3SBio (1530) AI Stock Analysis

• Market Cap: HK$27.73B
• Dividend Yield: 3.29%
• Average Volume (3M): 46.59M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.80
• Revenue Growth: 14.36%
• EPS Growth: 33.22%
• Country: HK
• Employees: 5,577
• Sector: Healthcare
• Sector Strength: 50
• Industry: Biotechnology
• EPS (TTM): 0.95
• Shares Outstanding: 2,398,580,800
• 10 Day Avg. Volume: 36,289,860
• 30 Day Avg. Volume: 46,585,766
• PEG Ratio: 0.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$11.43
• Price Target Upside: -1.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

3SBio's strong financial performance, evident in its revenue and profit growth, combined with a solid balance sheet, form the core of its stock strength. Despite some cash flow inconsistencies, the company maintains stable financial health. The stock's upward technical trend and attractive valuation further bolster its overall appeal, though caution is advised due to potential overbought conditions.

Positive Factors

Financial Performance

3SBio delivered a strong performance with revenue increasing 16.5% to RMB9.1bn, driven by the robust growth of TPIAO, Mandi, and other products.

Pipeline Development

3SBio has expanded its pipeline through strategic in-licensing, acquiring four key assets, including Paclitaxel Oral Solution which has received NMPA approval.

Product Growth

TPIAO's sales increased 20.4% to RMB5.1bn, becoming the leading drug in China's thrombocytopenia treatment market, with stable pricing and increasing penetration.

Negative Factors

Market Expectations

2H24 sales were 3% ahead of Morgan Stanley estimates and 5% above VA consensus, thanks to the strength of TPIAO and Mandi.

Strategic Expansion

3SBio seeks to continue to look out for in-licensing opportunities to strengthen its portfolio mix.

3SBio Business Overview & Revenue Model

Company Description

3SBio Inc. is a leading biopharmaceutical company in China, specializing in the research, development, manufacturing, and marketing of biopharmaceutical products. The company primarily focuses on therapeutic areas such as oncology, nephrology, and auto-immune diseases. Its core products include recombinant human erythropoietin (rhEPO) and other innovative biologics, which are significant in treating anemia in cancer patients undergoing chemotherapy and patients with chronic kidney disease.

How the Company Makes Money

3SBio generates revenue through the sale of its biopharmaceutical products, particularly its flagship product, recombinant human erythropoietin (rhEPO), which is extensively used in the treatment of anemia associated with chronic kidney disease and chemotherapy. The company also invests in research and development to expand its product portfolio and pipeline in high-demand therapeutic areas. Collaborations and partnerships with other pharmaceutical companies and research institutions augment its revenue streams by enabling the development and commercialization of new biopharmaceutical products. Additionally, 3SBio leverages its manufacturing capabilities to produce biosimilars and novel biologics, further contributing to its earnings.

3SBio Financial Statement Overview

Summary

3SBio demonstrates robust financial health, with strong revenue and profit growth, solid balance sheet stability, and effective cash management. However, challenges in cash flow consistency due to investment activities need to be addressed to maintain long-term financial strength.

Income Statement

3SBio shows a strong income statement with consistent revenue growth from 2019 to 2024. The gross profit margin is robust, indicating efficient cost management, and the net profit margin has improved significantly over the years, demonstrating enhanced profitability. The EBIT and EBITDA margins are healthy, showcasing strong operational performance.

Balance Sheet

The balance sheet reflects a solid equity base with a decreasing debt-to-equity ratio over the years, signaling improved financial stability. Return on Equity (ROE) is strong, indicating effective utilization of equity. The equity ratio indicates a sound proportion of assets funded by equity, although the increase in total liabilities in recent years suggests a need for cautious financial management.

Cash Flow

Cash flow from operations has been positive, reflecting good cash management and business operations. However, the free cash flow growth is inconsistent due to fluctuating capital expenditures and investing cash flows, which may pose a risk to liquidity. The operating cash flow to net income ratio indicates healthy cash conversion, but the absence of 2024 cash flow data limits full analysis.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.11B	7.82B	6.86B	6.38B	5.59B
	Gross Profit
7.83B	6.64B	5.67B	5.28B	4.52B
	EBIT
2.65B	2.46B	2.38B	1.96B	1.23B
	EBITDA
2.93B	2.53B	2.75B	2.26B	1.59B
	Net Income Common Stockholders
2.09B	1.55B	1.92B	1.65B	835.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.79B	5.99B	7.01B	4.70B	4.36B
	Total Assets
24.21B	23.63B	21.99B	19.21B	17.68B
	Total Debt
3.55B	4.84B	4.47B	2.63B	2.91B
	Net Debt
1.53B	2.15B	2.32B	-174.38M	-176.01M
	Total Liabilities
6.18B	7.11B	6.59B	4.55B	4.58B
	Stockholders Equity
15.44B	14.03B	12.96B	12.23B	10.69B
Cash Flow		Free Cash Flow
0.00	1.38B	1.21B	432.57M	363.09M
	Operating Cash Flow
0.00	2.08B	2.18B	1.58B	1.34B
	Investing Cash Flow
0.00	-1.35B	-3.72B	-1.29B	-1.87B
	Financing Cash Flow
0.00	-352.98M	714.91M	-481.12M	1.55B

3SBio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1530, the sentiment is Positive. The current price of 11.56 is below the 20-day moving average (MA) of 12.24, above the 50-day MA of 10.57, and above the 200-day MA of 7.24, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1530.

3SBio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1530	76 Outperform	HK$27.73B	12.36	14.19%	3.29%	14.36%	33.22%
1093	76 Outperform	$66.04B	14.33	13.20%	5.99%	-9.60%	-27.18%
1513	74 Outperform	$30.26B	10.46	14.56%	5.68%	-5.37%	6.28%
2318	72 Outperform	$928.26B	6.69		5.52%	11.71%	37.04%
1177	66 Neutral	$68.53B	36.10	6.14%	1.56%	7.63%	-24.23%
3320	62 Neutral	HK$31.10B	8.56		5.60%	―	―
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%

3SBio Corporate Events

3SBio’s 707 Injection Receives Breakthrough Therapy Designation in China

3SBio Inc. announced that its anti-VEGF/PD-1 bispecific antibody, known as 707 Injection, has been granted Breakthrough Therapy Designation by China’s National Medical Products Administration for the first-line treatment of PD-L1 positive locally advanced or metastatic non-small cell lung cancer. This designation will accelerate the drug’s development and potential market launch, reflecting 3SBio’s strengthened position in the oncology sector and its commitment to advancing cancer treatment options.

3SBio Announces Strong Financial Results for 2024

3SBio reported a strong financial performance for the year ending December 31, 2024, with a revenue increase of 16.5% to RMB9,108.0 million and a net profit rise of 34.9% to RMB2,090.3 million. The company’s robust growth in revenue and profitability highlights its solid market positioning and potential positive implications for stakeholders, as evidenced by the proposed final dividend of HKD25 cents per share.

3SBio Announces Final Dividend for 2024

3SBio Inc. announced a final ordinary cash dividend of HKD 0.25 per share for the financial year ending December 31, 2024. This announcement, made on March 25, 2025, indicates a stable financial performance and commitment to shareholder returns, with the payment scheduled for August 15, 2025. The dividend reflects the company’s ongoing efforts to enhance shareholder value and its strong position in the biopharmaceutical market.