HUTCHMED (China) (0013) AI Stock Analysis

• Market Cap: HK$21.02B
• Dividend Yield: N/A
• Average Volume (3M): 7.40M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.00
• 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): 4.06
• Shares Outstanding: 872,327,640
• 10 Day Avg. Volume: 5,279,510
• 30 Day Avg. Volume: 7,396,099
• PEG Ratio: -1.04
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 3.96
• P/FCF Ratio: -143.13
• 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$32.55
• Price Target Upside: 53.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$25.00 ▲(18.04% Upside)

The overall stock score reflects a combination of mixed financial performance and bearish technical indicators, partially offset by a potentially attractive valuation. The company's financials are challenged by declining revenue and negative operating margins, while technical analysis indicates bearish momentum. However, the low P/E ratio suggests potential undervaluation.

Positive Factors

Diversified revenue mix

HUTCHMED’s mix of product sales, milestone/licensing payments and collaboration income provides durable, non-linear cash sources that can fund R&D and commercialization. This revenue diversity reduces single-product dependency and supports program funding over multiple clinical cycles.

Low financial leverage

A very low debt-to-equity ratio gives the company financial flexibility to fund capital-intensive clinical development and absorb volatility without high interest burdens. Conservative leverage lowers bankruptcy risk and preserves capacity for strategic partnerships or opportunistic investments.

Global partnerships and pipeline

Strategic collaborations and a diversified biologics and small-molecule pipeline strengthen long-term commercialization prospects. Partner relationships share development risk, provide regulatory and market expertise outside China, and can accelerate global launches and royalty income over years.

Negative Factors

Declining revenue trend

Sequential revenue decline signals weakening commercial traction or pricing/reimbursement pressure. Over a multi-month horizon this undermines scale economics, limits reinvestment capacity for sales/marketing and R&D, and can compound margin pressure if not reversed by product uptake.

Weak cash generation

Negative operating and free cash flow reflect a structural cash-generation shortfall, forcing reliance on milestone receipts, partnerships or external financing. This constrains the company’s ability to self-fund clinical programs and increases execution risk for multi-stage development plans.

Earnings quality and margin sustainability

Reported profitability is distorted by a one-time gain while core EBIT/EBITDA remain negative and gross margins have fallen. This indicates underlying operational losses and weak earnings quality, raising concerns about sustainable profitability without material cost or revenue improvements.

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

The financial performance shows mixed results. The income statement reflects a significant net profit margin due to a one-time gain, but revenue has declined and operational margins are negative. The balance sheet is stable with low leverage, but cash flow issues persist, indicating liquidity challenges.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a significant net profit margin of 77.53%, primarily due to a one-time gain, as historical data shows much lower margins. Revenue has declined by 2.27% in the TTM, reflecting challenges in maintaining growth. Gross profit margin has decreased significantly from previous years, indicating potential cost pressures or pricing challenges. EBIT and EBITDA margins are negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.076, indicating conservative leverage. The return on equity has improved significantly to 46.95% in the TTM, driven by the net income spike. However, the equity ratio has decreased over time, suggesting a need for careful capital management to maintain financial stability.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow in the TTM. Free cash flow has improved but remains negative, indicating liquidity issues. The operating cash flow to net income ratio is negative, highlighting a disconnect between reported earnings and cash generation. The free cash flow to net income ratio is positive, suggesting some improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	602.20M	630.20M	838.00M	426.41M	356.13M	227.98M
Gross Profit	53.76M	281.32M	151.55M	115.31M	97.89M	39.46M
EBITDA	-7.49M	14.11M	67.27M	-401.11M	-321.13M	-182.89M
Net Income	466.88M	37.73M	100.78M	-360.83M	-194.65M	-125.73M
Balance Sheet
Total Assets	1.78B	1.27B	1.28B	1.03B	1.37B	724.12M
Cash, Cash Equivalents and Short-Term Investments	1.36B	836.11M	886.34M	631.00M	1.01B	439.04M
Total Debt	93.44M	89.82M	86.13M	27.01M	38.98M	35.71M
Total Liabilities	534.02M	502.34M	536.39M	392.57M	333.15M	205.17M
Stockholders Equity	1.23B	759.93M	730.54M	610.37M	986.89M	484.12M
Cash Flow
Free Cash Flow	-49.66M	-17.44M	186.65M	-305.26M	-220.98M	-81.65M
Operating Cash Flow	-32.56M	497.00K	219.26M	-268.60M	-204.22M	-62.07M
Investing Cash Flow	-73.03M	-96.06M	-291.14M	296.59M	-306.32M	-125.44M
Financing Cash Flow	11.22M	-30.67M	48.66M	-82.76M	650.03M	296.43M

HUTCHMED (China) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 21.18 is below the 20-day moving average (MA) of 23.56, below the 50-day MA of 22.39, and below the 200-day MA of 24.05, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 20.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$28.11B	13.34	12.65%	3.13%	10.56%	-13.58%
3320	68 Neutral	HK$28.71B	9.44	5.90%	2.95%	―	―
0867	65 Neutral	HK$34.01B	19.01	10.01%	2.26%	11.78%	19.06%
3933	64 Neutral	HK$23.68B	6.60	21.02%	5.11%	0.39%	4.94%
0013	53 Neutral	HK$21.02B	5.75	48.58%	―	-1.78%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

HUTCHMED (China) Corporate Events

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.

HUTCHMED to Present New Clinical Data at 2025 ESMO and ASH Meetings

HUTCHMED announced that it will present new and updated clinical data from several of its drug studies at the 2025 ESMO Asia Congress and the 2025 ASH Annual Meeting. These presentations include results from studies on treatments for advanced solid tumors, renal cell carcinoma, pancreatic cancer, and non-small cell lung cancer, among others. The announcement highlights HUTCHMED’s ongoing efforts to advance its drug development pipeline and strengthen its position in the oncology and immunotherapy markets.

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 Completes Enrollment for Key Lung Cancer Trial

HUTCHMED has completed patient enrollment for the SAFFRON Phase III trial, which investigates the combination of ORPATHYS® and TAGRISSO® as a treatment for NSCLC patients with MET overexpression after progression on TAGRISSO®. This trial could potentially lead to global regulatory filings if results are favorable, marking a significant step in offering a chemotherapy-free treatment option for lung cancer patients.

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 Unveils Innovative ATTC Platform and Advances Late-Stage Trials

HUTCHMED (China) Limited announced significant advancements in its research and development efforts, particularly highlighting its new Antibody-Targeted Therapy Conjugate (ATTC) platform, which integrates monoclonal antibodies with small-molecule inhibitors to enhance precision oncology. The lead candidate, HMPL-A251, shows promising preclinical results in targeting the PAM pathway, with plans to enter clinical development by late 2025. Additionally, HUTCHMED reported progress in several late-stage clinical trials, including studies on fruquintinib, savolitinib, surufatinib, sovleplenib, and fanregratinib, indicating potential advancements in treatment options for various cancers and immunological conditions.

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.