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Kangmei Pharmaceutical

SHSE:600518
Snowflake Description

Fair value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
600518
SHSE
CN¥16B
Market Cap
  1. Home
  2. CN
  3. Pharmaceuticals & Biotech
Company description

Kangmei Pharmaceutical Co., Ltd. produces and sells Chinese medicines in China. The last earnings update was 152 days ago. More info.


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600518 Share Price and Events
7 Day Returns
-0.6%
SHSE:600518
5.4%
CN Pharmaceuticals
-0%
CN Market
1 Year Returns
-70%
SHSE:600518
5.8%
CN Pharmaceuticals
-4.5%
CN Market
600518 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kangmei Pharmaceutical (600518) -0.6% -2.5% -15.2% -70% -83.4% -80.9%
CN Pharmaceuticals 5.4% -1.3% 8% 5.8% 0.8% -0.2%
CN Market -0% -9.3% -3.1% -4.5% -14.2% -23.2%
1 Year Return vs Industry and Market
  • 600518 underperformed the Pharmaceuticals industry which returned 5.8% over the past year.
  • 600518 underperformed the Market in China which returned -4.5% over the past year.
Price Volatility
600518
Industry
5yr Volatility vs Market

600518 Value

 Is Kangmei Pharmaceutical undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kangmei Pharmaceutical to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kangmei Pharmaceutical.

SHSE:600518 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 12.9%
Perpetual Growth Rate 10-Year CN Government Bond Rate 3.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SHSE:600518
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CN Govt Bond Rate 3.2%
Equity Risk Premium S&P Global 6.3%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.691 (1 + (1- 25%) (214.18%))
1.536
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.54
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.2% + (1.536 * 6.33%)
12.92%

Discounted Cash Flow Calculation for SHSE:600518 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kangmei Pharmaceutical is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SHSE:600518 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 12.92%)
2020 3,367.37 Est @ 23.87% 2,982.00
2021 3,962.36 Est @ 17.67% 3,107.33
2022 4,490.49 Est @ 13.33% 3,118.48
2023 4,952.56 Est @ 10.29% 3,045.76
2024 5,356.84 Est @ 8.16% 2,917.37
2025 5,714.36 Est @ 6.67% 2,755.92
2026 6,036.18 Est @ 5.63% 2,577.98
2027 6,332.10 Est @ 4.9% 2,394.86
2028 6,610.18 Est @ 4.39% 2,213.92
2029 6,876.84 Est @ 4.03% 2,039.65
Present value of next 10 years cash flows CN¥27,153.00
SHSE:600518 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥6,876.84 × (1 + 3.2%) ÷ (12.92% – 3.2%)
CN¥72,988.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥72,988.93 ÷ (1 + 12.92%)10
CN¥21,648.26
SHSE:600518 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥27,153.00 + CN¥21,648.26
CN¥48,801.26
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥48,801.26 / 4,973.86
CN¥9.81
SHSE:600518 Discount to Share Price
Calculation Result
Value per share (CNY) From above. CN¥9.81
Current discount Discount to share price of CN¥3.13
= -1 x (CN¥3.13 - CN¥9.81) / CN¥9.81
68.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kangmei Pharmaceutical is available for.
Intrinsic value
>50%
Share price is CN¥3.13 vs Future cash flow value of CN¥9.81
Current Discount Checks
For Kangmei Pharmaceutical to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kangmei Pharmaceutical's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kangmei Pharmaceutical's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kangmei Pharmaceutical's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kangmei Pharmaceutical's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SHSE:600518 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CNY CN¥0.08
SHSE:600518 Share Price ** SHSE (2020-03-27) in CNY CN¥3.13
China Pharmaceuticals Industry PE Ratio Median Figure of 157 Publicly-Listed Pharmaceuticals Companies 31.74x
China Market PE Ratio Median Figure of 3,186 Publicly-Listed Companies 32.75x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kangmei Pharmaceutical.

