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Shandong Xinhua Pharmaceutical Company Limited Class H (HK:0719)
:0719

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

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HK:0719

Shandong Xinhua Pharmaceutical Company Limited Class H

(0719)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
HK$7.00
▲(4.95% Upside)
The score is anchored by mixed financial performance (steady revenue growth but margin pressure, softer earnings, and rising leverage) and weak technicals (below major moving averages with negative momentum). Supportive valuation (low P/E and strong dividend yield) lifts the overall score but does not fully offset the near-term profitability and momentum risks.
Positive Factors
Revenue Growth
Steady revenue growth indicates a resilient business model and strong market demand, supporting long-term financial stability.
Product Approvals
New product approvals enhance the company's portfolio, strengthening its competitive position in key therapeutic areas.
Cash Flow Improvement
Improving cash flow enhances financial flexibility, allowing for strategic investments and debt management.
Negative Factors
Margin Pressure
Declining margins can erode earnings power, impacting long-term profitability and competitive positioning.
Rising Leverage
Increased leverage may constrain financial flexibility and elevate risk, particularly if revenue growth slows.
Earnings Decline
A decline in earnings can signal operational challenges and may hinder the company's ability to reinvest in growth.

Shandong Xinhua Pharmaceutical Company Limited Class H (0719) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionShandong 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 MoneyShandong 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.69B8.47B8.10B7.50B6.56B6.01B
Gross Profit1.79B2.04B2.32B2.04B1.77B1.81B
EBITDA491.49M1.11B1.09B1.01B908.67M856.79M
Net Income385.17M470.02M496.51M411.06M348.55M324.86M
Balance Sheet
Total Assets9.94B9.02B8.29B8.27B7.33B7.09B
Cash, Cash Equivalents and Short-Term Investments1.35B1.25B918.33M1.16B744.66M855.77M
Total Debt2.27B1.35B1.08B1.38B1.04B1.09B
Total Liabilities4.05B3.80B3.51B3.92B3.68B3.70B
Stockholders Equity5.63B4.99B4.55B4.13B3.47B3.22B
Cash Flow
Free Cash Flow282.70M155.19M513.48M9.89M140.00M
Operating Cash Flow339.26M367.61M265.28M758.24M259.12M420.19M
Investing Cash Flow-104.75M-212.21M
Financing Cash Flow-206.30M184.78M-196.11M35.04M

Shandong Xinhua Pharmaceutical Company Limited Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.67
Price Trends
50DMA
6.95
Negative
100DMA
7.21
Negative
200DMA
6.80
Positive
Market Momentum
MACD
-0.03
Negative
RSI
55.65
Neutral
STOCH
94.57
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 6.67 is below the 20-day moving average (MA) of 6.77, below the 50-day MA of 6.95, and below the 200-day MA of 6.80, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 94.57 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$9.00B13.679.12%4.93%-29.18%-51.49%
72
Outperform
HK$13.33B12.4425.92%3.93%19.05%13.68%
58
Neutral
HK$10.24B11.587.48%4.47%1.65%-16.38%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
43
Neutral
HK$12.32B-138.95-1.87%0.87%19.21%-115.91%
41
Neutral
HK$13.81B-61.38-2.79%29.21%80.37%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
6.94
1.68
31.94%
HK:2005
SSY Group
3.05
0.03
1.06%
HK:0460
Sihuan Pharmaceutical Holdings Group
1.32
0.75
129.57%
HK:1681
Consun Pharmaceutical Group Ltd.
16.07
8.96
125.99%
HK:6185
CanSino Biologics, Inc. Class H
38.00
11.35
42.59%

Shandong Xinhua Pharmaceutical Company Limited Class H Corporate Events

Shandong Xinhua Pharmaceutical Tightens Audit Committee Governance Framework
Dec 31, 2025

Shandong Xinhua Pharmaceutical has updated and adopted revised terms of reference for its Board Audit Committee, effective 31 December 2025, to strengthen corporate governance and regulatory compliance. The revised framework clarifies that the Audit Committee, composed mainly of independent non-executive directors including at least one accounting professional, will exercise certain supervisory board powers under PRC Company Law, define stricter qualification and independence requirements for committee members, and set out clear responsibilities for the committee convener and mechanisms for filling vacancies, thereby reinforcing oversight of the company’s financial reporting and internal control for the benefit of investors and other stakeholders.

The most recent analyst rating on (HK:0719) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Shandong Xinhua Pharmaceutical Company Limited Class H stock, see the HK:0719 Stock Forecast page.

