Essex Bio-Technology (1061) AI Stock Analysis

• Market Cap: HK$2.68B
• Dividend Yield: 2.33%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.43
• Revenue Growth: -2.15%
• EPS Growth: 12.09%
• Country: HK
• Employees: 1,450
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.54
• Shares Outstanding: 567,006,000
• 10 Day Avg. Volume: 1,010,490
• 30 Day Avg. Volume: 1,575,083
• PEG Ratio: 0.59
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.26
• 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: HK$5.00
• Price Target Upside: -5.48% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: HK$6.00 ▲(13.42%Upside)

Essex Bio-Technology's overall stock score is driven by its strong technical performance and healthy valuation, despite challenges in revenue growth and cash flow volatility. Its stock trend and valuation metrics suggest potential for appreciation, while its financial stability underpins long-term viability.

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 primarily through the sale of its biopharmaceutical products, which include a variety of treatments for ocular and dermatological conditions. The company develops and markets its products through direct sales and partnerships with distributors, hospitals, and clinics across different regions. By focusing on innovative therapies that target specific medical needs, Essex Bio-Technology is able to capture market share in niche areas within the healthcare industry. In addition to product sales, the company may also derive income from licensing agreements and collaborations with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on the commercial success of its products.

Essex Bio-Technology Financial Statement Overview

Summary

Essex Bio-Technology demonstrates solid profitability with strong gross and net profit margins and a robust balance sheet. However, recent revenue declines and fluctuating cash flows present challenges to future earnings 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.71B	1.32B	1.64B	978.11M
Gross Profit	1.50B	1.54B	1.19B	1.40B	793.83M
EBITDA	400.71M	418.38M	313.54M	436.65M	279.50M
Net Income	307.22M	275.26M	225.41M	345.97M	218.93M
Balance Sheet
Total Assets	2.98B	2.83B	2.71B	2.86B	2.42B
Cash, Cash Equivalents and Short-Term Investments	560.74M	515.03M	543.49M	671.35M	599.80M
Total Debt	187.04M	294.02M	489.73M	565.19M	562.77M
Total Liabilities	859.33M	903.78M	981.03M	1.13B	995.15M
Stockholders Equity	2.12B	1.92B	1.73B	1.73B	1.43B
Cash Flow
Free Cash Flow	324.07M	211.16M	99.87M	164.63M	-18.40M
Operating Cash Flow	368.47M	339.21M	382.79M	409.16M	299.24M
Investing Cash Flow	-106.59M	-54.34M	-302.03M	-280.08M	-343.27M
Financing Cash Flow	-200.81M	-309.92M	-169.11M	-73.13M	149.49M

Essex Bio-Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.29 is above the 20-day moving average (MA) of 4.67, above the 50-day MA of 4.75, and above the 200-day MA of 3.43, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 88.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1061.

Essex Bio-Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1061	77 Outperform	HK$2.68B	8.72	15.18%	2.33%	-2.15%	12.09%
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%
CHIZF	―	$1.48B	183.33	0.25%	0.16%	―	―
SHPHF	―	$1.62B	―	-4.93%	2.69%	―	―
C1P	―	€1.07B	8.15	23.28%	6.13%	―	―
2877	74 Outperform	HK$6.25B	6.93	11.61%	9.30%	-18.09%	-15.08%
1558	65 Neutral	HK$14.52B	28.78	5.88%	―	-42.02%	-76.29%

Essex Bio-Technology Corporate Events

Essex Bio-Technology Establishes New Nomination Committee

Essex Bio-Technology Limited has announced the establishment of a nomination committee, which will be effective from July 1, 2025. The committee will consist of at least three members, with a majority being independent non-executive directors and including at least one member of a different gender. This move is aimed at enhancing corporate governance and ensuring diverse representation within the company’s leadership structure.

Essex Bio-Technology AGM Resolutions Successfully Passed

Essex Bio-Technology announced that all resolutions proposed at their Annual General Meeting on May 21, 2025, were successfully passed by shareholders. The resolutions included the re-election of directors, the approval of financial statements, the declaration of a final dividend, and the granting of mandates to issue and repurchase shares. This outcome signifies strong shareholder support for the company’s strategic decisions and governance, potentially enhancing its operational stability and market confidence.