Zhejiang Shapuaisi Pharmaceutical Co Ltd

Zhejiang Shapuaisi Pharmaceutical Co Ltd has a market price of 5.92 CNY per share, with a market capitalization of 2,214,828,909.6 CNY. The company's price-to-book ratio is 1.31, and its price-to-tangible-book ratio is also 1.31, indicating that the market values the company slightly above its book value. The enterprise value to EBITDA ratio is negative at -96.95, reflecting the company's current operating losses. The enterprise value to revenue ratio is 24.9, suggesting a high valuation relative to its revenue.

The company's profitability is weak, with a return on equity of -1.72% and a return on assets of -1.35%, both significantly below the industry median for pharmaceutical companies. The gross profit margin is 50.25%, but the operating margin is negative at -2.57%, and the net margin is also negative at -2.93%. These metrics indicate that the company is struggling to convert revenue into profit and is underperforming relative to its peers.

Zhejiang Shapuaisi Pharmaceutical Co Ltd's revenue is concentrated in a single geographic market, primarily China, with no disclosed international operations. The company does not report segment-level revenue, but its product portfolio is likely focused on generic and branded pharmaceuticals. The lack of geographic and product diversification increases the company's exposure to domestic regulatory and economic risks.

The company's growth trajectory is uncertain, with no disclosed revenue growth in the most recent fiscal year. The operating cash flow is negative at -10,125,490 CNY, and the capital expenditure is -101,208,890 CNY, indicating that the company is investing heavily in its operations but is not generating positive cash flow. The company's liquidity is rated as medium, with a current ratio of 1.08, suggesting that it has just enough current assets to cover its current liabilities.

The company's risk profile is moderate, with a liquidity risk and a low dilution risk. The debt-to-equity ratio is 0.15, indicating a relatively low level of leverage. However, the company has a negative net cash position after subtracting total debt, which could limit its ability to fund operations or invest in growth. The company has not disclosed any recent equity issuances or dilution events, and its shares outstanding have remained stable.

The company has not disclosed any recent material events, such as regulatory actions, product launches, or strategic partnerships. The absence of recent news suggests that the company is not currently in the spotlight for significant developments, but it also means that there is limited public information about its strategic direction or operational performance.

The company maintains a low debt-to-equity ratio of 0.15, which is above the median for its pharmaceutical cohort.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value from share issuance.

Gross profit remained positive at 197.7 million CNY in FY0, indicating underlying product pricing power despite operating losses.

The company faces high credit risk and medium liquidity risk, raising concerns about its financial stability and solvency.

Revenue ¥484.0M, −25,0% YoY; Operating income −615,4% YoY.

• ▍Revenue ¥484.0M, −25,0% YoY
• ▍Operating income −615,4% YoY
• ▍Net income −585,9% YoY
• ▍Free cash flow −38,9% YoY
• ▍Net margin -25.5%