in the development and production of antiviral drugs, with a broader portfolio spanning antibiotics, cardiovascular medicines, and various health supplements. This diversification strategy enables YiChang HEC to mitigate risks associated with market fluctuations and position itself resiliently in the ever-evolving world of pharmaceuticals. The company thrives by leveraging its extensive R&D capabilities and stringent quality control measures, which remain at the core of its value proposition, ensuring that each product not only meets but often exceeds global standards. Revenue generation at YiChang HEC hinges on its adeptness at spearheading cutting-edge pharmaceutical innovations while maintaining a robust pipeline of commercially viable products. By strategically investing in research and development, the company nurtures a sustainable growth trajectory, continually capitalizing on the rising global demand for healthcare solutions. The sales from their proprietary antiviral medications contribute significantly to their bottom line, supplemented by revenue from contract manufacturing services, where they harness excess production capacity to manufacture pharmaceuticals for third parties. Additionally, YiChang HEC effectively utilizes an integrated business model that spans from research and production to sales and distribution, thereby optimizing economies of scale and operational efficiency. This comprehensive approach underpins the company's ability to secure a strong foothold both domestically and in international markets.

Intrinsic Value
22.69 HKD
Undervaluation 30%
Intrinsic Value
Price HK$15.88
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