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6622

Zhaoke Ophthalmology SEHK:6622 Stock Report

Last Price

HK$2.65

Market Cap

HK$1.4b

7D

-2.2%

1Y

-64.8%

Updated

29 Sep, 2022

Data

Company Financials +
6622 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

6622 Stock Overview

Zhaoke Ophthalmology Limited, an ophthalmic pharmaceutical company, engages in the research, development, and commercialization of therapies that address unmet medical needs in the People’s Republic of China.

Zhaoke Ophthalmology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zhaoke Ophthalmology
Historical stock prices
Current Share PriceHK$2.65
52 Week HighHK$7.70
52 Week LowHK$2.60
Beta0
1 Month Change-11.67%
3 Month Change-33.75%
1 Year Change-64.81%
3 Year Changen/a
5 Year Changen/a
Change since IPO-81.49%

Recent News & Updates

Shareholder Returns

6622HK PharmaceuticalsHK Market
7D-2.2%-1.9%-5.4%
1Y-64.8%-36.6%-28.0%

Return vs Industry: 6622 underperformed the Hong Kong Pharmaceuticals industry which returned -36.6% over the past year.

Return vs Market: 6622 underperformed the Hong Kong Market which returned -28% over the past year.

Price Volatility

Is 6622's price volatile compared to industry and market?
6622 volatility
6622 Average Weekly Movement4.4%
Pharmaceuticals Industry Average Movement5.8%
Market Average Movement6.4%
10% most volatile stocks in HK Market12.5%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 6622 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6622's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2017268Benjamin Lihttps://www.zkoph.com

Zhaoke Ophthalmology Limited, an ophthalmic pharmaceutical company, engages in the research, development, and commercialization of therapies that address unmet medical needs in the People’s Republic of China. It is developing various drugs that cover ophthalmic indications affecting the anterior and posterior segments, including dry eye diseases, wet age-related macular degeneration, diabetic macular edema, myopia, and glaucoma. The company was formerly known as China Ophthalmology Focus Limited.

Zhaoke Ophthalmology Fundamentals Summary

How do Zhaoke Ophthalmology's earnings and revenue compare to its market cap?
6622 fundamental statistics
Market CapHK$1.44b
Earnings (TTM)-HK$330.49m
Revenue (TTM)n/a

0.0x

P/S Ratio

-4.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6622 income statement (TTM)
RevenueCN¥0
Cost of RevenueCN¥0
Gross ProfitCN¥0
Other ExpensesCN¥303.15m
Earnings-CN¥303.15m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.56
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio1.0%

How did 6622 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 6622 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6622?

Other financial metrics that can be useful for relative valuation.

6622 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Book Ratio vs Peers

How does 6622's PB Ratio compare to its peers?

6622 PB Ratio vs Peers
The above table shows the PB ratio for 6622 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average0.6x
2348 Dawnrays Pharmaceutical (Holdings)
0.6xn/aHK$1.6b
2633 Jacobson Pharma
0.7xn/aHK$1.6b
950 Lee's Pharmaceutical Holdings
0.5xn/aHK$971.6m
6996 Antengene
0.9x31.4%HK$2.1b
6622 Zhaoke Ophthalmology
0.5x51.7%HK$1.4b

Price-To-Book vs Peers: 6622 is good value based on its Price-To-Book Ratio (0.5x) compared to the peer average (0.6x).


Price to Earnings Ratio vs Industry

How does 6622's PE Ratio compare vs other companies in the HK Pharmaceuticals Industry?

Price-To-Book vs Industry: 6622 is good value based on its Price-To-Book Ratio (0.5x) compared to the Hong Kong Pharmaceuticals industry average (0.8x)


Price to Book Ratio vs Fair Ratio

What is 6622's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6622 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.5x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate 6622's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 6622 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6622 (HK$2.65) is trading below our estimate of fair value (HK$9.2)

Significantly Below Fair Value: 6622 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Zhaoke Ophthalmology forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


51.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6622 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 6622 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 6622 is expected to become profitable in the next 3 years.

Revenue vs Market: 6622's revenue (78.9% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 6622's revenue (78.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6622 is forecast to be unprofitable in 3 years.


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Past Performance

How has Zhaoke Ophthalmology performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-39.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6622 is currently unprofitable.

Growing Profit Margin: 6622 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6622 is unprofitable, and losses have increased over the past 5 years at a rate of 39.9% per year.

Accelerating Growth: Unable to compare 6622's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6622 is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (3.7%).


Return on Equity

High ROE: 6622 has a negative Return on Equity (-12.26%), as it is currently unprofitable.


