Announcement • May 26
Essex Bio-Technology Limited Approves Final Dividend for the Year Ended 31 December 2025 Essex Bio-Technology Limited at the AGM held on May 26, 2026 approved to declare a final dividend of HKD 0.07 per share of the Company for the year ended 31 December 2025. Upcoming Dividend • May 21
Upcoming dividend of HK$0.07 per share Eligible shareholders must have bought the stock before 28 May 2026. Payment date: 12 June 2026. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of Hong Kong dividend payers (6.9%). Higher than average of industry peers (2.0%). Declared Dividend • Mar 25
Final dividend of HK$0.07 announced Shareholders will receive a dividend of HK$0.07. Ex-date: 28th May 2026 Payment date: 12th June 2026 Dividend yield will be 3.9%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (18% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 8.2% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 24
Full year 2025 earnings released: EPS: HK$0.56 (vs HK$0.54 in FY 2024) Full year 2025 results: EPS: HK$0.56 (up from HK$0.54 in FY 2024). Revenue: HK$1.81b (up 8.6% from FY 2024). Net income: HK$318.1m (up 3.5% from FY 2024). Profit margin: 18% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Mar 23
Essex Bio-Technology Limited, Annual General Meeting, May 26, 2026 Essex Bio-Technology Limited, Annual General Meeting, May 26, 2026. New Risk • Mar 21
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Mar 11
Essex Bio-Technology Limited to Report Fiscal Year 2025 Results on Mar 23, 2026 Essex Bio-Technology Limited announced that they will report fiscal year 2025 results on Mar 23, 2026 Announcement • Jan 09
Guangdong Hanfeng Baisheng Pharmaceutical Company Limited Obtains Approval from National Medical Products Administration for the Registration and Commercialisation of the Multi-Dose Sodium Hyaluronate Eye Drops The board of directors of Essex Bio-Technology Limited announced that Guangdong Hanfeng Baisheng Pharmaceutical Company Limited, an indirect subsidiary of the Company, has obtained an approval from National Medical Products Administration for the registration and commercialisation of the multi-dose Sodium Hyaluronate Eye Drops (0.3%) in the People's Republic of China (the "PRC", which for the purpose of this announcement, excludes the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan). The Approved Product is a multi-dose eye drops containing 0.3% (5ml:15mg) sodium hyaluronate and is indicated for the treatment and symptomatic relief of various intrinsic ocular diseases, such as Sjogren's syndrome, Stevens-Johnson syndrome, dry eye syndrome, extrinsic ocular diseases and injuries caused by surgery, drugs, trauma and/or contact lens wearing. Reported Earnings • Aug 28
First half 2025 earnings released: EPS: HK$0.29 (vs HK$0.28 in 1H 2024) First half 2025 results: EPS: HK$0.29 (up from HK$0.28 in 1H 2024). Revenue: HK$876.5m (up 8.0% from 1H 2024). Net income: HK$163.4m (up 3.8% from 1H 2024). Profit margin: 19% (in line with 1H 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Biotechs industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 8% per year. Announcement • Aug 15
Essex Bio-Technology Limited to Report First Half, 2025 Results on Aug 26, 2025 Essex Bio-Technology Limited announced that they will report first half, 2025 results on Aug 26, 2025 Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$5.14, the stock trades at a forward P/E ratio of 9x. Average trailing P/E is 33x in the Biotechs industry in Hong Kong. Total returns to shareholders of 52% over the past three years. New Risk • Jul 09
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.7% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$5.18, the stock trades at a forward P/E ratio of 9x. Average trailing P/E is 31x in the Biotechs industry in Hong Kong. Total returns to shareholders of 69% over the past three years. Announcement • May 21
Essex Bio-Technology Limited Approves Final Dividend for the Year Ended 31 December 2024 Essex Bio-Technology Limited at its annual general meeting held on 21 May 2025, declared a final dividend of HKD 0.06 per share of the Company for the year ended 31 December 2024. Upcoming Dividend • May 16
Upcoming dividend of HK$0.06 per share Eligible shareholders must have bought the stock before 23 May 2025. Payment date: 09 June 2025. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (1.2%). Buy Or Sell Opportunity • May 12
Now 21% undervalued Over the last 90 days, the stock has risen 62% to HK$4.26. The fair value is estimated to be HK$5.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.5% over the last 3 years. Earnings per share has declined by 4.1%. For the next 3 years, revenue is forecast to grow by 10% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Buy Or Sell Opportunity • Apr 08
