Grand Pharmaceutical Group Limited (0512) AI Stock Analysis

• Market Cap: HK$28.04B
• Dividend Yield: 3.13%
• Average Volume (3M): 9.26M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.78
• Revenue Growth: 10.56%
• EPS Growth: -13.58%
• Country: HK
• Employees: 11,987
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.33
• Shares Outstanding: 3,549,571,000
• 10 Day Avg. Volume: 7,622,050
• 30 Day Avg. Volume: 9,255,379
• PEG Ratio: 0.23
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 13.17
• 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$11.88
• Price Target Upside: 52.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$9.00 ▲(15.38% Upside)

Grand Pharmaceutical Group Limited demonstrates strong financial performance with robust revenue growth and a solid balance sheet. However, the recent decline in EBIT margin and mixed technical indicators suggest caution. The valuation is fair, offering potential for growth if operational efficiencies are enhanced. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Diversified product portfolio

A broad product mix across TCM, chemical drugs and medical devices provides durable revenue diversification, reducing single-therapy risk. This supports resilience to demand swings and regulatory cycles, enables cross-selling through distribution partners, and underpins steady medium-term growth.

Strong revenue growth and high gross margins

Sustained ~12% revenue CAGR and >50% gross margins indicate pricing power and scalable manufacturing. These fundamentals support reinvestment in R&D and product launches, making underlying profitability and revenue expansion more durable over the next 2-6 months absent major market shifts.

Positive operating cash flow generation

Consistent positive operating cash flow that supports net income provides a durable cushion for capex, debt service and strategic investments. Even with higher capex, strong cash generation enhances financial flexibility and reduces refinancing risk over the medium term.

Negative Factors

EBIT margin contraction to 0%

An EBIT margin falling to zero signals meaningful erosion of operating profitability, limiting the company's ability to fund R&D, absorb price pressure, or cover fixed costs. Unless structural cost or pricing issues are resolved, this undermines sustainable earnings power and cash conversion.

Material free cash flow decline

A ~34% drop in free cash flow reduces available internal funding for dividends, M&A or debt reduction. While some capex may be growth-focused, the decline tightens liquidity buffers and increases reliance on operational improvements or external financing to sustain strategic initiatives.

Negative EPS growth and slipping ROE

Negative EPS growth (~-13.6%) combined with a slightly declining ROE suggests profitability and asset-efficiency pressures. If persistent, this trend can signal weakening earnings quality and reduced shareholder returns, requiring margin recovery or better capital allocation to restore longer-term profitability.

Grand Pharmaceutical Group Limited Business Overview & Revenue Model

Company Description

Grand Pharmaceutical Group Limited, an investment holding company, engages in the research and development, manufacture, and sale of pharmaceutical preparations and medical devices, biotechnology and healthcare products, and pharmaceutical raw materials. The company offers pharmaceutical preparations, including cerebro-cardiovascular emergency medicines; respiratory, ophthalmic, anti-infection, and ENT medicines; oncology medicines; and rare disease medicines. It also provides medical devices, such as vascular interventional medical devices comprising paclitaxel releasing coronary balloon dilatation catheters and paclitaxel releasing hemodialysis shunt balloon dilatation catheters; and ophthalmology related devices. In addition, the company offers biotechnology and health products, such as Taurine, amino acid products, steroid products, and bio-pesticides and agricultural antibiotics; and specialized pharmaceutical raw materials and other products, including metronidazole, chloramphenicol, epinephrine, dimethyl sulfate, nitromethane, etc. Further, the company offers agrochemicals, fine chemicals, and chemical medicines; ophthalmic gel and eye drops; steroid hormones active pharmaceutical ingredients and related intermediates; bio-pesticides and additives; disposal surgical products; and Chinese medicine and health food products, as well as engages in the treatment of sewage. Grand Pharmaceutical Group Limited has a strategic cooperation agreement with the Eye Hospital of Wenzhou Medical University in the field of ophthalmic drug research and development. It operates in the People's Republic of China, the rest of Asia, the United States, Europe, and internationally. The company was formerly known as China Grand Pharmaceutical and Healthcare Holdings Limited and changed its name to Grand Pharmaceutical Group Limited in November 2021. Grand Pharmaceutical Group Limited was incorporated in 1995 and is based in Central, Hong Kong.

How the Company Makes Money

Grand Pharmaceutical Group Limited generates revenue through multiple streams, primarily through the sale of its pharmaceutical products and medical devices. The company leverages its robust research and development capabilities to bring novel and effective medications to market, targeting both domestic and international markets. Revenue is also derived from strategic partnerships with other pharmaceutical companies, licensing agreements, and distribution deals, which help expand the reach of its products. Additionally, the company invests in marketing and sales initiatives to boost the uptake of its products in various healthcare settings. These factors collectively contribute to its financial performance and growth.

