Shandong Xinhua Pharmaceutical Company Limited Class H (0719) AI Stock Analysis

• Market Cap: HK$9.71B
• Dividend Yield: 4.29%
• Average Volume (3M): 6.58M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.77
• Revenue Growth: 4.91%
• EPS Growth: -11.80%
• Country: HK
• Employees: 7,296
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.69
• Shares Outstanding: 195,000,000
• 10 Day Avg. Volume: 3,568,830
• 30 Day Avg. Volume: 6,582,433
• PEG Ratio: 1.08
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.29
• 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

• Rating: 70 Outperform
• Price Target: ―

Shandong Xinhua Pharmaceutical shows a strong financial foundation with growth in revenue and stability in operational efficiency. However, technical indicators point towards weak momentum and bearish trends, creating caution for potential investors. Despite these technical challenges, the stock's valuation is compelling due to a low P/E ratio and high dividend yield, providing a buffer for income-focused investors. Improving cash flow could enhance future growth potential.

Shandong Xinhua Pharmaceutical Company Limited Class H Business Overview & Revenue Model

Company Description

Shandong Xinhua Pharmaceutical Company Limited, through its subsidiaries, develops, manufactures, and sells bulk pharmaceuticals, preparations, and chemical products. It operates through Chemical bulk drugs, Preparations, and Chemical intermediates and Others segments. The company offers active pharmaceutical ingredients, pharmaceutical preparations, and chemical products, such as antipyretic analgesics; drugs for cardiovascular and cerebrovascular diseases; anti-infectives; drugs for diseases related to the central nervous system; and other drugs under the Xinhua brand. It also provides prepared Chinese herbal medicine decoction, traditional Chinese medicines, chemical preparations, antibiotics, biochemical medicines, chemical bulk drugs, anesthetics, anti-psychotic drugs, pharmaceutical precursor chemicals, protein assimilation preparations, peptide hormones, medical toxic drugs, etc.; and chemical raw materials, such as dimethyl sulfate, isobutylbenzene, 1,8-diazabicyclo, undec-7-ene, and tetramethylguanidine. In addition, the company offers materials and intermediates, powders for injection and tablets; tablets, hard capsules, granules, and dry suspension; imports and exports goods and technologies; designs medical projects; and health products research and development activities. Further, it engages in the certification business; electrical equipment engineering; and installation and testing of chemical equipment and electrical equipment, as well as the sale of mechanical, hardware, and electrical equipment. Additionally, the company produces and sells high-end steroid system APIs and intermediates; and provides internet data, internet sells, and internet information services for pharmaceuticals and medical devices, etc. It operates in the People's Republic of China, the Americas, Europe, and internationally. Shandong Xinhua Pharmaceutical Company Limited was founded in 1943 and is based in Zibo, the People's Republic of China.

How the Company Makes Money

Shandong Xinhua Pharmaceutical Company Limited generates revenue through multiple streams, primarily focused on the production and sale of pharmaceutical products. The company's revenue model is driven by its extensive portfolio of APIs and finished dosage forms, which are supplied to both domestic and international markets. Significant revenue is also derived from its OTC products, catering to a broad consumer base seeking accessible healthcare solutions. The company benefits from strategic partnerships and collaborations with other pharmaceutical firms, enhancing its market reach and distribution capabilities. Furthermore, Shandong Xinhua Pharmaceutical invests in research and development to innovate new products, which contribute to sustaining its competitive edge and financial growth.

Shandong Xinhua Pharmaceutical Company Limited Class H Financial Statement Overview

Summary

Shandong Xinhua Pharmaceutical demonstrates solid revenue growth and operational efficiency. The balance sheet is robust with a strong equity base and manageable debt. However, cash flow constraints, particularly low free cash flow, could limit growth opportunities or debt repayment.

Income Statement

Shandong Xinhua Pharmaceutical shows a consistent growth in revenue with a 4.51% increase in 2024. The gross profit margin is stable at around 24.1%, and net profit margin is healthy at approximately 5.55% for 2024. EBIT and EBITDA margins are stable, indicating good operational efficiency. However, a slight decrease in gross profit percentage suggests rising costs, which is a potential risk.

Balance Sheet

The company's balance sheet reflects a strong equity position with an equity ratio of approximately 55.33% in 2024. The debt-to-equity ratio is manageable at 0.27, showing conservative leverage. ROE improved to 9.42%, suggesting efficient use of equity. However, rising total liabilities could be a concern if not managed prudently.