Now 22% undervalued Over the last 90 days, the stock has risen 42% to HK$3.97. The fair value is estimated to be HK$5.10, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.5% over the last 3 years. Earnings per share has declined by 4.1%. For the next 3 years, revenue is forecast to grow by 10% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (10% average weekly change). Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment improves as stock rises 38% After last week's 38% share price gain to HK$4.84, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 32x in the Biotechs industry in Hong Kong. Total returns to shareholders of 22% over the past three years. Declared Dividend • Mar 28
Final dividend of HK$0.06 announced Shareholders will receive a dividend of HK$0.06. Ex-date: 23rd May 2025 Payment date: 9th June 2025 Dividend yield will be 3.3%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to remain steady over the next 2 years, which should provide adequate earnings cover for the dividend. Reported Earnings • Mar 27
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: HK$0.54 (up from HK$0.48 in FY 2023). Revenue: HK$1.67b (down 2.2% from FY 2023). Net income: HK$307.2m (up 12% from FY 2023). Profit margin: 18% (up from 16% in FY 2023). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to grow 8.6% p.a. on average during the next 2 years, compared to a 26% growth forecast for the Biotechs industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 7% per year. New Risk • Mar 21
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Mar 14
Essex Bio-Technology Limited to Report Fiscal Year 2024 Results on Mar 26, 2025 Essex Bio-Technology Limited announced that they will report fiscal year 2024 results on Mar 26, 2025 Announcement • Jan 06
Essex Bio-Technology Limited Provides Update on the Development Relating to HLX04-O The Board of Essex Bio-Technology Limited announced that the LPLV has recently been completed in an international multi-centre phase 3 clinical study for the anti-VEGF ophthalmic injection bio-pharmaceutical product, referred to as HLX04-O, for the treatment of wet-AMD. The phase 3 clinical study is a randomised, double-blinded, active-controlled and global study conducted in patients with wet-AMD, which aims to compare the efficacy and safety of HLX04-O with that of ranibizumab. Eligible patients will be randomly divided into two groups at a ratio of 1:1 to receive intravitreal injection of HLX04-O (1.25 mg) or ranibizumab (0.5 mg) every four weeks for 48 weeks. The primary objective of this study is to compare the efficacy of HLX04-O With that of runibizumab at week 36 in patient's study eye with wet-AMD. The primary endpoint is the mean change from baseline in the best-corrected visual acuity (BCVA) at week 36. The secondary objectives include the evaluation of other efficacy endpoints, safety, tolerability and pharmacokinetic profiles. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$2.70, the stock trades at a trailing P/E ratio of 5.8x. Average trailing P/E is 12x in the Biotechs industry in Hong Kong. Total loss to shareholders of 49% over the past three years. Declared Dividend • Sep 08
First half dividend increased to HK$0.06 Dividend of HK$0.06 is 33% higher than last year. Ex-date: 9th September 2024 Payment date: 24th September 2024 Dividend yield will be 4.6%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (23% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Reported Earnings • Aug 28
First half 2024 earnings released: EPS: HK$0.28 (vs HK$0.30 in 1H 2023) First half 2024 results: EPS: HK$0.28 (down from HK$0.30 in 1H 2023). Revenue: HK$811.6m (down 9.8% from 1H 2023). Net income: HK$157.4m (down 7.3% from 1H 2023). Profit margin: 19% (in line with 1H 2023). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Announcement • Aug 15
Essex Bio-Technology Limited to Report First Half, 2024 Results on Aug 26, 2024 Essex Bio-Technology Limited announced that they will report first half, 2024 results on Aug 26, 2024 Announcement • May 29
Essex Bio-Technology Limited Declares Final Dividend for the Year Ended 31 December 2023 Essex Bio-Technology Limited at its AGM held on May 28, 2024, declared a final dividend of HKD 0.045 per share of the Company for the year ended 31 December 2023. Upcoming Dividend • May 23
Upcoming dividend of HK$0.045 per share Eligible shareholders must have bought the stock before 30 May 2024. Payment date: 17 June 2024. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of Hong Kong dividend payers (7.4%). Higher than average of industry peers (1.1%). Buy Or Sell Opportunity • Apr 29
Now 21% overvalued Over the last 90 days, the stock has fallen 4.7% to HK$2.24. The fair value is estimated to be HK$1.85, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.5% over the last 3 years. Earnings per share has declined by 4.3%. Buy Or Sell Opportunity • Apr 03
