Why We Think Sino Biopharmaceutical Limited (HKG:1177) Could Be Worth Looking At

In this article:

Sino Biopharmaceutical Limited (HKG:1177) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 1177, it is a company with great financial health as well as a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Sino Biopharmaceutical here.

Solid track record with excellent balance sheet

1177 delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 29%, which is what investors like to see! 1177's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 1177 manages its cash and cost levels well, which is a crucial insight into the health of the company. 1177 seems to have put its debt to good use, generating operating cash levels of 1.52x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

SEHK:1177 Income Statement, August 19th 2019
SEHK:1177 Income Statement, August 19th 2019

Next Steps:

For Sino Biopharmaceutical, I've put together three essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 1177’s future growth? Take a look at our free research report of analyst consensus for 1177’s outlook.

  2. Valuation: What is 1177 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1177 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1177? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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