Sino Biopharmaceutical Ltd

01177: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$3.89	Xzw	Rgtzfqvfj

Sino Biopharm’s Q2 Core Operating Profit in Line; Shares Fairly Valued

Jay Lee

Sep 7, 2021

Narrow-moat Sino Biopharmaceuticals, or SBP, reported second-quarter earnings that were in line with our expectations. Revenue for the quarter was CNY 7.1 billion, or 10% year-on-year growth, which is lower than our expectation given that it enjoys a comparison with a low base from the pandemic. However, gross profit margin jumped 5 percentage points, which brings operating profit in line with our estimate. We maintain our fair value estimate of HKD 6.50 per share, and view the stock as fairly priced right now.

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