The United Laboratories International Holdings (3933) AI Stock Analysis

• Market Cap: HK$24.56B
• Dividend Yield: 4.92%
• Average Volume (3M): 9.92M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.80
• Revenue Growth: 0.39%
• EPS Growth: 4.94%
• Country: HK
• Employees: 17,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.15
• Shares Outstanding: 1,973,026,500
• 10 Day Avg. Volume: 7,373,248
• 30 Day Avg. Volume: 9,917,500
• PEG Ratio: -3.94
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 15.87
• 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: HK$17.82
• Price Target Upside: 51.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.58
• Revenue Forecast (FY): HK$15.62B

• Rating: 64 Neutral
• Price Target: HK$12.50 ▲(6.47% Upside)

The stock's overall score is primarily driven by strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, which impacts the overall score negatively.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Balance Sheet Strength

A strong equity position with low debt enhances financial resilience, providing the company with the flexibility to invest in growth opportunities.

Profitability

Robust profit margins reflect effective cost management and operational efficiency, ensuring sustainable profitability and competitive advantage.

Negative Factors

Cash Flow Management

Fluctuating cash flow and recent data gaps pose challenges to financial stability, potentially impacting the company's ability to fund operations and growth.

Return on Equity Fluctuations

Fluctuations in return on equity indicate potential inefficiencies, which could affect investor confidence and long-term financial performance.

EBIT and EBITDA Margin Decrease

Decreasing EBIT and EBITDA margins, though still healthy, may signal rising costs or competitive pressures, affecting future profitability.

The United Laboratories International Holdings Business Overview & Revenue Model

Company Description

The United Laboratories International Holdings Limited, an investment holding company, engages in the research, development, manufacture, distribution, and sale of pharmaceutical products. It operates through three segments: Bulk Medicine, Intermediate Products, and Finished Products. The company offers oral antibiotics, antimicrobials for injection, anti-cold products, cough medicines, ophthalmic drugs, antiviral drugs, anti-hepatitis B drugs, diabetes drugs, skin drugs for external use, cardiovascular and cerebrovascular drugs, nervous system drugs, vitamins, and vacant gelatin capsules, as well as API and intermediate products. It also manufactures and sells soft capsules casings; holds trademarks; and trades in pharmaceutical products. In addition, the company provides management services. It has operations in the People's Republic of China, Europe, India, the Middle East, South America, other Asian regions, and internationally. The company was founded in 1990 and is headquartered in Yuen Long, Hong Kong.

How the Company Makes Money

The United Laboratories generates revenue primarily through the sale of its pharmaceutical products, which includes both generic and branded medications. Key revenue streams are derived from the production and distribution of prescription drugs and over-the-counter products that cater to various health conditions. The company also benefits from strategic partnerships with healthcare providers and distributors, enhancing its market reach and product availability. Additionally, United Laboratories invests in research and development to introduce new drugs and improve existing formulations, which contributes to its competitive edge and revenue growth. The company's ability to tap into the growing demand for healthcare solutions, particularly in emerging markets, further bolsters its financial performance.

The United Laboratories International Holdings Financial Statement Overview

Summary

The company has strong revenue and profit growth, supported by a solid balance sheet with low leverage. However, cash flow management presents challenges due to recent data inconsistencies, which slightly detracts from the overall financial stability.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a notable increase from 2022 to 2023. The gross profit margin and net profit margin are robust, indicating strong profitability. Although EBIT and EBITDA margins slightly decreased in 2024, they remain healthy, reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a growing stockholders' equity base, contributing to a favorable equity ratio. The debt-to-equity ratio is low, indicating prudent financial leverage and reduced financial risk. However, the return on equity has experienced minor fluctuations, suggesting potential efficiency improvements.

Cash Flow

The cash flow statement reveals fluctuating free cash flow figures, with a significant drop in 2024 due to unavailable operating cash flow data. The historical trend shows a positive operating cash flow to net income ratio, but recent data gaps hinder comprehensive assessment. Free cash flow management needs stabilization for improved financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.10B	13.76B	13.74B	11.33B	9.70B	8.77B
Gross Profit	6.66B	6.08B	6.33B	4.97B	4.21B	3.81B
EBITDA	3.88B	3.35B	3.98B	2.54B	1.98B	1.83B
Net Income	3.06B	2.66B	2.70B	1.58B	988.10M	702.99M
Balance Sheet
Total Assets	29.43B	25.83B	21.02B	18.98B	16.33B	14.96B
Cash, Cash Equivalents and Short-Term Investments	9.01B	6.33B	4.26B	4.74B	3.33B	3.00B
Total Debt	5.13B	3.16B	1.50B	2.46B	1.84B	2.21B
Total Liabilities	13.82B	11.40B	8.27B	8.37B	6.99B	6.35B
Stockholders Equity	15.57B	14.39B	12.73B	10.61B	9.34B	8.61B
Cash Flow
Free Cash Flow	417.70M	1.33B	977.50M	1.25B	1.06B	1.04B
Operating Cash Flow	1.35B	3.20B	2.44B	2.03B	1.54B	1.57B
Investing Cash Flow	-1.20B	-1.73B	-1.56B	-594.92M	-587.22M	166.76M
Financing Cash Flow	-373.46M	596.91M	-1.36B	-24.17M	-620.93M	-1.91B

