Sinopharm 1099

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Not vested

DJ MARKET TALK: Sinopharm's Expansion Plan On Track - GuocoCapital

1147 [Dow Jones] STOCK CALL: GuocoCapital says Sinopharm's (1099.HK) share price has underperformed the H-share index by 6% since the release of disappointing financial results March 23.

It also underperformed the H-share index by about 20% since October when Shanghai Pharmaceuticals (601607.SH), one of its main competitors, announced plans for a listing in HK. But it believes the company's fundamentals remain sound, with its expansion plan on track.

"Five large-scale distributors, all ranked in the top 100 largest drug distributors in China, were acquired in 2010. The company had completed more than 12 significant acquisitions year-to-date reflecting an acceleration in the pace of expansion," the house says. It keeps the stock at Buy, with a target at HK$34.10 (30X FY12 P/E).


Source: Dow Jones Newswire

[winston]

Not vested. PE 30; Forward PE 20x ?

DJ MARKET TALK: Sinopharm +12.6%; 2H Outlook Positive -SHKF

1125 [Dow Jones] Sinopharm (1099.HK) is up 12.6% at HK$18.88, on a rebound after the stock fell 26.2% month-to-Wednesday, which likely priced in its slightly below-consensus results.

Its 1H11 net profit rose 23% on-year to CNY784 million, marking 48% of FY11 net profit forecast based on Thomson Reuters.

"I think the outlook over the second half of the year is expected to be positive as demand for pharmaceutical products is expected to remain strong in China, while Sinopharm is not expected to be affected by concerns over global economic outlook ahead," says Daniel So, analyst at Sun Hung Kai Financial.

But he adds, its valuation is not particularly attractive at around 20X FY11 P/E.

Separately, Citigroup notes the net profit was higher than its forecast of CNY777 million, but below the consensus forecast of CNY817 million due to higher-than-expected operating and finance costs.

Finance costs were significantly higher at CNY392 million in 1H11 vs CNY156 million in 1H10, due to a 307% on-year increase in total borrowings, which could pressure earnings performance in 2H11 and beyond, it says. It keeps the stock at Buy with a target of HK$40.00.

Source: Dow Jones Newswire

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not vested

DJ MARKET TALK: Sinopharm To Report 20% Organic Growth For 2011 - CS

1126 [Dow Jones] STOCK CALL: Credit Suisse says despite bearish consensus expectations, the house expects around 20% organic growth for Sinopharm (1099.HK) in 2011.

"With slower but still ongoing M&A, we remain confident that Sinopharm could deliver more than 30% top line growth in 2011.

We do expect net margin to trend down slightly in 2011, but it may stabilize in the coming years."

The house tips Sinopharm's 3Q11 revenue and net profit growth to be similar to 1H11's on-year rise of 48.4% and 22.9%, respectively.

It keeps the stock at Outperform with a HK$30.00 target. The stock is up 1.8% at HK$20.00.

Source: Dow Jones Newswire

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not vested

DJ MARKET TALK: UBS Cuts Sinopharm Target To HK$25.00 Vs HK$36.50

1427 [Dow Jones] STOCK CALL: UBS cuts Sinopharm (1099.HK) target to HK$25.00 from HK$36.50, after lowering its FY11-13 EPS forecasts 21.3%, 19.0% and 17.1% respectively to reflect higher margin pressure assumptions.

"We expect the pharmaceutical distribution sector to face both short-term (due to pharmaceutical price cuts) and long-term gross margin pressure."

But it keeps the stock at Buy as it believes Sinopharm is well financed after raising HK$8.4 billion from a private placement in May and a bond offering in August.

The stock is down 3.2% at HK$19.60, while the HSI is down 4.4%.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Sinopharm +2.4%; Solid Revenue,Stable Net Margin-UBS

1132 [Dow Jones] Sinopharm (1099.HK) is up 2.4% at HK$20.05, supported by its results, with 9M11 net profit rising 30% on-year to CNY1.24 billion, marking up about 80% of the FY11 net profit forecast based on Thomson Reuters.

UBS says Sinopharm's 3Q revenue, up 41% on-year, was better than the house's expectation, while its net margin remained stable during 3Q11 at 2.52% vs 2.51% in 1H11, due to lower-than-expected financing cost and tax rate.

