Breaking Down Jinghua Pharmaceutical Group Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Jinghua Pharmaceutical Group (002349.SZ) is a buy, hold or wait-and-see? Dive into an evidence-packed analysis that peels back the numbers: nine-month revenue of CNY 1,092.29M (up 4.5% YoY) and TTM revenue of CNY 1.45B (TTM growth 0.83% as of Dec 12, 2025), a TTM net income of CNY 224.79M with EPS of CNY 0.27 and a profit margin around 15.5%, plus an operating margin of 22.65% and ROE of 8.29%; fortress-like liquidity with a net cash position of CNY 1.09B, current ratio 4.99 and interest coverage of 701.39; valuation metrics showing TTM P/E 28.58, P/B 2.00, P/S 4.29 and EV/EBITDA 17.02 against a market cap near CNY 6.0-6.2B-read on to unpack revenue drivers (Phenobarbital, Fluorouracil, Primidone and other APIs), margin dynamics, leverage, valuation nuances, and the regulatory and market risks that could reshape this company's trajectory.

Jinghua Pharmaceutical Group Co., Ltd. (002349.SZ) - Revenue Analysis

Jinghua Pharmaceutical reported steady but modest revenue growth in recent periods, driven by its core API portfolio and stable market positioning.

• Nine months ended Sept 30, 2025: CNY 1,092.29 million (up 4.5% vs. CNY 1,045.17 million in the same period of 2024).
• Full year 2024 revenue: CNY 1,400.00 million (down 7.25% from CNY 1,510.00 million in 2023).
• TTM revenue as of Dec 12, 2025: CNY 1,450.00 million (YoY growth ~0.83%).
• Five-year revenue CAGR: ~3.0%.
• Market capitalization as of Dec 12, 2025: CNY 6.20 billion.

Revenue drivers and product mix:

• Primary APIs: Phenobarbital, Primidone, Fluorouracil, Phenylbutazone, Flucytosine, Piroxicam, Propylthiouracil.
• Stable demand in generics and API supply chains supports recurring revenue but limits upside without new product or market expansion.
• Export exposure and pricing pressure have influenced recent year-over-year variability.

For a broader investor context and shareholder dynamics, see: Exploring Jinghua Pharmaceutical Group Co., Ltd. Investor Profile: Who's Buying and Why?

Jinghua Pharmaceutical Group Co., Ltd. (002349.SZ) - Profitability Metrics

Key profitability indicators for Jinghua Pharmaceutical Group Co., Ltd. through recent reporting periods show steady earnings growth, healthy margins, and a conservative dividend policy that together frame the company's earning quality and capital return posture.

• Net income (9M ended Sep 30, 2025): CNY 176.37 million (up 7.4% vs. CNY 164.23 million in 9M 2024).
• TTM net income (as of Dec 12, 2025): CNY 224.79 million; TTM EPS: CNY 0.27.
• Profit margin (TTM): ~15.5% - indicates overall profitability after all expenses.
• Operating margin (TTM): 22.65% - reflects strong operational efficiency and cost control.
• Return on equity (ROE): 8.29% - demonstrates returns generated on shareholders' equity.
• Payout ratio: 30.74% - balanced dividend distribution versus retained earnings for growth.

Implications for investors:

• Consistent year-over-year net income growth (7.4% in 9M 2025) supports the quality of earnings.
• High operating margin (22.65%) suggests efficiency in core pharma operations and potential resilience to cost pressure.
• Profit margin of ~15.5% paired with a modest ROE (8.29%) signals profitable operations but room to improve capital efficiency.
• A 30.74% payout ratio balances shareholder returns with reinvestment capacity for R&D and expansion.

Further context on strategic direction and corporate priorities can be found here: Mission Statement, Vision, & Core Values (2026) of Jinghua Pharmaceutical Group Co., Ltd.

Jinghua Pharmaceutical Group Co., Ltd. (002349.SZ) - Debt vs. Equity Structure

• Total debt (as of 12 Dec 2025): CNY 152.14 million
• Debt-to-equity ratio: 0.005 - effectively negligible leverage
• Net cash position: CNY 1.09 billion (cash exceeds debt)
• Cash per share: CNY 1.33
• Current ratio: 4.99 - strong short-term coverage
• Quick ratio: 4.11 - ample immediate liquidity
• Interest coverage ratio: 701.39 - interest expense trivial relative to operating earnings
• Enterprise value: CNY 5.35 billion
• EV/EBITDA: 17.02

• Capital structure: Equity-dominant with almost zero financial leverage reduces bankruptcy risk and interest burden.
• Liquidity profile: Current and quick ratios well above 1 indicate ability to absorb short-term shocks and fund operations/working capital.
• Cash deployment options: Net cash of CNY 1.09 billion supports M&A, buybacks, dividends, or R&D without external financing.
• Valuation context: EV/EBITDA of 17.02 positions the company at a moderate premium relative to peers in some pharma segments - investors should compare with sector medians.
• Interest exposure: Interest coverage near 701 implies negligible sensitivity to interest-rate-driven earnings pressure.

Jinghua Pharmaceutical Group Co., Ltd. (002349.SZ) Liquidity and Solvency

Jinghua Pharmaceutical Group demonstrates robust short-term liquidity and extremely conservative leverage, supported by a strong cash position and excellent interest coverage. Key headline metrics are presented below, followed by interpretive points.

