Zhongzhi Pharmaceutical Holdings Limited (HK:3737)
:3737
Top Page
Zhongzhi Pharmaceutical Holdings Limited
(3737)
Select Model
Select Model
Rating:68Neutral
Price Target:
HK$0.75
▼(-14.55% Downside)
Action:DowngradedDate:01/07/26
The score is primarily supported by solid financial positioning (strong revenue growth and a robust, low-leverage balance sheet). Offsetting this are weaker quality signals from declining margins and volatile/negative free cash flow, plus technical overbought conditions and a relatively high P/E despite a strong dividend yield.
Positive Factors
Robust balance sheet
A consistently high equity ratio and low debt-to-equity (~0.20) provide durable financial flexibility. This capital structure supports continued R&D, manufacturing investment, and dividend payments while allowing the company to absorb industry shocks and pursue opportunistic M&A without immediate financing strain.
Negative Factors
Declining profitability margins
Material erosion in net and operating margins points to structural cost pressures, pricing erosion, or rising SG&A. Persistently lower margins compress retained earnings and ROE, reducing reinvestment capacity and the firm's ability to sustain dividends or fund growth without improving operational efficiency.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust balance sheet
A consistently high equity ratio and low debt-to-equity (~0.20) provide durable financial flexibility. This capital structure supports continued R&D, manufacturing investment, and dividend payments while allowing the company to absorb industry shocks and pursue opportunistic M&A without immediate financing strain.
Read all positive factors
Zhongzhi Pharmaceutical Holdings Limited (3737) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$677.60M
Dividend Yield9.43%
Average Volume (3M)412.77K
Price to Earnings (P/E)24.6
Beta (1Y)0.03
Revenue Growth-1.99%
EPS Growth-81.52%
CountryHK
Employees2,577
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.01
Shares Outstanding863,600,000
10 Day Avg. Volume391,300
30 Day Avg. Volume412,766
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.70
Price to Sales (P/S)0.35
P/FCF Ratio19.84
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 company, engages in the research, development, manufacture, and sale of pharmaceutical products in the People's Republic of China. The company operates through three segments: Pharmac...
How the Company Makes Money
Zhongzhi Pharmaceutical Holdings Limited generates revenue through several key streams. Primarily, the company earns income by selling its pharmaceutical products, which include a range of prescription and over-the-counter medications. The company...
Zhongzhi Pharmaceutical Holdings Limited Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.01B | 2.21B | 2.05B | 1.83B | 1.75B | 1.60B |
| Gross Profit | 1.14B | 1.29B | 1.22B | 1.07B | 1.06B | 991.09M |
| EBITDA | 73.84M | 170.39M | 317.53M | 153.87M | 119.71M | 203.69M |
| Net Income | 20.55M | 95.21M | 162.78M | 106.39M | 52.13M | 138.53M |
Balance Sheet | ||||||
| Total Assets | 1.84B | 1.99B | 1.79B | 1.88B | 1.52B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 176.31M | 167.10M | 166.65M | 419.36M | 242.18M | 311.04M |
| Total Debt | 139.50M | 188.60M | 225.06M | 170.86M | 175.74M | 187.90M |
| Total Liabilities | 752.07M | 865.58M | 739.30M | 869.31M | 622.94M | 598.76M |
| Stockholders Equity | 1.09B | 1.12B | 1.05B | 1.00B | 898.74M | 820.18M |
Cash Flow | ||||||
| Free Cash Flow | 133.61M | 39.62M | -69.93M | 196.17M | -7.47M | -20.81M |
| Operating Cash Flow | 197.40M | 181.48M | 101.50M | 284.57M | 178.38M | 93.18M |
| Investing Cash Flow | -87.27M | -120.06M | -202.76M | 13.38M | -135.98M | -250.42M |
| Financing Cash Flow | -126.94M | -58.73M | -154.62M | -68.14M | -40.83M | -71.93M |
Zhongzhi Pharmaceutical Holdings Limited Technical Analysis
Neutral
0.88
Price Trends
0.78
Positive
0.70
Positive
0.73
Positive
Market Momentum
0.01
Positive
48.72
Neutral
33.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3737, the sentiment is Neutral. The current price of 0.88 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.78, and above the 200-day MA of 0.73, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 33.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$677.60M | 24.59 | 1.57% | 9.43% | -1.99% | -81.52% | |
67 Neutral | HK$747.94M | 4.94 | 9.88% | 7.52% | -24.96% | -26.43% | |
64 Neutral | HK$712.49M | 6.31 | 5.44% | 2.92% | 19.80% | 55.09% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | HK$926.38M | -2.84 | -48.86% | ― | -43.46% | -96.48% | |
46 Neutral | HK$416.29M | 43.63 | -1.17% | 7.50% | 59.60% | -351.02% | |
42 Neutral | HK$163.16M | -4.22 | -30.35% | ― | -17.32% | 55.74% |
* Healthcare Sector Average
HK:3737
Zhongzhi Pharmaceutical Holdings Limited
0.80
0.00
0.00%
HK:0897
Wai Yuen Tong Medicine Holdings Limited
0.37
0.01
2.78%
HK:0950
Lee's Pharmaceutical Holdings Limited
1.21
0.00
0.00%
HK:1498
PuraPharm Corp. Ltd.
0.31
-0.20
-39.00%
HK:1652
Fusen Pharmaceutical Co., Ltd.
1.26
1.02
425.00%
HK:0239
Pak Fah Yeow International Limited
2.40
0.42
21.21%
Zhongzhi Pharmaceutical Holdings Limited Corporate Events
Zhongzhi Pharmaceutical Flags Over 70% Profit Slump on Policy-Driven Sales Hit
Jan 23, 2026
Zhongzhi Pharmaceutical Holdings Limited has warned investors that its net profit for the year ended 31 December 2025 is expected to decline by more than 70% compared with 2024, based on a preliminary review of its unaudited consolidated managemen...
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.