Essex Bio-Technology (1061) AI Stock Analysis

• Market Cap: HK$2.49B
• Dividend Yield: 2.39%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.47
• Revenue Growth: -2.15%
• EPS Growth: 12.09%
• Country: HK
• Employees: 1,450
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.54
• Shares Outstanding: 567,006,000
• 10 Day Avg. Volume: 772,500
• 30 Day Avg. Volume: 1,791,600
• PEG Ratio: 0.55
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.77
• 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

Essex Bio-Technology's strong profitability and robust balance sheet are positive indicators, but recent revenue declines need attention. Technical analysis shows strong upward momentum, supported by attractive valuation metrics, suggesting potential for growth.

Essex Bio-Technology Business Overview & Revenue Model

Company Description

Essex Bio-Technology (1061) is a biopharmaceutical company specializing in the research, development, and commercialization of therapeutics for the treatment of eye diseases and wound healing. With a focus on regenerative medicine, the company leverages its expertise in bioactive proteins and peptides to offer innovative solutions that address significant unmet medical needs. Essex Bio-Technology operates primarily in the ophthalmology and dermatology sectors, providing a range of products that enhance tissue repair and regeneration.

How the Company Makes Money

Essex Bio-Technology generates revenue primarily through the sale of its biopharmaceutical products, which include a variety of treatments for ocular and dermatological conditions. The company develops and markets its products through direct sales and partnerships with distributors, hospitals, and clinics across different regions. By focusing on innovative therapies that target specific medical needs, Essex Bio-Technology is able to capture market share in niche areas within the healthcare industry. In addition to product sales, the company may also derive income from licensing agreements and collaborations with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on the commercial success of its products.

Essex Bio-Technology Financial Statement Overview

Summary

Essex Bio-Technology demonstrates solid profitability with a strong balance sheet, though recent revenue declines and fluctuating cash flows present challenges. The company has a strong equity backing but must address revenue trends to enhance growth.

Income Statement

Essex Bio-Technology shows a strong gross profit margin and consistent net profit margin, reflecting solid profitability. However, recent revenue growth has been negative, indicating a potential concern for future earnings. EBIT and EBITDA margins remain stable, showcasing efficient operations.

Balance Sheet

The company maintains a healthy debt-to-equity ratio and strong return on equity, indicating effective use of equity financing and operational efficiency. The equity ratio is robust, emphasizing a strong capital structure with significant equity backing.

Cash Flow

While operating cash flow supports net income well, fluctuating free cash flow growth rates suggest volatility in capital expenditures and cash reserves. The free cash flow to net income ratio indicates effective conversion of profits into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.67B	1.71B	1.32B	1.64B	978.11M
	Gross Profit
1.50B	1.54B	1.19B	1.40B	793.83M
	EBIT
320.72M	310.33M	278.05M	435.58M	237.40M
	EBITDA
400.71M	418.38M	313.54M	436.65M	279.50M
	Net Income Common Stockholders
307.22M	275.26M	225.41M	345.97M	218.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
560.74M	515.03M	543.49M	671.35M	599.80M
	Total Assets
2.98B	2.83B	2.71B	2.86B	2.42B
	Total Debt
187.04M	294.02M	489.73M	565.19M	562.77M
	Net Debt
-370.13M	-215.82M	-53.75M	-106.15M	-37.01M
	Total Liabilities
859.33M	903.78M	981.03M	1.13B	995.15M
	Stockholders Equity
2.12B	1.92B	1.73B	1.73B	1.43B
Cash Flow		Free Cash Flow
324.07M	211.16M	99.87M	164.63M	-18.40M
	Operating Cash Flow
368.47M	339.21M	382.79M	409.16M	299.24M
	Investing Cash Flow
-106.59M	-54.34M	-302.03M	-280.08M	-343.27M
	Financing Cash Flow
-200.81M	-309.92M	-169.11M	-73.13M	149.49M

Essex Bio-Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1061, the sentiment is Positive. The current price of 4.41 is above the 20-day moving average (MA) of 4.39, above the 50-day MA of 3.73, and above the 200-day MA of 2.90, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 35.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1061.

Essex Bio-Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1061	78 Outperform	HK$2.49B	8.11	15.18%	2.39%	-2.15%	12.09%
1513	74 Outperform	$30.95B	10.66	14.56%	5.59%	-5.37%	6.28%
2318	72 Outperform	$1.00T	7.10		5.57%	11.71%	37.04%
1099	69 Neutral	$57.45B	7.52	9.19%	5.20%	-3.94%	-23.48%
1177	66 Neutral	$71.57B	37.70	6.14%	1.49%	7.63%	-24.23%
Sector *	52 Neutral	$5.04B	3.15	-44.58%	2.85%	16.08%	-0.27%
2383	36 Underperform	HK$1.88B	―		―	-4.77%	-15.54%

Essex Bio-Technology Corporate Events

Essex Bio-Technology Announces AGM and Key Resolutions

Essex Bio-Technology Limited has announced its upcoming annual general meeting scheduled for May 21, 2025, in Hong Kong. The meeting will address several key resolutions, including the re-election of directors, the re-appointment of auditors, and the declaration of a final dividend of HK$0.06 per share for the year ended December 31, 2024. Additionally, the company seeks approval for the directors to have the authority to allot and issue shares within specified limits, which could impact the company’s capital structure and shareholder value.

Essex Bio-Technology’s Phase 3 Study for Wet-AMD Treatment Meets Primary Endpoint

Essex Bio-Technology Limited announced that its phase 3 clinical study for the co-developed product HLX04-O, in collaboration with Shanghai Henlius Biotech, Inc., has successfully met its primary endpoint. The study, conducted on Chinese patients with wet-AMD, demonstrated that HLX04-O is non-inferior to ranibizumab in improving visual acuity and has a comparable safety profile. This achievement marks a significant milestone in the company’s efforts to advance its ophthalmic drug offerings and strengthens its position in the bio-pharmaceutical market.

Essex Bio-Technology Proposes Amendments to Articles of Association

Essex Bio-Technology Limited has announced proposed amendments to its Articles of Association to align with the latest regulatory requirements, including the expanded paperless listing regime and changes to the Listing Rules regarding treasury shares. These amendments are aimed at ensuring compliance with recent regulatory updates and will be subject to shareholder approval at the upcoming annual general meeting.

Essex Bio-Technology Reports Strong Profit Growth Despite Turnover Decline

Essex Bio-Technology Limited reported its audited consolidated financial results for the year ended December 31, 2024. The company experienced a slight decrease in turnover by 3.9% in HKD terms but achieved an 11.6% increase in profit for the year. The financial position improved with a 5.5% increase in total assets and a 10.4% rise in net assets. The company also declared a 33.3% increase in dividends per ordinary share. These results indicate a strong financial performance despite a slight decline in turnover, reflecting effective cost management and operational efficiency.

Essex Bio-Technology Declares Final Dividend for 2024

Essex Bio-Technology Limited has announced a final ordinary cash dividend of HKD 0.06 per share for the financial year ending December 31, 2024. This announcement, dated March 26, 2025, highlights the company’s commitment to returning value to its shareholders, with the payment date set for June 9, 2025. The dividend reflects the company’s stable financial performance and may enhance its attractiveness to investors, reinforcing its position in the biotechnology sector.

Essex Bio-Technology Schedules Board Meeting for Annual Results and Dividend Consideration

Essex Bio-Technology Limited has announced a board meeting scheduled for March 26, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.