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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/GP

4.2
Current
170%
More Expensive
vs 3-y average of 1.6

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
4.2
=
Enterprise Value
HK$13.4B
/
Gross Profit
¥2.8B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
4.2
=
Enterprise Value
HK$13.4B
/
Gross Profit
¥2.8B

Valuation Scenarios

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

If EV/GP returns to its 3-Year Average (1.6), the stock would be worth HK$5.87 (63% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-63%
Maximum Upside
+222%
Average Upside
48%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 4.2 HK$15.88
0%
3-Year Average 1.6 HK$5.87
-63%
5-Year Average 2.3 HK$8.54
-46%
Industry Average 7.6 HK$28.44
+79%
Country Average 13.6 HK$51.1
+222%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
CN
YiChang HEC ChangJiang Pharmaceutical Co Ltd
HKEX:1558
14B HKD 4.2 25.5
US
Eli Lilly and Co
NYSE:LLY
908.9B USD 15.8 36
US
Johnson & Johnson
NYSE:JNJ
547.1B USD 8.7 26
CH
Roche Holding AG
SIX:ROG
248.4B CHF 6.3 20.1
UK
AstraZeneca PLC
LSE:AZN
209.6B GBP 6.2 27.4
CH
Novartis AG
SIX:NOVN
221.1B CHF 7.4 20.7
US
Merck & Co Inc
NYSE:MRK
277.6B USD 6 31.1
IE
Endo International PLC
LSE:0Y5F
244.4B USD 160.7 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 5.3 12.1
US
Pfizer Inc
NYSE:PFE
149.7B USD 4.2 19.3
US
Bristol-Myers Squibb Co
NYSE:BMY
118.9B USD 530.2 4 516.9

Market Distribution

Lower than 85% of companies in China
Percentile
15th
Based on 6 967 companies
15th percentile
4.2
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

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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