Zhaoke Ophthalmology Ltd. (6622) AI Stock Analysis

• Market Cap: HK$1.49B
• Dividend Yield: N/A
• Average Volume (3M): 4.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 260.78%
• EPS Growth: 40.04%
• Country: HK
• Employees: 294
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.47
• Shares Outstanding: 546,139,160
• 10 Day Avg. Volume: 3,795,150
• 30 Day Avg. Volume: 4,140,058
• PEG Ratio: 0.00
• Price to Book (P/B): -268.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -84.98
• 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$2.50
• Price Target Upside: -8.09% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ―

Zhaoke Ophthalmology Ltd. faces financial challenges with persistent losses and negative cash flows despite revenue growth. The strong equity position provides some stability, but the lack of profitability and negative P/E ratio weigh heavily on the stock's valuation. Technical indicators suggest a neutral momentum, with no clear trend direction.

Zhaoke Ophthalmology Ltd. Business Overview & Revenue Model

Company Description

Zhaoke Ophthalmology Ltd. (6622) is a leading ophthalmic pharmaceutical company dedicated to the research, development, manufacturing, and commercialization of treatments for a wide range of eye diseases. The company operates primarily in the biotechnology and pharmaceutical sectors, focusing on innovative solutions for conditions such as glaucoma, dry eye, and age-related macular degeneration. Zhaoke Ophthalmology's core products include a portfolio of proprietary ophthalmic drugs and therapies that are designed to address unmet medical needs in China and other Asian markets.

How the Company Makes Money

Zhaoke Ophthalmology Ltd. generates revenue through the sale of its proprietary ophthalmic drugs and therapies. The company's revenue model is primarily based on direct sales to healthcare providers, hospitals, and clinics across its target markets. Additionally, Zhaoke Ophthalmology may engage in licensing agreements and strategic partnerships with other pharmaceutical companies to enhance its distribution channels and market reach. These partnerships can also include co-development agreements that provide additional funding and resources for research and development activities, further contributing to the company's earnings. Furthermore, Zhaoke Ophthalmology might receive milestone payments and royalties from licensing its technologies and products to other entities.

Zhaoke Ophthalmology Ltd. Financial Statement Overview

Summary

Zhaoke Ophthalmology Ltd. is experiencing revenue growth, but remains unprofitable with negative cash flows. While the company benefits from a strong equity position, its financial challenges in achieving profitability and generating positive cash flows are significant.

Income Statement

Zhaoke Ophthalmology Ltd. has shown significant revenue growth from 2023 to 2024, but the company remains unprofitable, with a negative net profit margin and EBIT margin. The increasing revenue is a positive indicator, yet the high operating losses highlight financial instability in achieving profitability.

Balance Sheet

The company has a strong equity base with a favorable debt-to-equity ratio, indicating low financial leverage. However, the return on equity is negative due to ongoing losses. The equity ratio is healthy, suggesting good asset financing primarily through equity.

Cash Flow

Zhaoke Ophthalmology Ltd. has struggled with generating positive cash flows, with free cash flow remaining negative. The absence of operating cash flow growth and weak cash flow to net income ratios suggest challenges in converting revenue into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
69.32M	18.75M	0.00	0.00	0.00
	Gross Profit
51.80M	14.25M	0.00	0.00	0.00
	EBIT
-227.99M	-376.57M	-404.18M	-364.33M	-725.33M
	EBITDA
-251.23M	-327.86M	-369.10M	-377.53M	-100.70M
	Net Income Common Stockholders
-237.49M	-385.04M	-410.46M	-2.13B	-728.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	1.46B	1.73B	2.14B	871.34M
	Total Assets
2.24B	2.42B	2.57B	2.61B	1.23B
	Total Debt
238.59M	238.03M	131.93M	37.03M	37.53M
	Net Debt
-882.42M	-1.22B	-1.58B	-2.09B	-27.57M
	Total Liabilities
343.44M	372.02M	222.25M	109.92M	1.97B
	Stockholders Equity
1.90B	2.05B	2.35B	2.50B	-745.97M
Cash Flow		Free Cash Flow
0.00	-418.93M	-569.60M	-339.63M	-279.38M
	Operating Cash Flow
0.00	-323.66M	-331.05M	-245.14M	-103.42M
	Investing Cash Flow
0.00	-75.77M	-324.57M	683.52M	-955.48M
	Financing Cash Flow
0.00	99.29M	76.23M	1.66B	973.69M

Zhaoke Ophthalmology Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6622, the sentiment is Neutral. The current price of 2.72 is below the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.18, and above the 200-day MA of 1.68, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 10.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6622.

