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HK Equities · Finance research note

HKEX 4332 - Amgen Inc.

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Evidence and analysis

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2. Company Fundamentals

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.) N/A
Risk / Std Dev (Ann.) N/A

Price Snapshot:

Metric Value
Last Price N/A
Day Change N/A (N/A%)

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in HK$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue HK$36.75B HK$33.42B
Net income Reported net income HK$7.71B HK$4.09B
Total assets Year-end reported balance HK$90.59B HK$91.84B
Shareholders’ equity Year-end reported balance HK$8.66B HK$5.88B
Net margin Net income ÷ revenue 20.98% 12.24%
Asset turnover Revenue ÷ total assets 0.4057x 0.3639x
Equity multiplier Total assets ÷ shareholders’ equity 10.4627x 15.6269x
ROE Net margin × asset turnover × equity multiplier 89.06% 69.59%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue HK$36.75B
Prior annual revenue HK$33.42B
EBIT HK$11.73B
Tax rate 14.09%
NOPAT = EBIT × (1 − tax rate) HK$10.08B
Forecast start-growth basis 9.95%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT HK$10.08B
Add: depreciation & amortisation HK$5.17B
Less: capital expenditure -HK$1.86B
Less/(add): working-capital cash-flow movement -HK$1.98B
Current unlevered FCFF HK$11.41B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 9.95% HK$11.08B HK$5.68B -HK$2.04B -HK$2.17B HK$12.54B HK$11.96B
2 8.09% HK$11.98B HK$6.14B -HK$3.19B -HK$2.35B HK$12.58B HK$10.91B
3 6.23% HK$12.72B HK$6.52B -HK$4.43B -HK$2.50B HK$12.31B HK$9.72B
4 4.36% HK$13.28B HK$6.81B -HK$5.72B -HK$2.61B HK$11.76B HK$8.44B
5 2.50% HK$13.61B HK$6.98B -HK$6.98B -HK$2.67B HK$10.94B HK$7.14B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.00
Cost of equity 10.21%
Pre-tax cost of debt 4.80%
WACC 9.94%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value HK$150.77B
Implied terminal EV / EBITDA 6.61x
Terminal value as % of enterprise value 66.09%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF HK$48.18B
Present value of terminal value HK$93.89B
Indicated enterprise value HK$142.07B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value HK$142.07B
Less: gross interest-bearing debt HK$54.60B
Add: cash and equivalents HK$9.13B
Add: affiliate investments HK$0.00
Less: minority interests HK$0.00
Indicated common equity value HK$96.59B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 535,177,984.00
Share-count basis reported shares outstanding; option/RSU dilution data not separately available
Current market price HK$1,850.00
DCF indicative value per share HK$180.48
Indicative value vs. market price -90.24%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:09:07.929782 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Factor-model exception: No verified adjusted-close issuer series is available for factor regression. No Fama–French loading or alpha estimate is published on an incomplete basis.

Factor models are descriptive in-sample exposure diagnostics, not forecasts, investment recommendations, or estimates of future returns. This is research and analysis only, not personalized financial advice.

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