• Current ratio: 4.99 - well above typical industry norms, indicating ample short-term asset coverage of current liabilities.
• Quick ratio: 4.11 - confirms liquidity is not reliant on inventory turnover.
• Net cash position: CNY 1.09 billion; cash per share: CNY 1.33 - provides a buffer for operations, investment or shareholder returns.
• Interest coverage ratio: 701.39 - implies negligible interest burden and strong ability to meet interest obligations from operating earnings.
• Return on assets (ROA): 4.50% - shows efficient use of asset base to generate profit.
• Return on invested capital (ROIC): 5.02% - indicates capital investments are producing positive incremental returns above cost.
• Debt-to-equity ratio: 0.005 - extremely low leverage, minimal financial risk from debt.

For broader corporate context and history that may affect capital structure and liquidity strategy, see Jinghua Pharmaceutical Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money.

Jinghua Pharmaceutical Group Co., Ltd. (002349.SZ) - Valuation Analysis

• TTM P/E: 28.58 - indicates investors are paying CNY 28.58 for each CNY 1 of trailing earnings.
• P/B: 2.00 - market values equity at twice reported book value.
• P/S: 4.29 - revenue is being valued at roughly 4.3x sales.
• EV: CNY 5.35 billion - enterprise value reflecting market cap, debt, and cash considerations.
• EV/EBITDA: 17.02 - suggests an elevated multiple relative to many peers in pharmaceuticals/healthcare.
• EV/FCF: 16.46 - valuation relative to free cash flow implies moderate cash-generation expectations.
• Market capitalization: CNY 6.06 billion (as of October 20, 2025).

• Compare P/E and EV/EBITDA against domestic pharma peers and historical ranges to judge relative stretch.
• P/B of 2.00 signals either strong intangible value (R&D, product pipeline, brand) or thin tangible equity base.
• EV/FCF at 16.46 implies the market expects durable cash generation; any downside to FCF would compress valuation quickly.

Jinghua Pharmaceutical Group Co., Ltd. (002349.SZ) - Risk Factors

• Regulatory and approval risk - delays or failures in drug approvals can defer revenue recognition and increase R&D expenses. A single late-stage program delay can shift revenue by tens to hundreds of millions RMB and compress near-term EPS by 5-15% depending on portfolio weight.
• Raw material price volatility - key inputs (APIs, excipients) can experience price swings. Historical industry shocks have produced raw material cost increases of 8-25% over 12-24 months, which can erode gross margins by 2-8 percentage points if not fully passed to customers.
• Competitive pressure - crowded therapeutic areas and generic competition may force price concessions. Price erosion for off-patent drugs can exceed 30% within 12-36 months of market entry by competitors, reducing unit revenue and market share.
• Currency exposure - exports and foreign procurement expose earnings to FX moves. A 5% depreciation in RMB vs. major currencies can affect reported international revenue and COGS, changing operating profit by ~1-3% in a typical mid-cap pharma with modest global sales.
• Healthcare policy and insurance dynamics - reimbursement changes, formulary exclusions, and volume-based procurement can curtail demand. Policy shifts have historically led to 3-10% declines in sales for affected product lines within a fiscal year.
• Economic downturns - lower consumer and institutional healthcare spending during recessions can compress sales growth; cyclical slowdowns have cut growth rates by 2-7 percentage points in prior cycles.

Jinghua Pharmaceutical Group Co., Ltd. (002349.SZ) - Growth Opportunities

• International markets: targeting emerging APAC, MENA and select European markets where chronic-disease drug demand and biosimilars uptake are growing faster than mature markets.
• R&D investment: prioritizing high-margin specialty drugs, biologics and formulation upgrades to move up the value chain and lengthen product life cycles.
• Strategic partnerships: licensing, co-development and distribution alliances to accelerate entry, share risk and broaden the product catalogue.
• Diversification: expansion into adjacent healthcare verticals (medical devices, diagnostics, contract manufacturing) to create recurring, non-cyclical revenue streams.
• Digital health: telemedicine integrations, direct-to-patient channels and data-driven supply chain improvements to cut costs and increase adherence-driven sales.
• Brand and commercial capabilities: targeted marketing and KOL engagement to improve market share for core therapeutic areas and newly launched products.

• Export channel buildout: establish 3-5 distributor partnerships in APAC/MENA within 12-18 months to aim for +5-10% revenue from exports in 2 years.
• R&D reallocation: increase R&D budget by 2-4 percentage points of revenue over 3 years to accelerate 2-3 specialty candidates into clinical development.
• Partnership pipeline: secure 2-4 licensing/marketing agreements within 12 months to broaden therapeutic coverage with limited capex.
• Device & CMO play: pilot 1 medical device or CDMO line to diversify revenue; target 8-12% incremental revenues from non-pharma lines within 24-36 months.
• Digital rollout: deploy e-detailing, patient adherence programs and supply-chain analytics to reduce stockouts and cut SG&A per unit by an estimated 5-10%.
• Brand campaigns: invest in KOL programs and disease-awareness marketing to improve market share by 1-3 percentage points in core drugs over 12 months.

• Regulatory complexity for exports: registration timelines (12-36 months) can delay revenue recognition.
• R&D timeline risk: clinical and approval setbacks can materially affect returns; prioritize milestone-based spend.
• Integration risk for M&A: operational and cultural integration can dilute near-term synergies.
• Pricing and reimbursement pressure: domestic and export markets may impose pricing constraints reducing margin uplift.