Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. Class H (8329) AI Stock Analysis

• Market Cap: HK$234.92M
• Dividend Yield: 3.81%
• Average Volume (3M): 330.65K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.12
• Revenue Growth: -5.98%
• EPS Growth: -81.25%
• Country: HK
• Employees: 1,485
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.01
• Shares Outstanding: 426,000,000
• 10 Day Avg. Volume: 371,000
• 30 Day Avg. Volume: 330,653
• PEG Ratio: 2.96
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 116.66
• 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: 54 Neutral
• Price Target: HK$0.14 ▲(2.14% Upside)

The overall stock score reflects significant financial and technical challenges. The company's strong balance sheet is overshadowed by declining revenues, margins, and cash flow issues. Technical indicators point to bearish momentum, and the high P/E ratio suggests overvaluation, despite a reasonable dividend yield.

Positive Factors

Strong Equity Base

A strong equity base indicates financial stability and provides a buffer against potential financial downturns, supporting long-term resilience.

Conservative Leverage

Low leverage reduces financial risk and interest burden, allowing the company to maintain flexibility in strategic investments and operations.

Operational Efficiencies

Improvement in net profit margin, despite revenue challenges, indicates effective cost management and potential for profitability enhancement.

Negative Factors

Declining Revenue

Decreasing revenue suggests challenges in market demand or competitive pressures, potentially impacting long-term growth and market position.

Cash Flow Concerns

Zero operating cash flow signals liquidity issues, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Margin Decline

A significant drop in gross margin indicates rising costs or pricing pressures, which could erode profitability if not addressed.

Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Shenzhen Neptunus Interlong Bio-technique Company Limited, together with its subsidiaries, researches, develops, produces, and sells medicines in the People's Republic of China. It is also involved in the purchase, sale, and distribution of medicines and healthcare food products; and research and development of biological technology products. In addition, the company manufactures herbal medicines and generic drugs products, as well as medical devices. The company is based in Shenzhen, the People's Republic of China. Shenzhen Neptunus Interlong Bio-technique Company Limited is a subsidiary of Shenzhen Neptunus Bio-engineering Company Limited.

How the Company Makes Money

Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. generates revenue through multiple streams, primarily by selling its biopharmaceutical products, diagnostic reagents, and bio-agricultural products to hospitals, clinics, and agricultural enterprises. The company leverages strategic partnerships with research institutions and healthcare providers to enhance its product offerings and expand market reach. Additionally, Neptunus engages in contract manufacturing services for third parties, further diversifying its income sources. The growing demand for healthcare solutions and sustainable agricultural practices, along with government support for biotechnology initiatives, significantly contributes to the company's revenue generation.

Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. Class H Financial Statement Overview

Summary

The company faces mixed financial conditions. While the balance sheet shows stability with a strong equity base and low debt, declining revenues and margins indicate operational challenges. Cash flow concerns are significant, with operating and free cash flow at zero, highlighting liquidity risks.

Income Statement

The company experienced a decline in revenue from 2023 to 2024, indicating a potential challenge in maintaining sales momentum. Gross profit margin decreased from 41.3% in 2023 to 31.5% in 2024, suggesting increased cost pressures or pricing challenges. Net profit margin slightly improved to 2.4% in 2024 from 2.3% in 2023, reflecting some operational efficiencies. EBIT and EBITDA margins also show a decline, emphasizing operational headwinds.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 66.7% in 2024, indicating good financial stability. The debt-to-equity ratio remains low at 0.11, suggesting conservative leverage practices. However, slight declines in total assets and stockholders' equity could pose future challenges if not addressed.

Cash Flow

Cash flow metrics are concerning, with operating cash flow dropping to zero in 2024, potentially impacting liquidity. With free cash flow also at zero, the company may face challenges in funding new investments or expansions without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	993.11M	1.04B	1.06B	986.69M	838.80M	1.03B
Gross Profit	288.74M	328.04M	439.24M	444.14M	374.10M	574.36M
EBITDA	38.27M	62.87M	69.89M	125.24M	73.97M	76.74M
Net Income	6.17M	25.01M	24.13M	54.35M	35.96M	36.59M
Balance Sheet
Total Assets	1.11B	1.40B	1.42B	1.45B	1.31B	1.12B
Cash, Cash Equivalents and Short-Term Investments	139.33M	283.42M	382.21M	350.10M	311.14M	415.88M
Total Debt	101.89M	105.43M	89.69M	92.69M	105.69M	10.06M
Total Liabilities	332.49M	371.99M	399.46M	442.93M	363.17M	225.21M
Stockholders Equity	707.26M	933.18M	908.17M	884.04M	829.70M	793.74M
Cash Flow
Free Cash Flow	31.45M	2.20M	38.32M	41.51M	-85.00M	55.69M
Operating Cash Flow	44.37M	24.41M	53.69M	61.22M	-69.92M	93.64M
Investing Cash Flow	54.05M	-114.62M	60.90M	10.76M	-181.57M	-30.68M
Financing Cash Flow	-274.92M	1.43M	-32.48M	-9.02M	66.75M	-35.28M

Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 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:8329, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8329.

Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8329	54 Neutral	HK$234.92M	35.90	0.72%	3.81%	-5.98%	-81.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$580.83M	―	-40.38%	―	-43.46%	-96.48%
8622	48 Neutral	HK$230.22M	―	-8.71%	―	2.54%	33.33%
0897	46 Neutral	HK$495.05M	―	-1.16%	7.32%	59.60%	-351.02%
1011	41 Neutral	HK$485.46M	-2.86	―	―	―	―