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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/OCF

131.8
Current
1 020%
More Expensive
vs 3-y average of 11.8

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
131.8
=
Enterprise Value
HK$13.4B
/
Operating Cash Flow
¥89.4m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
131.8
=
Enterprise Value
HK$13.4B
/
Operating Cash Flow
¥89.4m

Valuation Scenarios

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

If EV/OCF returns to its 3-Year Average (11.8), the stock would be worth HK$1.42 (91% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-98%
Maximum Upside
No Upside Scenarios
Average Downside
89%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 131.8 HK$15.88
0%
3-Year Average 11.8 HK$1.42
-91%
5-Year Average 2.9 HK$0.35
-98%
Industry Average 23.8 HK$2.86
-82%
Country Average 20.8 HK$2.51
-84%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
CN
YiChang HEC ChangJiang Pharmaceutical Co Ltd
HKEX:1558
14B HKD 131.8 25.5
US
Eli Lilly and Co
NYSE:LLY
820.3B USD 51.1 40
US
Johnson & Johnson
NYSE:JNJ
548.5B USD 23.4 26.1
CH
Roche Holding AG
SIX:ROG
248.4B CHF 15.2 20.1
UK
AstraZeneca PLC
LSE:AZN
215.6B GBP 21 27.9
CH
Novartis AG
SIX:NOVN
218.9B CHF 15.3 19.6
US
Merck & Co Inc
NYSE:MRK
272.8B USD 18.5 14.9
IE
Endo International PLC
LSE:0Y5F
244.4B USD 936 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 10.7 11.5
US
Pfizer Inc
NYSE:PFE
152.3B USD 17 19.4
US
Bristol-Myers Squibb Co
NYSE:BMY
116.3B USD 10.6 16.6

Market Distribution

Higher than 90% of companies in China
Percentile
90th
Based on 6 190 companies
90th percentile
131.8
Low
0 — 11.5
Typical Range
11.5 — 39.2
High
39.2 —
Distribution Statistics
China
Min 0
30th Percentile 11.5
Median 20.8
70th Percentile 39.2
Max 266 666.7

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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