HUTCHMED (China) (0013) AI Stock Analysis

• Market Cap: HK$19.58B
• Dividend Yield: N/A
• Average Volume (3M): 7.40M
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.94
• Revenue Growth: -1.78%
• EPS Growth: N/A
• Country: HK
• Employees: 1,811
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.02
• Shares Outstanding: 872,327,640
• 10 Day Avg. Volume: 5,279,510
• 30 Day Avg. Volume: 7,396,099
• PEG Ratio: <0.01
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 4.14
• P/FCF Ratio: -28.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$30.49
• Price Target Upside: 43.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): HK$637.44M

• Rating: 55 Neutral
• Price Target: HK$22.50 ▲(6.23% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held back mainly by weak cash generation and negative operating profitability in 2025, despite a conservatively levered balance sheet. Technicals also signal a continuing downtrend (below major DMAs, negative MACD). Valuation is a relative positive due to the low P/E, but it does not fully offset the operating and cash-flow concerns.

Positive Factors

Conservative balance sheet

Low leverage and an expanding equity base provide durable financial flexibility. This reduces refinancing and interest-rate risk, supporting continued R&D and commercialization investment during periods of operational volatility and giving the company time to stabilize cash flow without immediate capital markets pressure.

Diversified revenue streams

A business model combining product sales with collaboration, milestone and royalty income diversifies cash sources and creates non-linear upside from partner-funded development. Structurally this reduces dependence on single-market sales and can fund pipeline progress even amid uneven product uptake.

Improved and solid gross margins

Sustained gross margin strength implies pricing power or advantageous product mix, supporting future operating leverage as revenue stabilizes. Solid margins create headroom to absorb SG&A and R&D, improving prospects for eventual operating profitability if revenue trends reverse positively.

Negative Factors

Weak cash generation

Recurring cash burn undermines the firm’s self-funding ability for trials and commercialization. Over the medium term this increases likelihood of external financing, which could be dilutive or restrictive, and constrains flexibility to invest in pipeline or commercial expansion without clear cash-flow recovery.

Operating losses despite reported net profit

Net income driven by non-operating gains masks weak core operations. Negative EBIT/EBITDA signals the company is not generating operating profits to sustain activities, raising risk that one-time gains may reverse and revealing earnings quality and sustainability concerns for investors and lenders.

Revenue volatility and recent decline

Material revenue swings and recent declines reduce visibility into future top-line performance and lengthen the timeline to operating break-even. Persistent volatility complicates planning for manufacturing, commercial rollout and R&D prioritization, and makes forecast-driven funding and partnerships harder to rely on.

HUTCHMED (China) Business Overview & Revenue Model

Company Description

HUTCHMED (China) Limited discovers, develops, and commercializes targeted therapeutics and immunotherapies for cancer and immunological diseases in HongKong and internationally. It operates in Oncology/Immunology and Other Ventures segments. The company develops Savolitinib, an inhibitor for non-small cell lung cancer (NSCLC), papillary and renal cell carcinoma, colorectal cancer (CRC), and gastric cancer (GC); and Fruquintinib, an inhibitor for CRC, breast cancer, GC, endometrial cancer (EMC), NSCLC, hepatocellular carcinoma, and gastrointestinal and solid tumors. It also develops Surufatinib, an inhibitor for neuroendocrine tumors (NET), pancreatic NET, non-pancreatic NET, biliary tract cancer, sarcoma, neuroendocrine neoplasm, esophageal cancer, small cell lung cancer, GC, thyroid cancer, EMC, NSCLC, and solid tumors; HMPL-523, a spleen tyrosine kinase inhibitor for hematological cancers and certain chronic immune diseases; and HMPL-689 for isoform PI3Kd (phosphoinositide 3'-kinase delta). In addition, it develops Tazemetostat, an inhibitor of EZH2 for the treatment of certain epithelioid sarcoma and follicular lymphoma patients; HMPL-306, an inhibitor for hematological malignancies, gliomas, and solid tumors; HMPL-760, an Bruton's tyrosine kinase inhibitor; HMPL-453, an inhibitor for intrahepatic cholangiocarcinoma; HMPL-295 for solid tumors; HMPL-653 for metastatic solid tumors and tenosynovial giant cell tumors; and Epitinib (HMPL-813) and Theliatinib (HMPL-309) inhibitors. It has collaboration agreements with AstraZeneca AB (publ), Lilly (Shanghai) Management Company Limited, BeiGene, Inmagene Biopharmaceuticals Co. Ltd., Innovent Biologics Co., Inc., Genor Biopharma Co. Ltd., Shanghai Junshi Biosciences Co. Ltd., and Epizyme, Inc. The company was formerly known as Hutchison China MediTech Limited and changed its name to HUTCHMED (China) Limited in May 2021. The company was incorporated in 2000 and is headquartered in Central, Hong Kong.

