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Zhongzhi Pharmaceutical Holdings Limited
(3737)
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Rating:57Neutral
Price Target:
HK$0.73
▼(-17.61% Downside)
Action:Reiterated
Date:04/25/26
The score is driven primarily by weakened financial performance (sharp 2025 revenue and margin deterioration) offset by a relatively conservative balance sheet and still-positive (but softer) free cash flow. Technicals are broadly neutral with a mild positive bias, while valuation is supported by a high dividend yield but constrained by a relatively high P/E for a company facing near-term earnings pressure.
Positive Factors
Conservative balance sheet
Modest leverage (debt-to-equity ~0.21) and a stable equity base provide lasting financial flexibility. This reduces refinancing risk, supports dividend and capex capacity during cycles, and gives the company breathing room to navigate industry headwinds over the next several quarters.
Negative Factors
Sharp revenue decline
A steep revenue drop (~-21.5% YoY) undermines scale economics and indicates demand or competitive pressures. Sustained top-line weakness compresses operating leverage, limits ability to rebuild margins, and raises execution risk for returning to prior growth levels over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Modest leverage (debt-to-equity ~0.21) and a stable equity base provide lasting financial flexibility. This reduces refinancing risk, supports dividend and capex capacity during cycles, and gives the company breathing room to navigate industry headwinds over the next several quarters.
Read all positive factors
Zhongzhi Pharmaceutical Holdings Limited (3737) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$592.90M
Dividend Yield9.43%
Average Volume (3M)412.77K
Price to Earnings (P/E)29.5
Beta (1Y)>-0.01
Revenue Growth-21.54%
EPS Growth-81.79%
CountryHK
Employees2,577
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.02
Shares Outstanding863,600,000
10 Day Avg. Volume391,300
30 Day Avg. Volume412,766
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.40
Price to Sales (P/S)0.25
P/FCF Ratio6.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zhongzhi Pharmaceutical Holdings Limited Business Overview & Revenue Model
Company Description
Zhongzhi Pharmaceutical Holdings Limited, an investment holding firm based in the People's Republic of China, focuses on the entire lifecycle of pharmaceutical products, from research and development to manufacturing and distribution. Its operatio...
How the Company Makes Money
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Zhongzhi Pharmaceutical Holdings Limited Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.74B | 2.21B | 2.05B | 1.83B | 1.75B |
| Gross Profit | 940.25M | 1.29B | 1.22B | 1.07B | 1.06B |
| EBITDA | 55.28M | 170.39M | 317.53M | 153.87M | 119.71M |
| Net Income | 17.29M | 95.21M | 162.78M | 106.39M | 52.13M |
Balance Sheet | |||||
| Total Assets | 1.83B | 1.99B | 1.79B | 1.88B | 1.52B |
| Cash, Cash Equivalents and Short-Term Investments | 200.89M | 167.10M | 166.65M | 419.36M | 242.18M |
| Total Debt | 227.02M | 188.60M | 225.06M | 170.86M | 175.74M |
| Total Liabilities | 732.02M | 865.58M | 739.30M | 869.31M | 622.94M |
| Stockholders Equity | 1.10B | 1.12B | 1.05B | 1.00B | 898.74M |
Cash Flow | |||||
| Free Cash Flow | 69.88M | 39.62M | -69.93M | 196.17M | -7.47M |
| Operating Cash Flow | 104.19M | 181.48M | 101.50M | 284.57M | 178.38M |
| Investing Cash Flow | -52.73M | -120.06M | -202.76M | 13.38M | -135.98M |
| Financing Cash Flow | -117.07M | -58.73M | -154.62M | -68.14M | -40.83M |
Zhongzhi Pharmaceutical Holdings Limited Technical Analysis
Negative
0.88
Price Trends
0.77
Negative
0.78
Negative
0.71
Negative
Market Momentum
-0.02
Negative
47.09
Neutral
64.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3737, the sentiment is Negative. The current price of 0.88 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.77, and above the 200-day MA of 0.71, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 64.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3737.
Zhongzhi Pharmaceutical Holdings Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | HK$741.70M | 7.93 | 12.80% | 7.52% | -9.66% | 16.17% | |
64 Neutral | HK$606.50M | 6.60 | 4.85% | 2.92% | 2.57% | -1.27% | |
57 Neutral | HK$592.90M | 29.52 | 1.59% | 9.43% | -21.54% | -81.79% | |
54 Neutral | HK$185.60M | -0.48 | -30.35% | ― | -11.89% | -290.48% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | HK$317.60M | 77.78 | -1.17% | 7.50% | -8.30% | -44.44% | |
42 Neutral | HK$398.58M | -8.29 | 9.46% | ― | -36.32% | 78.17% |
* Healthcare Sector Average
HK:3737
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Zhongzhi Pharmaceutical Holdings Limited Corporate Events
Zhongzhi Pharmaceutical Wins Full Shareholder Backing at 2026 AGM
May 13, 2026
Zhongzhi Pharmaceutical Holdings reported that all resolutions at its 2026 annual general meeting on 13 May 2026 were approved by shareholders via poll, covering the adoption of the 2025 audited accounts, re-election of directors and authorization...
Zhongzhi Pharmaceutical Sets 2026 AGM to Seek Mandates on Share Buybacks and Issuance
Apr 20, 2026
Zhongzhi Pharmaceutical Holdings Limited has called its annual general meeting for 13 May 2026 in Hong Kong, where shareholders will vote on the approval of the audited financial statements for the year ended 31 December 2025 and the re-election o...
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.