Cash Flow

Operating cash flow has improved in 2024, but free cash flow remains relatively low, indicating limited liquidity for expansions or debt reductions. The operating cash flow to net income ratio is moderate, suggesting cash flow generation aligns with profitability. However, the absence of significant free cash flow growth is a concern.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.42B	8.47B	8.10B	7.50B	6.56B	6.01B
	Gross Profit
1.82B	2.04B	2.32B	2.04B	1.77B	1.81B
	EBIT
506.98M	534.37M	534.58M	476.71M	425.59M	422.49M
	EBITDA
605.22M	1.11B	1.09B	1.01B	840.20M	856.79M
	Net Income Common Stockholders
440.24M	470.02M	496.51M	411.06M	348.55M	324.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.30B	1.25B	918.33M	1.16B	744.66M	855.77M
	Total Assets
9.27B	9.02B	8.29B	8.27B	7.33B	7.09B
	Total Debt
896.20M	1.35B	1.08B	1.38B	1.04B	1.09B
	Net Debt
―	107.78M	166.60M	225.11M	299.09M	231.77M
	Total Liabilities
3.88B	3.80B	3.51B	3.92B	3.68B	3.70B
	Stockholders Equity
5.16B	4.99B	4.55B	4.13B	3.47B	3.22B
Cash Flow		Free Cash Flow
50.64M	155.19M	―	513.48M	9.89M	140.00M
	Operating Cash Flow
39.34M	367.61M	265.28M	758.24M	259.12M	420.19M
	Investing Cash Flow
-50.54M	―	―	―	―	―
	Financing Cash Flow
251.79M	184.78M	-196.11M	―	―	35.04M

Shandong Xinhua Pharmaceutical Company Limited Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0719, the sentiment is Positive. The current price of 6.39 is above the 20-day moving average (MA) of 6.07, above the 50-day MA of 5.77, and above the 200-day MA of 5.76, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 71.72 is Negative, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0719.

Shandong Xinhua Pharmaceutical Company Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0719	70 Outperform	HK$9.71B	9.20	8.89%	4.29%	4.91%	-11.80%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
PIAIF		$124.52B	6.11		7.57%	―	―
SBMFF		$10.87B	46.27	6.14%	1.22%	―	―
CHJTF		$13.30B	19.73	13.20%	2.55%	―	―
CHSYF		$3.41B	10.08	10.17%	0.48%	―	―
SFOSF		$8.87B	12.84	6.22%	1.96%	―	―

Shandong Xinhua Pharmaceutical Company Limited Class H Corporate Events

Shandong Xinhua Pharmaceutical Reports Q1 2025 Financial Results

Shandong Xinhua Pharmaceutical Company Limited has released its unaudited financial results for the first quarter of 2025, showing a slight decrease in operating income by 1.81% compared to the same period last year. The company reported a significant decline in net profit attributable to shareholders, down by 20.99%, and a substantial drop in net cash flow from operating activities by 77.87%. Despite these challenges, the company’s total assets increased by 2.77%, and net assets attributable to shareholders rose by 3.28%, indicating a stable asset base.

Shandong Xinhua Pharmaceutical’s Aspirin Tablets Gain Approval

Shandong Xinhua Pharmaceutical Company Limited announced that its Aspirin Enteric-coated Tablets have passed the Generics Drugs Consistency Evaluation, receiving approval from the National Medical Products Administration. This approval signifies a positive step for the company, enhancing its product offerings and potentially strengthening its position in the pharmaceutical market.

Xinhua Pharmaceutical Gains Approval for Marketing License Change

Shandong Xinhua Pharmaceutical Company Limited has received approval from the National Medical Products Administration for a change in the marketing license holder of its Epalrestat tablets. This approval is part of a broader agreement with Beijing Minkang Baicao Pharmaceutical Technology Company Limited, which involves the transfer of production technology and marketing authorization holder status for Mecobalamin tablets to Xinhua Pharmaceutical. This strategic move is expected to enhance Xinhua Pharmaceutical’s market position and operational capabilities in the pharmaceutical industry.

Shandong Xinhua Pharmaceutical Secures Approval for Pregabalin Oral Solution

Shandong Xinhua Pharmaceutical Company Limited has announced that it has received a Drug Registration Certificate for its Pregabalin oral solution from the National Medical Products Administration. This approval marks a significant step for the company, allowing it to produce and market the drug, which is used in the treatment of postherpetic neuralgia, fibromyalgia, and partial seizures, thereby potentially enhancing its market position and expanding its product offerings.

