Zhejiang Tianyu Pharmaceutical Co Ltd
Zhejiang Tianyu Pharmaceutical Co Ltd operates in the pharmaceuticals sector, generating revenue through the development and sale of pharmaceutical products.
Business. Zhejiang Tianyu Pharmaceutical Co Ltd (300702.SZ) is a pharmaceutical company engaged in the research, development, and sale of pharmaceutical products. The firm is headquartered in China and is primarily listed on the Shenzhen Stock Exchange. Specific details regarding its operating segments and geographic revenue mix are not disclosed in the available data.
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1 analysts · consensus BuyAt a glance
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
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Composite-score breakdown
Synthesis
Zhejiang Tianyu Pharmaceutical Co Ltd (300702.SZ) is a pharmaceutical company engaged in the research, development, and sale of pharmaceutical products. The firm is headquartered in China and is primarily listed on the Shenzhen Stock Exchange. Specific details regarding its operating segments and geographic revenue mix are not disclosed in the available data.
Zhejiang Tianyu Pharmaceutical maintains a capital structure characterized by a debt-to-equity ratio of 0.49 and a current ratio of 1.15. The balance sheet reflects total assets of CNY 6.59 billion against total liabilities of CNY 2.95 billion, with long-term debt standing at CNY 1.77 billion. Despite positive operating cash flow of CNY 473.6 million, free cash flow is constrained to CNY 82.0 million due to significant capital expenditures of CNY 357.8 million. The company holds a net cash position that is negative after subtracting total debt, indicating a reliance on debt financing for its asset base.
Profitability metrics indicate modest returns relative to the capital employed, with a return on equity of 2.79% and a return on assets of 1.54%. The company reports a gross profit of CNY 1.06 billion on revenue of CNY 3.06 billion, resulting in a gross margin of approximately 34.8%. Operating income stands at CNY 168.9 million, leading to a net income of CNY 139.7 million. These returns are below typical industry medians for large-cap pharmaceutical firms, suggesting room for operational leverage or margin expansion.
- The company exhibits low profitability with an ROE of 2.79% and ROA of 1.54%, indicating inefficient capital utilization.
- High valuation multiples, including a P/E of 71.1 and EV/EBITDA of 74.5, suggest significant growth expectations priced into the stock.
- Negative net cash position and substantial capital expenditures of CNY 357.8 million constrain free cash flow to CNY 82.0 million.
- Analyst consensus is strongly positive with a mean recommendation of 1.00, anticipating EPS growth from 0.41 CNY to 0.91 CNY.
- Low dilution risk is confirmed by stable share counts, but medium liquidity risk requires monitoring of debt obligations.
Bull / Bear case
Generated · model-assistedNet income surged 149.8% year-over-year to CNY 139.7 million in FY2026, signaling a strong profitability recovery.
Revenue grew 16.4% to CNY 3.06 billion in FY2026, demonstrating robust top-line expansion momentum.
Cash conversion ratio of 4.66 ranks best-in-class among 857 pharmaceutical peers, indicating superior operational efficiency.
Free cash flow turned positive at CNY 150.6 million in FY2025, reversing previous years of significant negative cash flow.
Operating income increased 105.5% year-over-year to CNY 168.9 million in FY2026, highlighting improved core business performance.
The company faces high credit risk, posing a significant threat to financial stability and potential default.
Long-term debt remains elevated at CNY 1.77 billion in FY2026, creating substantial leverage pressure.
Debt-to-equity ratio of 0.49 is significantly below the cohort median of 0.18, indicating higher leverage than peers.
Net margin of 3.76% trails the pharmaceutical cohort median of 3.9%, suggesting weaker profitability relative to competitors.
In focus — financials by report
Revenue ¥3.06B, +16,4% YoY; Operating income +105,5% YoY.
- ▍Revenue ¥3.06B, +16,4% YoY
- ▍Operating income +105,5% YoY
- ▍Net income +149,8% YoY
- ▍Free cash flow −45,5% YoY
- ▍Net margin 4.6%
Revenue ¥2.63B, +4,1% YoY; Operating income +19,7% YoY.
- ▍Revenue ¥2.63B, +4,1% YoY
- ▍Operating income +19,7% YoY
- ▍Net income +104,5% YoY
- ▍Free cash flow +525,0% YoY
- ▍Net margin 2.1%
Revenue ¥2.53B, −5,2% YoY; Operating income +162,4% YoY.
- ▍Revenue ¥2.53B, −5,2% YoY
- ▍Operating income +162,4% YoY
- ▍Net income +123,0% YoY
- ▍Free cash flow +92,3% YoY
- ▍Net margin 1.1%
Revenue ¥2.67B, +4,8% YoY; Operating income −149,1% YoY.
- ▍Revenue ¥2.67B, +4,8% YoY
- ▍Operating income −149,1% YoY
- ▍Net income −158,1% YoY
- ▍Free cash flow −2,2% YoY
- ▍Net margin -4.5%
Revenue ¥2.55B; Operating income ¥224.0M.
- ▍Revenue ¥2.55B
- ▍Operating income ¥224.0M
- ▍Net margin 8.0%
Valuation FY
Revenue by segment
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Peer comparison
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Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 0,91 |
| Revenue | —no estimate | —no estimate | 3,6B CNY |
| Operating income | —no estimate | —no estimate | —no estimate |
Options
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consensus EPS · 26-week trendSell-side observations
Themes
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Risk factors
- Net cash is negative after subtracting total debt.
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- Cash Conversion Ratiooperating_cash_flow / net_income
- Market Capmarket_price * shares_outstanding_diluted
- Ev To Operating Cash Flowenterprise_value / operating_cash_flow
- Price To Tangible Bookmarket_price / (tangible_book_value / shares_outstanding_diluted)
- Ev To Operating Incomeenterprise_value / operating_income
- Zhejiang Tianyu Pharmaceutical Co Ltd Market data — financials · 2026-07-08
- Zhejiang Tianyu Pharmaceutical Co Ltd Market data — analyst estimates · 2026-07-08