Sinco Pharmaceuticals Holdings Ltd. (6833) AI Stock Analysis

• Market Cap: HK$500.09M
• Dividend Yield: 0.8%
• Average Volume (3M): 239.07K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.16
• Revenue Growth: -16.52%
• EPS Growth: -8.87%
• Country: HK
• Employees: 291
• Sector: Healthcare
• Sector Strength: 52
• Industry: Advertising Agencies
• EPS (TTM): 0.01
• Shares Outstanding: 2,032,890,600
• 10 Day Avg. Volume: 203,600
• 30 Day Avg. Volume: 239,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: 100.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: HK$0.50 ▲(100.00% Upside)

The stock's overall score is driven by a strong valuation and positive technical indicators, despite challenges in cash flow management. The company's solid revenue growth and stable balance sheet are offset by liquidity concerns, which should be monitored closely.

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 through multiple streams, primarily from the sale of its pharmaceutical products, which include generic and proprietary medications. The company's revenue model is largely based on direct sales to hospitals, pharmacies, and healthcare providers. Additionally, Sinco engages in strategic partnerships and collaborations with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on product sales. The company also invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities in the future. Furthermore, regulatory approvals and market entry strategies play a significant role in the company's earnings potential, as successful product launches in key markets can significantly boost revenues.

Sinco Pharmaceuticals Holdings Ltd. Financial Statement Overview

Summary

Sinco Pharmaceuticals Holdings Ltd. demonstrates solid revenue growth and a stable balance sheet, yet faces challenges in cash flow management. While profitability margins are generally stable, 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.54B	2.27B	2.02B	2.05B
Gross Profit	299.94M	323.28M	305.87M	364.95M	273.83M
EBITDA	132.60M	126.01M	109.01M	197.69M	152.05M
Net Income	42.05M	42.35M	69.46M	135.08M	118.14M
Balance Sheet
Total Assets	2.00B	1.89B	1.42B	1.23B	1.25B
Cash, Cash Equivalents and Short-Term Investments	308.32M	437.92M	329.14M	326.05M	143.76M
Total Debt	350.54M	251.40M	192.41M	340.95M	82.13M
Total Liabilities	1.34B	1.26B	820.52M	857.88M	1.09B
Stockholders Equity	662.88M	628.05M	603.81M	374.89M	165.34M
Cash Flow
Free Cash Flow	-268.05M	289.16M	22.39M	282.19M	136.93M
Operating Cash Flow	-232.88M	353.70M	75.08M	305.71M	137.30M
Investing Cash Flow	-52.87M	-63.63M	-119.27M	-22.73M	-46.84M
Financing Cash Flow	154.59M	-189.73M	35.04M	-97.11M	-169.88M

Sinco Pharmaceuticals Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 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:6833, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 84.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	69 Neutral	HK$500.09M	10.88	6.37%	0.80%	-16.52%	-8.87%
1762	53 Neutral	HK$1.88B	733.33	0.45%	―	35.73%	-88.89%
Sector *	51 Neutral	$7.95B	-0.38	-43.43%	2.22%	22.30%	-1.83%
2422	46 Neutral	HK$600.00M	130.30	-16.52%	―	10.61%	-1890.91%
1993	45 Neutral	HK$315.58M	―		―	-38.24%	-31.99%
0205	38 Underperform	HK$331.26M	―	-6.02%	―	-4.13%	76.38%
2131	―	HK$362.02M	1,516.67	-0.05%	―	―	―

Sinco Pharmaceuticals Holdings Ltd. Corporate Events

Sinco Pharmaceuticals Provides Update on Connected Transaction Loan

Sinco Pharmaceuticals Holdings Ltd. announced a supplemental update regarding a previously issued interest-free loan of HK$5 million to Mr. Huang Xiangbin, a connected person, during the COVID-19 pandemic. The loan, approved by the company’s CFO and CEO, was deemed necessary due to operational instability caused by the pandemic. The company’s board has conducted a thorough review and confirmed that this loan was an isolated incident, with no similar transactions occurring from 2020 to 2024, ensuring transparency and compliance with regulatory standards.

Sinco Pharmaceuticals Schedules Board Meeting to Discuss Interim Results

Sinco Pharmaceuticals Holdings Limited has announced a board meeting scheduled for August 27, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend payment, which could impact shareholder returns and reflect the company’s financial health.

Sinco Pharmaceuticals Announces Connected Transaction Amid Listing Rules Breach

Sinco Pharmaceuticals Holdings Ltd. announced a connected transaction involving an interest-free loan of HK$5 million provided by its subsidiary, Hong Kong Prosperous, to Mr. Huang, an executive Director and substantial shareholder. This transaction, which was subject to reporting requirements under the Listing Rules, was initially not announced due to an oversight, resulting in a breach of the rules. The company clarified that the non-compliance was unintentional, arising from a misinterpretation, and was discovered during a regular review of documents. The loan was necessitated by travel restrictions due to the COVID-19 pandemic, which prevented Mr. Huang from completing banking transactions in person.

Sinco Pharmaceuticals Approves New Share Option Scheme at EGM

Sinco Pharmaceuticals Holdings Ltd. held an Extraordinary General Meeting on 26 May 2025, where all proposed resolutions were approved by shareholders. The resolutions included the implementation of a new 2025 Share Option Scheme, the authorization to issue new shares, and the termination of the existing share option scheme from 2016. The approval of these resolutions is expected to enhance the company’s operational flexibility and align its share option schemes with current market practices.