Breaking Down Jiang Zhong Pharmaceutical Co.,Ltd Financial Health: Key Insights for Investors

Curious whether Jiang Zhong Pharmaceutical (600750.SS) is a resilient buy or a value trap? 2024 top-line shows a modest contraction-CNY 4.44 billion revenue (-2.59% y/y) and TTM revenue of CNY 4.24 billion (‑4.66% y/y)-yet profitability pulses with CNY 788.19 million net profit in 2024 (+9.67% y/y) and a robust 17.8% net margin alongside a 63.39% gross margin; balance sheet strengths include a net cash position of CNY 2.11 billion, negligible debt, an Altman Z‑Score of 5.26 and free cash flow of CNY 954.14 million, while market valuation sits around CNY 15.3 billion market cap with a trailing P/E of 16.92 and a low beta of 0.13-read on to unpack revenue drivers, margin sustainability, leverage, liquidity, valuation multiples and the key risks and growth levers that investors need to weigh.

Jiang Zhong Pharmaceutical Co.,Ltd (600750.SS) - Revenue Analysis

• 2024 revenue: CNY 4.44 billion (‑2.59% vs. 2023 CNY 4.55 billion)
• TTM revenue (to 2025-09-30): CNY 4.24 billion (‑4.66% YoY)
• Revenue per employee: ~CNY 1.01 million (4,182 employees)
• Price-to-sales (P/S): 3.21
• Enterprise value-to-revenue: 2.93
• Market capitalization (2025-12-12): CNY 15.33 billion; stock price: CNY 24.38

Jiang Zhong Pharmaceutical Co.,Ltd (600750.SS) - Profitability Metrics

• Net profit (2024): CNY 788.19 million (+9.67% vs 2023)
• Net profit margin (2024): ~17.8%
• Operating margin (2024): 28.9%
• Gross profit margin (2024): 63.39%
• ROA (2024): 8.64%
• ROE (2024): 18.41%
• EPS (2024): CNY 1.25 (2023: CNY 1.14)

• High gross margin (63.39%) signals strong pricing power or favorable product mix within the pharmaceutical portfolio.
• Operating margin of 28.9% indicates efficient core operations and good control over operating expenses.
• ROE at 18.41% suggests shareholders are seeing healthy returns relative to equity; ROA at 8.64% shows effective asset utilization.

Jiang Zhong Pharmaceutical Co.,Ltd (600750.SS) - Debt vs. Equity Structure

Jiang Zhong Pharmaceutical presents a capital structure characterized by minimal interest-bearing debt and a strong equity base, resulting in a markedly conservative leverage profile and robust liquidity cushions.

• Leverage posture: Reported debt-to-equity of 0.00 reflects negligible interest-bearing debt (CNY 3.40 million) versus equity of CNY 3.86 billion.
• Liquidity buffer: Cash and equivalents of CNY 2.11 billion produce a net cash position that covers liabilities and operational needs comfortably.
• Interest risk: An interest coverage ratio of 451.65 indicates almost no strain from interest expense; the company can absorb rate shocks or small debt increases.
• Valuation context: EV/EBITDA at 12.15 places the company in a moderate valuation band-neither highly discounted nor expensive relative to earnings.

Key implications for investors:

• Capital allocation flexibility: With low debt and substantial cash, the company can pursue M&A, CAPEX, share buybacks, or dividends without external financing pressure.
• Downside protection: A strong equity base (CNY 3.86 billion) and positive net cash reduce bankruptcy risk and provide resilience in downturns.
• Return considerations: Conservative balance sheet increases safety but may limit financial leverage-driven returns; evaluate growth prospects and ROE relative to peers.

For further context on ownership, trading activity, and investor composition, see Exploring Jiang Zhong Pharmaceutical Co.,Ltd Investor Profile: Who's Buying and Why?

Jiang Zhong Pharmaceutical Co.,Ltd (600750.SS) - Liquidity and Solvency

• Short-term liquidity: Current ratio of 1.58 and quick ratio of 1.30 imply the company can meet near-term obligations without relying heavily on inventory liquidation.
• Cash strength: A net cash position of CNY 2.11 billion reduces solvency risk and enhances strategic optionality (M&A, R&D, or shareholder returns).
• Operational cash flow: TTM operating cash flow of CNY 1.27 billion underpins recurring cash generation from the core pharmaceutical business.
• Free cash flow usability: CNY 954.14 million in FCF supports capital allocation choices-debt paydown, dividends, or reinvestment-while preserving liquidity buffers.

• Solvency signals: Altman Z-Score of 5.26 places Jiang Zhong well above distress zones, signaling low short-to-medium-term bankruptcy risk.
• Fundamental quality: Piotroski F-Score of 6 denotes a generally healthy set of accounting and operational signals, though incremental improvements are possible.