"Financing cost was 0.6% of revenue in 3Q11, vs 0.72% in 1H11, likely due to reduced cash conversation from account receivables given Sinopharm's significantly increased cash position from financing during 1H11."

It keeps the stock at Buy with a target of HK$25.00.

Source: Dow Jones Newswire

[winston]

not vested

SINOPHARM (01099) maintained OP with TP HK$28 by CS
2012-05-02

Credit Suisse reported on SINOPHARM (01099) stating its Outperform rating and target $28 with the following details:

Sinopharm reported its 1Q12 results on 30 April 2012, based on Chinese accounting standards. Revenue grew 47% YoY to Rmb32.9 bn while net profit was up 14% YoY to Rmb458.9 mn.

Assuming flat QoQ growth in 2Q12 to 4Q12, FY12 will achieve 29% YoY growth, in line with company guidance of 20-24% organic growth. We expect actual FY12 growth to be around 26%.

Gross margin came in flat at 8.28% in FY11 versus 8.22% in 1Q12; however, net margins eroded to 1.39% in 1Q12 from 1.54% in FY11, mainly because of rising debt level from two rounds of interim note issues in May and August 2011, respectively. However, the QoQ net margin slightly improved to 1.39% in 1Q12 against 1.25% in 4Q11.

Maintain OUTPERFORM. It is trading at 23x FY12E EPS with limited premium to peers. We maintain our TP of HK$28 based on 28x FY12E EPS, as Sinopharm is still the best proxy in China’s healthcare market. Net operating cash flow remains a main risk factor.

Source: AAStocks Financial News

[winston]

Sinopharm taps wider reach for healthier show

Sinopharm Group (1099), China's largest pharmaceutical distributor, earned a net profit of 959 million yuan (HK$117 million) in the first half , up 22 percent from a year earlier due to faster expansion of the industry.

Revenue reached 66.6 billion yuan, up 39 percent from a year earlier.

Pharmaceutical distribution - the firm's largest contributor to revenue - rose 40 percent to hit 62.9 billion yuan.

As of June 30, the company had 50 distribution centers in 30 provinces in the mainland, from where it sold products directly to 9,993 hospitals - or 70 percent of the total nationwide.

Total operating profit was 2.6 billion yuan.

The gross profit margin stabilized at 8.19 percent.

Sinopharm did not recommend an interim dividend.

http://www.thestandard.com.hk/news_deta ... 20824&fc=8

[winston]

<Result Ann>SINOPHARM (01099.HK) 1H net profit up 27%

SINOPHARM (01099.HK) announced first-half 2014 results.

Net profit rose 17.24% yearly to RMB1.465 billion, better than the market estimates of RMB1.36 billion.

EPS was RMB0.57, and no interim dividend was declared.

During the period, turnover climbed 18.45% yearly to RMB94.836 billion.

Gross profit escalated 24.23% yearly to RMB7.857 billion, with a gross margin of 8.28%, up 0.38 percentage points as compared with the year-ago period.

Source: AAStocks Financial News

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not vested

<Result Ann>SINOPHARM Half Year Net Profit Up 32.15%

SINOPHARM (01099.HK) announced that for the interim period as of the end of June, net profit rose 32.15% yearly to RMB2.529 billion.

EPS equaled RMB0.91; no interim dividend was declared.

During the period, turnover rose 13.35% yearly to RMB125.888 billion; gross profit rose 11.86% yearly to RMB10.223 billion.

Source: AAStocks Financial News

[winston]

China

China's aging population and the ongoing government-sponsored health care reform, offer huge growth opportunities to pharmaceutical companies.

Last year, health care expenditure rose to 3.93 trillion yuan (HK$4.53 trillion) from 2.43 trillion in 2011.

Under the reform, sale of pharmaceutical products from manufacturers to hospitals will be confined to a single level of distributors.

This scheme will benefit the largest pharmaceutical distributors, particularly Sinopharm Group (1099).

Sinopharm said its profit for the first half to June this year spiked by 32.15 percent to 2.5 billion yuan, while turnover rose by 13.35 percent to 125.8 billion yuan.

Citigroup set its target price for Sinopharm at HK$47 and has a "buy" rating on the stock.


Source: Dr Check, The Standard