SHSE:600518 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SHSE:600518 Share Price ÷ EPS (both in CNY)

= 3.13 ÷ 0.08

39.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kangmei Pharmaceutical is overvalued based on earnings compared to the CN Pharmaceuticals industry average.
  • Kangmei Pharmaceutical is overvalued based on earnings compared to the China market.
Price based on expected Growth
Does Kangmei Pharmaceutical's expected growth come at a high price?
Raw Data
SHSE:600518 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 39.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
China Pharmaceuticals Industry PEG Ratio Median Figure of 55 Publicly-Listed Pharmaceuticals Companies 1.6x
China Market PEG Ratio Median Figure of 1,271 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Kangmei Pharmaceutical, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Kangmei Pharmaceutical's assets?
Raw Data
SHSE:600518 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CNY CN¥5.02
SHSE:600518 Share Price * SHSE (2020-03-27) in CNY CN¥3.13
China Pharmaceuticals Industry PB Ratio Median Figure of 174 Publicly-Listed Pharmaceuticals Companies 2.69x
China Market PB Ratio Median Figure of 3,684 Publicly-Listed Companies 2.29x
SHSE:600518 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SHSE:600518 Share Price ÷ Book Value per Share (both in CNY)

= 3.13 ÷ 5.02

0.62x

* Primary Listing of Kangmei Pharmaceutical.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kangmei Pharmaceutical is good value based on assets compared to the CN Pharmaceuticals industry average.
X
Value checks
We assess Kangmei Pharmaceutical's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Kangmei Pharmaceutical has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

600518 Future Performance

 How is Kangmei Pharmaceutical expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kangmei Pharmaceutical has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.5%
Expected Pharmaceuticals industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kangmei Pharmaceutical expected to grow at an attractive rate?
  • Unable to compare Kangmei Pharmaceutical's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Kangmei Pharmaceutical's earnings growth to the China market average as no estimate data is available.
  • Unable to compare Kangmei Pharmaceutical's revenue growth to the China market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SHSE:600518 Future Growth Rates Data Sources
Data Point Source Value (per year)
China Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 23.5%
China Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 18.4%
China Market Earnings Growth Rate Market Cap Weighted Average 21%
China Market Revenue Growth Rate Market Cap Weighted Average 15.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SHSE:600518 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SHSE:600518 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SHSE:600518 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-09-30 15,209 4,740 479
2019-06-30 17,881 3,503 732
2019-03-31 19,365 -898 1,098
2018-12-31 19,356 -3,192 1,135
2018-09-30 12,559 -11,004 -312
2018-06-30 13,924 -10,403 487
2018-03-31 15,317 -7,809 1,341
2017-12-31 17,579 -4,840 2,150
2017-09-30 24,701 2,467 3,900
2017-06-30 23,701 2,564 3,726
2017-03-31 22,911 2,484 3,419
2016-12-31 21,642 1,603 3,340

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Kangmei Pharmaceutical is high growth as no earnings estimate data is available.
  • Unable to determine if Kangmei Pharmaceutical is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SHSE:600518 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Kangmei Pharmaceutical Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SHSE:600518 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SHSE:600518 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-09-30 0.08
2019-06-30 0.12
2019-03-31 0.18
2018-12-31 0.18
2018-09-30 -0.06
2018-06-30 0.09
2018-03-31 0.24
2017-12-31 0.39
2017-09-30 0.74
2017-06-30 0.71
2017-03-31 0.67
2016-12-31 0.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Kangmei Pharmaceutical will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Kangmei Pharmaceutical is trading at Kangmei Pharmaceutical'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Kangmei Pharmaceutical's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Pharmaceuticals & Biotech companies here
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Kangmei Pharmaceutical's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the China market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the China market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kangmei Pharmaceutical has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

600518 Past Performance

  How has Kangmei Pharmaceutical performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kangmei Pharmaceutical's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kangmei Pharmaceutical's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Kangmei Pharmaceutical has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Kangmei Pharmaceutical has become profitable in the last year making it difficult to compare the CN Pharmaceuticals industry average.
Earnings and Revenue History
Kangmei Pharmaceutical's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kangmei Pharmaceutical Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SHSE:600518 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 15,208.92 479.20 2,501.17 103.93
2019-06-30 17,881.32 732.13 2,518.77 121.48
2019-03-31 19,365.26 1,097.50 2,483.47 129.45
2018-12-31 19,356.23 1,135.19 2,376.46 136.82
2018-09-30 12,558.67 -311.98 3,064.20 152.64
2018-06-30 13,923.84 486.85 2,752.52 204.70
2018-03-31 15,316.57 1,340.64 2,599.04 170.30
2017-12-31 17,578.62 2,149.84 2,477.88 141.41
2017-09-30 24,700.79 3,899.64 1,817.75 90.74
2017-06-30 23,701.19 3,725.92 1,815.61
2017-03-31 22,911.27 3,419.13 1,700.97
2016-12-31 21,642.32 3,340.40 1,604.09
2016-09-30 21,067.47 3,240.98 1,467.00
2016-06-30 20,205.19 3,089.86 1,388.61
2016-03-31 18,950.25 2,927.70 1,293.81
2015-12-31 18,066.83 2,756.73 1,254.21
2015-09-30 17,827.31 2,895.18 1,121.88
2015-06-30 17,252.40 2,692.08 1,084.59
2015-03-31 16,754.96 2,512.90 1,023.34
2014-12-31 15,949.19 2,285.88 967.86
2014-09-30 15,458.64 1,991.07 963.93
2014-06-30 15,014.90 1,962.00 942.91
2014-03-31 14,232.96 1,912.99 915.41
2013-12-31 13,358.73 1,879.82 861.90
2013-09-30 12,746.09 1,821.75 831.40
2013-06-30 12,157.59 1,677.76 776.89
2013-03-31 11,936.02 1,594.52 749.92

