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Essex Bio-Technology Limited (HK:1061)
:1061
Hong Kong Market
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Essex Bio-Technology (1061) AI Stock Analysis

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HK:1061

Essex Bio-Technology

(1061)

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Outperform 73 (OpenAI - Gpt-5.6Sol)
Rating:73Outperform
Price Target:
HK$2.50
▲(11.61% Upside)
Action:Reiterated
Date:10/21/26
The score is driven primarily by strong underlying financial quality (high profitability and improving, low leverage) and very attractive valuation (low P/E and high dividend yield). These positives are moderated by weaker technicals (below key moving averages with negative MACD) and volatility in free cash flow, which adds execution and sustainability risk.
Positive Factors
High, stable profitability
Exceptionally high and stable gross margins, combined with solid EBIT profitability, indicate strong economics across the company’s biologic and ophthalmology product portfolio. This provides a durable base for funding research, manufacturing, commercialization, and other strategic investments.
Negative Factors
Choppy revenue performance
Uneven revenue performance reduces visibility into the company’s underlying growth trajectory and suggests that demand or commercial execution has not been consistently improving. Continued volatility could make it harder to scale fixed capabilities and sustain current profitability over time.
Read all positive and negative factors
Positive Factors
Negative Factors
High, stable profitability
Exceptionally high and stable gross margins, combined with solid EBIT profitability, indicate strong economics across the company’s biologic and ophthalmology product portfolio. This provides a durable base for funding research, manufacturing, commercialization, and other strategic investments.
Read all positive factors

Essex Bio-Technology (1061) vs. iShares MSCI Hong Kong ETF (EWH)

Essex Bio-Technology Business Overview & Revenue Model

Company Description
Essex Bio-Technology Limited operates as an investment holding company, specializing in the development, manufacturing, distribution, and sale of biopharmaceutical products. Its business activities extend across the People's Republic of China and ...

Essex Bio-Technology Financial Statement Overview

Summary
Strong profitability and balance sheet quality support the score (very high and stable gross margins, solid EBIT margins, and declining debt-to-equity with consistently strong ROE). Offsetting factors are choppy revenue trends and volatile free cash flow, including a sharp FCF drop in 2025, which reduces confidence in cash conversion.
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.72B1.81B1.67B1.71B1.32B1.64B
Gross Profit1.50B1.62B1.50B1.54B1.19B1.40B
EBITDA407.97M479.37M410.66M418.74M313.92M436.65M
Net Income265.41M318.09M307.22M275.26M225.41M345.97M
Balance Sheet
Total Assets3.62B3.49B2.98B2.83B2.71B2.86B
Cash, Cash Equivalents and Short-Term Investments807.73M784.14M560.74M515.03M543.49M671.35M
Total Debt348.99M346.90M187.04M294.02M489.73M565.19M
Total Liabilities1.07B1.08B859.33M903.78M981.03M1.13B
Stockholders Equity2.55B2.41B2.12B1.92B1.73B1.73B
Cash Flow
Free Cash Flow153.63M131.71M324.07M211.16M99.87M164.63M
Operating Cash Flow284.95M306.32M368.47M339.21M382.79M409.16M
Investing Cash Flow-102.44M-165.17M-106.59M-54.34M-302.03M-280.08M
Financing Cash Flow-46.53M62.10M-200.81M-309.92M-169.11M-73.13M

Essex Bio-Technology Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.24
Price Trends
50DMA
2.14
Negative
100DMA
2.35
Negative
200DMA
2.93
Negative
Market Momentum
MACD
-0.03
Negative
RSI
48.74
Neutral
STOCH
61.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1061, the sentiment is Neutral. The current price of 2.24 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 2.14, and below the 200-day MA of 2.93, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1061.

Essex Bio-Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$1.19B4.4510.70%5.74%-0.74%-15.21%
70
Outperform
HK$1.78B6.1913.26%9.67%-0.47%-0.40%
68
Neutral
HK$606.50M3.648.02%5.61%7.05%22.46%
59
Neutral
HK$1.39B5.126.78%6.85%6.55%36.62%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
42
Neutral
HK$2.11B-18.09-10.61%―83.49%-110.21%
42
Neutral
HK$1.59B-5.37-33.42%―――
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1061
Essex Bio-Technology
2.09
-2.09
-49.95%
HK:2552
Hua Medicine
2.18
-1.44
-39.75%
HK:0950
Lee's Pharmaceutical Holdings Limited
1.03
-0.77
-42.94%
HK:2348
Dawnrays Pharmaceutical Holdings Ltd.
0.92
-0.20
-17.86%
HK:2633
Jacobson Pharma Corporation Limited
0.94
-0.42
-30.74%
HK:2561
VISEN Pharmaceuticals
13.93
-24.67
-63.91%

Essex Bio-Technology Corporate Events

Essex Bio-Technology Reports Profit Decline but Strong Balance Sheet in First-Half 2026
Aug 5, 2026
Essex Bio-Technology reported a weaker first half for 2026, with turnover falling 10.5% to HK$784.7 million and profit for the period dropping 32.2% to HK$110.7 million, reflecting pressure on margins as gross profit margin slipped to 83.6% and ne...
Essex Bio-Technology Declares Interim Dividend for First Half of 2026
Aug 5, 2026
Essex Bio-Technology Limited has declared an interim ordinary cash dividend of HKD 0.05 per share for the six months ended 30 June 2026. The dividend, relating to the financial year ending 31 December 2026, will be paid in Hong Kong dollars with n...
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: Oct 21, 2026