| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.87 | 41 |
| Intrinsic value (DCF) | 11.62 | -43 |
| Graham-Dodd Method | 8.67 | -58 |
| Graham Formula | 15.35 | -25 |
Shandong Pharmaceutical Glass Co., Ltd is a leading Chinese manufacturer specializing in pharmaceutical glass packaging and butyl rubber products. Founded in 1970 and headquartered in Zibo, China, the company produces a comprehensive range of pharmaceutical-grade glass containers including molded injection vials, ampoules, tubular glass vials, and borosilicate glass products. The company serves critical needs in the pharmaceutical, food, and cosmetic packaging industries with products that require strict quality standards for drug safety and preservation. With expanding international reach, Shandong Pharmaceutical Glass exports to Europe, the United States, Russia, Japan, Korea, and Southeast Asia, positioning itself as a key player in the global pharmaceutical packaging supply chain. The company's integrated product portfolio, which includes prefilled syringes, rubber stoppers, and various closure systems, makes it an essential supplier to healthcare and consumer goods manufacturers worldwide.
Shandong Pharmaceutical Glass presents a stable investment opportunity with defensive characteristics in the pharmaceutical packaging sector. The company demonstrates solid financial health with CNY 942.99 million net income on CNY 5.13 billion revenue, representing healthy margins. With a low beta of 0.298, the stock shows lower volatility than the broader market, appealing to risk-averse investors. The company's strong operating cash flow of CNY 1.17 billion supports its dividend payment of CNY 0.62 per share and ongoing capital expenditures. However, investors should monitor exposure to regulatory changes in pharmaceutical packaging standards and potential competition from alternative packaging materials. The company's international expansion provides growth opportunities but also exposes it to global economic fluctuations and trade dynamics.
Shandong Pharmaceutical Glass maintains a strong competitive position in China's pharmaceutical packaging market through its specialized expertise in glass manufacturing and integrated product offerings. The company's competitive advantage stems from its decades of experience in pharmaceutical-grade glass production, which requires stringent quality control and regulatory compliance. Its vertical integration, producing both glass containers and complementary rubber stoppers, provides customers with complete packaging solutions and creates cross-selling opportunities. The company's export capabilities to regulated markets like Europe and the US demonstrate its ability to meet international quality standards, differentiating it from many domestic competitors. However, the company faces competition from both domestic Chinese manufacturers and multinational packaging companies with broader global footprints and more diversified product portfolios. The shift toward alternative materials like plastic and advanced polymers in pharmaceutical packaging represents a long-term competitive threat that requires ongoing innovation and adaptation. The company's focus on borosilicate glass, which offers superior chemical resistance and stability for sensitive pharmaceuticals, provides a technical barrier to entry for less specialized competitors.