SEHK:1061Biotechs
Essex Bio Technology (SEHK:1061) Stock Faces Margin Squeeze Despite Low P E
Essex Bio-Technology just closed at HK$2.39, capping a 90 day slide of about 24%, yet the latest half year report tells a more nuanced story than the share chart suggests. The stock still sits on a P/E near 5x while the business continues to generate hundreds of millions of Hong Kong dollars in revenue.
The real headline from this earnings release is margin pressure. Net profit margin now sits at 15.4%, down from 18.2% a year ago. This puts the quality of those low multiples under the...