Jacobson Pharma Corporation Limited (2633) AI Stock Analysis

• Market Cap: HK$2.70B
• Dividend Yield: 4.93%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.27
• Revenue Growth: -7.15%
• EPS Growth: 2.38%
• Country: HK
• Employees: 1,730
• Sector: Healthcare
• Sector Strength: 59
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.08
• Shares Outstanding: 2,000,221,000
• 10 Day Avg. Volume: 853,699
• 30 Day Avg. Volume: 1,009,236
• PEG Ratio: 0.18
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.17
• 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: 67 Neutral
• Price Target: ―

Jacobson Pharma Corporation Limited exhibits solid financial performance with moderate profitability and a strong equity base, contributing positively to its overall score. The stock's technical indicators suggest a strong long-term trend, while its valuation is attractive with a low P/E ratio and high dividend yield. These factors collectively provide a favorable outlook for the stock.

Jacobson Pharma Corporation Limited Business Overview & Revenue Model

Company Description

Jacobson Pharma Corporation Limited, through its subsidiaries, produces, markets, and sells generic drugs and branded healthcare products in Hong Kong, Mainland China, Macau, Singapore, and internationally. The company offers generic drugs for various therapeutic categories, including the respiratory, cardiovascular, central nervous system, gastrointestinal, genito-urinary, musculoskeletal, endocrine and metabolic, dermatological, anti-allergics, scar treatment, oral anti-diabetics, and anti-infective, as well as arsenic trioxide oral solutions, rosuvastatin tablets, and atorvastatin tablets. It also provides branded medicines; health and wellness products; and proprietary Chinese medicines, such as Po Chai pills, Ho Chai Kung Tji Thung San, Tong Tai Chung Woodlok oil, Flying Eagle Woodlok Oil, Saplingtan, Shiling oil, Contractubex, Doan's Ointment, and Col-gan tablets. In addition, it engages in the trading of medical supplies; procurement of packaging materials; sale of healthcare and herbal products; research and development; and property holding activities. Jacobson Pharma Corporation Limited sells its products to hospitals and clinics, and registered pharmacies, as well as to doctors in private and retail outlets, and trading companies. The company was incorporated in 2016 and is headquartered in Kwun Tong, Hong Kong. Jacobson Pharma Corporation Limited is a subsidiary of Kingshill Development Limited.

How the Company Makes Money

Jacobson Pharma Corporation Limited generates revenue primarily through the sale of its generic drugs and proprietary medicines. The company sells its products to hospitals, clinics, and pharmacies in Hong Kong and other markets, leveraging its extensive distribution network. Its revenue streams are further supported by strategic partnerships and alliances with various healthcare providers and institutions, enhancing its market reach. Jacobson Pharma also invests in research and development to innovate and expand its product offerings, which contributes to sustained revenue growth. Additionally, the company may engage in licensing agreements and collaborations to bolster its earnings and maintain competitive advantage in the pharmaceutical industry.

Jacobson Pharma Corporation Limited Financial Statement Overview

Summary

Jacobson Pharma Corporation Limited demonstrates solid financial health with moderate profitability and a balanced capital structure. The income statement reflects consistent margins amidst revenue fluctuations, while the balance sheet indicates a robust equity base. Cash flows are generally strong, though recent slowdowns in growth could pose future challenges.

Income Statement

The company has experienced fluctuating revenue growth, with a decline in the most recent year. Gross and net profit margins show moderate profitability, with gross profit margin at approximately 42-43% and net profit margin improving to 18.2% from previous years. EBIT and EBITDA margins remain stable, reflecting consistent operational efficiency.

Balance Sheet

The firm has a moderately leveraged position with a debt-to-equity ratio of 0.32, indicating reliance on debt but within a manageable range. The equity ratio is relatively strong at 68%, showing a healthy capital structure. Return on equity is decent at 11.3%, suggesting efficient use of equity capital.

Cash Flow

Cash flow analysis reveals stable free cash flow generation despite a decline in operating cash flow. The free cash flow to net income ratio is robust at 1.33, highlighting strong cash conversion. However, free cash flow growth has slowed, indicating potential constraints in cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.56B	1.47B	1.79B	1.60B	1.45B	1.57B
	Gross Profit
670.87M	620.48M	747.17M	620.52M	534.15M	669.76M
	EBIT
362.93M	333.13M	319.10M	222.89M	185.50M	295.44M
	EBITDA
503.26M	489.81M	462.04M	415.49M	377.20M	484.49M
	Net Income Common Stockholders
253.22M	266.97M	251.04M	177.67M	173.71M	215.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
563.79M	411.94M	1.04B	478.65M	480.35M	425.68M
	Total Assets
3.61B	3.49B	5.38B	4.76B	4.87B	4.58B
	Total Debt
699.85M	749.38M	1.60B	1.41B	1.65B	1.65B
	Net Debt
183.95M	337.44M	562.65M	931.29M	1.17B	1.23B
	Total Liabilities
1.15B	1.09B	2.12B	1.80B	2.01B	1.97B
	Stockholders Equity
2.43B	2.37B	2.74B	2.49B	2.39B	2.54B
Cash Flow		Free Cash Flow
429.97M	354.85M	585.23M	345.89M	347.99M	291.18M
	Operating Cash Flow
495.44M	484.36M	648.24M	409.76M	411.35M	375.59M
	Investing Cash Flow
-217.31M	43.34M	-44.09M	-52.75M	-375.40M	-451.75M
	Financing Cash Flow
-733.81M	-1.05B	-45.64M	-357.89M	21.36M	-133.07M

Jacobson Pharma Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2633, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.25, and above the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.82 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2633.

Jacobson Pharma Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2633	67 Neutral	HK$2.70B	9.37	12.47%	4.93%	-7.15%	2.38%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
SBMFF		$12.60B	51.81	6.14%	1.09%	―	―
CHJTF		$12.95B	19.73	13.20%	2.55%	―	―
CHSYF		$3.52B	10.08	10.17%	0.48%	―	―
LVZPF		$4.34B	12.68	14.56%	3.79%	―	―
93W		€144.99M	―		―	―	―

Jacobson Pharma Corporation Limited Corporate Events

Jacobson Pharma to Acquire Significant Stake in Tycoon Group

Jacobson Pharma Corporation Limited has entered into a Subscription Agreement with Tycoon Group Holdings Limited to subscribe for 94,000,000 shares at HK$0.500 each, representing a premium over recent market prices. This transaction is classified as a discloseable transaction under the Listing Rules, requiring reporting and announcement but not shareholder approval, potentially enhancing Jacobson Pharma’s market presence and investment portfolio.

Jacobson Pharma Announces 2025 License Agreement with LCSTH

Jacobson Pharma Corporation Limited announced a connected transaction involving a 2025 License Agreement between its subsidiary Europharm and LCSTH. This agreement allows LCSTH to use a portion of Europharm’s factory from January 2025 to January 2028, with a monthly fee of HK$218,000. The transaction is considered a one-off connected transaction and a continuing connected transaction under the Hong Kong Listing Rules, subject to reporting and announcement requirements but exempt from circular and independent shareholders’ approval. This move is part of Jacobson’s strategic operations to optimize asset utilization and maintain compliance with regulatory requirements.