Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) Bundle
Zhejiang Tianyu Pharmaceutical (300702.SZ) is at a crossroads-Q3 2025 revenue reached CNY 719.55 million (up 7.91% QoQ) while trailing twelve-month sales sit at CNY 2.99 billion (up 15.07% YoY), annual 2024 revenue was CNY 2.63 billion, and revenue per employee is about CNY 658,780 across 4,532 staff; profitability shows a nine-month net income of CNY 220.93 million with EPS of CNY 0.63 and a net margin improvement to ~9.65% (vs. 4.41% YoY), yet leverage and valuation metrics demand attention-total debt stands at CNY 1.74 billion with cash of CNY 592.9 million (debt-to-equity 0.50), market cap is CNY 8.41 billion (share price CNY 24.56 on Dec 10, 2025), trailing P/E 58.40 and forward P/E 32.11, EV/EBITDA 19.63, positive operating cash flow of CNY 344.6 million funds CNY 168.9 million in capex, and growth catalysts include eight EU GMP-certified APIs, CMO expansion, and targeted investments-read on for the detailed breakdown of revenue, profitability, liquidity, valuation, risks, and growth opportunities that investors need to weigh
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) - Revenue Analysis
Zhejiang Tianyu Pharmaceutical reported continued top-line expansion across recent reporting periods, driven by product mix improvements and stronger commercial traction in core therapeutic areas.- Q3 2025 revenue: CNY 719.55 million - up 7.91% sequentially.
- Trailing twelve months (TTM) revenue: CNY 2.99 billion - +15.07% year-over-year.
- Full-year 2024 revenue: CNY 2.63 billion - +4.10% vs. 2023.
- Revenue per employee: ~CNY 658,780 (total employees: 4,532).
- Price-to-Sales (P/S) ratio: 2.82; market capitalization: CNY 8.41 billion; share price: CNY 24.56 (as of Dec 10, 2025).
| Metric | Value | Period / Note |
|---|---|---|
| Q3 Revenue | CNY 719.55 million | Q3 2025 (7.91% QoQ) |
| TTM Revenue | CNY 2.99 billion | Trailing twelve months (YoY +15.07%) |
| Annual Revenue | CNY 2.63 billion | 2024 (YoY +4.10%) |
| Employees | 4,532 | Company disclosed headcount |
| Revenue per Employee | CNY 658,780 | TTM revenue / employees |
| Market Capitalization | CNY 8.41 billion | Market close 10 Dec 2025 |
| Share Price | CNY 24.56 | 10 Dec 2025 |
| P/S Ratio | 2.82 | Market cap / TTM revenue |
- Growth drivers: sequential uplift in Q3 suggests demand momentum and effective pricing for key SKUs.
- Efficiency signal: revenue per employee (~CNY 659k) indicates moderate productivity for a mid-sized pharmaceutical manufacturer; room to improve via higher-margin products or operational scaling.
- Valuation context: P/S of 2.82 positions the stock at a premium relative to commodity pharma peers but may be justified by above-market TTM growth (+15.07%).
- Market size vs. valuation: with CNY 8.41 billion market cap and near-CNY 3.0 billion TTM sales, investors should monitor margin expansion and R&D/product pipeline outcomes to validate the premium.
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) - Profitability Metrics
Key profitability indicators for the nine months ended September 30, 2025, compared with the same period in 2024.
| Metric | 9M 2025 | 9M 2024 | Change |
|---|---|---|---|
| Net Income (CNY million) | 220.93 | 85.11 | +135.82 (159.6%) |
| Basic EPS (CNY) | 0.63 | 0.24 | +0.39 (162.5%) |
| Net Profit Margin | 9.65% | 4.41% | +5.24 pp |
| Return on Equity (ROE) | 4.27% | - | 4.27 pp (reported) |
| Return on Assets (ROA) | 1.77% | - | 1.77 pp (reported) |
| Return on Invested Capital (ROIC) | 2.14% | - | 2.14 pp (reported) |
- Net income surged to CNY 220.93 million in 9M 2025 from CNY 85.11 million a year earlier, driving a significant EPS increase to CNY 0.63.
- Net profit margin nearly doubled to 9.65%, signaling improved pricing, cost control, or a favorable sales mix.
- ROE at 4.27% and ROA at 1.77% indicate modest profitability relative to equity and asset base; ROIC of 2.14% suggests limited but positive returns on invested capital.
For broader context on company background and business model, see: Zhejiang Tianyu Pharmaceutical Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) - Debt vs. Equity Structure
Zhejiang Tianyu Pharmaceutical's capital structure shows moderate leverage with available liquidity cushions but some short-term coverage concerns. Key headline figures:- Total debt: CNY 1.74 billion
- Cash reserves: CNY 592.9 million
- Debt-to-equity ratio: 0.50
- Current ratio: 1.15 - current assets modestly exceed current liabilities.
- Quick ratio: 0.45 - low immediate liquidity when inventory is excluded, implying dependence on inventory conversion or short-term financing to meet near-term obligations.
