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Dawnrays Pharmaceutical Holdings Ltd. (HK:2348)
:2348
Hong Kong Market

Dawnrays Pharmaceutical Holdings Ltd. (2348) AI Stock Analysis

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HK

Dawnrays Pharmaceutical Holdings Ltd.

(2348)

Rating:73Outperform
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. (2348) vs. iShares MSCI Hong Kong ETF (EWH)

Dawnrays Pharmaceutical Holdings Ltd. Business Overview & Revenue Model

Company DescriptionDawnrays 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 MoneyDawnrays 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
75
Positive
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
85
Very Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.06B1.15B1.28B1.17B1.02B
Gross Profit577.63M641.52M766.68M675.36M545.55M
EBITDA280.49M498.94M505.19M433.89M395.71M
Net Income564.94M326.00M358.06M358.18M268.13M
Balance Sheet
Total Assets4.01B3.62B3.67B3.34B2.90B
Cash, Cash Equivalents and Short-Term Investments1.37B1.07B1.08B830.22M962.12M
Total Debt34.72M120.53M8.41M23.52M2.95M
Total Liabilities682.61M763.42M1.02B941.70M720.14M
Stockholders Equity3.32B2.85B2.64B2.38B2.17B
Cash Flow
Free Cash Flow44.58M126.39M229.90M80.07M163.80M
Operating Cash Flow220.20M338.40M434.27M393.14M302.90M
Investing Cash Flow0.00-387.57M-175.01M-284.20M26.45M
Financing Cash Flow0.002.07M-92.70M-129.75M-327.70M

Dawnrays Pharmaceutical Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.24
Price Trends
50DMA
1.16
Positive
100DMA
1.13
Positive
200DMA
1.13
Positive
Market Momentum
MACD
0.02
Positive
RSI
64.09
Neutral
STOCH
71.43
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 1.24 is above the 20-day moving average (MA) of 1.23, above the 50-day MA of 1.16, and above the 200-day MA of 1.13, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 64.09 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$1.86B3.0518.33%4.84%-9.95%67.56%
64
Neutral
¥343.99B10.61-2.88%2.57%11.80%-6.84%
$1.42B208.000.25%3.59%
$1.32B-4.93%2.69%
DEC1P
€1.02B7.5823.28%6.58%
74
Outperform
HK$5.92B6.5011.61%9.82%-18.09%-15.08%
67
Neutral
HK$3.19B11.0912.47%4.17%-7.15%2.38%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2348
Dawnrays Pharmaceutical Holdings Ltd.
1.24
0.14
12.73%
CHIZF
China Traditional Chinese Medicine Holdings Co
0.31
-0.16
-34.04%
SHPHF
Sihuan Pharmaceutical Holdings Group
0.10
0.04
66.67%
DE:C1P
Consun Pharmaceutical Group Ltd.
1.08
0.25
30.12%
HK:2633
Jacobson Pharma Corporation Limited
1.67
1.07
178.33%
HK:2877
China Shineway Pharmaceutical Group Limited
8.11
0.27
3.44%

Dawnrays Pharmaceutical Holdings Ltd. Corporate Events

Dawnrays Pharmaceutical Announces 2025 AGM and Key Resolutions
Apr 23, 2025

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
Mar 28, 2025

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
Mar 28, 2025

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
Mar 28, 2025

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
Mar 14, 2025

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.

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.Date of analysis: Apr 21, 2025