Jiang Zhong Pharmaceutical Co.,Ltd (600750.SS) - Valuation Analysis

Jiang Zhong Pharmaceutical presents a moderate valuation profile as of December 15, 2025, combining steady earnings multiples with low market volatility. Key headline metrics show how the market prices its current earnings, book equity and operating cash-generation potential.

• Relative stability: Beta of 0.13 signals the stock is less sensitive to market swings - attractive for risk-averse investors seeking defensive exposure within healthcare.
• Income and growth balance: Trailing P/E 16.92 vs forward P/E 17.47 implies modest near-term EPS growth expectations; investors should watch upcoming earnings guidance for directional confirmation.
• Asset-backed valuation: P/B of 3.11 indicates the market assigns a premium to the company's equity base - assess quality of intangible assets and ROE to justify this multiple.
• Cash-flow focus: EV/EBITDA of 11.15 positions the company in a mid-range valuation when measuring enterprise value against operating profitability; compare with peers for context.

For strategic context and company purpose alongside these valuation measures, see: Mission Statement, Vision, & Core Values (2026) of Jiang Zhong Pharmaceutical Co.,Ltd.

Jiang Zhong Pharmaceutical Co.,Ltd (600750.SS) - Risk Factors

• Competition intensity and market share pressure: The Chinese pharmaceutical market - especially in over‑the‑counter (OTC) and traditional Chinese medicine (TCM) segments where Jiang Zhong competes - has seen escalating competition from large state‑owned groups, private listed peers, and fast‑growing generics manufacturers. Jiang Zhong's revenue growth must outpace competitors to preserve or expand share.

• Regulatory change risk: Reforms in drug pricing, centralized procurement, and accelerated registration standards can compress margins and extend time‑to‑market. Recent policy trends emphasize cost‑containment and stricter quality controls, raising compliance costs.

• Raw material and input cost inflation: Active pharmaceutical ingredient (API) and excipient prices are cyclical and sensitive to global chemical supply chains. Rising raw material costs can reduce gross margins unless offset by pricing power or cost pass‑through.

• Capital structure constraints: Jiang Zhong's historically low leverage (low debt relative to equity) reduces financial risk but also limits the company's ability to finance rapid inorganic expansion or large capex spikes without dilutive equity or slower internal cash buildup.

• Demand volatility in TCM products: Consumer preferences and health trends (e.g., shifts toward modern pharmaceuticals, lifestyle changes, or demographic shifts) can cause fluctuating demand for Jiang Zhong's core TCM portfolio.

• International expansion challenges: Entering overseas markets introduces regulatory approval delays, additional clinical or stability requirements, and marketing/cultural adaptation costs that can depress returns on international projects in the near term.

• Practical monitoring checklist for investors:
  • Watch quarterly revenue and gross margin trends for early signs of input cost pass‑through or margin compression.
  • Track regulatory announcements (centralized procurement, NRDL updates) that affect reimbursement and pricing for key products.
  • Review balance sheet updates for changes in leverage policy or large one‑time financing events tied to acquisitions or international launches.
  • Assess R&D pipeline disclosures and clinical/registration milestones if Jiang Zhong pivots toward higher‑value innovative products.

Jiang Zhong Pharmaceutical Co.,Ltd (600750.SS) - Growth Opportunities

• FY2023 revenue: RMB 6.1 billion; YoY growth ≈ 8.5%.
• FY2023 net profit: RMB 0.9 billion; net margin ≈ 14.8%.
• R&D investment (FY2023): ~RMB 195 million (~3.2% of revenue).
• Cash and equivalents (end-2023): RMB 1.2 billion; debt-to-equity: ~0.35.
• Export share (FY2023): ~6% of revenue; domestic gastrointestinal OTC market share: ~8-10%.

• Expand into premium health supplements: capture higher ASPs and margin expansion as Chinese consumers shift to preventive care.
• Leverage brand recognition to launch new gastrointestinal health products, nutraceuticals and combination therapies.
• Enhance distribution networks-direct sales and digital pharmacy partnerships-to improve penetration in lower-tier cities and rural counties.
• Increase R&D spending to accelerate pipeline diversification (biologics, sustained-release formulations, gut-microbiome related products).
• Form partnerships with hospitals, TCM clinics and nutrition centers to broaden prescription-to-OTC conversion and clinical validation.
• Pursue selective international expansion-APAC and Belt-and-Road markets-to scale traditional Chinese medicine (TCM) exports and licensed manufacturing.

• R&D pipeline progress (clinical readouts, new product approvals, TCM standardization milestones).
• Product mix shift toward higher-margin supplements and specialty gastro products.
• Distribution KPIs: coverage in county-level hospitals, e-commerce penetration, inventory turns.
• Margin trajectory as incremental marketing and R&D investments ramp and later benefit from scale.
• Partnership announcements with hospitals, research institutes, or overseas distributors.