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Financial Health

How is Zhaoke Ophthalmology's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 6622's short term assets (CN¥2.0B) exceed its short term liabilities (CN¥79.9M).

Long Term Liabilities: 6622's short term assets (CN¥2.0B) exceed its long term liabilities (CN¥29.3M).


Debt to Equity History and Analysis

Debt Level: 6622 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 6622's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 6622 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 6622 has sufficient cash runway for 2.9 years if free cash flow continues to reduce at historical rates of 53.2% each year.


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Dividend

What is Zhaoke Ophthalmology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


13.71%

Forecast Dividend Yield

Dividend Yield vs Market

Zhaoke Ophthalmology Dividend Yield vs Market
How does Zhaoke Ophthalmology dividend yield compare to the market?
SegmentDividend Yield
Company (Zhaoke Ophthalmology)n/a
Market Bottom 25% (HK)3.0%
Market Top 25% (HK)8.8%
Industry Average (Pharmaceuticals)2.9%
Analyst forecast in 3 Years (Zhaoke Ophthalmology)13.7%

Notable Dividend: Unable to evaluate 6622's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6622's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6622's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6622's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 6622 has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Benjamin Li (59 yo)

5.67yrs

Tenure

Dr. Xiaoyi Li, also known as Benjamin, Ph D., serves as an Executive Director & Senior Adviser at Lee's Pharmaceutical Holdings Limited since April 29, 2021. He serves as the Chief Executive Officer, Chief...


Leadership Team

Experienced Management: 6622's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 6622's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SEHK:6622 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
30 Mar 22BuyHK$10,566,647Vms Holdings LimitedCompany3,102,000HK$3.41
01 Dec 21BuyHK$3,941,131Fidelity International LtdCompany617,500HK$6.38

Ownership Breakdown

What is the ownership structure of 6622?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders190,2230.04%
Private Companies26,774,4004.9%
Institutions61,234,20711.3%
Sovereign Wealth Funds71,231,20013.1%
VC/PE Firms94,560,00017.4%
Public Companies140,379,60025.9%
General Public147,577,29827.2%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 21 shareholders own 72.77% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
25.9%
Lee's Pharmaceutical Holdings Limited
140,379,600CN¥372.0m0%no data
13.14%
GIC (Ventures) Pte. Ltd.
71,231,200CN¥188.8m0%no data
6.15%
Panacea Venture Management Co., Ltd.
33,305,600CN¥88.3m0%no data
5.65%
TPG Capital, L.P.
30,627,200CN¥81.2m0%0.05%
5.65%
Hillhouse Investment Management, Ltd.
30,627,200CN¥81.2m0%0.05%
5.08%
Fidelity International Ltd
27,530,000CN¥73.0m0%0.01%
4.93%
Vms Holdings Limited
26,742,400CN¥70.9m0%no data
1.66%
VMS Asset Management Limited
9,004,700CN¥23.9m0%no data
1.37%
Goldman Sachs Group, Investment Banking and Securities Investments
7,414,000CN¥19.6m0%no data
1.05%
Matthews International Capital Management, LLC
5,683,633CN¥15.1m0%0.01%
0.85%
VMS Investment Group Limited
4,594,000CN¥12.2m0%no data
0.43%
GIC Private Limited
2,314,500CN¥6.1m0%no data
0.4%
Janus Henderson Group plc
2,173,500CN¥5.8m-0.21%no data
0.31%
Amundi Asset Management
1,703,500CN¥4.5m0%no data
0.054%
State Street Global Advisors, Inc.
294,875CN¥781.4k0.86%no data
0.053%
Value Partners Hong Kong Limited
286,000CN¥757.9k0%no data
0.035%
ABN AMRO Investment Solutions
188,499CN¥499.5k0%no data
0.031%
Xiaoyi Li
166,666CN¥441.7k0%no data
0.0087%
GF Fund Management Co., Ltd.
47,000CN¥124.6k0%no data
0.0059%
Wealthy Chance Fortune Ltd
32,000CN¥84.8k0%no data
0.0043%
Leelalertsuphakun Wanee
23,557CN¥62.4k0%no data

Company Information

Zhaoke Ophthalmology Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Zhaoke Ophthalmology Limited
  • Ticker: 6622
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: HK$1.436b
  • Shares outstanding: 541.95m
  • Website: https://www.zkoph.com

Number of Employees


Location

  • Zhaoke Ophthalmology Limited
  • No. 1 Meide 3rd Road
  • Pearl River Industrial Park
  • Guangzhou
  • Guangdong Province
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6622SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.