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

Curious whether Aurisco Pharmaceutical (605116.SS) is a buy, hold or watch? With trailing twelve months revenue of CNY 1.62 billion (up 13.73% YoY) and a latest-quarter top line of CNY 419.97 million (versus CNY 402.00 million last quarter), the company pairs robust sales momentum with a healthy gross margin of 58.83% and a net profit margin of 24.04%, while ROE sits at 17.79% and EBITDA margin at 34.53%; balance-sheet highlights include total debt of CNY 981.01 million, a conservative debt-to-equity of 0.40 and net cash of CNY 38.13 million, liquidity metrics show a current ratio of 4.51 and quick ratio of 3.10, valuation sits at a trailing P/E of 22.15 with market cap CNY 9.11 billion, and forward-looking forecasts suggest earnings growth of 19.1% p.a. and revenue growth of 15.3% p.a.-read on for detailed breakdowns, scenario analysis and what these figures mean for investors.

Aurisco Pharmaceutical Co.,Ltd. (605116.SS) - Revenue Analysis

• TTM Revenue (Sep 2025): CNY 1.62 billion (+13.73% YoY)
• 2024 vs 2023 Revenue Growth: +16.89%
• Latest Quarter Revenue: CNY 419.97 million (prior quarter: CNY 402.00 million)
• Latest Quarter Revenue per Share: CNY 6.58
• TTM Gross Margin: 58.83%
• Revenue growth relative to industry: Above median

• Sequential momentum: latest quarter revenue up CNY 17.97 million QoQ.
• Profitability mix: 58.83% TTM gross margin implies strong product-level pricing/COGS control.
• Per-share efficiency: CNY 6.58 revenue per share in the quarter highlights capital efficiency on a per-share basis.

Aurisco Pharmaceutical Co.,Ltd. (605116.SS) Profitability Metrics

Aurisco Pharmaceutical's recent profitability profile shows robust margins and improving per-share earnings, indicating strong operational performance and shareholder value creation.

• Trailing twelve months (TTM) net profit margin: 24.04%
• Operating margin (TTM): 28.86%
• EBITDA margin: 34.53%
• Reported EPS (latest quarter): CNY 1.01 (prior quarter: CNY 0.89)
• Company profit margin: 25.60% (above industry average)
• Return on equity (ROE): 17.79%

Key implications for investors:

• Margins well above typical industry medians suggest pricing power and/or a favorable product mix.
• High EBITDA margin implies resilience to non-cash charges and potential for free cash flow generation.
• ROE near 18% signals attractive returns on equity relative to many peers in the sector.
• Sequential EPS growth underscores improving earnings momentum that may support valuation expansion.

For background on the company's history, ownership and strategy, see: Aurisco Pharmaceutical Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Aurisco Pharmaceutical Co.,Ltd. (605116.SS) - Debt vs. Equity Structure

• Debt-to-equity ratio: 0.40 - indicates modest use of debt relative to shareholders' equity.
• Total debt: CNY 981.01 million; net cash position: CNY 38.13 million - gross borrowings are moderate while net liquidity remains positive.
• Interest coverage ratio: 14.39 - company earnings cover interest expense by a wide margin.
• Gearing ratio: 37.53% - shows a moderate degree of financial leverage.
• Equity (book value): CNY 2.43 billion - provides a solid capital base.
• Net cash per share: CNY 0.09 - a small but positive cash buffer on a per-share basis.

• Potential investor takeaways: capital structure supports stability and selective growth financing; equity cushion (CNY 2.43 billion) mitigates downside risk.
• Watchpoints: monitor absolute debt levels (CNY 981.01 million) relative to cash flow trends and any large capital projects that might alter the gearing ratio.

Aurisco Pharmaceutical Co.,Ltd. (605116.SS) - Liquidity and Solvency

• Current Ratio: 4.51 - indicates the company has CNY 4.51 in current assets for every CNY 1 of current liabilities, a comfortable cushion for near-term obligations.
• Quick Ratio: 3.10 - shows strong immediate liquidity (excluding inventory), signaling the company can meet short-term liabilities without relying on stock liquidation.
• Operating Cash Flow (latest quarter): CNY 122.12 million - reflects healthy cash generation from core operations.
• Net Change in Cash (latest quarter): CNY 122.12 million - positive cash flow position for the quarter, aligning with operating cash strength.
• Altman Z-Score: 5.35 - well above distress thresholds, suggesting a low risk of bankruptcy.
• Piotroski F-Score: 5 - indicates a stable financial position with moderate strength across profitability, leverage/liquidity, and operating efficiency metrics.

