Dawnrays Pharmaceutical Holdings Ltd. (2348) AI Stock Analysis

• Market Cap: HK$2.01B
• Dividend Yield: 5.41%
• Average Volume (3M): 4.08M
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.33
• Revenue Growth: -9.95%
• EPS Growth: 67.56%
• Country: HK
• Employees: 1,183
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.05
• Shares Outstanding: 1,503,061,000
• 10 Day Avg. Volume: 833,615
• 30 Day Avg. Volume: 4,081,508
• PEG Ratio: N/A
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.25
• 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

• Rating: 73 Outperform
• Price Target: ―

Dawnrays Pharmaceutical Holdings Ltd. is financially robust with strong profitability and a solid balance sheet, though it faces challenges with declining revenue and cash flow. The technical analysis suggests a downward trend, but the stock is attractively valued with a low P/E ratio and high dividend yield. These factors combine to suggest a moderately positive outlook, with room for improvement in revenue generation and liquidity management.

Dawnrays Pharmaceutical Holdings Ltd. Business Overview & Revenue Model

Company Description

Dawnrays Pharmaceutical (Holdings) Limited, an investment holding company, develops, manufactures, and sells non-patented pharmaceutical medicines in Mainland China and internationally. It operates in two segments, Intermediates and Bulk Medicines, and Finished Drugs. The company offers antibiotics, including pharmaceutical intermediates, bulk medicines, powder for injections, and oral antibiotics. It also provides and system specific medicines comprising cardiovascular systems; anti-allergic, anti-HBV, and digestive systems; urinary systems; and anti-pyretic analgesic, respiratory, and endocrine system drugs in the form of tablets, capsules, and granules. The company was founded in 1995 and is headquartered in Wan Chai, Hong Kong. Dawnrays Pharmaceutical (Holdings) Limited is a subsidiary of Fortune United Group Limited.

How the Company Makes Money

Dawnrays Pharmaceutical Holdings Ltd. generates revenue primarily through the sale of its generic drugs and active pharmaceutical ingredients (APIs). The company targets both domestic and international markets, selling products to hospitals, healthcare institutions, and pharmaceutical distributors. A significant portion of its revenue comes from its extensive portfolio of antibiotics and cardiovascular drugs, which are in high demand. Additionally, Dawnrays may engage in strategic partnerships or collaborations with other pharmaceutical companies to expand its market presence and enhance its product offerings, contributing to its overall earnings.

Dawnrays Pharmaceutical Holdings Ltd. Financial Statement Overview

Summary

Dawnrays Pharmaceutical Holdings Ltd. demonstrates strong profitability with high net profit margins and a robust balance sheet with minimal leverage. However, there's a decline in revenue and weakened cash flow generation, indicating potential challenges in maintaining growth.

Income Statement

The company shows strong gross profit margins consistently above 50%, indicating efficient cost management. However, revenue has decreased from the previous year, showing a negative growth rate of -7.89%. The net profit margin improved to 53.28% in 2024, reflecting a strong bottom line. EBIT and EBITDA margins are also robust, indicating healthy operational profitability despite revenue decline.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.01, showcasing minimal reliance on external debt. The equity ratio remains high at 82.93%, indicating stable equity financing. Return on equity improved to 16.99%, reflecting effective utilization of shareholder funds. Overall, the company maintains a solid financial position with significant equity backing and low debt levels.

