Zhaoke Ophthalmology Ltd. (6622) AI Stock Analysis

• Market Cap: HK$1.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• 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: 547,970,030
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$3.00 ▼(-5.36% Downside)

Zhaoke Ophthalmology Ltd.'s overall stock score is primarily impacted by its financial performance, which shows revenue growth but persistent losses and negative cash flows. Technical analysis presents a neutral outlook, while valuation remains challenging due to negative earnings. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company's significant revenue growth indicates strong demand for its products and effective market penetration, supporting long-term business expansion.

Strong Equity Base

A strong equity base and low financial leverage provide stability and flexibility for future investments and growth initiatives.

R&D Capabilities

Strong R&D capabilities enable the company to innovate and develop new therapies, maintaining a competitive edge in the ophthalmology sector.

Negative Factors

Persistent Losses

Ongoing unprofitability and negative margins highlight financial instability, potentially limiting reinvestment and growth opportunities.

Negative Cash Flows

Negative cash flows indicate challenges in converting revenue into cash, affecting liquidity and the ability to fund operations without external financing.

Financial Instability

Financial instability due to ongoing losses and cash flow issues could hinder strategic initiatives and long-term sustainability.

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 generates revenue primarily through the sale of its pharmaceutical products and medical devices. The company's revenue model is centered on the development and commercialization of proprietary drugs and therapies that address unmet medical needs in ophthalmology. Key revenue streams include direct sales of its products to hospitals and clinics, licensing agreements, and partnerships with other pharmaceutical companies for co-development and distribution of its therapies. Additionally, Zhaoke may benefit from government subsidies and grants aimed at promoting healthcare innovation. Strategic collaborations and alliances with research institutions and healthcare providers also contribute to its market presence and revenue generation.

Zhaoke Ophthalmology Ltd. Financial Statement Overview

Summary

Zhaoke Ophthalmology Ltd. has shown revenue growth but remains unprofitable with negative net profit and EBIT margins. The strong equity base provides some stability, but negative cash flows and ongoing losses highlight financial challenges.

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: Positive
• Last Price: 3.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6622, the sentiment is Positive. The current price of 3.17 is above the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.19, and above the 200-day MA of 2.95, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 91.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	64 Neutral	HK$10.95B	14.18	6.69%	4.28%	-8.49%	-9.46%
1875	61 Neutral	HK$1.93B	238.10	0.99%	―	9.41%	-32.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6622	47 Neutral	HK$1.85B	-6.12	-14.84%	―	-38.38%	-22.12%
1477	47 Neutral	HK$6.50B	-22.35	-7.71%	―	74.73%	32.13%
2185	44 Neutral	HK$1.45B	-14.99	-14.87%	―	―	22.65%
6978	43 Neutral	HK$1.71B	-6.43	―	―	―	27.90%

Zhaoke Ophthalmology Ltd. Corporate Events

Zhaoke Ophthalmology Partners with TSH Biopharm for Taiwan Market Entry

Zhaoke Ophthalmology Ltd. has entered a strategic partnership with TSH Biopharm to commercialize BRIMOCHOL™ PF in Taiwan. This partnership allows TSH Biopharm to register, import, and market the presbyopia-correcting eyedrop, potentially enhancing Zhaoke’s market presence in the Asia-Pacific region, where there is a significant unmet need for such therapeutics. The collaboration is expected to strengthen Zhaoke’s position in the ophthalmology market and provide a new solution for the widespread issue of presbyopia.

The most recent analyst rating on (HK:6622) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Zhaoke Ophthalmology Ltd. stock, see the HK:6622 Stock Forecast page.

Zhaoke Ophthalmology Gains Key Approvals for Innovative Eye Treatments

Zhaoke Ophthalmology Limited announced the approval of its Investigational New Drug application for PAN-90806, an innovative eye drop for treating wet age-related macular degeneration, by China’s National Medical Products Administration. Additionally, the company received marketing authorization for Epinastine HCl eye drops for allergic conjunctivitis. These developments are expected to enhance the company’s market position by offering less invasive treatment options and addressing significant market needs in China, where the wAMD drug market is projected to grow substantially.

The most recent analyst rating on (HK:6622) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Zhaoke Ophthalmology Ltd. stock, see the HK:6622 Stock Forecast page.

Zhaoke Ophthalmology Expands into Indonesia with New Distribution Agreement

Zhaoke Ophthalmology Ltd. has entered into a distribution agreement with PT Ferron Par Pharmaceuticals to commercialize BRIMOCHOL™ PF, an innovative presbyopia treatment, in Indonesia. This strategic move grants PT Ferron exclusive rights to market and sell the drug, potentially strengthening Zhaoke’s presence in the Southeast Asian market and addressing the unmet need for presbyopia treatments in the region.

The most recent analyst rating on (HK:6622) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Zhaoke Ophthalmology Ltd. stock, see the HK:6622 Stock Forecast page.