- Sinopharm’s net income for the first half of 2024 was 3.70 billion yuan, a decrease of 9.7% from the previous year.
- Revenue came in at 294.73 billion yuan, down 2.1% year-over-year, missing the estimated 310.42 billion yuan.
- Operating profit decreased by 14% year-over-year to 8.22 billion yuan.
- The gross margin for the period was 7.45%, a slight drop from 7.73% the previous year.
- The interim dividend per share remained at 0 RMB cents, unchanged from the previous year.
- Analyst recommendations include 17 buys, 2 holds, and no sells.
Sinopharm Group Co Ltd H on Smartkarma
Analysts on Smartkarma are closely monitoring Sinopharm Group Co Ltd H, as discussed in the research report by Tina Banerjee. Titled “Sinopharm Group (1099 HK): Sequential Recovery in 4Q23; Bleak Near-Term Outlook,” the report highlights the company’s revenue and profit growth in the fourth quarter of 2023. Despite this positive trend, the sector’s future prospects are dim due to an ongoing anti-corruption campaign. With subdued revenue growth and stagnant margins, the upside potential for Sinopharm Group Co Ltd H may be limited.
The insight by Tina Banerjee underscores the challenges facing Sinopharm, particularly its distribution business, which is still feeling the impact of the anti-corruption initiatives. The report notes that while there has been some revenue growth, the margins are either stagnant or declining for Sinopharm. With a significant portion of revenue coming from low-margin pharmaceutical distribution, the outlook for the company in the near term remains uncertain. Analysts are cautious about Sinopharm’s performance in the first half of 2024 given these prevailing challenges in the sector.
A look at Sinopharm Group Co Ltd H Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.2 |
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
Based on Smartkarma Smart Scores, Sinopharm Group Co Ltd H is poised for a strong long-term outlook. With top scores in Value and Dividend, the company indicates solid financial health and a commitment to rewarding shareholders. Additionally, scoring well in Growth and Momentum, Sinopharm shows potential for future expansion and market performance. Despite a slightly lower score in Resilience, the overall outlook remains positive for this pharmacy distribution company.
Sinopharm Group Co Ltd H, a pharmacy distribution company with diversified holdings in logistics, retail stores, pharmaceutical manufacturing, and chemical testing, showcases impressive scores in key areas such as Value, Dividend, Growth, and Momentum. This indicates a robust foundation for continued success and growth in the long term, offering investors a promising opportunity in the pharmaceutical sector.
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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