- Interest coverage ratio: 3.64 - operating earnings cover interest expenses about 3.6 times, providing a cushion but leaving limited room under stress.
- Debt-to-EBITDA: 3.49 - implies roughly 3.5 years to repay debt if EBITDA is sustained at current levels.
- Debt-to-free cash flow: -9.38 - negative ratio (driven by positive free cash flow) indicates free cash flow exceeds debt requirements on a trailing basis, supporting debt servicing and potential deleveraging.
| Metric | Value | Interpretation |
|---|---|---|
| Total debt | CNY 1.74 billion | Overall nominal leverage |
| Cash reserves | CNY 592.9 million | Liquidity buffer versus debt |
| Debt-to-equity ratio | 0.50 | Moderate leverage relative to shareholder equity |
| Current ratio | 1.15 | Can cover short-term liabilities with current assets |
| Quick ratio | 0.45 | Limited immediate liquidity without inventory |
| Interest coverage ratio | 3.64 | Sufficient earnings to cover interest, but not overly robust |
| Debt-to-EBITDA | 3.49 | Moderate leverage horizon (~3.5 years) |
| Debt-to-free cash flow | -9.38 | Free cash flow generation comfortably supports debt |
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) - Liquidity and Solvency
Zhejiang Tianyu Pharmaceutical's recent financials show a fundamentally cash-strong operating profile and a moderate leverage position that supports ongoing investment and debt service.- Operating cash flow (OCF): CNY 344.6 million - positive and higher than reported net income, signaling strong cash generation from core operations.
- Capital expenditures (CapEx): CNY 168.9 million - fully funded by operating cash flow, indicating self-sufficiency in financing growth capex.
- Cash and cash equivalents: CNY 592.9 million - provides a liquid buffer for short-term needs and working capital.
- Debt-to-equity ratio: 0.50 - moderate leverage, suggesting a balanced solvency profile without excessive reliance on debt.
- Liquidity ratios: current ratio > 1 (adequate), quick ratio < 1 (potential near-term strain for immediate obligations).
- OCF supporting debt service: positive operating cash flow consistent with the company's ability to meet interest and principal obligations from operations.
| Metric | Value (CNY million) | Note |
|---|---|---|
| Operating Cash Flow | 344.6 | Exceeds net income - strong cash conversion |
| Capital Expenditures | 168.9 | Funded by OCF |
| Cash & Cash Equivalents | 592.9 | Liquidity cushion |
| Debt-to-Equity Ratio | 0.50 | Moderate leverage |
| Current Ratio | >1.0 | Adequate short-term coverage |
| Quick Ratio | <1.0 | Less coverage of immediate liabilities |
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) - Valuation Analysis
This chapter breaks down key valuation multiples for Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) and places them into context for investors assessing relative price, growth expectations, and capital efficiency.
- Trailing P/E: 58.40 - reflects how the market currently values the company's historical earnings.
- Forward P/E: 32.11 - indicates the market expects meaningful earnings growth relative to the trailing period.
- P/S: 3.01 - shows the market values about three times the company's annual sales.
- P/B: 2.43 - suggests the stock trades at roughly 2.4x book value.
- EV/EBITDA: 19.63 - implies a mid-to-high market valuation relative to operating cash profitability.
- EV/FCF: -52.76 - presented as negative, interpreted here as the company generating sufficient free cash flow to cover enterprise value.
| Metric | Value | Investor Interpretation |
|---|---|---|
| Trailing P/E | 58.40 | High multiple versus historical earnings; signals premium for growth or lower recent earnings base. |
| Forward P/E | 32.11 | Market expects earnings to expand; forward multiple substantially lower than trailing. |
| P/S | 3.01 | Moderate revenue multiple for a pharmaceutical firm with growth prospects. |
| P/B | 2.43 | Above book value, reflecting intangible assets, R&D upside, or ROE expectations. |
| EV/EBITDA | 19.63 | Elevated relative to broader market averages; points to premium for profitability and cash conversion. |
| EV/FCF | -52.76 | Negative ratio presented as indicating robust free cash flow relative to enterprise value in this context. |
Key points for investor consideration:
- Wide gap between trailing (58.40) and forward (32.11) P/E suggests either recent one-off earnings weakness or meaningful analyst-expected recovery.
- EV/EBITDA at 19.63 places valuation toward the costly side among mid-cap pharma peers; assess underlying EBITDA trajectory and margin sustainability.
- P/S (3.01) and P/B (2.43) indicate the market prices both revenue growth and balance-sheet quality into the stock.
- EV/FCF shown as -52.76-review cash flow statement details to reconcile the negative ratio and confirm whether free cash flow is genuinely strong or if accounting/timing items distort the metric.
For additional context on the company's strategic orientation and long-term objectives that underpin these valuation expectations, see Mission Statement, Vision, & Core Values (2026) of Zhejiang Tianyu Pharmaceutical Co., Ltd.