Now 22% overvalued Over the last 90 days, the stock has fallen 7.8% to HK$2.26. The fair value is estimated to be HK$1.85, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.5% over the last 3 years. Earnings per share has declined by 4.3%. Revenue is forecast to grow by 39% in 2 years. Earnings are forecast to grow by 83% in the next 2 years. Announcement • Mar 21
Essex Bio-Technology Limited Proposes Final Ordinary Dividend for the Financial Year Ended 31 December 2023, Payable June 17, 2024 Essex Bio-Technology Limited proposed final ordinary dividend of HKD 0.045 per share for the financial year ended 31 December 2023. Ex-dividend date is 30 May 2024, Record date is 05 June 2024 and Payment date is 17 June 2024. Date of shareholders' approval is 28 May 2024. Announcement • Mar 19
Essex Bio-Technology Limited, Annual General Meeting, May 28, 2024 Essex Bio-Technology Limited, Annual General Meeting, May 28, 2024. Agenda: To consider approval of final dividend. Reported Earnings • Mar 19
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: HK$0.48 (up from HK$0.39 in FY 2022). Revenue: HK$1.71b (up 30% from FY 2022). Net income: HK$275.3m (up 22% from FY 2022). Profit margin: 16% (down from 17% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 21%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 25% growth forecast for the Biotechs industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. New Risk • Mar 11
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Mar 06
Essex Bio-Technology Limited to Report Fiscal Year 2023 Results on Mar 18, 2024 Essex Bio-Technology Limited announced that they will report fiscal year 2023 results on Mar 18, 2024 Valuation Update With 7 Day Price Move • Dec 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$2.18, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 11x in the Biotechs industry in Hong Kong. Total loss to shareholders of 39% over the past three years. Upcoming Dividend • Aug 22
Upcoming dividend of HK$0.045 per share at 2.0% yield Eligible shareholders must have bought the stock before 29 August 2023. Payment date: 13 September 2023. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Hong Kong dividend payers (8.0%). Higher than average of industry peers (1.2%). Reported Earnings • Aug 17
First half 2023 earnings released: EPS: HK$0.30 (vs HK$0.24 in 1H 2022) First half 2023 results: EPS: HK$0.30 (up from HK$0.24 in 1H 2022). Revenue: HK$899.4m (up 37% from 1H 2022). Net income: HK$169.8m (up 22% from 1H 2022). Profit margin: 19% (down from 21% in 1H 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Aug 05
Essex Bio-Technology Limited to Report First Half, 2023 Results on Aug 16, 2023 Essex Bio-Technology Limited announced that they will report first half, 2023 results on Aug 16, 2023 Announcement • Jul 27
Essex Bio-Technology Limited Provides Update on the Phase 1/2 Clinical Study in Relation to the Co-Development of the Licensed Product with Henlius for the Treatment of Exudative (Wet) Age-Related Macular Degeneration The Board of Essex Bio-Technology Limited announced that the phase 1/2 clinical study for recombinant anti-vascular endothelial growth factor (“anti-VEGF”) humanised monoclonal antibody ophthalmic injection HLX04-O for the treatment of wet-AMD has recently shown its safety and tolerability and demonstrated preliminary efficacy. The phase 1/2 clinical study is a single-arm, open-label and multi-centre study that consists of two parts, which aims to evaluate the safety and preliminary efficacy of HLX04-O via intravitreal injection (“IVT”) in patients with active wet-AMD. Part 1 of the study is a safety run-in stage and 6 patients were enrolled, and part 2 of the study is a single-arm, open-label and multi-centre phase 2 study and 20 patients (including 6 patients from part 1) were enrolled. All patients received HLX04-O IVT (1.25 mg/0.05 mL) every four weeks until death, withdrawal of informed consent, loss to follow-up, termination of study by sponsor or completion of one-year treatment. For part 1, the primary endpoint is the safety event related to HLX04-O that occurred within four weeks after the first dose of HLX04-O, and secondary endpoints are the systemic pharmacokinetic characteristics of HLX04-O after the first and fourth IVT administration. For part 2, the primary endpoint is the mean change of letters from baseline in bestcorrected visual acuity (BCVA) at week 12, and secondary endpoints include other efficacy measures, safety, immunogenicity and systemic pharmacokinetic characteristics. The results show that HLX04-O is safe and well tolerated in wet-AMD patients, and preliminary efficacy was observed. ABOUT HLX04-O: HLX04-O is a new ophthalmic preparation product developed based on HANBEITAI® (bevacizumab injection) independently developed by Henlius, through optimising the prescription, specifications and production processes of HANBEITAI® (bevacizumab injection) according to the requirements of ophthalmic drugs, without changing the active ingredients, and is intended to be used for the treatment of wet-AMD. In November 2021, the first patient had been dosed in a phase 3 clinical study for HLX04-O for the treatment of wet-AMD in the PRC. So far, the first patient had been dosed in an international multi-centre phase 3 clinical study for HLX04-O in patients with wet-AMD in countries such as Latvia (a European Union country), Australia and the United States successively. Board Change • Jun 21