Shandong Xinhua Pharmaceutical Tightens Governance With Revised Nomination Committee Charter
Dec 31, 2025

Shandong Xinhua Pharmaceutical has updated and adopted, as of 31 December 2025, the terms of reference for its Board-level Nomination Committee, first established in 2002, to align with PRC company law, governance codes for listed companies, and Hong Kong Listing Rules. The revised charter formalises the committee’s composition, requiring four to six directors with at least one of a different gender and at least half being independent non-executive directors, mandates that the committee chair be an independent director appointed by the board, and sets out their responsibilities, eligibility criteria, and tenure. It also creates a dedicated working group led by the deputy general manager for human resources to support the committee’s preparatory and information-gathering work on board and senior management candidates, reinforcing the company’s governance structure and succession planning framework for the benefit of shareholders and other stakeholders.

The most recent analyst rating on (HK:0719) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Shandong Xinhua Pharmaceutical Company Limited Class H stock, see the HK:0719 Stock Forecast page.

Shandong Xinhua Pharmaceutical Updates Remuneration and Appraisal Committee Mandate
Dec 31, 2025

Shandong Xinhua Pharmaceutical has updated and re-adopted the terms of reference for its Board-level Remuneration and Appraisal Committee, originally approved in 2002 and most recently revised on 31 December 2025, to align with PRC corporate law, governance codes, independent director rules, its Articles of Association and Hong Kong Listing Rules. The revised document formalises the committee’s composition, independence requirements, leadership by an independent non-executive director, member qualifications, responsibilities and confidentiality obligations, and embeds the committee within the board’s administrative structure, reinforcing remuneration oversight and governance standards for directors and senior management to better safeguard shareholder interests.

The most recent analyst rating on (HK:0719) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Shandong Xinhua Pharmaceutical Company Limited Class H stock, see the HK:0719 Stock Forecast page.

Shandong Xinhua Pharmaceutical Wins China Approval for Valsartan Hypertension Capsules
Dec 29, 2025

Shandong Xinhua Pharmaceutical Company Limited announced that it has received a Drug Registration Certificate from China’s National Medical Products Administration for its domestically produced 80mg valsartan capsules, a prescription medicine used to treat mild to moderate primary hypertension. The approval confirms that the product meets national drug registration and quality standards and allows the company to proceed toward commercial production and sales once pharmaceutical production quality management requirements are fulfilled, potentially strengthening its cardiovascular portfolio and competitive position in China’s hypertension treatment market.

Shandong Xinhua Pharmaceutical Wins NMPA Approval for Phloroglucinol Injection
Dec 29, 2025

Shandong Xinhua Pharmaceutical Company Limited has obtained a Drug Registration Certificate from China’s National Medical Products Administration for its Phloroglucinol Injection, a prescription chemical drug used to treat acute spasmodic pain related to digestive and biliary tract dysfunctions, urethral, bladder and kidney colic, and gynecological spasmodic pain. The approval, following the submission and review of marketing application materials since July 2024, enables the company to move toward commercial production and sale of the injection once it meets pharmaceutical production quality management standards, potentially enhancing its product portfolio in the domestic pain-management and antispasmodic treatment segment.

Shandong Xinhua Pharmaceutical Wins Approval for Oseltamivir Suspension in China
Dec 23, 2025

Shandong Xinhua Pharmaceutical Company Limited has received a Drug Registration Certificate from China’s National Medical Products Administration for its Oseltamivir Phosphate for Suspension, an over-the-counter oral antiviral formulation. The approval, following a review process that began with a marketing application in March 2024, confirms the product meets regulatory standards for quality, labeling and production, and requires a pre‑market GMP compliance inspection, paving the way for future commercialisation and potentially strengthening the company’s position in the influenza treatment market.

Shandong Xinhua’s Epinephrine Injection Gains Regulatory Approval
Nov 27, 2025

Shandong Xinhua Pharmaceutical Company Limited announced that its Epinephrine Hydrochloride Injection has passed the Consistency of Quality and Efficacy Evaluation for Generic Drugs, as approved by the National Medical Products Administration. This approval marks a significant milestone for the company, enhancing its product credibility and potentially strengthening its market position in the pharmaceutical industry, particularly in the treatment of severe dyspnea, anaphylactic shock, and as a primary rescue drug for cardiopulmonary resuscitation.

