Tianda Pharmaceuticals Ltd. (0455) AI Stock Analysis

• Market Cap: HK$217.15M
• Dividend Yield: N/A
• Average Volume (3M): 84.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -19.28%
• EPS Growth: -42.27%
• Country: HK
• Employees: 701
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.02
• Shares Outstanding: 2,150,041,700
• 10 Day Avg. Volume: 115,400
• 30 Day Avg. Volume: 84,945
• PEG Ratio: -0.04
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -6.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.10 ▼(-24.62% Downside)

The score is primarily held down by weak financial performance, including declining revenue, ongoing losses, and negative operating cash flow. Technical indicators are mixed with only modest near-term improvement against a longer-term downtrend, while valuation is constrained by negative earnings (negative P/E) and no provided dividend yield.

Positive Factors

Diversified revenue streams

A multi-channel revenue model spanning prescription, OTC and traditional Chinese medicines reduces concentration risk and supports resilience. Licensing and distribution agreements expand market reach and provide durable revenue optionality during cyclical downturns or channel shifts.

Manageable leverage

Low-to-moderate leverage preserves financial flexibility and limits interest burden, enabling the firm to fund R&D or operational needs without excessive refinancing risk. This balance sheet positioning supports capital deployment over the next several months despite earnings pressure.

Stable gross margin

A relatively stable gross margin suggests persistent product-level pricing power or controlled COGS, which underpins margin sustainability. If revenue stabilizes, steady gross margins would help restore operating profitability faster than peers with volatile product economics.

Negative Factors

Significant revenue decline

A sustained ~14% revenue drop erodes scale, reduces operating leverage, and can impair investment in R&D and commercial activities. Over 2–6 months this trend pressures fixed-cost absorption and makes a durable recovery more challenging without clear demand-restoration initiatives.

Persistent losses and negative ROE

Ongoing negative profitability and ROE indicate the company is destroying equity value and cannot internally fund growth. Persistent losses constrain reinvestment, may deter partners, and increase the probability of dilutive financing or asset sales if profitability isn't restored.

Negative operating cash flow

Negative cash generation from core operations forces reliance on external financing or balance-sheet adjustments to meet obligations. Over a medium horizon this undermines strategic optionality, increases financing costs, and limits the firm's ability to scale commercialization or sustain R&D spend.

Tianda Pharmaceuticals Ltd. Business Overview & Revenue Model

Company Description

Tianda Pharmaceuticals Limited, an investment holding company, engages in the research and development, production, and sale of pharmaceutical, biotechnology, and healthcare products in Mainland China, Hong Kong, and Australia. Its product range includes Chinese medicines, chemical drugs, biological and health products, and medical appliances covering the area of cardio-cerebrovascular, pediatric, anti-flu and respiratory, anti-infection, detoxification, urological agents, and others. The company offers its health products under the Herb Valley and Tuokang brands. It also engages in the sale and wholesale of Chinese herbal medicines, traditional Chinese medicine decoction pieces and Chinese medicines; provision of Chinese medical services; and trading of agricultural by-products. The company was formerly known as Tianda Holdings Limited and changed its name to Tianda Pharmaceuticals Limited in September 2012. The company was incorporated in 1992 and is headquartered in Central, Hong Kong. Tianda Pharmaceuticals Limited is a subsidiary of Tianda Group Limited.

How the Company Makes Money

Tianda Pharmaceuticals generates revenue through multiple streams, including the sale of prescription medications, OTC products, and traditional Chinese medicine. The company's revenue model is based on direct sales to healthcare providers, pharmacies, and hospitals, as well as distribution agreements with third-party partners. Key revenue streams include the licensing of its proprietary products and formulations, which allows the company to expand its market reach. Additionally, Tianda may benefit from collaborations with research institutions or other pharmaceutical companies that enhance its product development capabilities and market presence. Factors contributing to its earnings also include market demand for its diversified product portfolio and strategic marketing initiatives aimed at increasing brand awareness.

Tianda Pharmaceuticals Ltd. Financial Statement Overview

Summary

Weak fundamentals driven by a sharp revenue decline (-14.23%) and persistent losses (negative net profit and EBIT margins). Balance sheet leverage is moderate (debt-to-equity 0.25), but negative ROE and negative operating cash flow signal continued financial strain.

Income Statement

Tianda Pharmaceuticals Ltd. has experienced a significant decline in revenue, with a negative growth rate of -14.23% in the latest year. The company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains relatively stable, but the overall financial performance is weak due to consistent losses.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.25, indicating a manageable level of leverage. However, the return on equity is negative, reflecting ongoing losses and poor returns for shareholders. The equity ratio is stable, suggesting a solid asset base, but the lack of profitability is a concern.

Cash Flow

Tianda Pharmaceuticals Ltd. has shown some improvement in free cash flow growth, but the operating cash flow remains negative. The company struggles to generate cash from operations, and the free cash flow to net income ratio is zero, indicating inefficiencies in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	384.68M	329.94M	532.09M	546.69M	509.96M	474.33M
Gross Profit	176.28M	152.02M	255.53M	251.52M	241.22M	258.99M
EBITDA	-9.97M	-49.49M	15.66M	-19.89M	-5.14M	-6.25M
Net Income	-47.26M	-61.37M	-24.16M	-54.64M	-21.67M	-25.92M
Balance Sheet
Total Assets	804.77M	765.02M	917.29M	1.09B	1.16B	1.13B
Cash, Cash Equivalents and Short-Term Investments	103.77M	85.69M	162.44M	343.44M	334.00M	234.98M
Total Debt	98.81M	127.44M	113.60M	141.05M	160.43M	145.53M
Total Liabilities	260.34M	259.36M	325.35M	434.23M	375.08M	342.97M
Stockholders Equity	544.55M	505.84M	592.07M	627.83M	756.75M	756.71M
Cash Flow
Free Cash Flow	-43.08M	-52.30M	-116.04M	54.73M	-61.98M	-184.08M
Operating Cash Flow	-26.10M	-9.70M	-49.76M	79.11M	-8.23M	-37.63M
Investing Cash Flow	-42.53M	-31.77M	-69.10M	-12.20M	86.35M	-137.73M
Financing Cash Flow	-59.61M	-30.65M	-57.39M	-28.98M	-1.29M	90.75M

Tianda Pharmaceuticals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0455, the sentiment is Negative. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.07 is Neutral, neither overbought nor oversold. The STOCH value of -6.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0455.

Tianda Pharmaceuticals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8329	54 Neutral	HK$281.90M	43.08	0.72%	3.51%	-5.98%	-81.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$536.71M	-2.85	-40.38%	―	-43.46%	-96.48%
1011	48 Neutral	HK$525.91M	-3.10	―	―	―	―
8622	48 Neutral	HK$201.03M	-38.24	-8.71%	―	2.54%	33.33%
0897	46 Neutral	HK$405.04M	-29.27	-1.16%	7.50%	59.60%	-351.02%
0455	44 Neutral	HK$217.15M	-3.23	-13.08%	―	-19.28%	-42.27%