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9989:HKEXShenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H Analysis

Data as of 2026-03-17 - not real-time

¥3,984.00

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Sundrug Co.,Ltd. is trading at 3,984 JPY, notably below its 20‑day SMA of 4,091 JPY and the 50‑day SMA of 4,161 JPY, signaling a bearish technical backdrop. The RSI sits at 39, hinting at near‑oversold conditions, while the MACD histogram remains negative, reinforcing the downtrend. Support is identified around 3,889 JPY and resistance near 4,310 JPY, with volume trending upward despite a current volume that lags its 10‑day average.
Fundamentally, the stock appears undervalued with a trailing PE of 14.7 versus an industry average of 26.4, and it offers an attractive 3.35% dividend yield supported by a 48% payout ratio. However, the company carries a high debt‑to‑equity ratio of 17.6, and both operating and free cash flow are reported as zero, raising concerns about cash generation. Volatility stands at 18% over the past month, beta is exceptionally low at 0.018, and the market sentiment index reads “Extreme Greed” at 81, suggesting a potential disconnect between price action and broader market optimism.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price below short‑term moving averages indicating bearish bias
  • RSI near oversold territory suggesting limited downside
  • Increasing volume providing some buying interest

Medium Term

1–3 years
Neutral
Model confidence: 7/10

Key Factors

  • Undervalued PE relative to industry peers
  • Solid dividend yield with sustainable payout ratio
  • High debt level and zero cash flow creating earnings volatility

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • Attractive valuation gap and dividend income
  • Potential for balance‑sheet improvement given net cash position
  • Low market beta and stable Japanese healthcare retail environment

Key Metrics & Analysis

Financial Health

Profit Margin3.74%
P/E Ratio14.7
ROE11.50%
ROA6.39%
Debt/Equity17.56
P/B Ratio1.7
Industry P/E26.4

Technical Analysis

TrendBearish
RSI39.5
Support¥3,889.00
Resistance¥4,310.00
MA 20¥4,091.45
MA 50¥4,161.14
MA 200¥4,360.62
MACDBearish
VolumeIncreasing
Fear & Greed Index81

Valuation

Target Price¥5,027.14
Upside/Downside26.18%
GradeUndervalued
TypeValue
Dividend Yield3.35%

Risk Assessment

Beta0.02
Volatility18.09%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.