Shandong Xinhua Pharmaceutical Gains Approval for Prednisolone Acetate
Nov 27, 2025

Shandong Xinhua Pharmaceutical Company Limited has received approval from the National Medical Products Administration for the marketing application of its Prednisolone Acetate, a chemical active pharmaceutical ingredient. This product is primarily used for treating allergic and autoimmune inflammatory diseases, and its approval is expected to enhance the company’s market position and provide significant benefits to stakeholders by expanding its product offerings in the pharmaceutical market.

Shandong Xinhua Pharmaceutical Secures Drug Registration for Lidocaine and Prilocaine Cream
Nov 25, 2025

Shandong Xinhua Pharmaceutical Company Limited has announced that it has received the Drug Registration Certificate for its Lidocaine and Prilocaine Cream from the National Medical Products Administration. This approval marks a significant step for the company, as it allows the product to be marketed and sold, potentially enhancing its market position and offering new opportunities for growth in the pharmaceutical industry.

Shandong Xinhua Pharmaceutical Gains Approval for Vonoprazan Fumarate
Nov 17, 2025

Shandong Xinhua Pharmaceutical Company Limited has announced the approval of its marketing application for Vonoprazan Fumarate, a chemical active pharmaceutical ingredient used to treat reflux esophagitis. This approval, granted by the National Medical Products Administration, positions the product within China’s public medical institutions, where related sales reached approximately RMB 825 million in 2024, indicating significant market potential and impact for the company.

Shandong Xinhua Pharmaceutical Secures Drug Registration for New Product
Oct 31, 2025

Shandong Xinhua Pharmaceutical Company Limited has announced the receipt of the Drug Registration Certificate for its Alendronate Sodium Oral Solution, approved by the National Medical Products Administration. This approval allows the company to produce and sell the drug, enhancing its product portfolio and potentially strengthening its market position in the pharmaceutical industry.

Shandong Xinhua Pharmaceutical Approves Key Governance Amendments at EGM
Oct 24, 2025

Shandong Xinhua Pharmaceutical Company Limited held an Extraordinary General Meeting (EGM) where all proposed resolutions, including amendments to the articles of association and meeting procedures, were passed. The meeting saw participation from a significant number of shareholders, with a high percentage of votes in favor of the resolutions, indicating strong shareholder support for the company’s governance changes.

Shandong Xinhua Pharmaceutical Reports Mixed Financial Results for 2025
Oct 24, 2025

Shandong Xinhua Pharmaceutical Company Limited announced its unaudited consolidated results for the nine months ending September 30, 2025. The company reported a slight increase in operating income by 0.42% compared to the previous year, while net profit attributable to shareholders decreased by 25.53%. Despite the decline in net profit, the company experienced a 26.65% increase in net cash flow from operating activities, indicating improved operational efficiency.

Shandong Xinhua Pharmaceutical Renews Trademark License Agreement
Oct 24, 2025

Shandong Xinhua Pharmaceutical Company Limited has announced the renewal of its trademark license agreement with Shandong Xinhua Pharmaceutical Branch of Hualu Holdings Co. Ltd. This agreement, effective from January 1, 2026, to December 31, 2028, allows the company to continue using the ‘Xinhua’ trademark. This renewal is part of a continuing connected transaction and reflects the company’s strategic focus on maintaining its brand identity and market position. The transaction is subject to reporting and review requirements under Hong Kong’s Listing Rules but is exempt from certain approval requirements, indicating a streamlined regulatory process.

Shandong Xinhua Pharmaceutical Secures Drug Registration for Bisoprolol Fumarate Tablets
Oct 13, 2025

Shandong Xinhua Pharmaceutical Company Limited has announced that it has received the Drug Registration Certificate for its Bisoprolol Fumarate Tablets from the National Medical Products Administration. This approval marks a significant step for the company in expanding its product offerings in the prescription drug market, potentially enhancing its market position and stakeholder value.

Shandong Xinhua Pharmaceutical Schedules Board Meeting for Financial Review
Oct 10, 2025

Shandong Xinhua Pharmaceutical Company Limited has announced a board meeting scheduled for October 24, 2025, to review and approve the unaudited financial results for the nine months ending September 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential strategic directions.

Shandong Xinhua Pharmaceutical Announces EGM for Governance Amendments
Oct 2, 2025

Shandong Xinhua Pharmaceutical Company Limited has announced an extraordinary general meeting (EGM) to be held on October 24, 2025, in Zibo City, Shandong Province, China. The meeting aims to consider and approve proposed amendments to the company’s articles of association and the rules and procedures for general and board meetings. These changes are intended to streamline the company’s governance processes and enhance operational efficiency.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025