Grand Pharmaceutical Group Limited Financial Statement Overview

Summary

Grand Pharmaceutical Group Limited is performing well across key financial metrics. The company showcases robust revenue growth and profitability, although recent EBIT margin contraction needs addressing. The balance sheet is strong with prudent debt management, and cash flow generation supports ongoing operations and growth initiatives. Continued focus on improving EBIT margins and optimizing capital expenditure will enhance financial health.

Income Statement

Grand Pharmaceutical Group Limited has demonstrated strong revenue growth with a CAGR of approximately 12% over the past five years. The gross profit margin remains robust, exceeding 50% consistently. However, the EBIT margin declined to 0% in the latest year, which is a concern. Nevertheless, the EBITDA margin is satisfactory, indicating strong operational efficiency.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 65.9% for 2024. The debt-to-equity ratio is manageable at 27%, showing prudent leverage. Return on equity remains healthy, although slightly declining, reflecting consistent profitability. Overall, the balance sheet reflects stability with room for improvement in asset utilization.

Cash Flow

Operating cash flow is positive and supports net income, with a stable operating cash flow to net income ratio. Free cash flow decreased by 33.8% from the previous year, largely due to increased capital expenditure. Despite this, cash flow generation remains strong, providing a cushion for strategic investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.70B	11.64B	10.53B	9.56B	8.60B	6.35B
Gross Profit	6.75B	6.74B	6.52B	5.95B	5.25B	4.04B
EBITDA	2.80B	3.39B	2.97B	3.09B	3.10B	2.41B
Net Income	2.08B	2.47B	1.88B	2.08B	2.40B	1.79B
Balance Sheet
Total Assets	26.47B	24.99B	22.52B	22.37B	21.06B	16.98B
Cash, Cash Equivalents and Short-Term Investments	1.81B	3.14B	2.47B	2.48B	2.87B	2.39B
Total Debt	4.61B	4.44B	3.40B	4.48B	3.65B	2.39B
Total Liabilities	9.18B	8.47B	7.24B	8.16B	7.61B	5.64B
Stockholders Equity	17.15B	16.47B	15.16B	14.14B	13.39B	11.24B
Cash Flow
Free Cash Flow	1.07B	1.28B	1.93B	245.79M	1.49B	1.31B
Operating Cash Flow	1.66B	1.90B	2.42B	1.92B	2.12B	1.78B
Investing Cash Flow	-1.07B	-2.00B	-515.75M	-2.58B	-1.77B	-2.05B
Financing Cash Flow	-906.29M	29.96M	-1.89B	464.49M	-333.17M	899.79M

Grand Pharmaceutical Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.80
• 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:0512, the sentiment is Negative. The current price of 7.8 is below the 20-day moving average (MA) of 8.05, below the 50-day MA of 8.24, and below the 200-day MA of 8.20, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 42.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0512.

Grand Pharmaceutical Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0512	73 Outperform	HK$28.04B	13.30	12.65%	3.13%	10.56%	-13.58%
1513	71 Outperform	HK$33.02B	11.57	14.91%	4.09%	-0.45%	9.00%
3320	68 Neutral	€28.96B	9.52	5.90%	2.95%	―	―
0867	65 Neutral	HK$34.64B	19.36	10.01%	2.26%	11.78%	19.06%
3933	64 Neutral	HK$23.60B	6.58	21.02%	5.11%	0.39%	4.94%
0013	53 Neutral	HK$20.27B	5.57	48.58%	―	-1.78%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Grand Pharmaceutical Group Limited Corporate Events

Grand Pharmaceutical to Acquire Two Biotech and Fine Chemical Units in RMB316 Million Connected Deal

Grand Pharmaceutical Group Limited has announced that its subsidiary Hubei Yuanda will acquire 100% of the equity interests in Hebei Yuanda Jiufu Biotechnology Co., Ltd. and Baoding Jiahe Fine Chemical Co., Ltd. for a total consideration of RMB316 million, turning both target entities into indirectly wholly owned subsidiaries. The deal, which involves the purchase of stakes from China Grand (the company’s 53.42% shareholder) and another vendor, is classified as a connected transaction under Hong Kong listing rules but only requires reporting and announcement rather than independent shareholders’ approval, and was priced after arm’s length negotiations based on an independent valuation and the targets’ financial performance, assets and R&D prospects, reflecting Grand Pharmaceutical’s intention to capture expected benefits from these businesses and further integrate biotech and fine chemical capabilities into its group structure.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical Wins China Nod for World’s First Adrenaline Nasal Spray

Grand Pharmaceutical Group has announced that Neffy, the world’s first adrenaline nasal spray for emergency treatment of type I allergic reactions, has obtained a drug registration certificate from China’s National Medical Products Administration, giving the Group exclusive commercialization rights in mainland China and non-exclusive rights in Hong Kong, with plans for localized production within 24 months. As the first non-injectable adrenaline product for severe allergic reactions, Neffy is expected to significantly improve access to life-saving treatment outside hospitals in China—where adrenaline use remains low—bolstering the Group’s emergency-care portfolio and potentially becoming a new growth engine for its cerebro-cardiovascular emergency segment through rapid penetration into home, school and travel settings supported by its existing distribution and academic promotion capabilities.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical Secures China Rights to World’s First Adrenaline Nasal Spray

