Image Source: Sinopharm Group Co. Ltd. () was founded in 2003 and listed on the Hong Kong Stock Exchange in September 2009.Its main business is drug distribution in mainland China, which contributes about 75% of total revenue. It is the largest drug distributor, with approximately 20% market share.Other notable segments are medical device distribution, which contributes about 20% of revenue, and retail pharmacies, which contributes about 5%.These are fast-growing industries, where government policy is designed to encourage consolidation and promote large players with scale and efficiency advantages.The company is headquartered in Shanghai, the People’s Republic of China.Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd.Three key data points gauge Sinopharm or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.SHTDY PriceOver the past year, Sinopharm’s share price rose about 20% from $10.26 to $12.36 as of Monday’s market close.If Sinopharm’s stock trades in the range of $10.00 to $15.00 this next year, its recent $12.36 share price might rise to $14.00 by next year. Of course, SHTDY’s price could drop about the same $1.64 estimated amount or more.My upside estimate of $1.64, however, is a few cents less than the average annual price gain by Sinopharm over the past twelve months.SHTDY DividendSinopharm has paid variable Annual dividends since August 22, 2014. Sinopharm’s most recent A dividend, of $0.57 was paid on August 29 to shareholders of record on June 15th. The forward-looking $.57 annual dividend yields 4.64% at Monday’s share price.SHTDY ReturnsPutting it all together, we add the estimated forward-looking annual dividend of $0.57 to my estimated price upside of $1.64 and find a $2.21 gross gain.At Monday’s $12.36 closing price, a little over $1000 would buy 81 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.12 per share.Subtracting that likely $0.12 brokerage cost from the $2.21 estimated gross gain per share produces a net gain of $2.09 X 81 shares = $169.29 or about a 16.9% net gain.You might choose to pounce on Sinopharm Group Co. Ltd. shares. SHTDY is the largest Chinese drug distributor. Furthermore, the estimated $46.40 dividend income from $1k invested is over 3.75 times greater than Monday’s price of a single share.The fate of Sinopharm’s ongoing future price and dividend is yet to be determined.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:
Current Analysis: Sinopharm Group
