Exploring the Dividend Performance and Sustainability of Sino Biopharmaceutical Ltd (SBMFF, Financial)
Sino Biopharmaceutical Ltd (SBMFF) has recently declared a dividend of $0.03 per share, scheduled for payment on July 5, 2024, with an ex-dividend date of June 11, 2024. This announcement has directed investor attention towards the company's dividend history, yield, and growth rates. This analysis, using data from GuruFocus, will delve into the dividend performance of Sino Biopharmaceutical Ltd and evaluate its sustainability.
Company Overview
Sino Biopharmaceutical Ltd, a prominent entity on the Hong Kong Stock Exchange since 2000, has transitioned from a generic drug manufacturer to an innovative drugmaker following China's volume-based procurement policy initiated in 2018. As of 2023, innovative and biosimilar drugs contribute 37.8% to its revenue, with oncology being the largest segment at 33.6%. Other significant areas include hepatitis, surgery/analgesia, respiratory, and cardio-cerebral vascular treatments.
Dividend History and Payment Frequency
Sino Biopharmaceutical Ltd has consistently paid dividends since 2014, adopting a bi-annual distribution schedule. The chart below illustrates the historical trends in the company's Dividends Per Share.
Dividend Yield and Growth Analysis
The current trailing dividend yield of Sino Biopharmaceutical Ltd stands at 2.77%, with a forward dividend yield projected at 1.73%, indicating potential decreases in dividend payments over the next year. Over the past three years, the company has achieved an annual dividend growth rate of 13.80%, which escalates to 17.10% over five years, and an impressive 19.20% over the past decade. The 5-year yield on cost for Sino Biopharmaceutical Ltd stock is approximately 6.10%.
Examining Dividend Sustainability
The dividend payout ratio, currently at 0.73, suggests a substantial portion of earnings is distributed as dividends, potentially questioning the sustainability of future payments. However, the company's profitability rank is favorable at 8 out of 10, supported by consistent positive net income over the past decade, indicating robust profitability.
Future Growth Prospects
With a growth rank of 8 out of 10, Sino Biopharmaceutical Ltd demonstrates promising growth potential. However, its revenue per share growth rate of 1.10% annually slightly underperforms against 54.37% of global competitors. Moreover, the 3-year EPS growth rate has declined by an average of -8.70% annually, and the 5-year EBITDA growth rate also shows a decline of -2.80%, underperforming against 67.79% of global competitors.
Conclusion: Dividend Outlook
While Sino Biopharmaceutical Ltd exhibits strong historical dividend growth and a solid profitability rank, concerns about its payout sustainability and underwhelming growth metrics could influence future dividend reliability. Investors should weigh these factors carefully against their investment strategy. For those seeking high-dividend yield opportunities, the High Dividend Yield Screener on GuruFocus could be a valuable resource.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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