Narrow-moat CR Pharma's interim revenue growth is slower than expected, but offset by a higher gross margin due to product mix. We tweak our 2024 annual assumptions accordingly while keeping our long-term outlook unchanged. Our fair value estimate remains at HKD 5.80 per share. We think the share price is fairly valued.
Price cuts for volume-based procurement are more lenient, raising CR Pharma’s operating margin.
The current cycle of interest-rate cuts in China reverses, leading to higher short-term interest servicing costs for CR Pharma.
|
Metric
|
03320
|
01099
|
02607
|
|---|---|---|---|
Price/Earnings (Normalized) | 7.30 | 6.94 | 10.52 |
Price/Book Value | 0.68 | 0.78 | 0.60 |
Price/Sales | 0.13 | 0.10 | 0.16 |
Price/Cash Flow | 2.71 | 3.60 | 4.39 |
|
Metric
|
03320
|
01099
|
02607
|
|---|---|---|---|
Quick Ratio | 1.03 | 1.07 | 1.02 |
Current Ratio | 1.37 | 1.35 | 1.33 |
Interest Coverage | 5.65 | 7.57 | 5.24 |
|
Metric
|
03320
|
01099
|
02607
|
|---|---|---|---|
Return on Assets (Normalized) | 3.88% | 3.87% | 1.90% |
Return on Equity (Normalized) | 21.04% | 21.65% | 5.98% |
Return on Invested Capital (Normalized) | 6.76% | 8.28% | 3.83% |
|
1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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Market Cap
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