Breaking Down Jiangsu Nhwa Pharmaceutical Co., LTD Financial Health: Key Insights for Investors

Get a clear-eyed snapshot of Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) as we dissect its latest financials: Q3 2025 revenue rose to ¥1.46 billion (+5.70% YoY) contributing to a TTM revenue of ¥6.02 billion (+8.90%), while H1 2025 revenue reached ¥3.01 billion (+8.93%) and full-year 2024 revenue was ¥5.70 billion (+13.01%); profitability shows Q3 net profit attributable to shareholders of ¥405.55 million (+3.67% YoY) with TTM net profit at ¥1.23 billion and a net profit margin around 21% (TTM net margin ~20.4%), EPS at ¥0.40 for Q3 and TTM EPS ¥1.21 yielding a P/E of 20.24 and a P/S of 4.14, supported by an EBITDA margin of 25%, operating cash flow in Q3 of ¥911.15 million, total assets of ¥9.08 billion (up 7.58% vs. end-2024), a market capitalization near ¥24.92 billion, ≈5,923 employees with revenue per employee ~¥1.02 million, and risk and opportunity vectors ranging from regulatory and raw-material fluctuations to expansion, R&D and M&A prospects that investors should weigh as they read on

Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) - Revenue Analysis

• Q3 2025 revenue: ¥1.46 billion - up 5.70% year-over-year.
• TTM (trailing twelve months) revenue: ¥6.02 billion - up 8.90% year-over-year.
• H1 2025 revenue: ¥3.01 billion - up 8.93% year-over-year.
• FY 2024 revenue: ¥5.70 billion - up 13.01% year-over-year.
• Revenue per employee: ≈ ¥1.02 million (5,923 employees).
• Price-to-Sales (P/S) ratio: 4.14.

• Short-term growth points: Q3 uplift and H1 acceleration suggest persistent demand in core therapeutic areas.
• Efficiency signal: ¥1.02 million revenue per employee reflects mid-range productivity for the sector.
• Valuation context: P/S of 4.14 implies market premium relative to revenues - compare with peers for perspective.

Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) - Profitability Metrics

Key profitability indicators for Q3 2025 and trailing twelve months (TTM) provide a snapshot of operational strength, cost control and market valuation for Jiangsu Nhwa Pharmaceutical Co., LTD.

• Q3 2025 net profit attributable to shareholders: ¥405.55 million (+3.67% YoY)
• Q3 2025 EPS: ¥0.40 (+2.56% YoY)
• TTM net profit: ¥1.23 billion; TTM EPS: ¥1.21
• Net profit margin (reported): 21%
• EBITDA margin: 25%
• Price-to-earnings (P/E) ratio (TTM): 20.24

Interpretation highlights:

• Margins: A 25% EBITDA margin and 21% net margin indicate robust operational profitability and effective cost management across the business.
• Growth: Modest YoY increases in Q3 net profit and EPS suggest steady, not accelerated, earnings growth.
• Valuation: A TTM P/E of 20.24 positions the stock at a moderate valuation relative to earnings; investors should compare with peers and sector averages.
• Scale: TTM net profit of ¥1.23 billion and EPS of ¥1.21 provide a basis for assessing dividend capacity, reinvestment potential, and M&A flexibility.

For a deeper look at shareholder composition and buying rationale, see: Exploring Jiangsu Nhwa Pharmaceutical Co., LTD Investor Profile: Who's Buying and Why?

Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) - Debt vs. Equity Structure

Key balance-sheet posture and capital structure signals for investors focusing on leverage and equity composition.

• Total assets as of Q3 2025: ¥9.08 billion (increase of 7.58% vs. end-2024).
• Debt-to-equity ratio: not explicitly disclosed in available sources (no published consolidated ratio as of Q3 2025).
• Liability composition: includes both short-term and long-term liabilities; specific line-item values not detailed in published reports.
• Reported trends: no material disclosed increases in overall debt levels in recent financial reports.
• Equity dynamics: equity base expanding, supported by retained earnings and capital contributions.
• Financial policy stance: conservative approach to debt-prioritizes sustainable growth and stability over aggressive leverage.

For contextual company background and ownership details, see: Jiangsu Nhwa Pharmaceutical Co., LTD: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) - Liquidity and Solvency

• Operating cash flow (Q3 2025): ¥911.15 million, nearly flat year-over-year.
• Current ratio: not explicitly provided in available sources.
• Quick ratio: not detailed in the available reports.
• No significant liquidity issues or solvency concerns reported in recent financial statements.
• Cash flow from operations supports ongoing business activities and capital expenditures.
• History of maintaining solvency - assets exceed liabilities in recent periods.

• For corporate context and strategic direction that relate to liquidity deployment, see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Nhwa Pharmaceutical Co., LTD.

Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) - Valuation Analysis

• Market Capitalization: ¥24.92 billion
• P/E Ratio (TTM): 20.24 - moderate valuation relative to earnings
• P/S Ratio: 4.14 - valuation relative to revenue
• Recent intraday low: ¥25.35 (14 Oct 2025)
• Analyst Price Target: ¥28.99

• The P/E of 20.24 suggests earnings are priced at a moderate premium - not a deep value discount nor an overly stretched growth multiple.
• P/S of 4.14 signals the market assigns a material revenue multiple, common in pharma where margins and pipeline value matter.
• Price target of ¥28.99 vs. intraday low ¥25.35 implies analyst-implied upside of ~14.4% from that low point.
• Market cap near ¥25 billion positions the company as a mid-sized industry player with typical liquidity and coverage characteristics.

Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) - Risk Factors

Investors evaluating Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) should weigh several idiosyncratic and industry-wide risks that can materially affect cash flows, profitability and valuation. Below are the primary risk categories with quantitative context where available.

• Regulatory risk: changes in drug approval timelines, clinical requirements, or GMP enforcement can delay launches and increase development costs.
• Raw material and input-cost volatility: key APIs and excipients price swings can compress gross margins.
• Currency and geopolitical exposure: international sales create FX translation and transaction risk.
• Competitive pressure: domestic generics players and multinational pharma can erode pricing power and market share.
• Healthcare policy and reimbursement shifts: changes to NRDL (National Reimbursement Drug List) listings or reimbursement rates can materially impact revenue.
• Legal and product liability exposure: litigation or safety recalls can result in direct costs and reputational damage.

Key quantitative indicators (latest reported / FY2023 approximate where noted):

How these risks translate into investor considerations:

• Regulatory changes - A delayed approval or additional clinical requirements can add 12-36 months and increase development costs by tens to hundreds of millions RMB for innovative candidates; watch pipeline milestones and regulatory correspondence.
• Raw material price swings - A 10-20% rise in API prices can compress gross margin by several percentage points; assess supplier concentration and hedging/contracting practices.
• Currency exposure - With ~15-30% of revenue from exports, a sustained 5-10% RMB appreciation could reduce reported RMB revenue and margins; check natural hedges and FX contracts.
• Competition - Price erosion in generics can reduce ASPs (average selling prices) by mid-single digits annually in contested products; monitor new approvals by peers.
• Policy / reimbursement - Inclusion or removal from formularies (e.g., NRDL) can swing annual sales for a product by 20-60%; track policy updates and payer negotiations.
• Legal / liability - Product liability or regulatory fines can lead to one-off charges; contingent liabilities and insurance coverage should be reviewed in financial statements.

Practical indicators to monitor in quarterly/annual filings:

• R&D pipeline status and capitalized R&D vs. expensed amounts.
• Breakdown of domestic vs. international revenue and hedging disclosures.
• Supplier concentration metrics and raw-material procurement contracts.
• Warranty, contingent liability and litigation footnotes.
• Changes in receivables, inventory days and payables that affect working capital.

For broader company background and business model context, see: Jiangsu Nhwa Pharmaceutical Co., LTD: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Nhwa Pharmaceutical Co., LTD (002262.SZ) - Growth Opportunities

Jiangsu Nhwa Pharmaceutical stands at the intersection of traditional pharmaceutical production and evolving biotech-driven therapeutics. The company's near- and medium-term growth prospects are driven by geographic expansion, R&D intensification, partnerships, M&A, and secular demand trends in China and global markets.

• Expansion into emerging markets: Targeting Southeast Asia, Africa and select Latin American markets can diversify revenue streams and reduce domestic policy concentration risk. China's outbound pharma exports grew ~12% YoY in 2023, indicating tangible demand abroad.
• Investment in R&D: Increasing R&D spend toward novel formulations, biologics and GMP upgrades can accelerate pipeline conversion. Industry benchmarks: pharmaceutical R&D intensity in China averaged ~6-10% of revenue for mid-sized peers in 2023.
• Strategic partnerships and collaborations: Licensing, distribution agreements, and co-development deals can quickly extend market reach without full-capex entry into new territories.
• Acquisitions: Bolt-on M&A to acquire niche APIs, proprietary formulations or localized sales networks provides rapid access to technology and customers.
• Domestic demand tailwinds: China's healthcare expenditure surpassed RMB 9 trillion in 2023, with pharmaceutical spending a material share - offering a growing addressable market.
• Biotech & personalized medicine: Advances in biologics, targeted therapies and diagnostics create white‑space for differentiated products and higher-margin offerings.

• Key financial KPIs to monitor as these initiatives roll out:
  • R&D intensity (% of revenue) - track moves toward peer median (6-10%).
  • Gross margin improvement - higher-margin biologics or proprietary formulations should lift gross margin by several percentage points if successful.
  • Operating leverage - successful market entries and partnerships should translate fixed-cost dilution and improved EBIT margins within 2-3 years.
  • Cash runway and financing terms - M&A and R&D pushes will require clear financing (capex vs. equity/dilution trade-offs).
• Macro & industry context:
  • China pharmaceutical market size: ~RMB 2.5-2.8 trillion (2022-2023 range).
  • Global biotech market CAGR: ~8-10% projected over the mid-2020s.
  • Healthcare spend per capita in China continues to rise, supporting long-term demand for both generics and innovative therapies.

For additional company background, ownership and strategy context, see: Jiangsu Nhwa Pharmaceutical Co., LTD: History, Ownership, Mission, How It Works & Makes Money