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kangmei Pharmaceutical has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kangmei Pharmaceutical used its assets less efficiently than the CN Pharmaceuticals industry average last year based on Return on Assets.
  • Kangmei Pharmaceutical's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kangmei Pharmaceutical's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kangmei Pharmaceutical has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

600518 Health

 How is Kangmei Pharmaceutical's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kangmei Pharmaceutical's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kangmei Pharmaceutical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kangmei Pharmaceutical's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kangmei Pharmaceutical's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kangmei Pharmaceutical Company Filings, last reported 5 months ago.

SHSE:600518 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 28,026.69 33,343.88 483.39
2019-06-30 28,076.77 33,462.61 478.38
2019-03-31 28,522.17 35,163.01 1,048.01
2018-12-31 28,300.03 35,789.98 1,839.20
2018-09-30 34,717.27 36,976.00 37,788.46
2018-06-30
2018-03-31 33,601.19 29,640.48 36,640.02
2017-12-31 28,515.36 27,176.94 4,207.12
2017-09-30 31,147.58 24,896.20 32,766.78
2017-06-30 30,100.42 23,462.04 28,647.75
2017-03-31 30,241.50 22,616.54 29,819.64
2016-12-31 29,383.13 20,640.94 27,325.14
2016-09-30 28,570.49 19,682.63 26,059.23
2016-06-30 27,732.67 15,991.72 22,046.53
2016-03-31 19,804.29 15,511.22 16,419.95
2015-12-31 18,838.44 15,010.21 15,818.34
2015-09-30 18,119.61 10,509.26 12,480.04
2015-06-30 17,466.48 10,106.78 11,929.32
2015-03-31 17,545.69 9,786.73 13,281.32
2014-12-31 16,718.73 7,120.75 9,985.27
2014-09-30 12,961.55 6,921.17 7,225.16
2014-06-30 12,481.63 7,719.50 8,378.71
2014-03-31 12,619.28 8,108.91 8,394.08
2013-12-31 12,030.39 7,867.21 8,497.05
2013-09-30 11,537.75 6,248.42 6,770.42
2013-06-30 11,090.67 6,134.13 7,017.04
2013-03-31 11,156.67 6,219.84 7,145.87
  • Kangmei Pharmaceutical's level of debt (119%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.2% vs 119% today).
  • Debt is not well covered by operating cash flow (14.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Kangmei Pharmaceutical's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kangmei Pharmaceutical has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

600518 Dividends

 What is Kangmei Pharmaceutical's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.77%
Current annual income from Kangmei Pharmaceutical dividends.
If you bought CN¥2,000 of Kangmei Pharmaceutical shares you are expected to receive CN¥15 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kangmei Pharmaceutical's pays a higher dividend yield than the bottom 25% of dividend payers in China (0.45%).
  • Kangmei Pharmaceutical's dividend is below the markets top 25% of dividend payers in China (2%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SHSE:600518 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
China Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 136 Stocks 1.2%
China Market Average Dividend Yield Market Cap Weighted Average of 2578 Stocks 1.9%
China Minimum Threshold Dividend Yield 10th Percentile 0.2%
China Bottom 25% Dividend Yield 25th Percentile 0.4%
China Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SHSE:600518 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
SHSE:600518 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-08-21 0.024 0.672
2018-07-09 0.235 3.194
2017-06-21 0.205 0.937
2016-05-17 0.190 1.098
2015-06-03 0.160 1.005
2014-07-15 0.130 1.375
2013-05-02 0.100 1.128
2012-04-25 0.025 0.329
2012-04-24 0.025 0.379
2011-05-18 0.025 0.373
2010-04-22 0.018 0.226

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Kangmei Pharmaceutical's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Kangmei Pharmaceutical's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kangmei Pharmaceutical afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kangmei Pharmaceutical has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

600518 Management

 What is the CEO of Kangmei Pharmaceutical's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xing Tian Ma
COMPENSATION CN¥810,100
CEO Bio

Mr. Xing Tian Ma has been the Chairman of Kangmei Pharmaceutical Co. Ltd., since May 16, 2012 and served as its General Manager & Managing Director. Mr. Ma has been an Executive Director of Puning Jinxiandian Dangxing Co., Ltd., since August 2010.

