Grand Pharmaceutical Group Limited (0512) AI Stock Analysis

• Market Cap: HK$31.09B
• Dividend Yield: 3.09%
• Average Volume (3M): 9.26M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.82
• 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$12.44
• Price Target Upside: 47.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$10.00 ▲(18.76% 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.

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: Neutral
• Last Price: 8.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 8.42 is above the 20-day moving average (MA) of 8.36, below the 50-day MA of 8.64, and above the 200-day MA of 7.47, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1513	74 Outperform	$33.45B	12.13	14.91%	3.74%	-0.45%	9.00%
0512	73 Outperform	HK$31.09B	14.75	12.65%	3.09%	10.56%	-13.58%
3320	68 Neutral	HK$31.10B	10.23	5.90%	2.76%	―	―
3933	65 Neutral	$24.88B	6.94	21.02%	4.88%	0.39%	4.94%
0867	65 Neutral	$33.79B	18.88	10.01%	2.12%	11.78%	19.06%
0013	54 Neutral	£21.19B	5.83	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 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.

Grand Pharmaceutical Gains Approval for Treprostinil Injection, Expands Global Reach

Grand Pharmaceutical Group Limited announced that its Treprostinil Injection, used for treating pulmonary arterial hypertension (PAH), has received a Drug Registration Certificate from China’s National Medical Products Administration. This approval marks a significant advancement in the company’s strategy to address rare diseases and enhance its market presence in the cerebro-cardiovascular emergency sector. The company has also entered into a strategic agreement with Shanghai ForeFront Pharmaceutical Co., Ltd., securing exclusive commercialization rights for several products, which will aid in building a global sales network and transforming into a comprehensive multinational pharmaceutical company.

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 Expands Liver Cancer Treatment Indications in Europe

Grand Pharmaceutical Group Limited announced that its SIR-Spheres® Y-90 resin microsphere injection has received CE Mark approval in Europe for new indications in the treatment of liver cancer, expanding its application to include various types of unresectable liver tumors. This development, alongside recent FDA approval in the United States, enhances the company’s market positioning and demonstrates its strong clinical registration and commercial capabilities, supporting its global expansion strategy in nuclear medicine.

The most recent analyst rating on (HK:0512) stock is a Hold with a HK$9.00 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 Enters Sales Agreement with Yuanda Jiufu

Grand Pharmaceutical Group Limited has entered into a sales agreement with Yuanda Jiufu, a subsidiary of its controlling shareholder, China Grand Enterprises. This agreement involves the sale of raw materials for the production of amino acid and other pharmaceutical products. The transaction is categorized as a continuing connected transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but exempting the need for a circular or shareholder approval. This move is expected to strengthen the company’s operational ties within its group, potentially enhancing its market position in the pharmaceutical sector.

The most recent analyst rating on (HK:0512) stock is a Hold with a HK$9.00 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 Group Reports Resilient Growth Amid Challenges

Grand Pharmaceutical Group Limited reported a slight increase in revenue for the first half of 2025, driven by its innovative and barrier products, which now account for over half of its total revenue. Despite facing challenges from price reductions due to centralized procurement, the company showed resilience through strategic execution and risk management. However, the profit attributable to the company’s owners decreased by 25% compared to the previous year, primarily due to reduced gains from Telix investment and increased marketing expenses. The company continues to invest heavily in research and development to support its growth strategy.

The most recent analyst rating on (HK:0512) stock is a Hold with a HK$9.00 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 Group Schedules Board Meeting for Interim Results

Grand Pharmaceutical Group Limited has announced that its board of directors will hold a meeting on August 19, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market position and stakeholder interests.

Grand Pharmaceutical Restructures Shareholding, Increases Stake

Grand Pharmaceutical Group Limited announced a restructuring of its shareholding, with Outwit Investments Limited acquiring additional shares from East Ocean Capital, increasing its stake to 53.42% of the company’s total issued share capital. This internal restructuring, involving entities ultimately controlled by Beijing Huachuang, does not change the ultimate control of the company, and a waiver was obtained to avoid a general offer under the Hong Kong Code on Takeovers and Mergers.