Sinopharm Group Co Ltd
01099: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$45.60 | Rsypq | Jwtfvtvg |
Sinopharm's Third Quarter in Line and Showing Signs of Recovery; Shares Undervalued
Narrow-moat Sinopharm reported third-quarter results that were in line with our expectation, showing signs of improvement after a rough second quarter. Revenue for the quarter was CNY 144.9 billion, or 9.6% year-on-year growth, which is better than the first half which only grew 5.0% year on year due to the effects of COVID-19-related restrictions. Net profit margin for the third quarter and the first nine months were 1.49% and 1.44%, respectively. Despite China’s lockdowns, these margins have been reasonably stable both year on year and sequentially.