Grand Pharmaceutical Group has entered into a product cooperation agreement with Pediatrix Therapeutics Technology (Shanghai) to secure exclusive commercialization rights for Neffy, the world’s first adrenaline nasal spray for emergency treatment of type I allergic reactions, in Mainland China and non-exclusive rights in Hong Kong. Led by its Beijing subsidiary, the group plans to localize production within 24 months of Chinese regulatory approval, positioning itself to address a growing incidence of severe allergic reactions and a significant treatment gap in China, where only injectable adrenaline is currently available and underused in emergencies. Neffy, already approved in the United States, European Union and Japan, offers a non-injectable, easy-to-use nasal spray format with a long shelf life, which could improve patient access, portability and adherence, and strengthen Grand Pharmaceutical’s role in emergency and pediatric care while leveraging Pediatrix’s expertise in pediatric drug innovation.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical’s TLX591-CDx Hits Phase III Goal in China, Bolstering Nuclear Medicine Push

Grand Pharmaceutical Group has reported that its radionuclide-drug conjugate TLX591-CDx, marketed globally as Illuccix for prostate cancer diagnosis, has successfully met the primary endpoint in a Phase III clinical trial in China, demonstrating high positive predictive value across multiple metastatic sites and at very low PSA levels in patients with biochemical recurrence. The study also showed that TLX591-CDx imaging led to changes in treatment plans for more than two-thirds of participants, underlining its potential to materially influence clinical decision-making, while the approval to launch an international multi-centre Phase III trial in China for companion therapeutic candidate TLX591 strengthens the group’s position in prostate cancer theranostics and enhances its competitive standing in the fast-growing nuclear medicine segment.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical’s GPN01530 Gains FDA Approval for Clinical Trials

Grand Pharmaceutical Group Limited has announced FDA approval for clinical trials of its newly developed radionuclide-drug conjugate, GPN01530, aimed at diagnosing solid tumors. This milestone highlights the company’s progression in nuclear medicine research and enhances its global positioning in radiopharmaceutical development. The product, targeting fibroblast activating protein (FAP), is anticipated to improve diagnostic accuracy for solid tumors, addressing a significant global health challenge and expanding market opportunities.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical’s TCM for Depression Achieves Clinical Milestone

Grand Pharmaceutical Group Limited announced the successful completion of Phase II clinical trials for its innovative traditional Chinese medicine, GPN01360, aimed at treating depression. The trial demonstrated significant efficacy and safety, marking a milestone in the company’s efforts to expand its Chinese patent medicine offerings. This development positions the company to provide a novel treatment option for depression, a major global health issue with significant unmet clinical needs.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical Updates Directors’ Emoluments in Annual Reports

Grand Pharmaceutical Group Limited has issued a supplemental announcement concerning the disclosure of directors’ and employees’ emoluments in its 2021 and 2022 annual reports. The update provides detailed information on the fees, salaries, allowances, and retirement benefits of the company’s directors and chief executive officer, reflecting changes in the company’s executive structure and compensation over the two years.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Glenmark Pharmaceutical’s Ryaltris® Nasal Spray Approved for Chinese Market

Grand Pharmaceutical Group Limited announced the approval of Ryaltris® Nasal Spray for commercialization in China, a significant milestone in their respiratory segment. This innovative combination product, developed by Glenmark, addresses the high prevalence of allergic rhinitis in China, offering a more effective treatment option and enhancing the company’s market potential in the region.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical Advances Myopia Treatment with New Clinical Trial Milestone

Grand Pharmaceutical Group Limited announced the completion of the first patient enrollment for its Phase IIa clinical study of the innovative ophthalmic drug GPN00884 in China. This drug aims to delay the progression of myopia in children, addressing a significant unmet clinical need in the region. The study’s progress marks a significant milestone in the company’s strategic focus on ophthalmology, potentially enhancing its market competitiveness and offering new treatment solutions for myopia, a growing public health concern.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

Grand Pharmaceutical Completes Enrollment for Innovative Liver Cancer Treatment Study

Grand Pharmaceutical Group Limited announced the completion of patient enrollment for the clinical study of its innovative temperature-sensitive embolic agent, GPN00289, in China. This product, designed for treating primary liver cancer, combines the benefits of liquid and solid embolization, potentially improving existing treatment methods. The company aims to integrate GPN00289 with its YiGanTai Y-90 microsphere injections to enhance therapeutic effects and expand indications, reinforcing its strategic position in the global liver cancer treatment market.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.