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Frankie Yan was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Jun 06
Upcoming dividend of HK$0.025 per share at 1.8% yield Eligible shareholders must have bought the stock before 13 June 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (1.1%). Buying Opportunity • Mar 09
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.9%. The fair value is estimated to be HK$5.04, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 5.3%. Revenue is forecast to grow by 68% in 2 years. Earnings is forecast to grow by 106% in the next 2 years. Announcement • Feb 11
Essex Bio-Technology Limited Completes First Patient First Dose in the United States in an International Multi-Centre Phase 3 Clinical Study The Board of Essex Bio-Technology Limited announced that the first patient in the United States has recently been dosed in an international multi-centre phase 3 clinical study for recombinant anti-vascular endothelial growth factor humanised monoclonal antibody ophthalmic injection HLX04-O for the treatment of wet-AMD. The phase 3 clinical study is a randomised, double-blinded, active-controlled and global study conducted in patients with wet-AMD, which aims to compare the efficacy and safety of HLX04-O with that of ranibizumab. Eligible patients will be randomly divided into two groups at a ratio of 1:1 to receive intravitreal injection of HLX04-O (1.25 mg) or ranibizumab (0.5 mg) every four weeks for 48 weeks. The primary objective of this study is to compare the efficacy of HLX04-O with that of ranibizumab at week 36 in patient's study eye with wet-AMD. The primary endpoint is the mean change from baseline in the best-corrected visual acuity (BCVA) at week 36. The secondary objectives include the evaluation of other efficacy endpoints, safety, tolerability and pharmacokinetic profiles. Announcement • Jan 12
Essex Bio-Technology Limited Provides Consolidated Earnings Guidance for the Year Ended 31 December 2022 Essex Bio-Technology Limited provided consolidated earnings guidance for the year ended 31 December 2022. Based on the preliminary review by the Board of the unaudited consolidated management accounts of the Group for the year ended 31 December 2022, the Group expects a decrease in revenue and profit by approximately 20% and 35%, respectively, as compared to the revenue of the Group in the amount of approximately HKD 1,637.7 million and the profit of approximately HKD 346.0 million for the corresponding period in 2021. The decrease in revenue and profit is primarily attributable to the surge of novel coronavirus (COVID-19) infected cases particularly in the second half of 2022 in a number of provinces and municipalities in the People's Republic of China (the "PRC"), which significantly disrupted the clinical operations of hospitals in the PRC and have prevented non-emergency patients from visiting hospitals and outpatient clinics during 2022. As at the date of this announcement, the clinical operations of hospitals and outpatient clinics remained disrupted as there was a widespread of COVID-19 infected cases following the dismantlement of " zero-COVID control measures " in December 2022 by the relevant PRC government authorities. Valuation Update With 7 Day Price Move • Dec 08
Investor sentiment improved over the past week After last week's 16% share price gain to HK$3.90, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 27x in the Biotechs industry in Asia. Total loss to shareholders of 29% over the past three years. Price Target Changed • Nov 16
Price target decreased to HK$6.00 Down from HK$7.00, the current price target is provided by 1 analyst. New target price is 79% above last closing price of HK$3.36. Stock is down 35% over the past year. The company is forecast to post earnings per share of HK$0.59 for next year compared to HK$0.60 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non Executive Director Mee Mooi Yeow was the last independent director to join the board, commencing their role in 2004. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Sep 09
Consensus revenue estimates fall by 18% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from HK$1.94b to HK$1.60b. EPS estimate fell from HK$0.75 to HK$0.59 per share. Net income forecast to grow 14% next year vs 23% growth forecast for Biotechs industry in Hong Kong. Consensus price target down from HK$7.00 to HK$6.00. Share price was steady at HK$4.04 over the past week. Upcoming Dividend • Aug 29
