Grand Pharmaceutical Group Limited (0512) AI Stock Analysis

• Market Cap: HK$33.37B
• Dividend Yield: 2.77%
• Average Volume (3M): 25.39M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.85
• Revenue Growth: 10.56%
• EPS Growth: -13.58%
• Country: HK
• Employees: 11,987
• Sector: Healthcare
• Sector Strength: 54
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.33
• Shares Outstanding: 3,549,571,000
• 10 Day Avg. Volume: 26,662,027
• 30 Day Avg. Volume: 25,394,318
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$9.00
• Price Target Upside: -4.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: HK$9.00 ▼(-4.26% Downside)

The overall stock score reflects strong financial performance, with robust revenue growth and stable cash flow generation. However, technical analysis indicates bearish momentum, which is a significant concern. The valuation is reasonable, with an attractive dividend yield. Addressing the EBIT margin decline and improving market momentum could enhance the stock's attractiveness.

Grand Pharmaceutical Group Limited Business Overview & Revenue Model

Company Description

Grand Pharmaceutical Group Limited (0512) is a prominent player in the pharmaceutical industry, primarily engaged in the research, development, manufacturing, and distribution of pharmaceutical products. The company operates in various sectors, including prescription drugs, over-the-counter medications, and medical devices. Its core products and services cater to a wide range of therapeutic areas, offering innovative solutions to enhance health and wellness.

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 shows strong revenue growth and profitability, with a robust gross profit margin. However, the EBIT margin has declined to 0%, which is a concern. The balance sheet is stable with prudent debt management, and cash flow generation remains strong, supporting operations and growth initiatives.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.64B	10.53B	9.56B	8.60B	6.35B
Gross Profit	6.74B	6.52B	5.95B	5.25B	4.04B
EBITDA	3.39B	2.97B	3.09B	3.10B	2.41B
Net Income	2.47B	1.88B	2.08B	2.40B	1.79B
Balance Sheet
Total Assets	24.99B	22.52B	22.37B	21.06B	16.98B
Cash, Cash Equivalents and Short-Term Investments	3.14B	2.47B	2.48B	2.87B	2.39B
Total Debt	4.44B	3.40B	4.48B	3.65B	2.39B
Total Liabilities	8.47B	7.24B	8.16B	7.61B	5.64B
Stockholders Equity	16.47B	15.16B	14.14B	13.39B	11.24B
Cash Flow
Free Cash Flow	1.28B	1.93B	245.79M	1.49B	1.31B
Operating Cash Flow	1.90B	2.42B	1.92B	2.12B	1.78B
Investing Cash Flow	-2.00B	-515.75M	-2.58B	-2.05B	-2.05B
Financing Cash Flow	29.96M	-1.89B	464.49M	-195.08M	899.79M

Grand Pharmaceutical Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.40
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 9.4 is above the 20-day moving average (MA) of 8.77, above the 50-day MA of 8.99, and above the 200-day MA of 6.49, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 62.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	67 Neutral	HK$33.37B	15.83	12.65%	2.77%	10.56%	-13.58%
Sector *	51 Neutral	$7.84B	-0.18	-41.53%	2.28%	22.72%	-1.87%
HCM	―	£2.00B	5.38	48.58%	―	―	―
ULIHF	―	$3.88B	7.03	21.02%	3.77%	―	―
CHSYF	―	$4.09B	14.35	10.01%	2.78%	―	―
LVZPF	―	$4.78B	13.62	15.72%	3.94%	―	―
640	―	€3.36B	9.23	5.89%	―	―	―

Grand Pharmaceutical Group Limited Corporate Events

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.

