Essex Bio-Technology (1061) AI Stock Analysis

• Market Cap: HK$2.36B
• Dividend Yield: 3.37%
• Average Volume (3M): 863.25K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.49
• Revenue Growth: 7.16%
• EPS Growth: 19.19%
• Country: HK
• Employees: 1,450
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.29
• Shares Outstanding: 567,006,000
• 10 Day Avg. Volume: 975,600
• 30 Day Avg. Volume: 863,250
• PEG Ratio: 0.53
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 5.15
• 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: 64 Neutral
• Price Target: HK$5.00 ▲(31.23% Upside)

Essex Bio-Technology's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's solid balance sheet and profitability are strengths, but recent revenue declines and technical weakness present risks. The stock's low P/E ratio and dividend yield provide some upside potential.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a healthy debt-to-equity ratio and robust equity support provides financial stability and operational flexibility, enabling the company to invest in growth opportunities and weather economic uncertainties.

Profitability

Solid profitability, as indicated by strong gross and net profit margins, reflects efficient operations and effective cost management, which can support sustained growth and shareholder value over time.

Research and Development

Ongoing investment in R&D ensures a steady flow of innovative treatments, maintaining competitive advantage and market relevance in the biopharmaceutical industry, particularly in ophthalmology and dermatology.

Negative Factors

Revenue Declines

Negative revenue growth poses a risk to future earnings and may indicate challenges in market demand or competitive pressures, potentially impacting long-term financial performance and strategic objectives.

Fluctuating Cash Flows

Volatility in cash flow can hinder the company's ability to fund operations and strategic initiatives consistently, affecting its capacity to invest in growth and manage financial obligations effectively.

Declining Stock Performance

Bearish stock performance may reflect broader market concerns or company-specific issues, potentially impacting investor confidence and limiting access to capital markets for future funding needs.

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 Surgical Products segments. It researches and develops basic fibroblast growth factor products for the treatment of cellular proliferation, differentiation, and migration. The company offers Beifushu series, such as Beifushu eye drops, Beifushu eye gel, and Beifushu unit-dose eye drops; Tobramycin eye drops, Levofloxacin eye drops, and Sodium Hyaluronate eye drops, as well as Iodized Lecithin Capsules. It also provides Beifuji sprays and lyophilized powder, and Beifuxin gels for use in burn and scald wounds, acute wounds, surgical incisions, chronic wounds, skin grafting, and other applications. In addition, it offers ophthalmic and surgical products from third parties. Further, the company offers Carisolv dental caries removal gel; and Yi Xue An Granules. It has license agreements with Mitotech S.A. and Mitotech LLC. The company was founded in 1990 and is headquartered in Zhuhai, China.

How the Company Makes Money

Essex Bio-Technology generates revenue through the sales of its proprietary medical products, which include advanced wound care solutions and dermatological treatments. The company leverages a combination of direct sales and distribution agreements to reach its customers, which include hospitals, clinics, and healthcare providers. In addition to product sales, Essex Bio-Technology may also engage in partnerships with other pharmaceutical companies for co-development and distribution agreements, enhancing its market reach and potential revenue. The company's focus on innovation and clinical efficacy helps to maintain a competitive edge in the biopharmaceutical sector, contributing to its overall earnings.

Essex Bio-Technology Financial Statement Overview

Summary

Essex Bio-Technology demonstrates solid profitability and a strong balance sheet, although recent revenue declines and fluctuating cash flows present challenges. The company remains financially stable with strong equity support but should focus on reversing revenue trends to enhance growth.

Income Statement

Essex Bio-Technology shows a strong gross profit margin and consistent net profit margin, reflecting solid profitability. However, recent revenue growth has been negative, indicating a potential concern for future earnings. EBIT and EBITDA margins remain stable, showcasing efficient operations.

Balance Sheet

The company maintains a healthy debt-to-equity ratio and strong return on equity, indicating effective use of equity financing and operational efficiency. The equity ratio is robust, emphasizing a strong capital structure with significant equity backing.

Cash Flow

While operating cash flow supports net income well, fluctuating free cash flow growth rates suggest volatility in capital expenditures and cash reserves. The free cash flow to net income ratio indicates effective conversion of profits into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.67B	1.71B	1.32B	1.64B	978.11M
Gross Profit	1.55B	1.50B	1.54B	1.19B	1.40B	793.83M
EBITDA	435.67M	400.71M	418.38M	313.54M	436.65M	279.50M
Net Income	313.18M	307.22M	275.26M	225.41M	345.97M	218.93M
Balance Sheet
Total Assets	3.23B	2.98B	2.83B	2.71B	2.86B	2.42B
Cash, Cash Equivalents and Short-Term Investments	642.92M	560.74M	515.03M	543.49M	671.35M	599.80M
Total Debt	291.25M	187.04M	294.02M	489.73M	565.19M	562.77M
Total Liabilities	959.94M	859.33M	903.78M	981.03M	1.13B	995.15M
Stockholders Equity	2.27B	2.12B	1.92B	1.73B	1.73B	1.43B
Cash Flow
Free Cash Flow	253.46M	324.07M	211.16M	99.87M	164.63M	-18.40M
Operating Cash Flow	359.29M	368.47M	339.21M	382.79M	409.16M	299.24M
Investing Cash Flow	-181.34M	-106.59M	-54.34M	-302.03M	-280.08M	-343.27M
Financing Cash Flow	-144.83M	-200.81M	-309.92M	-169.11M	-73.13M	149.49M

Essex Bio-Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1061, the sentiment is Neutral. The current price of 3.81 is below the 20-day moving average (MA) of 3.87, below the 50-day MA of 4.12, and below the 200-day MA of 4.61, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 91.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1061.

Essex Bio-Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2877	73 Outperform	HK$7.05B	7.90	10.85%	5.80%	-20.64%	-25.39%
1681	72 Outperform	HK$13.33B	12.44	25.92%	3.93%	19.05%	13.68%
1061	64 Neutral	HK$2.36B	7.53	14.60%	3.37%	7.16%	19.19%
0570	54 Neutral	HK$10.83B	-37.85	-1.26%	3.66%	-9.58%	-128.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0460	43 Neutral	$12.32B	-138.95	-1.87%	0.87%	19.21%	-115.91%