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Sinopharm Tech Holdings Limited (HK:8156)
:8156
Hong Kong Market

Sinopharm Tech Holdings Limited (8156) AI Stock Analysis

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HK

Sinopharm Tech Holdings Limited

(8156)

Rating:25Underperform
Price Target:
Sinopharm Tech Holdings Limited faces significant financial distress, with declining revenue, persistent losses, and negative equity. The technical indicators provide a neutral to slightly bearish outlook, and the valuation metrics are unappealing due to ongoing profitability issues. These factors indicate a precarious financial position, warranting caution for potential investors.

Sinopharm Tech Holdings Limited (8156) vs. iShares MSCI Hong Kong ETF (EWH)

Sinopharm Tech Holdings Limited Business Overview & Revenue Model

Company DescriptionSinopharm Tech Holdings Limited, an investment holding company, engages in lottery business in the People's Republic of China and Hong Kong. The company operates through Provision of Lottery-Related Services, Provision of Internet Plus Services, Manufacturing and Distribution of Personal Protective Equipment, and Other Services segments. It offers lottery-related hardware and software systems. The company is also involved in the provision of Internet plus solution services to health care, government affairs, leasing, public security, and other industries; and supply chain management, data analysis, and related services, as well as trading of goods through internet platform. In addition, it offers corporate management services; and distribution of personal protective equipment. The company was formerly known as China Vanguard You Champion Holdings Limited and changed its name to Sinopharm Tech Holdings Limited in June 2019. Sinopharm Tech Holdings Limited was founded in 1999 and is headquartered in Sha Tin, Hong Kong.
How the Company Makes MoneySinopharm Tech Holdings Limited generates revenue primarily from its lottery business activities. The company's revenue streams include sales of lottery products, software development for lottery systems, and the provision of lottery distribution and ancillary services. Sinopharm Tech collaborates with government agencies and lottery operators to develop and manage lottery systems, ensuring compliance with regulatory standards. The company also engages in partnerships and collaborations to expand its market presence and explore new business opportunities in the lottery and related sectors. Service fees and commissions from lottery sales and distribution contribute significantly to the company's earnings.

Sinopharm Tech Holdings Limited Financial Statement Overview

Summary
Sinopharm Tech Holdings Limited is facing substantial financial challenges, reflected in its declining revenue, persistent losses, high debt levels, and negative equity. The company is struggling with profitability and liquidity issues, which are critical areas for improvement to ensure future sustainability. The overall financial health appears to be in distress, indicating a need for strategic restructuring.
Income Statement
20
Very Negative
The company has been experiencing declining revenue over the years with a slight increase in the last reported year. The gross profit margin is weak at 12.16%, and net income has been consistently negative, indicating profitability issues. The EBIT margin is non-existent, and EBITDA margin is slightly better at 12.06%, but still low. Overall, the income statement displays a trend of declining financial health and profitability challenges.
Balance Sheet
15
Very Negative
The balance sheet indicates significant financial stress with a negative stockholders' equity of -199.48 million, showing insolvency. The company has a high debt-to-equity ratio due to negative equity and substantial liabilities, which poses a significant risk. The equity ratio is negative, reflecting an overwhelmed asset structure with liabilities. The company's financial stability is considerably weak.
Cash Flow
25
Negative
The cash flow statement reveals negative operating cash flow and a negative free cash flow, which have deteriorated over the years. The free cash flow to net income ratio also highlights challenges in generating cash relative to earnings. The company is relying heavily on financing activities to manage its cash needs, evidencing potential liquidity issues.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue18.90M41.28M42.84M40.98M77.81M165.93M
Gross Profit6.50M5.02M5.47M5.93M20.88M44.65M
EBITDA-715.00K4.98M-1.01M-75.17M-89.65M-138.51M
Net Income-5.51M-19.70M-10.63M-88.00M-106.34M-161.07M
Balance Sheet
Total Assets44.68M44.49M33.48M76.89M135.90M188.17M
Cash, Cash Equivalents and Short-Term Investments3.35M2.64M1.78M2.99M7.48M6.75M
Total Debt6.03M73.26M0.0045.93M108.03M117.42M
Total Liabilities63.34M250.09M213.24M250.28M276.46M261.56M
Stockholders Equity-13.92M-199.48M-172.73M-166.78M-138.88M-73.08M
Cash Flow
Free Cash Flow-781.00K-12.58M4.73M-36.88M-16.32M523.00K
Operating Cash Flow-781.00K-9.25M4.73M-36.76M-6.21M23.92M
Investing Cash Flow0.00-4.86M2.00K-85.00K-5.05M-23.39M
Financing Cash Flow1.49M14.98M-4.52M32.24M12.46M-299.00K

Sinopharm Tech Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.22
Price Trends
50DMA
0.14
Positive
100DMA
0.13
Positive
200DMA
0.11
Positive
Market Momentum
MACD
0.02
Negative
RSI
84.24
Negative
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8156, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.14, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 84.24 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8156.

Sinopharm Tech Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$57.76B7.569.19%3.99%-3.94%-23.48%
75
Outperform
$30.20B17.1110.17%5.30%-8.91%-34.40%
74
Outperform
HK$33.04B12.1014.56%4.00%-5.37%6.28%
71
Outperform
HK$327.51M6.916.61%5.87%-3.59%4.81%
69
Neutral
HK$13.01B25.883.53%-3.12%-12.71%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
25
Underperform
HK$139.41M
-11.42%26.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8156
Sinopharm Tech Holdings Limited
0.22
0.10
83.33%
HK:1110
Kingworld Medicines Group Ltd.
0.55
0.05
10.00%
HK:1099
Sinopharm Group Co
18.52
-0.95
-4.88%
HK:2186
Luye Pharma Group
3.52
0.62
21.38%
HK:1513
Livzon Pharmaceutical Group
29.95
6.93
30.08%
HK:0867
China Medical System Holdings
12.24
6.17
101.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025