Extrawell Pharmaceutical Holdings Limited (0858) AI Stock Analysis

• Market Cap: HK$229.50M
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 1.0
• Beta (1Y): 0.80
• Revenue Growth: -6.21%
• EPS Growth: N/A
• Country: HK
• Employees: 162
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.05
• Shares Outstanding: 2,550,000,000
• 10 Day Avg. Volume: 3,479,000
• 30 Day Avg. Volume: 2,870,000
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 1.94
• P/FCF Ratio: -14.45
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.09 ▲(12.50% Upside)

Extrawell Pharmaceutical's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and cash flow issues. The technical analysis suggests bearish momentum, while the valuation indicates potential undervaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to navigate economic fluctuations and invest in growth opportunities without significant debt burden.

Research and Development Partnerships

R&D partnerships can lead to innovative products and revenue streams through licensing and royalties, enhancing long-term competitive positioning in the pharmaceutical market.

Positive Net Profit Margin

Maintaining a positive net profit margin indicates some level of profitability, providing a foundation for potential operational improvements and financial stability.

Negative Factors

Declining Revenues

Consistent revenue decline suggests challenges in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

Negative Cash Flow

Negative cash flow limits the company's ability to reinvest in its business, pay down debt, or return capital to shareholders, potentially hindering future growth.

Operational Inefficiencies

Operational inefficiencies can erode profitability and competitiveness, necessitating strategic changes to improve cost management and operational execution.

Extrawell Pharmaceutical Holdings Limited Business Overview & Revenue Model

Company Description

Extrawell Pharmaceutical Holdings Limited, an investment holding company, develops, manufactures, markets, distributes, and sells pharmaceutical products in the People's Republic of China. The company operates through Manufacturing, Trading, and Gene Development segments. It offers transfer factor oral solution, a dual immune regulator for the treatment of diseases caused by virus infection and weak cellular immune system; and Wisk for the treatment of II-III degree of radio-injury of skin, normal common burn, actinic dermatitis, various infectious ulcers, and oral ulcers, as well as for trauma and post operation wound healing. The company also provides ZhouBang, a thromboxane synthetase inhibitor to prevent the coagulation of platelets and facilitate relaxation of blood vessels. In addition, it is involved in the marketing and distribution of imported pharmaceutical products, including Millibar for the treatment of high blood pressure; and development of oral insulin. Further, the company engages in the commercial exploitation and development of genome-related technology; provision of agency services; property investment business; and holding of gene invention rights. Extrawell Pharmaceutical Holdings Limited is headquartered in Quarry Bay, Hong Kong.

How the Company Makes Money

Extrawell Pharmaceutical Holdings Limited generates revenue through multiple streams, primarily from the sale of its pharmaceutical products, which include both prescription and over-the-counter medications. The company earns significant income by leveraging its manufacturing capabilities to produce generic drugs, which are sold to healthcare providers, pharmacies, and distributors. Additionally, Extrawell engages in research and development partnerships, collaborating with other pharmaceutical companies to co-develop new drugs and therapies, which can also contribute to revenue through licensing agreements and royalties. The company may also benefit from government contracts and tenders for supplying medications. The strength of its revenue model is supported by its focus on innovation and quality, enabling it to maintain a competitive edge in the pharmaceutical market.

Extrawell Pharmaceutical Holdings Limited Financial Statement Overview

Summary

Extrawell Pharmaceutical faces significant challenges with declining revenues and cash flow issues, despite maintaining a stable balance sheet with low leverage. The company needs to address operational inefficiencies and improve cash flow management to enhance financial stability and growth prospects.

Income Statement

Extrawell Pharmaceutical has experienced declining revenues over the past years, with a notable decrease of 7.23% in the latest year. Despite a positive net profit margin of 4.02% in the most recent period, the company has struggled with negative EBIT margins, indicating operational inefficiencies. The gross profit margin has also decreased, reflecting challenges in maintaining cost efficiency.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio of 0.11, suggesting prudent leverage management. However, the return on equity has been inconsistent, with a positive 16.68% in the latest year, indicating some profitability. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

Extrawell Pharmaceutical's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow growth rate has been significantly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges despite reported net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.75M	55.43M	59.10M	72.58M	73.92M	78.80M
Gross Profit	25.70M	21.87M	28.78M	31.14M	37.56M	42.57M
EBITDA	118.89M	255.11M	-129.52M	155.20M	157.84M	-97.48M
Net Income	175.71M	222.64M	-162.95M	129.26M	130.59M	-121.10M
Balance Sheet
Total Assets	1.40B	1.53B	1.29B	1.44B	1.32B	1.16B
Cash, Cash Equivalents and Short-Term Investments	870.44M	994.86M	95.01M	123.96M	135.52M	150.18M
Total Debt	130.18M	140.94M	120.41M	615.58M	597.67M	586.23M
Total Liabilities	182.93M	191.55M	174.58M	671.28M	659.53M	642.36M
Stockholders Equity	1.22B	1.33B	1.11B	769.36M	653.29M	518.15M
Cash Flow
Free Cash Flow	1.61M	-7.44M	-4.89M	-3.40M	-11.23M	-953.00K
Operating Cash Flow	2.81M	-4.37M	-3.69M	3.21M	-1.60M	-232.00K
Investing Cash Flow	7.06M	-9.38M	2.04M	-12.50M	-9.63M	-681.00K
Financing Cash Flow	-6.48M	-1.58M	-6.50M	-2.29M	-1.80M	-1.69M

Extrawell Pharmaceutical Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0858, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.10, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0858.

Extrawell Pharmaceutical Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0858	54 Neutral	HK$229.50M	0.97	23.02%	―	-6.21%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$580.83M	―	-40.38%	―	-43.46%	-96.48%
1312	46 Neutral	HK$156.20M	-0.43	-41.48%	―	6.55%	-475.22%
0911	44 Neutral	HK$48.29M	―	-2.40%	―	-40.37%	-112.64%
8622	44 Neutral	HK$177.67M	―	-8.71%	―	2.54%	33.33%
1498	41 Neutral	HK$213.98M	-4.10	-33.22%	―	-17.32%	55.74%

Extrawell Pharmaceutical Holdings Limited Corporate Events

Extrawell Pharmaceutical Schedules Board Meeting for Interim Results

Extrawell Pharmaceutical Holdings Limited has announced a board meeting scheduled for November 28, 2025, to approve the interim results for the six months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and the company’s market positioning.

Extrawell Pharmaceutical Expands into Healthcare with New Share Issuance

Extrawell Pharmaceutical Holdings Limited has successfully completed the issuance of 160 million new shares under a general mandate, which will alter its shareholding structure. The company is actively pursuing diversification into the healthcare sector, aligning with China’s Healthy China 2030 strategy. This move aims to leverage its existing infrastructure and expertise, targeting emerging markets with less stringent regulatory requirements for healthcare products.

Extrawell Pharmaceutical Successfully Passes AGM Resolutions

Extrawell Pharmaceutical Holdings Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on August 22, 2025. The resolutions included the adoption of audited financial statements, re-election of directors, re-appointment of the auditor, and granting of general mandates to the board for share issuance and buybacks. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives and operational governance.