Huadong Medicine Co (SZSE:000963) EBIT: ¥4,183 Mil (TTM As of Mar. 2026)

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SZSE:000963 Huadong Medicine Co Ltd SZSE:000963
86 GF Score
Price ¥27.82
GF Value ¥39.74
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Huadong Medicine Co EBIT?

Huadong Medicine Co SZSE:000963 -0.36% 86 EBIT is ¥4,183 Mil as of Mar. 2026. GuruFocus rates SZSE:000963 with a GF Score™ of 86/100 and a GF Value™ of ¥39.74 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Huadong Medicine Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was ¥1,211 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was ¥4,183 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Huadong Medicine Co's annualized ROC % for the quarter that ended in Mar. 2026 was 16.93%. Huadong Medicine Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 46.70%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Huadong Medicine Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.77%.


Huadong Medicine Co  (SZSE:000963) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Huadong Medicine Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=4868.332 * ( 1 - 16.36% )/( (22899.891 + 25205.339)/ 2 )
=4071.8728848/24052.615
=16.93 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=39038.036 - 11160.093 - ( 4978.052 - max(0, 13090.664 - 21227.345+4978.052))
=22899.891

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=39908.043 - 10967.838 - ( 3734.866 - max(0, 13033.135 - 21804.216+3734.866))
=25205.339

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Huadong Medicine Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4845.484/( ( (5473.091 + max(3905.077, 0)) + (5479.878 + max(5891.419, 0)) )/ 2 )
=4845.484/( ( 9378.168 + 11371.297 )/ 2 )
=4845.484/10374.7325
=46.70 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8985.588 + 5535.766 + 743.612) - (11160.093 + 0 + 199.796)
=3905.077

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11076.591 + 5327.579 + 722.896) - (10967.838 + 0 + 267.809)
=5891.419

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Huadong Medicine Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=4183.043/47709.196
=8.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Huadong Medicine Co EBIT Related Terms


Huadong Medicine Co EBIT Historical Data

* Premium members only.

The historical data trend for Huadong Medicine Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Huadong Medicine Co EBIT Chart

Huadong Medicine Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,900.03 3,156.23 3,584.20 4,402.41 4,102.55

Huadong Medicine Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,130.88 1,115.14 1,103.16 753.38 1,211.37

SZSE:000963 vs ZTS: EBIT Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Huadong Medicine Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Huadong Medicine Co EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Huadong Medicine Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Huadong Medicine Co's EV-to-EBIT falls into.


SZSE:000963
86GF Score
Huadong Medicine Co Ltd SZSE:000963
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Huadong Medicine Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥4,183 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of ¥4,183 Mil mean?
Huadong Medicine Co (SZSE:000963) has a EBIT of ¥4,183 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Huadong Medicine Co.
Is Huadong Medicine Co's EBIT too high?
Huadong Medicine Co's current EBIT is ¥4,183 Mil. Overall, Huadong Medicine Co has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huadong Medicine Co's EBIT compare to ZTS?
Huadong Medicine Co's EBIT of ¥4,183 Mil can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Drug Manufacturers company?
A good EBIT depends on the Drug Manufacturers industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Huadong Medicine Co. Huadong Medicine Co's current EBIT is ¥4,183 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huadong Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Huadong Medicine Co (SZSE:000963) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥39.74, compared to a current price of ¥27.82 — trading 30% below its estimated fair value. The current EBIT is ¥4,183 Mil. Huadong Medicine Co's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Huadong Medicine Co (SZSE:000963), the current EBIT is ¥4,183 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Huadong Medicine Co (SZSE:000963) Overvalued in 2026?

Based on GuruFocus' analysis, Huadong Medicine Co stock appears to be undervalued. The current stock price of ¥27.82 is trading 30% below its estimated GF Value™ of ¥39.74. GuruFocus considers Huadong Medicine Co to be Significantly Undervalued.

Key valuation signals for SZSE:000963:

  • EBIT: ¥4,183 Mil
  • GF Value™: ¥39.74 vs. price of ¥27.82 (30% below fair value)
  • GF Score™: 86/100 with 2 warning signs

No single metric tells the full story. See the SZSE:000963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Huadong Medicine Co Business Description

Address No. 866, Moganshan Road, Zhejiang Province, Hangzhou, CHN, 310011
Huadong Medicine Co Ltd is engaged in the production and sales of antibiotics, proprietary Chinese medicine, chemical synthetic medicine, and genetic engineering drug products. The company mainly operates its business through three segments. The Manufacturing Business segment is engaged in the research and development, production, and marketing of specialized medicines, medicines for chronic diseases, as well as special medicines. The Commercial Business segment is engaged in the sales of medicines, medical devices, ginseng, and antler pieces. The International Medical Beauty Business segment is engaged in the production and sales of regeneration products, hyaluronic acids, and botulinum toxin products.
86GF Score

Get the complete analysis for SZSE:000963

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥27.82
Price
¥39.74
GF Value