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Should You Consider Zhongzhi Pharmaceutical Holdings Limited (HKG:3737)?

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Zhongzhi Pharmaceutical Holdings Limited (HKG:3737), there's is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Zhongzhi Pharmaceutical Holdings here.

Flawless balance sheet with proven track record

3737 delivered a bottom-line expansion of 21% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 3737 outperformed its past performance, its growth also exceeded the Personal Products industry expansion, which generated a 0.4% earnings growth. This is an optimistic signal for the future. 3737's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 3737 manages its cash and cost levels well, which is an important determinant of the company’s health. 3737 appears to have made good use of debt, producing operating cash levels of 3.42x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SEHK:3737 Income Statement, April 18th 2019

Next Steps:

For Zhongzhi Pharmaceutical Holdings, I've put together three relevant factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 3737’s future growth? Take a look at our free research report of analyst consensus for 3737’s outlook.
  2. Valuation: What is 3737 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 3737 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3737? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.