The United Laboratories International Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3933, the sentiment is Neutral. The current price of 11.74 is below the 20-day moving average (MA) of 12.54, below the 50-day MA of 12.69, and below the 200-day MA of 14.08, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 29.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3933.

The United Laboratories International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1513	74 Outperform	HK$32.14B	11.33	14.91%	4.08%	-0.45%	9.00%
0512	73 Outperform	HK$29.07B	13.79	12.65%	3.26%	10.56%	-13.58%
3320	68 Neutral	HK$28.71B	9.44	5.90%	2.95%	―	―
0867	65 Neutral	HK$32.42B	18.12	10.01%	2.24%	11.78%	19.06%
3933	64 Neutral	HK$24.56B	6.85	21.02%	4.92%	0.39%	4.94%
0013	53 Neutral	HK$18.14B	4.99	48.58%	―	-1.78%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

The United Laboratories International Holdings Corporate Events

United Laboratories’ Antibiotic Product Passes Consistency Evaluation

The United Laboratories International Holdings Limited announced that its product, Cefoperazone Sodium and Sulbactam Sodium for Injection, has passed the consistency evaluation by the China National Medical Products Administration. This approval enhances the company’s position in the anti-infective market and is expected to add value for shareholders as the company continues its research and development efforts.

United Laboratories Announces Vesting of Award Shares

The United Laboratories International Holdings Limited announced the vesting of 3,369,800 Award Shares to its executives and employees as part of the 2023 Share Award Scheme. This move reflects the company’s commitment to rewarding performance and aligning the interests of its leadership and workforce with its strategic goals.

United Laboratories Advances TUL01101 Tablets to Phase III Trials

The United Laboratories International Holdings Limited announced the successful completion of a Phase II clinical trial for its TUL01101 Tablets, a JAK1 inhibitor, in treating moderate-to-severe atopic dermatitis in adults. The trial demonstrated significant efficacy and a positive safety profile, paving the way for a Phase III trial in China, which could enhance the company’s positioning in the autoimmune disease treatment market.

United Laboratories Acquires Award Shares for Share Scheme

The United Laboratories International Holdings Limited has announced the acquisition of 3,500,000 Award Shares by the Trustee through on-market transactions to fulfill the vesting obligations of the 2023 Share Award Scheme. This move is part of the company’s strategy to reward Grantees who have met performance targets, potentially strengthening stakeholder confidence and aligning employee incentives with company performance.

The United Laboratories Announces 2025 Interim Dividend Payment

The United Laboratories International Holdings Limited announced the payment of an interim dividend of RMB16 cents per share for the first half of 2025, which will be converted and paid in Hong Kong dollars at a rate of HK$0.175070 per share. This payment is scheduled for 15 October 2025, benefiting shareholders listed as of 30 September 2025, reflecting the company’s commitment to returning value to its shareholders.

United Laboratories Announces Interim Dividend for 2025

The United Laboratories International Holdings Limited announced an interim dividend of RMB 0.16 per share for the six months ending June 30, 2025, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09419. This announcement reflects the company’s ongoing commitment to providing shareholder value and may impact investor sentiment positively as it highlights financial stability and profitability.

United Laboratories Gains Approval for Weight Loss Drug Trial

The United Laboratories International Holdings Limited announced the approval of a clinical trial for its new drug, UBT37034, targeting overweight and obesity. This approval, granted by both the China National Medical Products Administration and the U.S. FDA, marks a significant step in the company’s efforts to enhance its competitiveness in the biopharmaceutical industry, potentially benefiting its shareholders.

The United Laboratories Enhances ESG Efforts with New Sustainability Committee

The United Laboratories International Holdings Limited has established a Sustainability Committee to enhance its ESG management and performance. This initiative aims to integrate ESG considerations into business decision-making processes, ensuring compliance with applicable laws and regulations. The Committee will focus on environmental, social, and governance matters, and is supported by a Sustainability Working Group responsible for implementing the Group’s ESG initiatives. This move is expected to improve stakeholder recognition of the company’s sustainability efforts and position it as a responsible enterprise in the industry.