3SBio (1530) AI Stock Analysis

• Market Cap: HK$65.48B
• Dividend Yield: 0.98%
• Average Volume (3M): 31.12M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.98
• Revenue Growth: 7.51%
• EPS Growth: 44.09%
• Country: HK
• Employees: 5,577
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.62
• Shares Outstanding: 2,538,003,400
• 10 Day Avg. Volume: 32,899,411
• 30 Day Avg. Volume: 31,124,824
• PEG Ratio: 0.16
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 6.27
• 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$42.64
• Price Target Upside: 67.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$32.00 ▲(25.98% Upside)

3SBio's overall stock score is driven by its strong financial performance, characterized by robust revenue and profit growth. However, technical indicators suggest potential short-term weakness, and the high valuation may limit upside potential. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple years indicates a strong market position and effective business strategy, supporting long-term sustainability.

Profitability

Improving net profit margins reflect efficient cost management and strong operational performance, enhancing the company's financial resilience.

Balance Sheet Stability

A decreasing debt-to-equity ratio signals improved financial stability, providing a strong foundation for future growth and investment.

Negative Factors

Cash Flow Consistency

Inconsistent free cash flow growth can pose risks to liquidity and limit the company's ability to invest in new opportunities or weather economic downturns.

Liabilities Increase

Rising liabilities may strain financial resources and necessitate careful management to avoid potential solvency issues.

Cash Flow Data Limitations

Lack of recent cash flow data hampers comprehensive financial analysis, potentially obscuring liquidity challenges or operational inefficiencies.

3SBio Business Overview & Revenue Model

Company Description

3SBio Inc. is a leading biotechnology company based in China that specializes in the research, development, manufacture, and commercialization of biopharmaceuticals. The company primarily focuses on therapeutic proteins, including recombinant human erythropoietin (rhEPO) for treating anemia, and other products targeting hematology, oncology, and autoimmune diseases. 3SBio plays a significant role in the Chinese biopharmaceutical market and is known for its innovative approach to drug development.

How the Company Makes Money

3SBio generates revenue through multiple streams, primarily by selling its proprietary biopharmaceutical products to hospitals and healthcare providers in China. The company earns significant income from the sales of its key products, including its flagship drug, EPO, which is used to treat anemia in patients with chronic kidney disease and cancer. Additionally, 3SBio engages in strategic partnerships and collaborations with other pharmaceutical companies for the development and commercialization of new therapies, which may involve upfront payments, milestone payments, and royalties on sales. The company also invests in research and development to innovate and expand its product pipeline, which can lead to increased market share and revenue growth over time.

3SBio Financial Statement Overview

Summary

3SBio demonstrates robust financial health with strong revenue and profit growth, a solid balance sheet, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.07B	9.11B	7.82B	6.86B	6.38B	5.59B
Gross Profit	7.75B	7.83B	6.64B	5.67B	5.28B	4.52B
EBITDA	2.69B	2.93B	2.53B	2.75B	2.26B	1.68B
Net Income	2.36B	2.09B	1.55B	1.92B	1.65B	835.79M
Balance Sheet
Total Assets	23.83B	24.21B	23.63B	21.99B	19.21B	17.68B
Cash, Cash Equivalents and Short-Term Investments	6.46B	5.79B	5.99B	7.01B	4.70B	4.36B
Total Debt	1.87B	3.55B	4.84B	4.52B	2.63B	2.91B
Total Liabilities	4.89B	6.18B	7.11B	6.59B	4.55B	4.58B
Stockholders Equity	16.32B	15.44B	14.03B	12.96B	12.23B	10.69B
Cash Flow
Free Cash Flow	1.67B	2.24B	1.38B	1.21B	432.57M	363.09M
Operating Cash Flow	2.11B	3.20B	2.08B	2.18B	1.58B	1.34B
Investing Cash Flow	-738.83M	-1.36B	-1.35B	-3.72B	-1.29B	-1.87B
Financing Cash Flow	-1.28B	-2.25B	-352.98M	763.22M	-481.12M	1.55B

3SBio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1530, the sentiment is Negative. The current price of 25.4 is below the 20-day moving average (MA) of 29.32, below the 50-day MA of 29.47, and above the 200-day MA of 23.58, indicating a neutral trend. The MACD of -1.14 indicates Positive momentum. The RSI at 33.45 is Neutral, neither overbought nor oversold. The STOCH value of 13.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1530.

3SBio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1530	68 Neutral	HK$65.48B	24.13	15.34%	0.98%	7.51%	44.09%
2696	66 Neutral	HK$32.96B	36.97	27.37%	―	2.57%	18.79%
2269	63 Neutral	HK$134.33B	29.35	9.79%	―	16.90%	63.11%
1801	61 Neutral	$138.95B	109.79	8.41%	―	52.78%	―
1177	54 Neutral	$115.18B	28.85	11.72%	1.39%	13.69%	50.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1877	38 Underperform	HK$36.45B	-21.91	-15.06%	―	38.56%	48.26%

3SBio Corporate Events

3SBio Announces Strategic Share Placement to Raise HK$3 Billion

3SBio, a company incorporated in the Cayman Islands, has announced a strategic move to place 105,169,500 new shares under a general mandate. The shares will be placed at a price of HK$29.62 per share, representing a discount to recent market prices. This placement is expected to raise approximately HK$3,086.84 million in net proceeds, which could potentially enhance the company’s financial position and market presence. The transaction is contingent upon approval from the Stock Exchange’s Listing Committee, and stakeholders are advised to exercise caution as the deal may not proceed.

3SBio Announces Proposed Spin-Off and Listing of Mandi Inc.

3SBio, a company incorporated in the Cayman Islands, has announced its intention to spin-off and separately list its subsidiary, Mandi Inc., on the Main Board of the Stock Exchange of Hong Kong. This strategic move involves distributing all shares of Mandi held by 3SBio to its shareholders and offering new shares through a global offering. The spin-off aims to allow Mandi to operate independently, with 3SBio ceasing to hold any interest in it post-listing. The proposal is subject to regulatory approvals and market conditions, and stakeholders are advised to exercise caution as the spin-off may not proceed.

3SBio Subsidiary Mandi Inc. Issues Shares Under Equity Incentive Plan

3SBio’s subsidiary, Mandi Inc., has announced the issuance of 640 shares as part of its equity incentive plan to reward directors, senior management, and employees for their contributions. This move will slightly reduce 3SBio’s effective interest in Mandi from 100% to 93.6%, but Mandi will remain a subsidiary. The issuance is seen as a strategic step to sustain business stability and recognize past contributions, aligning with the company’s long-term interests.