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Essex Bio-Technology
(1061)
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Rating:71Outperform
Price Target:
HK$2.50
▲(11.61% Upside)
Action:Reiterated
Date:07/21/26
The score is driven primarily by strong underlying profitability and improving leverage, plus a notably attractive valuation (low P/E and high dividend yield). These positives are partially offset by weak technicals (price below key moving averages, negative MACD) and volatile/free-cash-flow weakness in 2025.
Positive Factors
High, stable gross margins
Gross margins consistently near 85%–90% indicate strong product economics and meaningful pricing or cost advantages. This profitability cushion can help fund research, commercialization, and market access while providing resilience if revenue growth remains uneven over the next several quarters.
Negative Factors
Uneven revenue momentum
The pattern of declines followed by a modest recovery signals inconsistent demand or commercialization momentum in the company’s core markets. Prolonged revenue unevenness could limit operating leverage, make investment planning less predictable, and reduce the ability to compound earnings despite strong margins.
Read all positive and negative factors
Positive Factors
Negative Factors
High, stable gross margins
Gross margins consistently near 85%–90% indicate strong product economics and meaningful pricing or cost advantages. This profitability cushion can help fund research, commercialization, and market access while providing resilience if revenue growth remains uneven over the next several quarters.
Read all positive factors
Essex Bio-Technology (1061) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.18B
Dividend Yield5.83%
Average Volume (3M)376.92K
Price to Earnings (P/E)4.4
Beta (1Y)0.54
Revenue Growth-0.74%
EPS Growth-15.21%
CountryHK
Employees1,240
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.47
Shares Outstanding567,006,000
10 Day Avg. Volume370,213
30 Day Avg. Volume376,921
Financial Highlights & Ratios
PEG Ratio1.82
Price to Book (P/B)0.89
Price to Sales (P/S)1.18
P/FCF Ratio16.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.57
Revenue Forecast (FY)HK$1.87B
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 ...
How the Company Makes Money
Essex Bio-Technology makes money primarily by selling its proprietary bFGF-based pharmaceuticals/biologics and related medical products used for eye conditions and wound healing. Revenue is generated from product sales to healthcare markets (e.g.,...
Essex Bio-Technology Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.72B | 1.81B | 1.67B | 1.71B | 1.32B | 1.64B |
| Gross Profit | 1.50B | 1.62B | 1.50B | 1.54B | 1.19B | 1.40B |
| EBITDA | 401.08M | 467.90M | 400.71M | 418.38M | 313.54M | 436.65M |
| Net Income | 265.41M | 318.09M | 307.22M | 275.26M | 225.41M | 345.97M |
Balance Sheet | ||||||
| Total Assets | 3.62B | 3.49B | 2.98B | 2.83B | 2.71B | 2.86B |
| Cash, Cash Equivalents and Short-Term Investments | 807.73M | 784.14M | 560.74M | 515.03M | 543.49M | 671.35M |
| Total Debt | 348.99M | 346.90M | 187.04M | 294.02M | 489.73M | 565.19M |
| Total Liabilities | 1.07B | 1.08B | 859.33M | 903.78M | 981.03M | 1.13B |
| Stockholders Equity | 2.55B | 2.41B | 2.12B | 1.92B | 1.73B | 1.73B |
Cash Flow | ||||||
| Free Cash Flow | 153.63M | 131.71M | 324.07M | 211.16M | 99.87M | 164.63M |
| Operating Cash Flow | 284.95M | 306.32M | 368.47M | 339.21M | 382.79M | 409.16M |
| Investing Cash Flow | -102.44M | -165.17M | -106.59M | -54.34M | -302.03M | -280.08M |
| Financing Cash Flow | -46.53M | 62.10M | -200.81M | -309.92M | -169.11M | -73.13M |
Essex Bio-Technology Technical Analysis
Negative
2.24
Price Trends
2.43
Negative
2.64
Negative
3.23
Negative
Market Momentum
-0.08
Positive
32.01
Neutral
17.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1061, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.43, and below the 200-day MA of 3.23, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1061.
Essex Bio-Technology Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$1.85B | 6.29 | 13.26% | 9.52% | -0.47% | -0.40% | |
71 Outperform | HK$1.18B | 4.38 | 10.70% | 5.83% | -0.74% | -15.21% | |
65 Neutral | HK$685.99M | 4.48 | 7.52% | 3.88% | 7.05% | 22.46% | |
59 Neutral | HK$1.50B | 5.57 | 6.78% | 9.65% | 6.55% | 36.62% | |
52 Neutral | HK$2.34B | -20.51 | -10.61% | ― | 83.49% | -110.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
42 Neutral | HK$2.23B | -6.75 | -31.33% | ― | ― | ― |
* Healthcare Sector Average
HK:1061
Essex Bio-Technology
2.06
-3.24
-61.10%
HK:2552
Hua Medicine
2.45
-1.82
-42.62%
HK:0950
Lee's Pharmaceutical Holdings Limited
1.16
-0.81
-41.00%
HK:2348
Dawnrays Pharmaceutical Holdings Ltd.
1.00
-0.16
-13.63%
HK:2633
Jacobson Pharma Corporation Limited
0.95
-0.42
-30.56%
HK:2561
VISEN Pharmaceuticals
19.28
-25.30
-56.75%
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...
Essex Bio-Technology Sets August Board Meeting to Review Interim Results and Dividend
Jul 24, 2026
Essex Bio-Technology has scheduled a board meeting in Hong Kong on 5 August 2026 to review and approve the group’s interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, a ...
Essex Bio-Technology Warns of Profit Hit as China VAT Change Squeezes Margins
Jul 17, 2026
Essex Bio-Technology has issued a profit warning after China’s new value-added tax law raised the tax rate on pharmaceutical wholesale sales of ordinary biological products from 3% to 13%, while regulated end-prices remain fixed under the ce...
Essex Bio-Technology’s HLX04-O Hits Phase 3 Endpoint in Wet-AMD Trial
Jun 16, 2026
Essex Bio-Technology announced that AURA-2, a multi-centre phase 3 trial of HLX04-O for exudative (wet) age-related macular degeneration, met its primary and key secondary endpoints by demonstrating non-inferior visual acuity gains versus ranibizu...
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.