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Grand Pharmaceutical Group Limited (HK:0512)
:0512
Hong Kong Market
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Grand Pharmaceutical Group Limited (0512) AI Stock Analysis

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HK:0512

Grand Pharmaceutical Group Limited

(0512)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
HK$5.50
â–¼(-29.49% Downside)
Action:Reiterated
Date:07/03/26
Overall score reflects acceptable financial quality but clear 2025 deterioration in margins and cash-flow conversion, which is the largest negative driver. Technicals also weigh on the score as the stock trades below key medium/long-term moving averages with a negative MACD. Offsetting these, valuation is relatively reasonable (P/E 14.55) and the dividend yield (~3.31%) provides support.
Positive Factors
Revenue Growth Resilience
Consistent top-line growth across 2021–2025 shows underlying product demand and commercial traction. A steadier revenue base supports long-term R&D funding and distribution investments, reducing sensitivity to single-product shocks and improving predictability of cash flows over months to years.
Negative Factors
Material Margin Compression
A sharp step-down in operating and net margins indicates structural pressure from cost inflation, pricing or mix shifts, or one-off charges. Sustained lower margins erode reinvestment capacity, depress ROE and limit ability to expand operating leverage, harming long-term earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Resilience
Consistent top-line growth across 2021–2025 shows underlying product demand and commercial traction. A steadier revenue base supports long-term R&D funding and distribution investments, reducing sensitivity to single-product shocks and improving predictability of cash flows over months to years.
Read all positive factors

Grand Pharmaceutical Group Limited (0512) vs. iShares MSCI Hong Kong ETF (EWH)

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 mat...
How the Company Makes Money
Grand Pharmaceutical Group Limited primarily makes money by commercializing healthcare products: it generates revenue from selling pharmaceutical products and related healthcare offerings through its sales and distribution channels. Key revenue st...

Grand Pharmaceutical Group Limited Financial Statement Overview

Summary
Steady revenue growth through 2021–2025 supports demand resilience, but 2025 showed a sharp profitability step-down (net margin ~10.1% vs ~21.2% in 2024; operating margin ~12.6% vs ~24.8%) alongside weaker cash conversion (FCF ~52% of net income, down from ~67% in 2024). Balance sheet leverage remains moderate (debt-to-equity ~0.28), but ROE also cooled (~7.3% vs ~15.0%), consistent with the earnings slowdown.
Income Statement
64
Positive
Balance Sheet
71
Positive
Cash Flow
56
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.28B11.64B10.53B9.56B8.60B
Gross Profit6.78B6.74B6.52B5.95B5.25B
EBITDA2.31B3.39B2.97B3.09B3.10B
Net Income1.24B2.47B1.88B2.08B2.40B
Balance Sheet
Total Assets27.17B24.99B22.52B22.37B21.06B
Cash, Cash Equivalents and Short-Term Investments2.09B3.14B2.47B2.48B2.87B
Total Debt4.72B4.44B3.40B4.48B3.65B
Total Liabilities9.99B8.47B7.24B8.16B7.61B
Stockholders Equity17.02B16.47B15.16B14.14B13.39B
Cash Flow
Free Cash Flow774.37M1.28B1.93B245.79M1.49B
Operating Cash Flow1.50B1.90B2.42B1.92B2.12B
Investing Cash Flow-952.79M-2.00B-515.75M-2.58B-1.77B
Financing Cash Flow-795.17M29.96M-1.89B464.49M-333.17M

Grand Pharmaceutical Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.80
Price Trends
50DMA
5.40
Negative
100DMA
6.22
Negative
200DMA
7.12
Negative
Market Momentum
MACD
-0.17
Negative
RSI
53.10
Neutral
STOCH
59.72
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 7.8 is above the 20-day moving average (MA) of 4.86, above the 50-day MA of 5.40, and above the 200-day MA of 7.12, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 59.72 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$10.79B8.9524.26%3.93%15.28%14.76%
72
Outperform
HK$27.67B13.5013.95%4.09%1.48%-1.55%
61
Neutral
HK$27.44B15.968.65%2.26%10.00%-7.54%
60
Neutral
HK$18.10B14.557.26%3.13%5.48%-49.67%
58
Neutral
HK$27.45B6.157.98%2.95%4.66%20.76%
56
Neutral
HK$37.00B11.427.70%7.15%7.32%12.84%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0512
Grand Pharmaceutical Group Limited
5.10
-3.80
-42.70%
HK:0867
China Medical System Holdings
11.25
-0.82
-6.83%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
14.65
-1.99
-11.97%
HK:1513
Livzon Pharmaceutical Group
24.34
-3.76
-13.39%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.37
-0.64
-12.83%
HK:1681
Consun Pharmaceutical Group Ltd.
13.13
2.55
24.10%

Grand Pharmaceutical Group Limited Corporate Events

Grand Pharmaceutical formalizes Huadong Medicine supply deal as continuing connected transaction
Jun 8, 2026
Grand Pharmaceutical Group Limited has entered into a Huadong Medicine Supply Agreement under which its subsidiary Grand Pharm (China) or related companies will continue supplying pharmaceutical preparations, raw materials and related services to ...
Grand Pharmaceutical Shareholders Approve All AGM Resolutions, Back Dividend and Mandates
Jun 5, 2026
Grand Pharmaceutical Group Limited reported that all resolutions at its 5 June 2026 annual general meeting were approved by shareholders through a poll, with no restrictions or abstentions on voting. The meeting confirmed strong shareholder backin...
Grand Pharmaceutical Moves to Adopt New Bye-Laws Aligned With HK Paperless Regime
Apr 29, 2026
Grand Pharmaceutical Group Limited plans to overhaul its constitutional documents by adopting a new set of bye-laws to replace its existing ones, subject to shareholder approval at the annual general meeting on 5 June 2026. The changes are designe...
Grand Pharmaceutical Sets 2026 AGM, Proposes Dividend and New Share Mandate
Apr 29, 2026
Grand Pharmaceutical Group Limited has called its annual general meeting for 5 June 2026 in Hong Kong, where shareholders will vote on adopting the audited financial statements for the year ended 31 December 2025 and approving a proposed final div...
Grand Pharmaceutical Bolsters Liver Cancer Portfolio as Y-90 Trial Hits Key Endpoint in U.S.
Apr 13, 2026
Grand Pharmaceutical Group’s associate Sirtex Medical has reported that its U.S. DOORwaY90 clinical trial of SIR-Spheres Y-90 resin microsphere injection in unresectable hepatocellular carcinoma has successfully met its clinical endpoint, re...
Grand Pharmaceutical Deepens HKU Ties as 2026 Innovation Pipeline Takes Shape
Apr 8, 2026
Grand Pharmaceutical Group has formed a strategic partnership with the University of Hong Kong and its subsidiary Versitech to co-develop innovative antibacterial drugs, combining HKU’s strengths in medicinal chemistry with the group’s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2026