• Cash generation and liquidity metrics combined imply Aurisco has the flexibility to fund near-term operations, invest in R&D or manufacturing, and absorb short-term shocks.
• The high Altman Z-Score reduces immediate solvency concerns, while a Piotroski F-Score of 5 suggests room for improvement in operational profitability or efficiency metrics.

Aurisco Pharmaceutical Co.,Ltd. (605116.SS) - Valuation Analysis

• Relative earnings multiple (P/E 22.15) suggests investors expect steady profitability but not rapid earnings acceleration compared with high-growth peers.
• P/S of 5.81 can be elevated for pharmaceutical firms depending on margins-points to premium pricing of revenue, implying expectations of healthy margin or growth.
• P/B at 3.75 signals that intangible assets, IP or future earnings potential are being priced above net tangible book value.
• EV/EBITDA of 16.58 places Aurisco in a mid-to-high valuation band versus broader healthcare/biotech averages, indicating investors pay a meaningful premium for operating profit.
• The closeness of market cap (CNY 9.11bn) and EV (CNY 9.07bn) suggests net debt is small or cash roughly offsets debt on the balance sheet.

• Compare these multiples to peers and industry medians to judge relative attractiveness.
• Assess trailing vs. forward P/E and EV/EBITDA to capture expected earnings trajectory.
• Review revenue growth, gross margins and R&D investment-P/S and EV/EBITDA are sensitive to margin changes.
• Examine balance sheet details given the near-parity of market cap and EV to confirm net-debt position and cash runway.

Aurisco Pharmaceutical Co.,Ltd. (605116.SS) - Risk Factors

This chapter examines the key financial and market risks investors should weigh when evaluating Aurisco Pharmaceutical Co.,Ltd. (605116.SS), using the latest available metrics to quantify exposures and potential stress points.

• Market correlation and volatility: Aurisco's beta of -0.17 suggests returns have low and slightly inverse correlation with broader market movements, which can reduce sensitivity to market rallies but also complicate diversification strategies.
• Share performance trend: The stock has declined by 10.11% over the past 52 weeks, signaling recent downside pressure and potential investor sentiment or company-specific headwinds.
• Income characteristics: A dividend yield of 1.29% provides modest income, but may be insufficient for yield-seeking investors and could be subject to cuts if cash generation weakens.
• Cash flow dynamics: Operating cash flow of CNY 380.44 million supports ongoing operations, yet free cash flow is negative at -CNY 52.89 million, indicating capital expenditures or other outflows exceed operating cash generation.
• Balance sheet liquidity: Net cash per share of CNY 0.09 implies a positive but limited per-share cash buffer versus liabilities and investment needs.

Key areas investors should monitor:

• Cash flow conversion: watch whether operating cash flow improves relative to capex to reverse negative free cash flow.
• Dividend sustainability: evaluate payout ratios against adjusted earnings and cash generation if free cash flow remains negative.
• Balance sheet resilience: assess absolute net cash levels versus short-term liabilities and working capital needs, given net cash per share is only CNY 0.09.
• Market behavior: consider how a negative beta and recent price decline affect portfolio diversification and downside risk management.

Further company-specific details and investor positioning can be reviewed here: Exploring Aurisco Pharmaceutical Co.,Ltd. Investor Profile: Who's Buying and Why?

Aurisco Pharmaceutical Co.,Ltd. (605116.SS) - Growth Opportunities

• Forecasted earnings growth: 19.1% per annum over the next three years.
• Revenue CAGR expected: 15.3% per annum over the next three years.
• EPS projected growth: 18.6% per annum over the next three years.
• Return on equity forecast: 17.9% in three years, indicating improving profitability and capital efficiency.
• Significant capital expenditures signaling expansion of production capacity and R&D capabilities.

• Market position in complex chemical synthesis, enabling premium contract manufacturing and higher-margin APIs.
• Regulatory compliance capabilities that reduce time-to-market and support partnerships with multinational pharma companies.
• Large, sustained capital expenditures focused on capacity expansion, process optimization and R&D, which should support both volume growth and margin improvement.
• Projected ROE improvement to 17.9% in three years, reflecting expected earnings leverage from higher asset utilization and improved margins.

• Commissioning of new production lines funded by current CapEx program and ramp-up timelines.
• Progress on regulatory approvals and GMP inspections that unlock new customer contracts and export opportunities.
• Product mix shift toward higher-value chemical synthesis projects and specialized APIs.
• Margin trajectory as fixed costs are absorbed and scale efficiencies are realized.