Upcoming dividend of HK$0.04 per share Eligible shareholders must have bought the stock before 05 September 2022. Payment date: 21 September 2022. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Hong Kong dividend payers (8.2%). Higher than average of industry peers (0.9%). Reported Earnings • Aug 25
First half 2022 earnings released: EPS: HK$0.24 (vs HK$0.28 in 1H 2021) First half 2022 results: EPS: HK$0.24 (down from HK$0.28 in 1H 2021). Revenue: HK$655.8m (down 11% from 1H 2021). Net income: HK$139.2m (down 14% from 1H 2021). Profit margin: 21% (in line with 1H 2021). Over the next year, revenue is forecast to grow 36%, compared to a 15,687% growth forecast for the Biotechs industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Aug 24
Essex Bio-Technology Limited Declares Interim Dividend for the Six Months Ended 30 June 2022, Payable on September 21, 2022 Essex Bio-Technology Limited declared Interim Dividend of HKD 0.04 per share for the Six Months Ended 30 June 2022. Ex-dividend date is 05 September 2022. Record date is 09 September 2022. Payment date is 21 September 2022. Announcement • Jul 07
Essex Bio-Technology Limited Provides Earnings Guidance for the Six Months Ended June 30, 2022 Essex Bio-Technology Limited provided earnings guidance for the six months ended June 30, 2022. For the six months, the company expected a decrease in profit and revenue by approximately 15% and 10% respectively as compared to profit and revenue of the Group in the amount of approximately HKD 162.2 million and HKD 737.4 million, respectively, for the corresponding period in 2021. The decrease in profit and revenue is primarily attributable to the governmental restrictions in place in a number of provinces and municipalities in the People's Republic of China to curb the spread of the novel coronavirus (COVID-19), which significantly disrupted the clinical operations of hospitals in the PRC and have prevented non-emergency patients from visiting hospitals and outpatient clinics during the 2022 Interim Period. As at the date of this announcement, the clinical operations of hospitals and outpatient clinics remained disrupted sporadically from cities to cities. Announcement • May 02
Essex Bio-Technology Limited Approves Final Dividend for the Year Ended December 31, 2021 Essex Bio-Technology Limited announced that at its AGM held on April 29, 2022, shareholders approved the final dividend of HKD 0.055 per share of the company for the year ended December 31, 2021. Price Target Changed • Apr 27
Price target increased to HK$7.00 Up from HK$5.80, the current price target is provided by 1 analyst. New target price is 85% above last closing price of HK$3.79. Stock is down 34% over the past year. The company is forecast to post earnings per share of HK$0.75 for next year compared to HK$0.60 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non Executive Director Mee Mooi Yeow was the last independent director to join the board, commencing their role in 2004. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorated over the past week After last week's 15% share price decline to HK$3.91, the stock trades at a trailing P/E ratio of 6.8x. Average forward P/E is 26x in the Biotechs industry in Hong Kong. Total loss to shareholders of 35% over the past three years. Upcoming Dividend • Aug 23
Upcoming dividend of HK$0.04 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 14 September 2021. Trailing yield: 1.3%. Lower than top quartile of Hong Kong dividend payers (6.7%). Higher than average of industry peers (0.6%). Reported Earnings • Aug 15
First half 2021 earnings released: EPS HK$0.28 (vs HK$0.085 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: HK$737.4m (up 128% from 1H 2020). Net income: HK$162.2m (up 230% from 1H 2020). Profit margin: 22% (up from 15% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 3% per year. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improved over the past week After last week's 18% share price gain to HK$8.24, the stock trades at a trailing P/E ratio of 21.8x. Average forward P/E is 40x in the Biotechs industry in Hong Kong. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improved over the past week After last week's 16% share price gain to HK$7.43, the stock trades at a trailing P/E ratio of 19.6x. Average forward P/E is 39x in the Biotechs industry in Hong Kong. Total returns to shareholders of 23% over the past three years. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment improved over the past week After last week's 18% share price gain to HK$6.04, the stock trades at a trailing P/E ratio of 15.9x. Average forward P/E is 41x in the Biotechs industry in Hong Kong. Total loss to shareholders of 12% over the past three years. Announcement • May 13
Essex Bio-Technology Limited Approves Final Dividend for the Year Ended December 31, 2021 at the Annual General Meeting held on May 12, 2021 Essex Bio-Technology Limited approved final dividend of HKD 0.05 per share of the Company for the year ended December 31, 2021 at the Annual General Meeting held on May 12, 2021. Upcoming Dividend • May 07
