Sino Biopharmaceutical Ltd
01177: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$9.84 | Gmjnq | Lldvcfqd |
Sino Biopharm’s Q2 Core Operating Profit in Line; Shares Fairly Valued
Narrow-moat Sino Biopharmaceuticals, or SBP, reported second-quarter earnings that were in line with our expectations. Revenue for the quarter was CNY 7.1 billion, or 10% year-on-year growth, which is lower than our expectation given that it enjoys a comparison with a low base from the pandemic. However, gross profit margin jumped 5 percentage points, which brings operating profit in line with our estimate. We maintain our fair value estimate of HKD 6.50 per share, and view the stock as fairly priced right now.