CEO Compensation
  • Xing Tian's compensation has increased in line with Kangmei Pharmaceutical recently becoming profitable.
  • Xing Tian's remuneration is about average for companies of similar size in China.
Management Team Tenure

Average tenure of the Kangmei Pharmaceutical management team in years:

6.2
Average Tenure
  • The average tenure for the Kangmei Pharmaceutical management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Xing Tian Ma

TITLE
Chairman of Board of Directors and General Manager
COMPENSATION
CN¥810K

Dongjin Xu

TITLE
Vice Chairman of Board of Directors and Deputy General Manager
COMPENSATION
CN¥714K

Yi Qing Zhuang

TITLE
Chief Financial Officer
COMPENSATION
CN¥481K
TENURE
7.8 yrs

Guo Xiong Lin

TITLE
Deputy General Manager
COMPENSATION
CN¥714K

Han Yao Ma

TITLE
Deputy GM & Director
COMPENSATION
CN¥331K
TENURE
0.4 yrs

Xi Wei Qiu

TITLE
Deputy General Manager
COMPENSATION
CN¥714K

Jian Hua Li

TITLE
Deputy General Manager
COMPENSATION
CN¥423K
TENURE
4.8 yrs

Min Wang

TITLE
Assistant to the President
COMPENSATION
CN¥716K
TENURE
7.8 yrs

Xu Tang

TITLE
Deputy General Manager
TENURE
0.4 yrs

Qin Peng

TITLE
Assistant to the President
COMPENSATION
CN¥127K
TENURE
7.7 yrs
Board of Directors Tenure

Average tenure of the Kangmei Pharmaceutical board of directors in years:

7.8
Average Tenure
  • The tenure for the Kangmei Pharmaceutical board of directors is about average.
Board of Directors

Dongjin Xu

TITLE
Vice Chairman of Board of Directors and Deputy General Manager
COMPENSATION
CN¥714K
TENURE
7.8 yrs

Han Yao Ma

TITLE
Deputy GM & Director
COMPENSATION
CN¥331K
TENURE
7.8 yrs

Xi Wei Qiu

TITLE
Deputy General Manager
COMPENSATION
CN¥714K
TENURE
7.8 yrs

Jia Qian Luo

TITLE
Chairman of Supervisory Committee
COMPENSATION
CN¥143K
TENURE
9.8 yrs

Xing Tian Ma

TITLE
Chairman of Board of Directors and General Manager
COMPENSATION
CN¥810K
TENURE
7.8 yrs

Zhen Ping Jiang

TITLE
Independent Director
COMPENSATION
CN¥101K
TENURE
4.8 yrs

Jian Sheng Li

TITLE
Director
COMPENSATION
CN¥79K
AGE
52

Da Hao Lin

TITLE
Director
COMPENSATION
CN¥359K
TENURE
7.8 yrs

Hong Zhang

TITLE
Independent Director
COMPENSATION
CN¥37K
TENURE
5.9 yrs

Ding'an Li

TITLE
Independent Director
COMPENSATION
CN¥74K
AGE
74
TENURE
7.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CN¥) Value (CN¥)
X
Management checks
We assess Kangmei Pharmaceutical's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kangmei Pharmaceutical has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

600518 News

Simply Wall St News

600518 Company Info

Description

Kangmei Pharmaceutical Co., Ltd. produces and sells Chinese medicines in China. It also offers chemical medicines and food products; and operates hospitals and Chinese medicine pharmacies. The company was founded in 1997 and is headquartered in Puning, China.

Details
Name: Kangmei Pharmaceutical Co., Ltd.
600518
Exchange: SHSE
Founded: 1997
CN¥15,568,187,042
4,973,861,675
Website: http://www.kangmei.com.cn
Address: Kangmei Pharmaceutical Co., Ltd.
East side of Jieshen Road,
Liusha,
Puning,
Guangdong Province, 515300,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SHSE 600518 Domestic Shares Shanghai Stock Exchange CN CNY 19. Mar 2001
XSSC 600518 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 19. Mar 2001
Number of employees
Current staff
Staff numbers
12,596
Kangmei Pharmaceutical employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 14:48
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2019/04/30
Last earnings filing: 2019/10/29
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.