Sunshine Lake Pharma Co (HKSE:06887) Interest Coverage: 4.52 (As of Dec. 2025) — 90% Above Median

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HKSE:06887 Sunshine Lake Pharma Co Ltd HKSE:06887
15 GF Score
Price HK$38.50
! 2 Warning Signs
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What is Sunshine Lake Pharma Co Interest Coverage?

Sunshine Lake Pharma Co HKSE:06887 +3.00% 15 Interest Coverage is 4.52 as of Dec. 2025, which is 90% above its 10-year median of 2.38. GuruFocus rates HKSE:06887 with a GF Score™ of 15/100. The stock has 2 warning signs investors should review. Among 685 Drug Manufacturers companies, Sunshine Lake Pharma Co ranks worse than 81.75% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sunshine Lake Pharma Co's Operating Income for the six months ended in Dec. 2025 was HK$579 Mil. Sunshine Lake Pharma Co's Interest Expense for the six months ended in Dec. 2025 was HK$-128 Mil. Sunshine Lake Pharma Co's interest coverage for the quarter that ended in Dec. 2025 was 4.52. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sunshine Lake Pharma Co's Interest Coverage or its related term are showing as below:

HKSE:06887' s Interest Coverage Range Over the Past 10 Years
Min: 0.81   Med: 2.38   Max: 5.88
Current: 2.75


HKSE:06887's Interest Coverage is ranked worse than
81.75% of 685 companies
in the Drug Manufacturers industry
Industry Median: 13.91 vs HKSE:06887: 2.75

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Sunshine Lake Pharma Co  (HKSE:06887) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Sunshine Lake Pharma Co Interest Coverage Related Terms


Sunshine Lake Pharma Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sunshine Lake Pharma Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Sunshine Lake Pharma Co Interest Coverage Chart

Sunshine Lake Pharma Co Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Interest Coverage
0.81 5.88 2.02 2.74

Sunshine Lake Pharma Co Semi-Annual Data
Dec22 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial N/A 5.40 0.00 0.94 4.52

HKSE:06887 vs ZTS: Interest Coverage Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Sunshine Lake Pharma Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.


Sunshine Lake Pharma Co Interest Coverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Sunshine Lake Pharma Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sunshine Lake Pharma Co's Interest Coverage falls into.


HKSE:06887
15GF Score
Sunshine Lake Pharma Co Ltd HKSE:06887
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Sunshine Lake Pharma Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sunshine Lake Pharma Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Sunshine Lake Pharma Co's Interest Expense was HK$-254 Mil. Its Operating Income was HK$697 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,585 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*697.138/-254.312
=2.74

Sunshine Lake Pharma Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Sunshine Lake Pharma Co's Interest Expense was HK$-128 Mil. Its Operating Income was HK$579 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,585 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*578.634/-128.052
=4.52

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 4.52 mean?
Sunshine Lake Pharma Co (HKSE:06887) has a Interest Coverage of 4.52 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sunshine Lake Pharma Co and its competitors. This is 90% above median its historical median of 2.38. Over the past decade, Sunshine Lake Pharma Co's Interest Coverage has ranged from 0.81 to 5.88. According to the industry distribution chart, Sunshine Lake Pharma Co ranks #560 out of 685 companies in the Drug Manufacturers industry, placing it in the top 81.8%.
Is Sunshine Lake Pharma Co's Interest Coverage too high?
Sunshine Lake Pharma Co's current Interest Coverage of 4.52 is 90% above median its 10-year median of 2.38. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 5.88. The Drug Manufacturers industry median Interest Coverage is 13.91. Sunshine Lake Pharma Co's value of 4.52 is 67.5% below this industry median. Based on the distribution chart, Sunshine Lake Pharma Co ranks #560 out of 685 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Sunshine Lake Pharma Co has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Sunshine Lake Pharma Co's Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Sunshine Lake Pharma Co ranks #560 out of 685 companies for Interest Coverage. This places Sunshine Lake Pharma Co in the lower half of its industry. The industry median Interest Coverage is 13.91. Sunshine Lake Pharma Co's value of 4.52 is 67.5% below this benchmark. Historically, Sunshine Lake Pharma Co's own Interest Coverage has ranged from 0.81 to 5.88 over the past decade. While the company's 10-year median is 2.38 vs. the industry median of 13.91, Sunshine Lake Pharma Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 13.91, based on 685 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunshine Lake Pharma Co's current Interest Coverage of 4.52 is 67.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sunshine Lake Pharma Co and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 13.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunshine Lake Pharma Co's current Interest Coverage is 4.52, which is 90% above median its own 10-year median of 2.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunshine Lake Pharma Co stock overvalued right now?
Sunshine Lake Pharma Co (HKSE:06887) has a current Interest Coverage of 4.52. The current Interest Coverage is 4.52, which is 90% above median its 10-year median of 2.38 and 67.5% below the Drug Manufacturers industry median of 13.91. Sunshine Lake Pharma Co's overall GF Score™ is 15/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Sunshine Lake Pharma Co (HKSE:06887), the current Interest Coverage is 4.52 as of Dec. 2025. 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.

Sunshine Lake Pharma Co Business Description

Address No. 368 Zhen An Zhong Road, HEC Scientific Park, Chang’an County, Guangdong Province, Dongguan, CHN
Sunshine Lake Pharma Co Ltd is a vertically integrated pharmaceutical company principally engaged in the research and development, manufacturing and sales of pharmaceuticals. It is focused on therapeutic areas of infectious diseases, chronic diseases and oncology. The company's revenue is mainly derived from sales of pharmaceutical products to distributors in the PRC.
15GF Score

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HK$38.50
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