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) - Risk Factors
Zhejiang Tianyu Pharmaceutical faces a set of quantifiable financial and market risks that investors should weigh carefully. Key metrics highlight thin profitability, leverage, volatility and weakening earnings momentum.- Profitability pressure: net profit margin ~2.1% in 2024, indicating limited ability to convert revenue into profit and a small buffer for margin shocks.
- Balance sheet leverage: total debt CNY 1.74 billion vs. cash reserves CNY 592.9 million - net debt exposure and potential refinancing or interest-rate risk.
- Market volatility: beta = 1.26, implying higher sensitivity to market swings compared with the broader market.
- Shareholder return: modest dividend of CNY 0.05 per share, offering limited income contribution for investors focused on yield.
- Earnings trend: company earnings declining at an average annual rate of -51.9%, contrasted with Pharmaceuticals industry earnings growth of +4.7% annually - a significant relative underperformance.
- Capital efficiency: ROE of 4.27%, below industry averages, signaling challenges in generating attractive returns on shareholder equity.
| Metric | Value | Implication |
|---|---|---|
| Net Profit Margin (2024) | 2.1% | Thin profitability; low shock absorption |
| Total Debt | CNY 1.74 billion | High leverage |
| Cash Reserves | CNY 592.9 million | Partial liquidity cushion |
| Beta | 1.26 | Above-market volatility |
| Dividend per Share | CNY 0.05 | Low yield |
| Earnings Growth (Company) | -51.9% CAGR | Rapid earnings deterioration |
| Earnings Growth (Industry) | +4.7% CAGR | Industry outperformance vs company |
| Return on Equity (ROE) | 4.27% | Subpar shareholder returns |
- Liquidity and leverage risk: with cash covering only ~34% of total debt, adverse shocks or tightening credit could pressure operations or force asset sales.
- Growth and competitive risk: sharply negative earnings CAGR vs. industry growth suggests operational or market-share challenges that may persist absent successful strategic changes.
- Investor-return risk: low ROE and small dividend reduce appeal to income and efficiency-focused investors.
- Volatility risk: higher beta increases potential for sharp share-price moves during market stress.
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) - Growth Opportunities
Zhejiang Tianyu Pharmaceutical Co., Ltd. (300702.SZ) is positioned to capitalize on multiple growth vectors that can expand revenue, diversify margins, and strengthen its market standing domestically and internationally.
- EU GMP certification: Achieved for eight APIs - clears a key regulatory barrier for entry into European and other regulated markets, enabling export-led revenue growth.
- Therapeutic focus: Core product lines include anti-hypertensive and anti-diabetic APIs and formulations, addressing large, chronic disease markets with steady demand.
- CMO services expansion: Scaling contract manufacturing capabilities provides fee-based, higher-utilization revenue streams beyond proprietary products.
- Human capital investment: Ongoing employee development programs aim to raise operational efficiency and accelerate R&D throughput.
- Sustainability commitments: Actions to reduce carbon footprint align with global procurement preferences and ESG-driven investor demand.
- Community investment: A planned ¥100 million allocation to local health programs and charitable activities to bolster reputation and stakeholder relations.
| Opportunity | Concrete Detail | Potential Financial Impact | Timeline / Milestone |
|---|---|---|---|
| International API exports | EU GMP certifications for eight APIs | Enables entry into EU procurement tenders and regulated markets; incremental export revenues expected as registration and supply contracts are secured | Certification in place; registration and first export contracts typically 6-24 months depending on customer and dossier submissions |
| Therapeutic market growth | Focus on anti-hypertensive and anti-diabetic drugs | Exposure to large chronic-disease markets with recurring demand and pricing stability versus acute therapies | Ongoing product launches and life-cycle management over 1-5 years |
| CMO / Manufacturing services | Expansion of contract manufacturing offerings and capacity utilization | Provides diversified, lower-R&D-risk revenue; improves fixed-cost absorption | Capacity ramp phases over 12-36 months depending on client onboarding |
| Workforce & R&D efficiency | Investment in employee development programs | Improved yields, faster time-to-market and lower unit costs; supports innovation pipeline | Program rollout and measurable KPI improvements typically visible within 12 months |
| Sustainability / ESG | Commitment to reducing carbon footprint | May unlock ESG-linked financing, preferential procurement and investor interest | Ongoing with phased targets aligned to industry norms (multi-year) |
| Community engagement | Planned ¥100 million investment in local health programs and charities | Strengthens brand, supports market access and government relations; potential indirect commercial benefits | Planned allocation and programs to roll out per company announcements |
- Strategic synergies: Combining EU-ready APIs with the CMO platform creates a pipeline to service European partners while leveraging domestic manufacturing scale.
- Market positioning: Concentration on high-demand chronic-disease therapeutics reduces sales volatility and fosters long-term customer relationships.
- Reputation and access: The ¥100 million social-health investment and sustainability efforts improve stakeholder relations and may smooth regulatory and tender access.
Further corporate background and operational context are available here: Zhejiang Tianyu Pharmaceutical Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
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