Nanjing Sinolife United Co., Ltd. Class H (3332) AI Stock Analysis

• Market Cap: HK$631.85M
• Dividend Yield: N/A
• Average Volume (3M): 6.00K
• Price to Earnings (P/E): 20.3
• Beta (1Y): -0.35
• Revenue Growth: -0.92%
• EPS Growth: -71.88%
• Country: HK
• Employees: 468
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.02
• Shares Outstanding: 946,298,340
• 10 Day Avg. Volume: 16,600
• 30 Day Avg. Volume: 6,000
• PEG Ratio: -0.40
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -72.15
• 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: 62 Neutral
• Price Target: HK$0.44 ▲(15.79% Upside)

The score is driven primarily by strong revenue growth and improving gross profitability alongside a low-leverage, high-equity balance sheet, partially offset by cash-flow visibility/operating cash flow concerns. Technicals add support (price above shorter-term averages with positive MACD), while valuation is moderately less attractive with a P/E around 22 and no dividend yield data.

Positive Factors

Strong Revenue Growth

Sustained 32.5% top-line expansion signals durable demand and successful commercial execution across product lines. Over 2-6 months this underpins scale advantages, supports ongoing R&D and distribution investment, and increases resilience to market fluctuations.

Improving Gross Margins

A meaningful gross margin improvement reflects stronger pricing power or manufacturing efficiency, improving long-run cash generation per sale. Higher product-level profitability helps absorb SG&A and supports sustainable operating leverage as sales scale.

Conservative Capital Structure

Very low leverage and a high equity ratio provide durable financial flexibility, lowering refinancing and default risk. This balance-sheet strength supports funding R&D, capex, or M&A without forcing distress financing over the medium term.

Negative Factors

Operating Cash-Flow Visibility

Absence of reported operating cash flow for the latest year raises material liquidity and cash-conversion concerns. Over months this undermines confidence in self-funded growth, may force external financing, and increases execution risk for capex and R&D programs.

Pressure on Operating Margins

Declining EBIT/EBITDA margins suggest rising operating costs or less efficient scale-up, which can erode the benefits of gross-margin gains. If persistent, this reduces free cash flow conversion and limits ability to reinvest or improve returns to shareholders.

Modest Return on Equity

An ROE below double digits indicates limited efficiency in converting equity into profits. Over the medium term this may reflect suboptimal capital allocation or margin constraints, potentially limiting shareholder return compared with peers even with low leverage.

Nanjing Sinolife United Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Nanjing Sinolife United Company Limited, an investment holding company, engages in the manufacture, processing, and sale of nutritional supplements in the People's Republic of China, Australia, New Zealand, Vietnam, and internationally. The company is also manufactures and sale of cosmetics and skin care products; and trading, retail, and testing of packaged health food products. It sells its products under the Good Health, Zhongsheng, Hejian, and Cobayer series through a network of retail stores. The company also sells its products through distributors, TV shopping, and e-commerce platforms; and chain pharmacies, health goods supermarkets, and tourist souvenir shops. Nanjing Sinolife United Company Limited was incorporated in 1999 and is headquartered in Nanjing, China.

How the Company Makes Money

Nanjing Sinolife United Co., Ltd. generates revenue through several key streams, including the sale of pharmaceutical products, medical devices, and health supplements. The company’s revenue model is primarily based on direct sales to hospitals, clinics, and pharmacies, as well as through online platforms. Additionally, it benefits from partnerships with healthcare institutions and distributors that expand its market reach. The company also engages in research and development collaborations, which can lead to new product innovations and additional revenue opportunities. Factors contributing to its earnings include increasing demand for healthcare products, a growing aging population, and an expanding healthcare infrastructure in China and other markets.

Nanjing Sinolife United Co., Ltd. Class H Financial Statement Overview

Summary

Nanjing Sinolife United Co., Ltd. demonstrates strong revenue growth and improving profitability, with a robust balance sheet characterized by low leverage and high equity. However, the lack of recent cash flow data presents a potential risk to liquidity and cash management. The overall financial health is positive, but attention to cash flow generation and operational efficiency is needed to sustain growth.

Income Statement

The company has shown a significant improvement in gross profit margin from the previous year, rising from 67.34% to 71.95%. Net profit margin also improved from 9.33% to 4.62%, indicating better operational efficiency. Revenue growth rate from 2023 to 2024 was a substantial 32.53%, showing strong sales performance. However, EBIT and EBITDA margins decreased slightly, signaling some pressure on operating profitability.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 77.96%, reflecting stability. The debt-to-equity ratio is low at 0.09, indicating conservative leverage. Return on equity is modest at 8.77%, suggesting room for improvement in generating shareholder returns. Overall, the balance sheet shows stability with low financial risk.

Cash Flow

The cash flow statement shows a concerning lack of operating cash flow in the latest year, which could impact liquidity. Previously, free cash flow showed growth, but the absence of cash flow data for 2024 raises concerns about cash management. Free cash flow to net income and operating cash flow to net income ratios are unavailable, limiting the assessment of cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	710.07M	747.90M	563.96M	274.85M	252.32M	296.52M
Gross Profit	512.97M	538.27M	379.66M	160.00M	138.80M	170.70M
EBITDA	24.97M	48.19M	75.08M	4.88M	-13.49M	-20.96M
Net Income	16.48M	34.56M	52.60M	-14.25M	-31.71M	-49.60M
Balance Sheet
Total Assets	549.33M	505.56M	505.42M	436.99M	390.11M	449.73M
Cash, Cash Equivalents and Short-Term Investments	140.84M	104.53M	122.79M	78.19M	76.23M	77.12M
Total Debt	55.37M	33.90M	35.16M	35.75M	8.87M	13.46M
Total Liabilities	126.22M	111.46M	127.35M	113.19M	59.87M	87.37M
Stockholders Equity	423.11M	394.10M	378.07M	323.80M	330.24M	362.36M
Cash Flow
Free Cash Flow	40.62M	-6.65M	44.76M	4.05M	-9.68M	3.20M
Operating Cash Flow	42.72M	957.00K	47.11M	7.92M	421.00K	16.41M
Investing Cash Flow	-897.00K	-6.00M	449.00K	-3.47M	1.52M	-12.49M
Financing Cash Flow	15.47M	-4.53M	-4.50M	-4.08M	-4.45M	-34.05M

Nanjing Sinolife United Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3332, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.38, and below the 200-day MA of 0.42, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3332.

Nanjing Sinolife United Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3828	77 Outperform	HK$677.82M	4.83	10.86%	10.87%	6.86%	18.44%
2023	66 Neutral	HK$368.85M	6.57	10.92%	―	11.10%	-4.38%
2177	64 Neutral	HK$466.16M	17.31	3.32%	15.24%	-9.26%	435.33%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3332	62 Neutral	HK$631.85M	20.32	3.92%	―	-0.92%	-71.88%
2138	45 Neutral	HK$711.13M	-3.65	-10.08%	1.72%	-3.49%	-1567.01%
0157	41 Neutral	HK$981.03M	-15.76	-12.38%	―	39.29%	-71.82%