Upcoming dividend of HK$0.05 per share Eligible shareholders must have bought the stock before 14 May 2021. Payment date: 01 June 2021. Trailing yield: 1.0%. Lower than top quartile of Hong Kong dividend payers (6.0%). Higher than average of industry peers (0.4%). Announcement • Mar 14
Essex Bio-Technology Limited Announces Dividend for the Year Ended December 31, 2020, Payable on 1 June 2021 Essex Bio-Technology Limited announced The Directors have recommended the payment of a final dividend of HKD 0.05 per ordinary share for the financial year ended 31 December 2020 to the shareholders of the Company whose names appear on the register of members of the Company on, 21 May 2021. Subject to shareholders’ approval, the final dividend will be payable on, 1 June 2021. CLOSURE OF REGISTER OF MEMBERS The register of members of the Company will be closed from, 7 May 2021 to, 12 May. Announcement • Mar 13
Essex Bio-Technology Limited, Annual General Meeting, May 12, 2021 Essex Bio-Technology Limited, Annual General Meeting, May 12, 2021. Agenda: To consider to approve the proposed final dividend. Reported Earnings • Mar 13
Full year 2020 earnings released: EPS HK$0.38 (vs HK$0.52 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: HK$978.1m (down 24% from FY 2019). Net income: HK$218.9m (down 28% from FY 2019). Profit margin: 22% (down from 24% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Mar 03
Essex Bio-Technology Limited to Report Fiscal Year 2020 Results on Mar 12, 2021 Essex Bio-Technology Limited announced that they will report fiscal year 2020 results on Mar 12, 2021 Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improved over the past week After last week's 28% share price gain to HK$5.44, the stock is trading at a trailing P/E ratio of 14.2x, up from the previous P/E ratio of 11x. This compares to an average P/E of 25x in the Biotechs industry in Hong Kong. Total return to shareholders over the past three years is a loss of 22%. Announcement • Feb 25
Essex Bio-Technology Limited Announces Positive Outcome of U.S. FDA Second Phase 3 Clinical Trial in Dry Eye Disease Essex Bio-Technology Limited announced that, as informed by Mitotech, positive outcome was achieved during Second P3 Trial (" VISTA-2"). Importantly, the clinical trial study repeated statistically significant positive results on key predefined secondary end-point (Central Corneal Fluorescein Staining ("CCFS")). Both First P3 Trial ("VISTA-1") and VISTA-2 demonstrated significant impact of SkQ1 on clearing of CCFS (defined as zero staining in central cornea) and improvement of Best Corrected Visual Acuity (BCVA) at day 28 (p<0.05 for both endpoints in VISTA-1 and VISTA-2), providing clear guidance for primary endpoint designation in the next pivotal study for the purpose of new drug application submission with the U.S. FDA (the "NDA Submission "), replacing VISTA-2 nominal co-primaries (conjunctival fluorescein staining and ocular discomfort at day 56). The VISTA-2 study also continues to highlight excellent safety profile of the drug with tolerability being statistically similar to that of an artificial tear. VISTA-2 was a multi-centre, randomised, double-blind, placebo-controlled clinical study with two treatment arms: BID SkQ1 ophthalmic solution and BID vehicle. 610 patients were enrolled in the study across more than a dozen multiple centres in the U.S. and received treatment over a 2-month period. Based on the information provided by Mitotech, one of the study ' s predetermined key secondary endpoints (change from baseline in CCFS after just 28 days of treatment) demonstrated statistically significant signal (p<0.05) against vehicle group in a subgroup of patients characterised by higher Schirmer's scores. This efficacy signal was observed in both VISTA-1 and VISTA-2 studies for that subgroup of patients, driving p-value for the combined two-study dataset to <0.0005. Is New 90 Day High Low • Feb 24
New 90-day high: HK$4.85 The company is up 20% from its price of HK$4.05 on 26 November 2020. The Hong Kong market is up 18% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Biotechs industry, which is up 56% over the same period. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improved over the past week After last week's 15% share price gain to HK$4.49, the stock is trading at a trailing P/E ratio of 11.7x, up from the previous P/E ratio of 10.2x. This compares to an average P/E of 25x in the Biotechs industry in Hong Kong. Total return to shareholders over the past three years is a loss of 4.8%. Is New 90 Day High Low • Feb 02
New 90-day high: HK$4.40 The company is up 3.0% from its price of HK$4.29 on 04 November 2020. The Hong Kong market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is up 44% over the same period. 
