Sinco Pharmaceuticals Holdings Ltd. (6833) AI Stock Analysis

• Market Cap: HK$361.85M
• Dividend Yield: 1.12%
• Average Volume (3M): 210.00K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.23
• Revenue Growth: -16.52%
• EPS Growth: -8.87%
• Country: HK
• Employees: 291
• Sector: Healthcare
• Sector Strength: 45
• Industry: Advertising Agencies
• EPS (TTM): 0.01
• Shares Outstanding: 2,032,890,600
• 10 Day Avg. Volume: 85,200
• 30 Day Avg. Volume: 210,000
• PEG Ratio: -19.24
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -1.45
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.19 ▲(7.78% Upside)

The overall stock score of 60 reflects solid revenue growth and a stable balance sheet, offset by challenges in cash flow management and a bearish technical outlook. The valuation suggests potential undervaluation, but liquidity concerns and lack of momentum weigh on the score.

Positive Factors

Stable Balance Sheet

A stable balance sheet with strong equity growth indicates financial health and provides a solid foundation for future investments and growth.

Revenue Growth

Consistent revenue growth suggests a strong market position and effective business strategies, supporting long-term financial stability.

Gross Profit Margin Stability

Stable gross profit margins indicate efficient cost management and pricing strategies, which can sustain profitability over time.

Negative Factors

Cash Flow Management Challenges

Challenges in cash flow management can limit the company's ability to invest in growth opportunities and meet short-term obligations.

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Inconsistent Operating Cash Flow

Inconsistent operating cash flow can hinder the company's capacity to fund operations and invest in future growth, affecting financial stability.

Sinco Pharmaceuticals Holdings Ltd. Business Overview & Revenue Model

Company Description

Sinco Pharmaceuticals Holdings Limited, an investment holding company, provides marketing, promotion, and channel management services for imported pharmaceutical products and medical devices in China. The company offers Octapharma, a human albumin solution for use in premature infants; Axetine, which is used for the treatment of bacterial infections, including respiratory infections, urinary tract infections, soft tissue infections, gynecological and obstetrical infections, gonorrhea, and other infections, as well as for the prevention of post-surgery infections; and Medocef that is used for the treatment of bacterial infections, such as the infections of the lower respiratory tract comprising pneumonia, urinary tract, bile duct, peritoneum, skin, soft tissue, pelvic area, and sepsis. It also provides Esafosfina, which is used for treating hypophosphatemia and chronic diseases, including alcohol intoxication, malnutrition, and hypophosphatemic respiratory failure; Taurolite, a third generation oral cholic acid drug that is used for the treatment of gallstone diseases; and Tamifil injection for the treatment of metastatic prostate cancer, true precocious puberty, and endometriosis. In addition, the company engages in the sale of pharmaceutical products; and provides warehouse facilities for pharmaceutical products; and offers international trade services, as well as provides consultation services for medical and biological technology. The company was founded in 2011 and is headquartered in Chengdu, the People's Republic of China. Sinco Pharmaceuticals Holdings Limited is a subsidiary of Risun Investments Limited.

How the Company Makes Money

Sinco Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products, which include both proprietary medications and generic drugs. The company's revenue model is diversified, with key revenue streams stemming from direct sales to hospitals, pharmacies, and healthcare institutions, as well as partnerships with other pharmaceutical companies for co-development and co-marketing agreements. Additionally, Sinco benefits from government contracts and subsidies that support the production of essential medications. Strategic collaborations with research organizations and healthcare providers also enhance its market presence and contribute to its earnings.

Sinco Pharmaceuticals Holdings Ltd. Financial Statement Overview

Summary

Sinco Pharmaceuticals Holdings Ltd. shows solid revenue growth and a stable balance sheet, but faces challenges in cash flow management. The recent decline in free cash flow and operating cash flow suggests potential liquidity concerns.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2020 to 2024. Gross profit margin has remained relatively stable, although there was a decline in net profit margin in the latest year. EBIT and EBITDA margins have shown resilience despite fluctuations in net income.

Balance Sheet

The balance sheet reflects a strong equity position with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio is manageable, indicating a balanced leverage. However, the equity ratio has shown some volatility, which could indicate potential risks.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, with a significant decline in the latest year. Operating cash flow has been inconsistent, impacting the company's ability to generate cash from operations. The free cash flow to net income ratio has been unfavorable recently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.49B	2.82B	2.54B	2.27B	2.02B	2.05B
Gross Profit	257.43M	299.94M	323.28M	305.87M	364.95M	273.83M
EBITDA	117.26M	132.60M	126.01M	109.01M	197.69M	152.05M
Net Income	42.56M	42.05M	42.35M	69.46M	135.08M	118.14M
Balance Sheet
Total Assets	1.88B	2.00B	1.89B	1.42B	1.23B	1.25B
Cash, Cash Equivalents and Short-Term Investments	232.63M	308.32M	437.92M	329.14M	326.05M	143.76M
Total Debt	227.90M	350.54M	251.40M	192.41M	340.95M	82.13M
Total Liabilities	1.20B	1.34B	1.26B	820.52M	857.88M	1.09B
Stockholders Equity	683.60M	662.88M	628.05M	603.81M	374.89M	165.34M
Cash Flow
Free Cash Flow	-4.48M	-268.05M	289.16M	22.39M	282.19M	136.93M
Operating Cash Flow	21.86M	-232.88M	353.70M	75.08M	305.71M	137.30M
Investing Cash Flow	-44.48M	-52.87M	-63.63M	-119.27M	-22.73M	-46.84M
Financing Cash Flow	-19.05M	154.59M	-189.73M	35.04M	-97.11M	-169.88M

Sinco Pharmaceuticals Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6833, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 52.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6833.

Sinco Pharmaceuticals Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6833	60 Neutral	HK$361.85M	7.88	6.37%	1.12%	-16.52%	-8.87%
2422	54 Neutral	HK$885.00M	-13.26	-16.52%	―	10.61%	-1448.48%
1762	53 Neutral	HK$1.20B	466.67	0.45%	―	35.73%	-88.89%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0205	49 Neutral	HK$763.24M	-49.19	-6.02%	―	-4.13%	76.38%
1993	39 Underperform	HK$277.33M	-5.39	―	―	-38.24%	-31.99%

Sinco Pharmaceuticals Holdings Ltd. Corporate Events

Sinco Pharmaceuticals Enhances Internal Controls Following Listing Rule Breach

Sinco Pharmaceuticals Holdings Limited has announced the results of its internal control remediation following an interest-free loan granted to Mr. Huang Xiangbin, which breached the Listing Rules. The company has taken corrective actions by revising its Connected Transaction Management Measures and conducting training for its directors and senior management to ensure compliance with regulatory requirements. These efforts aim to strengthen corporate governance and restore stakeholder confidence.

Sinco Pharmaceuticals Enhances Governance Following Internal Review

Sinco Pharmaceuticals Holdings Ltd. has released key findings from an internal control review conducted by external consultants. The review identified a breach in corporate governance related to an interest-free loan provided to a connected person, which violated the Listing Rules. The consultants recommended improvements, including designating personnel to manage compliance with transaction reporting requirements and maintaining proper documentation. The company has accepted these recommendations to enhance its governance practices.