Risk factor
Good trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Hunan Er-Kang Pharmaceutical Co., Ltd is a pharmaceutical company that manufactures and sells active pharmaceutical ingredients (APIs), completed drug formulations, and pharmaceutical excipients, serving both the Chinese domestic market and international clients. Its API portfolio features substances such as glycerin, dilute hydrochloric acid, sulbenicillin sodium, calamine powder, sulfadiazine, sulphaguanidine, TMP, and resorcinol. The company's principal finished medications include sulbenicillin sodium for injection and compound liquorice tablets. For conventional pharmaceutical excipients, it provides items like pharmaceutical glycerin, medicinal ethanol, medicinal propylene glycol, medicinal sodium hydroxide, and sucrose. Furthermore, its advanced pharmaceutical excipient offerings encompass hydroxypropyl starch empty capsules, hydroxypropyl starch soft capsules, and citrate along with its related product series. The firm was established in 2003 and is headquartered in Liuyang, China.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is overpriced on P/FCF.