Dawnrays Pharmaceutical Holdings Ltd. (2348) AI Stock Analysis

• Market Cap: HK$1.79B
• Dividend Yield: 5.25%
• Average Volume (3M): 355.07K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.33
• Revenue Growth: 2.89%
• EPS Growth: -68.83%
• Country: HK
• Employees: 1,183
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.07
• Shares Outstanding: 1,503,237,000
• 10 Day Avg. Volume: 239,600
• 30 Day Avg. Volume: 355,066
• PEG Ratio: 0.04
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 38.71
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$1.50 ▲(25.00% Upside)

The overall stock score reflects strong financial health and attractive valuation, offset by declining revenue and cash flow challenges. Technical indicators suggest a neutral to slightly bearish outlook, but the low P/E ratio and high dividend yield provide a solid investment case.

Dawnrays Pharmaceutical Holdings Ltd. Business Overview & Revenue Model

Company Description

Dawnrays Pharmaceutical (Holdings) Limited, an investment holding company, develops, manufactures, and sells non-patented pharmaceutical medicines in Mainland China and internationally. It operates in two segments, Intermediates and Bulk Medicines, and Finished Drugs. The company offers antibiotics, including pharmaceutical intermediates, bulk medicines, powder for injections, and oral antibiotics. It also provides and system specific medicines comprising cardiovascular systems; anti-allergic, anti-HBV, and digestive systems; urinary systems; and anti-pyretic analgesic, respiratory, and endocrine system drugs in the form of tablets, capsules, and granules. The company was founded in 1995 and is headquartered in Wan Chai, Hong Kong. Dawnrays Pharmaceutical (Holdings) Limited is a subsidiary of Fortune United Group Limited.

How the Company Makes Money

Dawnrays Pharmaceutical Holdings Ltd. generates revenue through multiple streams, including the sale of prescription medications and OTC products. The company benefits from a diversified product portfolio, which allows it to cater to various market segments and respond to healthcare demands effectively. Additionally, revenue is bolstered by the production and sale of APIs to other pharmaceutical manufacturers. Strategic partnerships with healthcare providers, distributors, and research institutions enhance its market reach and operational capabilities, contributing to its earnings. Furthermore, the company invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities.

Dawnrays Pharmaceutical Holdings Ltd. Financial Statement Overview

Summary

Dawnrays Pharmaceutical Holdings Ltd. demonstrates strong profitability with high net profit margins and a robust balance sheet with minimal leverage. However, there's a decline in revenue and weakened cash flow generation, indicating potential challenges in maintaining growth.

Income Statement

The company shows strong gross profit margins consistently above 50%, indicating efficient cost management. However, revenue has decreased from the previous year, showing a negative growth rate of -7.89%. The net profit margin improved to 53.28% in 2024, reflecting a strong bottom line. EBIT and EBITDA margins are also robust, indicating healthy operational profitability despite revenue decline.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.01, showcasing minimal reliance on external debt. The equity ratio remains high at 82.93%, indicating stable equity financing. Return on equity improved to 16.99%, reflecting effective utilization of shareholder funds. Overall, the company maintains a solid financial position with significant equity backing and low debt levels.

Cash Flow

The free cash flow growth rate is negative, indicating a decline in cash generation capacity. Operating cash flow to net income and free cash flow to net income ratios could not be evaluated due to zero operating cash flow reported in 2024. The cash flow position appears to be weakened, potentially impacting liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.06B	1.15B	1.28B	1.17B	1.02B
Gross Profit	509.46M	577.63M	641.52M	766.68M	675.36M	545.55M
EBITDA	226.47M	280.49M	498.94M	505.19M	433.89M	395.71M
Net Income	176.47M	564.94M	326.00M	358.06M	358.18M	268.13M
Balance Sheet
Total Assets	3.88B	4.01B	3.62B	3.67B	3.34B	2.90B
Cash, Cash Equivalents and Short-Term Investments	1.62B	1.37B	1.07B	993.04M	830.22M	932.11M
Total Debt	9.16M	34.72M	120.53M	8.41M	23.52M	2.95M
Total Liabilities	579.69M	682.61M	763.42M	1.02B	941.70M	720.14M
Stockholders Equity	3.30B	3.32B	2.85B	2.64B	2.38B	2.17B
Cash Flow
Free Cash Flow	195.90M	44.58M	126.39M	229.90M	80.07M	163.80M
Operating Cash Flow	250.73M	220.20M	338.40M	434.27M	393.14M	302.90M
Investing Cash Flow	-263.09M	205.17M	-387.57M	-175.01M	-284.20M	26.45M
Financing Cash Flow	-285.41M	-189.44M	2.07M	-92.70M	-129.75M	-327.70M

Dawnrays Pharmaceutical Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2348, the sentiment is Neutral. The current price of 1.2 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.21, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2348.

Dawnrays Pharmaceutical Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2877	―	HK$6.47B	7.25	10.85%	6.01%	-20.64%	-25.39%
2348	―	HK$1.79B	9.39	5.34%	5.25%	2.89%	-68.83%
1681	―	HK$12.45B	11.64	25.92%	4.19%	19.05%	13.68%
2633	―	HK$2.76B	9.57	12.47%	4.17%	7.43%	21.88%
0570	―	$13.04B	197.41	-1.26%	3.35%	-9.58%	-128.83%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0460	―	$13.62B	―	-1.87%	0.74%	19.21%	-115.91%

Dawnrays Pharmaceutical Holdings Ltd. Corporate Events

Dawnrays Pharmaceutical Reports Revenue Growth Amid Profit Decline

Dawnrays Pharmaceutical Holdings Ltd. reported its interim results for the six months ending June 30, 2025, revealing a 9.2% increase in revenue compared to the same period in 2024. However, the company experienced a significant decline in profit before tax and net profit margin, primarily due to the absence of non-recurring gains that were present in the previous year. This financial performance indicates challenges in maintaining profitability despite revenue growth, impacting the company’s financial stability and shareholder returns.

Dawnrays Pharmaceutical Announces Interim Dividend for 2025

Dawnrays Pharmaceutical Holdings Ltd. announced an interim cash dividend of HKD 0.015 per share for the six months ending June 30, 2025. The ex-dividend date is set for September 16, 2025, with the payment date scheduled for October 3, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

Dawnrays Pharmaceutical Announces Upcoming Board Meeting for Interim Results

Dawnrays Pharmaceutical Holdings Ltd. has announced a board meeting scheduled for August 22, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration of an interim dividend, reflecting the company’s ongoing financial assessment and potential shareholder returns.

Dawnrays Pharmaceutical Announces Board Composition and Committee Roles

Dawnrays Pharmaceutical Holdings Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned roles as chairmen or members. This announcement outlines the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making processes within the organization.

Dawnrays Pharmaceutical Appoints New Non-Executive Director

Dawnrays Pharmaceutical Holdings Ltd. has announced the appointment of Mr. Hu Shuo as a non-executive director, effective August 1, 2025. Mr. Hu brings over 20 years of experience in equity investment and mergers and acquisitions, which could enhance the company’s strategic capabilities and strengthen its market position. His appointment is part of the company’s ongoing efforts to bolster its governance and leadership structure.