| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.49 | 137 |
| Intrinsic value (DCF) | 10.49 | -23 |
| Graham-Dodd Method | 6.94 | -49 |
| Graham Formula | 21.95 | 60 |
Pacific Shuanglin Bio-pharmacy Co., Ltd. is a prominent Chinese pharmaceutical company specializing in the development, manufacturing, and sale of plasma-derived biopharmaceuticals and traditional Chinese medicine products. Headquartered in Taiyuan, China, the company operates at the intersection of biochemical engineering and medical materials, with a diverse product portfolio that includes critical blood plasma products like human serum albumin, various immunoglobulins (including rabies, hepatitis B, and tetanus), and coagulation factors. The company also maintains a significant presence in traditional medicine with products such as Tianqi analgesic cream and musk-based formulations. Formerly known as Southern Shuanglin Bio-pharmacy Co., Ltd., the company rebranded in April 2021 to reflect its expanded scope and strategic direction. Operating in China's rapidly growing healthcare sector, Pacific Shuanglin leverages its expertise in both modern biopharmaceuticals and traditional remedies to address diverse medical needs. The company's additional ventures in pharmaceutical equipment, real estate development, and technology consulting demonstrate a diversified approach to growth within the healthcare ecosystem.
Pacific Shuanglin presents a compelling investment case with strong profitability metrics, including a net income of CNY 745 million on revenue of CNY 2.65 billion, translating to a healthy net margin of approximately 28%. The company's diluted EPS of CNY 1.02 and dividend per share of CNY 0.419 indicate shareholder-friendly capital allocation. However, investors should note the significant capital expenditures (CNY -521 million) that exceeded operating cash flow (CNY 322 million), suggesting aggressive investment in growth projects. The company maintains a conservative financial position with cash reserves of CNY 1.32 billion against total debt of CNY 632 million, providing financial flexibility. The beta of 0.673 suggests lower volatility compared to the broader market, which may appeal to risk-averse investors in the pharmaceutical sector. Key risks include regulatory changes in China's healthcare sector, competition in plasma-derived products, and the capital-intensive nature of biopharmaceutical manufacturing.
Pacific Shuanglin competes in China's specialized pharmaceutical market with a dual focus on plasma-derived biologics and traditional Chinese medicine. The company's competitive positioning is strengthened by its diverse product portfolio that spans both modern biopharmaceuticals and established traditional remedies, providing revenue diversification. In the plasma products segment, Pacific Shuanglin benefits from regulatory barriers that limit new entrants, given the stringent requirements for plasma collection and processing facilities. The company's development pipeline including porcine pulmonary surfactants and coagulation factors demonstrates commitment to expanding its biologic offerings. However, Pacific Shuanglin faces intense competition from larger domestic players with greater scale in plasma fractionation and international companies with advanced technological capabilities. The traditional medicine business provides a competitive moat through established brand recognition and distribution networks, though this segment faces competition from numerous smaller traditional medicine manufacturers. The company's relatively moderate market capitalization of approximately CNY 16.5 billion positions it as a mid-tier player in China's pharmaceutical landscape, requiring strategic focus on niche biologic products and regional distribution strengths to compete effectively against larger rivals. The capital expenditure intensity suggests ongoing investments to enhance manufacturing capabilities and maintain competitive positioning.