3 Charts Showing Sino Biopharm’s Solid Track Record of Growth

Sino Biopharmaceutical Limited (SEHK: 1177) is one of China’s best growth stories. The pharmaceutical giant has seen its stock rise more than 20-fold in just 10 years. Here are three charts illustrating the group’s impressive track record and its diverse product offering.

Revenue growth

Sino Biopharm has managed to grow its top line at an impressive compounded annual rate of 21% from 2014 to 2018.

Source: Sino Biopharmaceutical 2018 Annual Report

The chart above shows the revenue growth over the last five years. As you can see, the group’s sales have grown in each of the last five years and even accelerated in 2018. The pharmaceutical giant also a portfolio of drugs in the pipeline that could continue to drive sales growth for the next few years.

Profit growth

Equally importantly, the higher sales haves translated to profit growth. From 2014 to 2018, the group’s operating profit increased by an annualised compounded rate of 27%.

Source: Sino Biopharmaceutical 2018 Annual Report

The chart above shows its profit track record from 2014 to 2018. As you can see, similar to the revenue chart, there has been a consistent increase in profit over the last five years.

Diversified portfolio

The last chart illustrates the pharma giant’s wide portfolio of products.

Source: Sino Biopharmaceutical 2018 Annual Report

From the chart, we can see that Sinopharm is not overly reliant on any single product. It has four products that contribute more than RMB 1 billion (US$142.6 million) in sales and another eight that account for between RMB 500 million to RMB 1 billion.

In addition, some of its newer products, that have contributed less than RMB 1 billion in sales, are growing fast.

Foolish conclusion

Sino Biopharm has been one of the fastest-growing pharmaceutical companies in China. The group’s emphasis on research and development (R&D) has enabled it to keep churning out new products to increase its portfolio.

Moreover, with a wide base of products in the pipeline, and some of its recently-released products still in the high-growth phase, it looks likely that Sino Biopharm can extend its winning streak of growth for the foreseeable future.

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本文所提供的信息僅供一般參考之用,並不構成任何個人化的投資勸誘或建議。作者沒持有以上提及的股票。
HK MoneyClub (www.hkmoneyclub.com)