Shandong Xinhua Pharmaceutical Secures Drug Registration for Memantine Solution

Shandong Xinhua Pharmaceutical Company Limited has announced the receipt of the Drug Registration Certificate for its Memantine hydrochloride oral solution from the National Medical Products Administration. This approval marks a significant milestone for the company, enabling it to proceed with the production and sale of the drug, potentially enhancing its market position in the pharmaceutical industry.

Shandong Xinhua Pharmaceutical Schedules Board Meeting to Review Q1 2025 Results

Shandong Xinhua Pharmaceutical Company Limited has announced a board meeting scheduled for April 28, 2025, to consider and approve the unaudited results for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder confidence.

Shandong Xinhua’s Aminophylline Tablets Pass Key Quality Evaluation

Shandong Xinhua Pharmaceutical Company Limited announced that its Aminophylline Tablets have passed the Consistency of Quality and Efficacy Evaluation for Generic Drugs, as approved by the National Medical Products Administration. This approval is a significant milestone for the company, potentially enhancing its market position by ensuring the quality and efficacy of its generic drugs, which could lead to increased trust and demand from healthcare providers and patients.

Shandong Xinhua Pharmaceutical Gains Approval for Eszolam Tablets License Transfer

Shandong Xinhua Pharmaceutical Company Limited has received approval from the National Medical Products Administration for the change of marketing license holder for its Eszolam tablets. This approval follows a contract signed with Guangxi Dahai Sunshine Pharmaceutical Company Limited for the transfer of the Marketing Authorization Holder status and related technical ownership rights, marking a significant step in the company’s strategic operations.

Shandong Xinhua Pharmaceutical Releases 2024 Financial Results

Shandong Xinhua Pharmaceutical Company Limited has announced its audited consolidated financial results for the year ending December 31, 2024. The results, prepared in accordance with China Accounting Standards for Business Enterprises, reflect the company’s ongoing commitment to transparency and adherence to regulatory standards, potentially impacting its market positioning and stakeholder confidence.

Shandong Xinhua Pharmaceutical Proposes Amendments to Articles of Association

Shandong Xinhua Pharmaceutical Company Limited has announced proposed amendments to its Articles of Association following an increase in its issued share capital due to the exercise of options under its Share Option Scheme. Additionally, the company has absorbed Ronghua (Zibo) Property Services Co., Ltd., expanding its business scope to include property management and real estate rental services. These changes necessitate revisions to the company’s Articles of Association, which will be subject to shareholder approval at a general meeting.

Shandong Xinhua Pharmaceutical Declares Final Dividend for 2024

Shandong Xinhua Pharmaceutical Company Limited has announced a final cash dividend of RMB 0.25 per share for the financial year ending December 31, 2024. The announcement reflects the company’s financial performance and commitment to returning value to shareholders, although specific details regarding the payment date and withholding tax are yet to be disclosed.

Shandong Xinhua Pharmaceutical Schedules Board Meeting for Annual Results

Shandong Xinhua Pharmaceutical Company Limited has announced that its board of directors will hold a meeting on March 28, 2025, to consider and approve the audited annual results for the year ending December 31, 2024. The meeting will also discuss the recommendation of a final dividend and address any other business matters. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its market positioning and stakeholder relations.

Shandong Xinhua Pharmaceutical Secures Drug Registration for Pentazocine Injection

Shandong Xinhua Pharmaceutical Company Limited has announced that it has received the Drug Registration Certificate for its Pentazocine injection from the National Medical Products Administration. This approval marks a significant step for the company, allowing it to proceed with the production and sale of the drug, thereby potentially enhancing its market position in the pharmaceutical industry.

Xinhua Pharmaceutical Gains Approval for Clopidogrel Tablets Marketing Transfer

Shandong Xinhua Pharmaceutical Company Limited has received approval from the National Medical Products Administration for the supplementary application concerning the transfer of marketing authorization holder of Clopidogrel Hydrogen Sulfate Tablets. This approval follows a technology transfer agreement with Beijing Sihuan Pharmaceutical Company Limited, allowing Xinhua Pharmaceutical to acquire the marketing and sales license, along with related rights and interests, for the product. This strategic move is expected to enhance Xinhua Pharmaceutical’s market position and expand its product offerings in the pharmaceutical sector.