• Sinopharm reported a net income of 1.42 billion yuan in the first quarter of 2024, which is down 11% from the same period last year.
• The company’s operating revenue for this quarter stands at 147.3 billion yuan, marking a 1.2% increase compared to the first quarter of the previous year.
• Sinopharm’s earnings per share (EPS) were reported as 46 RMB cents, which is less than the 51 RMB cents per share recorded in the same period last year.
• Analysts show confidence in the company, with 17 buying recommendations, 2 holds, and 0 sell recommendations.
• The comparisons made are based on values reported by the company in its original disclosures.
Sinopharm Group Co Ltd H on Smartkarma
Analyst coverage of Sinopharm Group Co Ltd H on Smartkarma reveals a cautious sentiment among independent analysts. According to Tina Banerjee, Sinopharm reported revenue and profit growth in 4Q23. However, the sector outlook remains grim due to the ongoing anti-corruption campaign impacting the distribution business. Despite mid-single digit revenue growth, stagnant margins and continued campaign effects could limit upside potential for the company in the near term.
Xinyao (Criss) Wang further adds to the analysis, noting that Sinopharm’s weak performance in 23Q1-Q3 was attributed to the anti-corruption campaign, leading to below-expectation results. The outlook for 2024H1 is expected to remain challenging, with single-digit growth projections for revenue and net profit. While some recovery is anticipated in 23Q4, the pressure on performance is likely to persist through 2024H1, influenced by the lingering effects of the anti-corruption measures.
A look at Sinopharm Group Co Ltd H Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
A recent analysis of Sinopharm Group Co Ltd H utilizing the Smartkarma Smart Scores reveals a promising long-term outlook for the company. With top scores in Value and Dividend, and solid scores in Growth and Momentum, Sinopharm Group Co Ltd H appears to be well-positioned for future success. The company’s diversified portfolio, which includes pharmacy distribution, logistics, retail stores, pharmaceutical manufacturing, and chemical testing, lends to its overall resilience in the market.
Sinopharm Group Co Ltd H‘s strong performance in key areas such as Value, Dividend, and Momentum, coupled with its strategic positioning across various industries, suggests a positive trajectory for the company in the long run. Despite facing some challenges in the Resilience factor, Sinopharm Group Co Ltd H‘s overall outlook remains favorable, reflecting its solid foundation and potential for sustained growth in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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