Zhaoke Ophthalmology Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1093	76 Outperform	$87.63B	19.06	13.20%	2.62%	-9.60%	-27.18%
2269	74 Outperform	$98.06B	27.18	8.17%	―	7.52%	-1.92%
1513	74 Outperform	$32.28B	11.57	14.56%	4.18%	-5.37%	6.28%
1177	66 Neutral	$89.24B	47.03	6.14%	12.58%	7.63%	-24.23%
Sector *	59 Neutral	HK$14.51B	6.14	-7.38%	5.61%	12.00%	-20.84%
1873	58 Neutral	HK$3.28B	18.36	4.47%	―	-9.75%	―
6622	45 Neutral	HK$1.49B	―	-12.04%	―	260.78%	40.04%

Zhaoke Ophthalmology Ltd. Corporate Events

Zhaoke Ophthalmology Announces AGM with Key Resolutions on Share Management

Zhaoke Ophthalmology Limited has announced its upcoming annual general meeting, scheduled for May 16, 2025, where shareholders will vote on resolutions to authorize the company’s directors to repurchase shares and issue additional shares or securities. These resolutions, if passed, will enable the company to manage its share capital more flexibly, potentially impacting its market positioning and shareholder value.

Zhaoke Ophthalmology Begins Phase III Trial for Innovative Dry Eye Treatment

Zhaoke Ophthalmology Limited has announced the enrollment of the first patient in a Phase III clinical trial for its CsA Ophthalmic Gel, aimed at treating moderate to severe dry eye disease. This trial, involving 360 patients across 25 centers, follows regulatory approval for an Investigational New Drug application. The CsA Ophthalmic Gel, a novel formulation with improved pharmacokinetic profiles, is expected to enhance patient compliance and quality of life by offering a once-daily application with a rapid onset of action, potentially strengthening the company’s position in the expanding dry eye disease market.

Zhaoke Ophthalmology Expands into Thailand with New Distribution Agreements

Zhaoke Ophthalmology Limited has entered into three distribution agreements with Interpharma to commercialize NVK002, BRIMOCHOL™ PF, and six glaucoma drugs in Thailand. These agreements grant Interpharma exclusive rights to import, distribute, and sell these products, potentially enhancing Zhaoke’s market presence in Southeast Asia and expanding access to innovative ophthalmic treatments.

Zhaoke Ophthalmology Advances Presbyopia Treatment with New Trials and Partnerships

Zhaoke Ophthalmology Ltd. has announced the enrollment of the first patient in a Phase II clinical trial for its presbyopia treatment, BRIMOCHOL PF, which aims to evaluate its efficacy and safety in Chinese patients. Additionally, the company has entered into an exclusive distribution agreement with Lunatus Marketing & Consulting FZCO to commercialize BRIMOCHOL PF in the Middle East, and its partner Tenpoint Therapeutics has submitted a New Drug Application to the U.S. FDA for the same product. These developments signify strategic advancements in the company’s operations and potential market expansion.

Zhaoke Ophthalmology Renews Lease Agreement with Lee’s Pharmaceutical

Zhaoke Ophthalmology Limited has announced the renewal of a lease agreement for premises in Guangzhou, China, with Lee’s Pharmaceutical Holdings Limited. The renewed lease, effective from April 1, 2025, to February 29, 2028, involves a monthly rental fee of approximately RMB666,011.72 for office, manufacturing, and warehouse use. This transaction is considered a connected transaction under Hong Kong’s Listing Rules and will be treated as an acquisition of a capital asset, impacting the company’s balance sheet under IFRS 16.