Zhaoke Ophthalmology Ltd. (6622) AI Stock Analysis

• Market Cap: HK$1.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -38.38%
• EPS Growth: -22.12%
• Country: HK
• Employees: 294
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.23
• Shares Outstanding: 547,955,000
• 10 Day Avg. Volume: 1,172,850
• 30 Day Avg. Volume: 1,251,992
• PEG Ratio: 0.07
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 8.88
• P/FCF Ratio: -2.07
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: HK$3.00 ▼(-3.54% Downside)

The overall stock score is primarily influenced by financial performance challenges and bearish technical indicators. The company's ongoing losses and negative cash flows are significant concerns, compounded by unattractive valuation metrics. The strong equity base provides some stability, but the focus must be on achieving profitability and improving cash flow.

Zhaoke Ophthalmology Ltd. Business Overview & Revenue Model

Company Description

Zhaoke Ophthalmology Limited, an ophthalmic pharmaceutical company, engages in the research, development, and commercialization of therapies that address unmet medical needs in the People's Republic of China. It is developing various drugs that cover ophthalmic indications affecting the anterior and posterior segments, including dry eye diseases, wet age-related macular degeneration, diabetic macular edema, myopia, and glaucoma. The company was formerly known as China Ophthalmology Focus Limited. Zhaoke Ophthalmology Limited was incorporated in 2017 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

Zhaoke Ophthalmology Ltd. generates revenue primarily through the sale of its pharmaceutical products, which are developed to address a spectrum of ophthalmic conditions. The company's revenue streams include sales to hospitals, clinics, and pharmacies, as well as partnerships with other pharmaceutical companies for distribution and co-development of new drugs. Key factors contributing to its earnings include its robust research and development capabilities, strategic alliances, and its ability to bring innovative therapies to market efficiently. The company also invests in marketing and sales efforts to expand its market reach and enhance its brand presence in the ophthalmology sector.

Zhaoke Ophthalmology Ltd. Financial Statement Overview

Summary

Zhaoke Ophthalmology Ltd. is experiencing revenue growth, but persistent losses and negative cash flows highlight financial instability. The strong equity base provides some stability, but the focus must remain on improving profitability and cash flow generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.36M	69.32M	18.75M	0.00	0.00	0.00
Gross Profit	17.42M	51.80M	14.25M	0.00	0.00	-22.31M
EBITDA	-296.42M	-251.23M	-327.86M	-384.55M	-377.53M	-39.89M
Net Income	-278.31M	-237.49M	-385.04M	-407.32M	-2.13B	-816.90M
Balance Sheet
Total Assets	2.07B	2.24B	2.42B	2.57B	2.61B	1.23B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.19B	1.46B	1.73B	2.14B	871.34M
Total Debt	271.40M	238.59M	238.03M	131.93M	37.03M	37.53M
Total Liabilities	362.61M	343.44M	372.02M	222.25M	109.92M	1.97B
Stockholders Equity	1.71B	1.90B	2.05B	2.35B	2.50B	-745.97M
Cash Flow
Free Cash Flow	-100.50M	-297.79M	-418.93M	-569.60M	-339.63M	-188.11M
Operating Cash Flow	-97.31M	-253.72M	-323.66M	-331.05M	-245.14M	-113.54M
Investing Cash Flow	-37.01M	-116.45M	-75.77M	-324.57M	683.52M	-1.06B
Financing Cash Flow	0.00	-12.12M	99.29M	76.23M	1.66B	1.09B

Zhaoke Ophthalmology Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6622, the sentiment is Negative. The current price of 3.11 is below the 20-day moving average (MA) of 3.26, below the 50-day MA of 3.60, and above the 200-day MA of 2.59, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 34.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6622.

Zhaoke Ophthalmology Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6826	―	HK$11.88B	15.13	6.69%	3.99%	-8.54%	-9.46%
1875	―	HK$1.54B	189.52	0.99%	―	9.41%	-32.69%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1477	―	HK$6.87B	-23.42	-7.71%	―	74.73%	32.13%
6622	―	HK$1.71B	―	-14.84%	―	-38.38%	-22.12%
6978	―	HK$2.11B	―	―	―	―	27.90%
2185	―	HK$1.88B	-19.50	-14.87%	―	―	22.65%

Zhaoke Ophthalmology Ltd. Corporate Events

Zhaoke Ophthalmology Grants 8 Million Share Options to Boost Talent Retention

Zhaoke Ophthalmology Ltd. announced the grant of 8,000,000 share options to 97 grantees, including employees and directors, under its Post-IPO Share Option Scheme. This move, effective from September 5, 2025, aims to enhance the company’s competitive remuneration package, attract and retain talent, and ensure the independence and impartiality of its independent non-executive directors.

The most recent analyst rating on (HK:6622) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Zhaoke Ophthalmology Ltd. stock, see the HK:6622 Stock Forecast page.

Zhaoke Ophthalmology Reports Significant Revenue Decline and Increased Losses in H1 2025

Zhaoke Ophthalmology Limited announced its unaudited consolidated interim results for the six months ended June 30, 2025, revealing a significant decrease in revenue from RMB 49,769,000 in 2024 to RMB 15,803,000 in 2025. Despite a reduction in selling and distribution expenses, the company reported a loss of RMB 116,623,000 for the period, largely due to increased R&D expenses, which reflects its continued investment in product development. The announcement highlights the financial challenges the company faces, impacting its market position and stakeholder confidence.

The most recent analyst rating on (HK:6622) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Zhaoke Ophthalmology Ltd. stock, see the HK:6622 Stock Forecast page.

Zhaoke Ophthalmology Ltd. Schedules Board Meeting for Interim Results

Zhaoke Ophthalmology Ltd. has announced a board meeting scheduled for August 28, 2025, to consider and approve the unaudited interim results for the first half of the year. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming months.

Zhaoke Ophthalmology Secures Certification for Innovative Glaucoma Device

Zhaoke Ophthalmology Limited has obtained a medical device registration certificate for its innovative tonometer, TONO-i, from the National Medical Products Administration. TONO-i is designed to be a contactless, portable, and convenient tool for measuring intraocular pressure, enhancing the company’s glaucoma franchise by addressing low diagnosis and treatment rates in China. The device is expected to improve patient compliance with glaucoma treatments by providing instant feedback on drug efficacy. The company has an exclusive distribution agreement with C&V Tech, extending its rights to market TONO-i in Greater China, Thailand, and Malaysia.

Zhaoke Ophthalmology Secures FDA Orphan Drug Designation for Pediatric Eye Cancer Treatment

Zhaoke Ophthalmology Limited announced that it has received Orphan Drug Designation from the U.S. FDA for its proprietary formulation of melphalan, aimed at treating pediatric retinoblastoma, a rare eye cancer affecting young children. This designation paves the way for regulatory approval in the U.S. and offers potential market exclusivity for seven years if the drug is approved, enhancing the company’s positioning in the market and potentially benefiting stakeholders by providing a new treatment option for this rare disease.