How the Company Makes Money

HUTCHMED makes money through a combination of product sales, collaborations, and licensing agreements. The company's revenue streams include the commercialization of its proprietary drugs, particularly in the oncology sector, where it markets and sells pharmaceuticals both independently and through strategic alliances with global pharmaceutical companies. Additionally, HUTCHMED generates income from research and development collaborations, receiving milestone payments and royalties from its partnerships. Significant partnerships with major pharmaceutical firms enhance its market reach and contribute to its revenue through joint ventures and co-development agreements.

HUTCHMED (China) Financial Statement Overview

Summary

Financials are mixed: a strong, low-leverage balance sheet (74) is offset by weak cash flow quality (38) and deteriorating operating profitability with negative EBIT/EBITDA in 2025. Reported 2025 net income appears driven by non-operating items versus core operations, reducing earnings sustainability.

Income Statement

Revenue has become more volatile: strong growth in 2023 followed by modest contraction in 2024 and a sharper decline in 2025. Gross margin improved meaningfully in 2024 and remains solid in 2025, but operating profitability weakened again in 2025 with negative EBIT and EBITDA. Net income looks exceptionally strong in 2025 and lifts reported net margin, but the disconnect versus operating losses suggests earnings are being driven by items outside core operations, reducing overall quality and sustainability of profits.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity across the period and improving further in 2025. Equity and total assets expanded significantly by 2025, providing a larger capital base and financial flexibility. Return on equity improved sharply in 2025, but given operating losses that year, the jump likely reflects non-operating gains rather than underlying operating strength, which is a key risk to durability.

Cash Flow

Cash generation is inconsistent. After strong positive operating cash flow and free cash flow in 2023, cash flow deteriorated to near break-even operating cash flow and negative free cash flow in 2024, then turned clearly negative again in 2025. The company is not consistently converting profits into cash, and the return to cash burn in 2025 raises concern around funding needs if operating performance does not stabilize.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	602.20M	549.32M	630.20M	838.00M	426.41M	356.13M
Gross Profit	53.76M	212.48M	281.32M	151.55M	115.31M	97.89M
EBITDA	-7.49M	-41.33M	14.11M	67.27M	-401.11M	-321.13M
Net Income	466.88M	457.58M	37.73M	100.78M	-360.83M	-194.65M
Balance Sheet
Total Assets	1.78B	1.75B	1.27B	1.28B	1.03B	1.37B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.37B	836.11M	886.34M	631.00M	1.01B
Total Debt	93.44M	97.88M	89.82M	86.13M	27.01M	38.98M
Total Liabilities	534.02M	501.77M	502.34M	536.39M	392.57M	333.15M
Stockholders Equity	1.23B	1.24B	759.93M	730.54M	610.37M	986.89M
Cash Flow
Free Cash Flow	-49.66M	-78.92M	-17.44M	186.65M	-305.26M	-220.98M
Operating Cash Flow	-32.56M	-64.75M	497.00K	219.26M	-268.60M	-204.22M
Investing Cash Flow	-73.03M	-29.45M	-96.06M	-291.14M	296.59M	-306.32M
Financing Cash Flow	11.22M	7.85M	-30.67M	48.66M	-82.76M	650.03M

HUTCHMED (China) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0013, the sentiment is Negative. The current price of 21.18 is below the 20-day moving average (MA) of 22.45, below the 50-day MA of 23.05, and below the 200-day MA of 24.12, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 67.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0013.

HUTCHMED (China) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0512	73 Outperform	HK$25.38B	6.53	12.37%	3.13%	10.56%	-13.58%
3320	68 Neutral	HK$29.03B	3.54	5.79%	2.95%	―	―
0867	66 Neutral	HK$31.62B	19.33	9.90%	2.26%	11.78%	19.06%
3933	64 Neutral	HK$21.05B	3.29	20.45%	5.11%	0.39%	4.94%
0013	55 Neutral	HK$19.58B	4.97	41.91%	―	-1.78%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

HUTCHMED (China) Corporate Events

HUTCHMED Sets March 5 Board Meeting to Approve 2025 Annual Results

HUTCHMED (China) Limited has scheduled a board meeting for March 5, 2026 to approve and release its audited financial results for the year ended December 31, 2025, with the announcement to be published that evening in Hong Kong. Following the results release, the company will hold separate English and Putonghua webcast presentations with Q&A for investors and analysts, underscoring its efforts to maintain active investor communication and transparency around its financial performance and strategic direction.

The most recent analyst rating on (HK:0013) stock is a Hold with a HK$25.00 price target. To see the full list of analyst forecasts on HUTCHMED (China) stock, see the HK:0013 Stock Forecast page.