Grand Pharmaceutical’s TLX591 Gains Approval for International Phase III Trial

Grand Pharmaceutical Group Limited has announced that its investigational radionuclide-drug conjugate, TLX591, for treating prostate cancer has received implied approval from China’s National Medical Products Administration to join an international Phase III clinical trial. This trial, involving over 500 patients across multiple countries, aims to evaluate the efficacy and safety of TLX591 in combination with standard care. The product, developed in collaboration with Telix Pharmaceuticals, offers a shorter treatment cycle and improved safety profile compared to existing therapies, potentially redefining the treatment standard for prostate-specific membrane antigen-positive metastatic castration-resistant prostate cancer.

Grand Pharmaceutical and Sirtex Group Collaborate on Radiopaque Product Development

Grand Pharmaceutical Group Limited has entered into a Business Collaboration Agreement with the Sirtex Group to jointly develop new radiopaque pharmaceutical products. This collaboration aims to leverage both companies’ expertise and resources, potentially enhancing their global presence and market opportunities by sharing R&D capabilities, resources, and technical knowledge.

Grand Pharmaceutical Launches Innovative Dry Eye Nasal Spray in China

Grand Pharmaceutical Group Limited announced the first commercial prescription of its nasal spray product, OC-01, for treating dry eye disease in Mainland China. This product, which is the first of its kind globally, offers a new treatment option for dry eye patients by increasing tear secretion through a nasal spray, potentially improving patient compliance compared to traditional eye drops. The company views ophthalmology as a strategic development area and aims to strengthen its market position with innovative products and a robust marketing network.

Grand Pharmaceutical’s SIR-Spheres® Y-90 Gains Early FDA Approval for New Cancer Treatment

Grand Pharmaceutical Group Limited announced that its associate company, Sirtex Medical Pty Ltd, received early FDA approval for a new indication of its SIR-Spheres® Y-90 resin microsphere injection, now approved for treating unresectable hepatocellular carcinoma (HCC). This approval highlights the company’s strong clinical registration capabilities and supports its strategy to expand its nuclear medicine offerings globally, reinforcing its leadership in the industry. The product, which has been widely adopted and recognized for its effectiveness, is expected to enhance the company’s market position and provide significant growth opportunities.

Grand Pharmaceutical Advances Ophthalmic Drug Development with CBT-001 Trial Milestone

Grand Pharmaceutical Group Limited announced the completion of patient enrollment for its Phase III clinical trial of CBT-001, an innovative ophthalmic drug for treating pterygium. This milestone is significant for the company’s strategic focus on ophthalmology, as CBT-001 has shown promising results in earlier trials and addresses a major unmet need in pterygium treatment. The company holds exclusive rights to produce and commercialize CBT-001 in several regions, enhancing its competitive edge in the market. Additionally, Grand Pharmaceutical is expanding its innovative product pipeline and strengthening its marketing network to support sustainable growth.

Grand Pharmaceutical’s Innovative Ophthalmic Product Gains Macao Approval

Grand Pharmaceutical Group Limited announced that its innovative ophthalmic product, GPN01768, has been approved for commercialization by the Pharmaceutical Administration Bureau of Macao, China. This approval is expected to pave the way for further approvals in the Guangdong-Hong Kong-Macao Greater Bay Area and Mainland China, addressing the urgent clinical need for effective treatment of Demodex blepharitis, a common ophthalmic disease. The company has made significant progress in its research and development pipeline, aiming to strengthen its position in the ophthalmology sector and expand its market presence with a series of innovative products.

Grand Pharmaceutical’s Chengdu Base to Boost Global Nuclear Medicine Strategy

Grand Pharmaceutical Group Limited has announced that its nuclear medicine R&D and production base in Chengdu has obtained a Class A ‘Radiation Safety License’ and will soon commence operations. This development marks a significant milestone in the company’s strategy to become a global leader in nuclear medicine, enhancing its capabilities in isotope production and nuclear medicine preparation. The base, with an investment of over RMB 3 billion, features advanced technological breakthroughs and aims to set new safety benchmarks in the industry. It will support the company’s global strategy by providing a closed-loop system for R&D, production, and sales, and will contribute to the development of high-value nuclear medicine products, strengthening its position in the global market.