Cash Flow

The free cash flow growth rate is negative, indicating a decline in cash generation capacity. Operating cash flow to net income and free cash flow to net income ratios could not be evaluated due to zero operating cash flow reported in 2024. The cash flow position appears to be weakened, potentially impacting liquidity if not addressed.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.15B	1.28B	1.17B	1.02B
Gross Profit	577.63M	641.52M	766.68M	675.36M	545.55M
EBITDA	280.49M	498.94M	505.19M	433.89M	395.71M
Net Income	564.94M	326.00M	358.06M	358.18M	268.13M
Balance Sheet
Total Assets	4.01B	3.62B	3.67B	3.34B	2.90B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.07B	1.08B	830.22M	962.12M
Total Debt	34.72M	120.53M	8.41M	23.52M	2.95M
Total Liabilities	682.61M	763.42M	1.02B	941.70M	720.14M
Stockholders Equity	3.32B	2.85B	2.64B	2.38B	2.17B
Cash Flow
Free Cash Flow	44.58M	126.39M	229.90M	80.07M	163.80M
Operating Cash Flow	220.20M	338.40M	434.27M	393.14M	302.90M
Investing Cash Flow	0.00	-387.57M	-175.01M	-284.20M	26.45M
Financing Cash Flow	0.00	2.07M	-92.70M	-129.75M	-327.70M

Dawnrays Pharmaceutical Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2348, the sentiment is Positive. The current price of 1.34 is above the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.22, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.56 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2348.

Dawnrays Pharmaceutical Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2348	73 Outperform	HK$2.01B	3.29	18.33%	5.41%	-9.95%	67.56%
Sector *	52 Neutral	$7.61B	0.04	-62.94%	2.44%	16.14%	0.33%
CHIZF	―	$1.48B	183.33	0.25%	0.52%	―	―
SHPHF	―	$1.59B	―	-4.93%	2.69%	―	―
C1P	―	€1.13B	8.57	23.28%	5.83%	―	―
2633	74 Outperform	HK$3.17B	11.02	12.47%	3.89%	7.43%	21.88%
2877	74 Outperform	HK$6.23B	6.84	11.61%	0.85%	-18.09%	-15.08%

Dawnrays Pharmaceutical Holdings Ltd. Corporate Events

Dawnrays Pharmaceutical Announces 2025 AGM and Key Resolutions

Dawnrays Pharmaceutical Holdings Ltd. has announced its upcoming Annual General Meeting scheduled for May 23, 2025, in Hong Kong. Key agenda items include the consideration of financial statements for the year ending December 31, 2024, the declaration of final and special dividends, re-election of directors, and authorization for the board to manage director remunerations and re-appoint auditors. Additionally, a resolution will be considered to empower the directors to issue additional shares, which could influence the company’s capital structure and shareholder value.

Dawnrays Pharmaceutical Declares Special Dividend for 2024

Dawnrays Pharmaceutical Holdings Ltd. announced a special dividend of HKD 0.032 per share for the financial year ending December 31, 2024. This decision, approved by shareholders on May 23, 2025, reflects the company’s financial health and commitment to returning value to its stakeholders. The ex-dividend date is set for May 27, 2025, with payment scheduled for June 12, 2025. This move may enhance investor confidence and solidify the company’s position in the market.

Dawnrays Pharmaceutical Reports Strong Profit Growth Despite Revenue Decline in 2024

Dawnrays Pharmaceutical Holdings Ltd. announced its annual results for the year ending December 31, 2024, revealing a 7.9% decrease in revenue compared to 2023. Despite the revenue drop, the company reported a significant increase in profit before tax by 53.8% and profit for the year by 74.4%, attributed to higher other income and gains. The net profit margin improved by 25.1 percentage points, indicating strong financial performance despite challenges in revenue.

Dawnrays Pharmaceutical Declares Final Dividend for 2024

Dawnrays Pharmaceutical Holdings Ltd. has announced a final cash dividend of HKD 0.048 per share for the year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders. The dividend will be paid on June 12, 2025, following shareholder approval on May 23, 2025. This decision may influence investor sentiment and affect the company’s stock performance in the market.

Dawnrays Pharmaceutical Schedules Board Meeting for Annual Results and Dividend Consideration

Dawnrays Pharmaceutical Holdings Ltd. has announced a board meeting scheduled for March 28, 2025, to approve the annual results for the year ending December 31, 2024, and consider the recommendation of a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.