| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.04 | -28 |
| Intrinsic value (DCF) | 40.20 | 3 |
| Graham-Dodd Method | 5.90 | -85 |
| Graham Formula | 5.73 | -85 |
ChengDu ShengNuo Biotec Co., Ltd. is a specialized pharmaceutical company focused on the peptide drug market, operating from its headquarters in Chengdu, China. Founded in 2001 and publicly traded on the Shanghai Stock Exchange's STAR Market, ShengNuo Biotec engages in the comprehensive research, development, production, and sale of peptide-based pharmaceuticals. The company's product portfolio includes peptide active pharmaceutical ingredients (APIs) and various finished dosage forms such as tablets, freeze-dried powder injections, small-volume injections, pre-filled injections, and card-type injections. Operating within the specialized and generic drug manufacturing sector, ShengNuo Biotec leverages China's growing pharmaceutical infrastructure to serve both domestic and international markets through its export operations. The company's focus on peptide therapeutics positions it in a niche but growing segment of the healthcare industry, targeting treatments that often address complex metabolic disorders, hormonal imbalances, and other specialized medical conditions. As China continues to strengthen its pharmaceutical capabilities and regulatory framework, ShengNuo Biotec represents a specialized player in the country's evolving biopharmaceutical landscape with potential for expansion in both generic and innovative peptide drug development.
ChengDu ShengNuo Biotec presents a specialized investment opportunity in China's peptide pharmaceutical sector with several notable considerations. The company maintains a modest market capitalization of approximately 6.38 billion CNY and demonstrates profitability with net income of 50 million CNY on revenue of 456 million CNY, translating to a diluted EPS of 0.44 CNY. However, concerning signals include negative free cash flow evidenced by operating cash flow of 25.3 million CNY being substantially outweighed by capital expenditures of 247.5 million CNY, indicating significant ongoing investment requirements. The company pays a dividend of 0.14 CNY per share, providing some income component, but investors should monitor the sustainability of this payout given the cash flow dynamics. With a beta of 0.928, the stock demonstrates slightly less volatility than the broader market, potentially appealing to risk-averse investors seeking exposure to China's pharmaceutical sector. The balance sheet shows adequate liquidity with 218.7 million CNY in cash against 382.2 million CNY in total debt, though the debt level warrants attention given the current cash flow profile.
ChengDu ShengNuo Biotec operates in the specialized peptide drug manufacturing segment, competing in a niche but increasingly competitive market. The company's competitive positioning relies on its vertical integration from API production to finished dosage forms, allowing for cost control and quality management throughout the manufacturing process. As a China-based peptide specialist, ShengNuo Biotec benefits from the country's growing pharmaceutical manufacturing capabilities and potentially lower production costs compared to international peers. However, the company faces significant competition from both domestic Chinese pharmaceutical companies expanding into peptide therapeutics and multinational corporations with established peptide drug portfolios. The competitive landscape requires continuous R&D investment to maintain relevance, particularly as peptide therapeutics become more sophisticated and targeted. ShengNuo's presence on the STAR Market provides access to capital markets supportive of innovation-driven companies, which could be advantageous for funding future growth initiatives. The company's export operations suggest some international competitiveness, though it likely competes primarily in the domestic Chinese market where regulatory knowledge and distribution networks provide home-field advantages. The substantial capital expenditures indicate ongoing investment in capacity and capabilities, which is necessary to remain competitive but also pressures profitability in the near term. Success will depend on the company's ability to develop commercially successful products, navigate China's evolving pharmaceutical regulations, and effectively compete against larger players with greater resources.