HUTCHMED’s Savolitinib Combo Shows Phase III Success in EGFR-Mutated Lung Cancer

HUTCHMED highlighted the publication in The Lancet of Phase III SACHI trial results, which show that combining its MET inhibitor savolitinib (ORPATHYS®) with AstraZeneca’s osimertinib (TAGRISSO®) significantly improves progression-free survival and response rates versus chemotherapy in patients with advanced EGFR-mutated non-small cell lung cancer who develop MET amplification after prior EGFR-TKI treatment. The data underpin the June 2025 regulatory approval in China for the all-oral savolitinib–osimertinib regimen, reinforcing HUTCHMED’s position in precision oncology and expanding treatment options for a difficult-to-treat subset of lung cancer patients, with a tolerable safety profile and potential to further entrench the company’s role in MET-targeted therapy alongside AstraZeneca.

The most recent analyst rating on (HK:0013) stock is a Hold with a HK$23.00 price target. To see the full list of analyst forecasts on HUTCHMED (China) stock, see the HK:0013 Stock Forecast page.

HUTCHMED’s Sovleplenib Hits Phase III Goal in Warm Autoimmune Hemolytic Anemia Trial in China

HUTCHMED announced that the Phase III registration part of its ESLIM-02 trial in China for sovleplenib, an oral spleen tyrosine kinase (Syk) inhibitor, in adults with relapsed or refractory warm antibody autoimmune hemolytic anemia (wAIHA) met its primary endpoint, demonstrating durable hemoglobin responses between weeks 5 and 24. The positive topline data, following earlier Phase II results showing meaningful hemoglobin improvements and a favorable safety profile, underscore sovleplenib’s potential as a new treatment option in wAIHA, a prevalent and often serious form of autoimmune hemolytic anemia with limited therapies after standard treatments fail. HUTCHMED plans to submit a New Drug Application for sovleplenib in wAIHA to China’s National Medical Products Administration in the first half of 2026, while continuing to develop the drug in immune thrombocytopenia, where it has also shown positive Phase III results, reinforcing the company’s positioning in autoimmune hematologic diseases and its strategy to retain global rights to the asset.

The most recent analyst rating on (HK:0013) stock is a Hold with a HK$22.00 price target. To see the full list of analyst forecasts on HUTCHMED (China) stock, see the HK:0013 Stock Forecast page.

HUTCHMED Advances Surufatinib Combo into Phase III Trial for Metastatic Pancreatic Cancer in China

HUTCHMED has initiated the Phase III stage of an ongoing Phase II/III clinical trial in China testing a four-drug combination—surufatinib, camrelizumab, nab-paclitaxel and gemcitabine—as a first-line therapy for treatment-naïve patients with metastatic pancreatic ductal adenocarcinoma, a highly lethal cancer with limited effective options. Building on encouraging Phase II data that showed a substantial improvement in progression-free survival, response rates and disease control compared with standard chemotherapy alone, the expansion to approximately 400 additional patients in Phase III underscores the company’s bid to position surufatinib at the core of a potentially new standard treatment regimen in pancreatic cancer and could meaningfully enhance its oncology franchise in the Chinese market if the overall survival endpoint and safety profile remain favorable.

The most recent analyst rating on (HK:0013) stock is a Hold with a HK$22.00 price target. To see the full list of analyst forecasts on HUTCHMED (China) stock, see the HK:0013 Stock Forecast page.

HUTCHMED Launches Global Clinical Trials for Innovative Cancer Therapy

HUTCHMED has initiated a global Phase I clinical development program for HMPL-A251, a first-in-class Antibody-Targeted Therapy Conjugate (ATTC) designed to treat patients with HER2-expressing solid tumors. This trial, conducted in the US and China, marks the first clinical-stage candidate from HUTCHMED’s next-generation ATTC platform, aiming to improve targeted delivery and reduce systemic toxicity. The development of HMPL-A251 could potentially enhance HUTCHMED’s positioning in precision oncology by offering a novel approach to overcoming challenges associated with existing PAM-targeted therapies, thus benefiting stakeholders by expanding treatment options and improving patient outcomes.

The most recent analyst rating on (HK:0013) stock is a Hold with a HK$22.00 price target. To see the full list of analyst forecasts on HUTCHMED (China) stock, see the HK:0013 Stock Forecast page.

HUTCHMED Expands Drug Coverage in China’s National and Commercial Insurance Lists

HUTCHMED (China) Limited has announced the renewal of its contract with the China National Healthcare Security Administration, ensuring continued inclusion of its drugs ELUNATE®, ORPATHYS®, and SULANDA® in the National Reimbursement Drug List (NRDL) effective January 2023. Additionally, TAZVERIK® has been added to the first edition of the National Commercial Health Insurance Innovative Drug List, which is part of China’s multi-level medical insurance system. This development enhances patient access to innovative treatments and supports the sustainable growth of China’s pharmaceutical sector.

The most recent analyst rating on (HK:0013) stock is a Hold with a HK$22.00 price target. To see the full list of analyst forecasts on HUTCHMED (China) stock, see the HK:0013 Stock Forecast page.