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Stock Analysis & ValuationTianjin Chase Sun Pharmaceutical Co.,Ltd (300026.SZ)

Professional Stock Screener
Previous Close
$3.63
Sector Valuation Confidence Level
High
Valuation methodValue, $Upside, %
Artificial intelligence (AI)26.20622
Intrinsic value (DCF)1.37-62
Graham-Dodd Method2.80-23
Graham Formula0.03-99

Strategic Investment Analysis

Company Overview

Tianjin Chase Sun Pharmaceutical Co., Ltd. is a prominent Chinese pharmaceutical company founded in 1996 and headquartered in Tianjin. Specializing in the research, development, production, and marketing of a diverse portfolio, the company operates within China's expansive healthcare sector, focusing on drug manufacturers specializing in specialty and generic medicines. Its product range includes traditional Chinese herb preparations, medicinal granules, synthetic drugs, biotech pharmaceuticals, medical apparatus, and innovative Internet-based therapy solutions. The company's R&D efforts target critical therapeutic areas such as sepsis, pulmonary hypertension, leukemia, cardiovascular and cerebrovascular diseases, arthritis, and ischemic stroke, positioning it at the forefront of addressing China's growing healthcare needs. With a market capitalization of approximately CNY 11.7 billion, Tianjin Chase Sun leverages its integrated business model from research to commercialization to serve the Chinese pharmaceutical market, contributing to the nation's healthcare infrastructure while navigating the competitive generic and specialty drug landscape.

Investment Summary

Tianjin Chase Sun Pharmaceutical presents a mixed investment profile with several notable considerations. The company operates in China's large and growing pharmaceutical market, benefiting from demographic trends and healthcare expansion. However, with diluted EPS of just CNY 0.01 on revenue of CNY 5.78 billion, profitability appears challenged despite substantial revenue generation. The company maintains a reasonable debt level with total debt of CNY 656.6 million against cash equivalents of CNY 1.31 billion, and positive operating cash flow of CNY 852.2 million suggests operational viability. The beta of 1.17 indicates higher volatility than the market, which may concern risk-averse investors. The modest dividend yield of CNY 0.03 per share provides some income component, but investors should carefully assess the company's ability to improve margins and navigate China's evolving pharmaceutical regulatory environment.

Competitive Analysis

Tianjin Chase Sun Pharmaceutical operates in the highly competitive Chinese pharmaceutical market, where it must compete with both domestic giants and multinational corporations. The company's competitive positioning is defined by its diversified product portfolio that spans traditional Chinese medicine, modern synthetic drugs, and biotech products. This diversification provides some insulation against market shifts in specific therapeutic areas. The company's involvement in Internet-based therapy represents a forward-looking approach to healthcare delivery, potentially differentiating it from more traditional competitors. However, its relatively modest market capitalization of CNY 11.7 billion suggests it operates as a mid-tier player rather than a market leader. The company's R&D focus on complex conditions like sepsis, pulmonary hypertension, and leukemia indicates ambition in high-value therapeutic areas, but success in these competitive spaces requires substantial investment and expertise. The Chinese pharmaceutical market is characterized by intense price competition, particularly in generic drugs, and evolving regulatory frameworks that can significantly impact profitability. Tianjin Chase Sun's integrated model from research to commercialization provides control over its value chain, but scale limitations may challenge its ability to compete on cost with larger domestic players like CSPC Pharmaceutical or multinational corporations with greater R&D budgets. The company's geographic focus within China provides deep market knowledge but also concentration risk if regulatory or market conditions shift unfavorably.

Major Competitors

  • CSPC Pharmaceutical Group Limited (1093.HK): CSPC is a much larger Chinese pharmaceutical company with strong positions in both traditional Chinese medicine and modern pharmaceuticals. Its significant R&D capabilities and broader product portfolio give it scale advantages over Tianjin Chase Sun. CSPC's stronger international presence and larger manufacturing capacity provide competitive edges, though it faces similar regulatory pressures in the Chinese market. The company's greater financial resources allow for more substantial investment in both research and marketing.
  • Sino Biopharmaceutical Limited (1177.HK): Sino Biopharmaceutical is a major player in China's pharmaceutical sector with extensive experience in both generic and innovative drugs. The company's stronger financial position and broader therapeutic focus create competitive pressure on Tianjin Chase Sun. Sino Biopharmaceutical's established sales network and partnership capabilities provide market access advantages. However, its larger size may create less flexibility compared to mid-sized competitors like Tianjin Chase Sun.
  • Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (2196.HK): Fosun Pharma represents a highly diversified healthcare conglomerate with significant resources across pharmaceuticals, medical devices, and healthcare services. Its global partnerships and acquisition strategy create a vastly different competitive profile from Tianjin Chase Sun's more focused approach. Fosun's international reach and integrated healthcare ecosystem provide substantial advantages, though its complexity may create operational challenges not faced by smaller, more focused competitors.
  • Jiangsu Hengrui Medicine Co., Ltd. (600276.SS): Hengrui Medicine is often considered China's leading innovative drug developer with substantial R&D investments and a strong pipeline of novel therapeutics. Its focus on innovative drugs rather than generics positions it differently from Tianjin Chase Sun's mixed portfolio approach. Hengrui's stronger research capabilities and higher-margin innovative products create competitive pressure, though it faces different market dynamics and regulatory considerations.
  • Yunnan Baiyao Group Co., Ltd. (000538.SZ): Yunnan Baiyao is a dominant player in traditional Chinese medicine with iconic brands and strong consumer recognition. Its focus on TCM creates direct competition with Tianjin Chase Sun's Chinese herb preparation business. Yunnan Baiyao's brand strength and distribution network provide significant advantages, though its more traditional focus may limit growth in modern pharmaceutical segments where Tianjin Chase Sun also competes.
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