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CR Boya Warns of Profit Slump Despite Revenue Growth After Green Cross Acquisition

Story Highlights
  • CR Boya expects 2025 net profit to plunge, with core results slipping into loss.
  • Impairments from the Green Cross deal and pressure on blood products weigh heavily on margins.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
CR Boya Warns of Profit Slump Despite Revenue Growth After Green Cross Acquisition

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China Resources Pharmaceutical Group Ltd. ( (HK:3320) ) has shared an announcement.

China Resources Boya Bio-pharmaceutical has issued a sharp profit warning for 2025, estimating net profit attributable to shareholders at RMB105 million to RMB136.5 million, down from about RMB397 million a year earlier, and projecting an underlying net loss of RMB7.5 million to RMB15 million when excluding non-recurring gains. Management attributes the slump primarily to a downturn in the hyaluronic acid medical aesthetics market, which forced roughly RMB300 million of impairments on franchise rights and goodwill related to the November 2024 acquisition of Green Cross HK Holdings, along with around RMB80 million in profit impact from inventory revaluation and higher depreciation and amortization tied to that deal. Although operating revenue is expected to rise 10% to 25%, driven mainly by the Green Cross acquisition, CR Boya’s blood products business has come under pressure from centralized procurement, payment reforms, tighter medical insurance controls and an increasingly competitive market, eroding gross margins; non-recurring gains and losses, including government subsidies and investment income, are expected to contribute about RMB120 million, partially cushioning the decline but underscoring growing operational headwinds for both CR Boya and its parent China Resources Pharmaceutical.

The most recent analyst rating on (HK:3320) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on China Resources Pharmaceutical Group Ltd. stock, see the HK:3320 Stock Forecast page.

More about China Resources Pharmaceutical Group Ltd.

China Resources Pharmaceutical Group Limited is a Hong Kong–incorporated pharmaceutical conglomerate with operations in the People’s Republic of China, holding diversified businesses including blood products and medical aesthetics through subsidiaries such as China Resources Boya Bio-pharmaceutical Group Company Limited, which is listed on the Shenzhen Stock Exchange. The Group indirectly owns about 30.48% of CR Boya’s share capital and 41.79% of its voting rights, making CR Boya a consolidated subsidiary and an important contributor to its healthcare portfolio.

Average Trading Volume: 12,626,249

Technical Sentiment Signal: Sell

Current Market Cap: HK$28.71B

For detailed information about 3320 stock, go to TipRanks’ Stock Analysis page.

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