Essex Bio-Technology Limited (HK:1061)
:1061
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Essex Bio-Technology
(1061)
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Rating:72Outperform
Price Target:
HK$4.00
▲(4.99% Upside)
Action:UpgradedDate:04/07/26
The score is driven primarily by strong underlying financial profitability and balance-sheet strength, plus very attractive valuation (low P/E and decent dividend yield). These positives are partially offset by weak technicals (downtrend and negative momentum) and volatile free cash flow, which raises sustainability/execution risk.
Positive Factors
High and stable gross margins
Sustained ~85–90% gross margins indicate durable product-level profitability and pricing power in biologics. High-margin economics support steady operating profits, enable reinvestment in R&D and manufacturing, and provide buffer against revenue volatility over the medium term.
Negative Factors
Volatile free cash flow
Large swings in free cash flow reduce predictability of internal funding for dividends, M&A, or R&D. A near-50% drop in 2025 implies working-capital pressure or higher investment needs, raising execution risk and potentially forcing external financing at less favorable terms.
Read all positive and negative factors
Positive Factors
Negative Factors
High and stable gross margins
Sustained ~85–90% gross margins indicate durable product-level profitability and pricing power in biologics. High-margin economics support steady operating profits, enable reinvestment in R&D and manufacturing, and provide buffer against revenue volatility over the medium term.
Read all positive factors
Essex Bio-Technology (1061) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.01B
Dividend Yield3.37%
Average Volume (3M)863.25K
Price to Earnings (P/E)6.7
Beta (1Y)0.52
Revenue Growth7.16%
EPS Growth19.19%
CountryHK
Employees1,450
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.27
Shares Outstanding567,006,000
10 Day Avg. Volume975,600
30 Day Avg. Volume863,250
Financial Highlights & Ratios
PEG Ratio1.81
Price to Book (P/B)0.89
Price to Sales (P/S)1.18
P/FCF Ratio16.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$6.84Price Target Upside79.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.65
Revenue Forecast (FY)HK$1.91B
Essex Bio-Technology Business Overview & Revenue Model
Company Description
Essex Bio-Technology Limited, an investment holding company, develops, manufactures, distributes, and sells biopharmaceutical products in the People's Republic of China and internationally. The company operates through Ophthalmic Products and Surg...
How the Company Makes Money
Essex Bio-Technology primarily makes money by selling its biologic-based products to healthcare providers and customers through commercial distribution channels. Key revenue streams are (1) product sales in ophthalmology (eye-care treatments) and ...
Essex Bio-Technology Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.81B | 1.67B | 1.71B | 1.32B | 1.64B |
| Gross Profit | 1.62B | 1.50B | 1.54B | 1.19B | 1.40B |
| EBITDA | 410.48M | 400.71M | 418.38M | 313.54M | 436.65M |
| Net Income | 318.09M | 307.22M | 275.26M | 225.41M | 345.97M |
Balance Sheet | |||||
| Total Assets | 3.49B | 2.98B | 2.83B | 2.71B | 2.86B |
| Cash, Cash Equivalents and Short-Term Investments | 784.14M | 560.74M | 515.03M | 543.49M | 671.35M |
| Total Debt | 346.90M | 187.04M | 294.02M | 489.73M | 565.19M |
| Total Liabilities | 1.08B | 859.33M | 903.78M | 981.03M | 1.13B |
| Stockholders Equity | 2.41B | 2.12B | 1.92B | 1.73B | 1.73B |
Cash Flow | |||||
| Free Cash Flow | 131.71M | 324.07M | 211.16M | 99.87M | 164.63M |
| Operating Cash Flow | 306.32M | 368.47M | 339.21M | 382.79M | 409.16M |
| Investing Cash Flow | -165.17M | -106.59M | -54.34M | -302.03M | -280.08M |
| Financing Cash Flow | 62.10M | -200.81M | -309.92M | -169.11M | -73.13M |
Essex Bio-Technology Technical Analysis
Negative
3.81
Price Trends
4.03
Negative
4.07
Negative
4.53
Negative
Market Momentum
-0.13
Positive
35.46
Neutral
57.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1061, the sentiment is Negative. The current price of 3.81 is above the 20-day moving average (MA) of 3.75, below the 50-day MA of 4.03, and below the 200-day MA of 4.53, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 35.46 is Neutral, neither overbought nor oversold. The STOCH value of 57.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1061.
Essex Bio-Technology Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$2.01B | 6.72 | 13.57% | 3.37% | 7.16% | 19.19% | |
69 Neutral | HK$2.36B | 5.13 | 12.91% | 15.40% | -1.88% | 17.57% | |
66 Neutral | HK$1.73B | 7.90 | 6.34% | 5.16% | 2.89% | -68.83% | |
64 Neutral | HK$730.16M | 6.31 | 4.47% | 2.92% | 19.80% | 55.09% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | HK$3.54B | 2.54 | 206.86% | ― | 238.71% | ― | |
44 Neutral | HK$2.85B | -12.37 | -26.24% | ― | ― | ― |
* Healthcare Sector Average
HK:1061
Essex Bio-Technology
3.55
-0.48
-11.91%
HK:2552
Hua Medicine
3.65
1.78
95.19%
HK:0950
Lee's Pharmaceutical Holdings Limited
1.24
0.06
5.08%
HK:2348
Dawnrays Pharmaceutical Holdings Ltd.
1.15
0.15
15.00%
HK:2633
Jacobson Pharma Corporation Limited
1.24
0.22
21.57%
HK:2561
VISEN Pharmaceuticals
25.00
-16.40
-39.61%
Essex Bio-Technology Corporate Events
Essex Bio-Technology Sets 2026 AGM, Proposes Dividend and Share Issue Mandate
Mar 31, 2026
Essex Bio-Technology has convened its annual general meeting for 26 May 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025 and the accompanying directors’ and a...
Essex Bio-Technology Delivers Higher Revenue, Profit and Dividends in 2025
Mar 23, 2026
Essex Bio-Technology reported solid top-line growth for the year ended 31 December 2025, with turnover rising 8.6% to HK$1.81 billion and profit for the year up 3.5% to HK$318.1 million, while maintaining a high gross margin of 89.2%. The group...
Essex Bio-Technology Proposes Final Dividend of HKD 0.07 Per Share for 2025
Mar 23, 2026
Essex Bio-Technology Limited has announced a proposed final ordinary cash dividend of HKD 0.07 per share for the financial year ended 31 December 2025, subject to shareholder approval on 26 May 2026. The ex-dividend date is set for 28 May 2026, wi...
Essex Bio-Technology Sets March Board Meeting to Approve 2025 Results and Consider Dividend
Mar 11, 2026
Essex Bio-Technology has scheduled a board meeting in Hong Kong on 23 March 2026 to review and approve the annual results for the financial year ended 31 December 2025. The board will also consider the potential declaration of a final dividend, a ...
Essex Bio-Technology Secures Exclusive China Distribution Rights for Osteopore Dental Implants
Jan 15, 2026
Essex Bio-Technology’s wholly owned subsidiary Majeton Pte Ltd has signed an exclusive distribution agreement with Osteopore International to market Osteopore’s 3D‑printed biomimetic and bioresorbable dental, orthodontic and maxi...
Essex Bio-Technology Wins PRC Approval for New Sodium Hyaluronate Eye Drops
Jan 9, 2026
Essex Bio-Technology has announced that its indirect subsidiary, Guangdong Hanfeng Baisheng Pharmaceutical Company Limited, has received approval from China’s National Medical Products Administration to register and commercialise its multi-d...
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.