What happened with RDGT today?
No read yet
Uses news and trading volume to explain the day’s move and how it relates to the market.
Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.
Ridgetech buys third-party medicines and healthcare products and sells them to retail pharmacies, clinics and trading companies, retaining the difference between purchase and resale prices before other expenses. Most revenue comes from offline wholesale sales to local buyers. Its Allright subsidiary also reaches customers nationwide through its own and third-party online platforms, a smaller part of the business.
The company no longer operates retail pharmacies after divesting that business. Jiuzhou Pharmacy, formerly part of the group, is now an outside customer and supplies most of Ridgetech’s revenue. Under their supply agreement, Ridgetech’s Jiuxin Medicine subsidiary must charge Jiuzhou Pharmacy no more than the lowest local wholesale price. The agreement can be terminated under specified conditions, making this customer relationship central to the business.
Wholesale earnings depend on securing supplier prices and stocking products customers will buy; Ridgetech has limited bargaining power with suppliers. It must also maintain Chinese drug-distribution permits and other required certifications and approvals to keep operating.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Ridgetech’s results depend heavily on Jiuzhou Pharmacy, which accounts for over half its revenue under a three-year pharmaceutical supply agreement.
111, Inc. competes with Ridgetech for online wholesale orders in China: both buy medicines and resell them to retail pharmacies and other distributors. Watch 111’s sales to pharmacy customers, including small and medium-sized chains and independent pharmacies, for a view of the buyers Ridgetech also competes to supply.
111, Inc. earningsYI
111, Inc.’s report will show how much Chinese pharmacies are ordering from online wholesalers, buyers Ridgetech also competes to supply.
Look at 111, Inc.’s sales to pharmacy customers, especially small and medium-sized chains and independent pharmacies. Stronger sales would show those buyers are still ordering, supporting demand in the market where Ridgetech competes for wholesale orders; weaker sales would point to softer buyer demand and a harder contest for Ridgetech.
