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

Grand Pharmaceutical Group Limited (0512) AI Stock Analysis

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HK

Grand Pharmaceutical Group Limited

(0512)

Rating:79Outperform
Price Target:
HK$9.50
▲(10.08%Upside)
Grand Pharmaceutical Group Limited's stock is supported by strong financial performance and a positive technical outlook. Despite a decline in EBIT margin, robust revenue growth and prudent debt management underpin its financial health. The stock's valuation is reasonable with a supportive dividend yield, contributing to its attractiveness.

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

Grand Pharmaceutical Group Limited Business Overview & Revenue Model

Company DescriptionGrand 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 MoneyGrand Pharmaceutical Group Limited generates revenue through the sale of its pharmaceutical products, which are distributed in both domestic and international markets. The company's revenue streams are primarily driven by its extensive portfolio of prescription drugs and over-the-counter medications. Additionally, the company invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities. Strategic partnerships and collaborations with other pharmaceutical companies or research institutions also play a significant role in enhancing its market presence and profitability.

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.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.64B10.53B9.56B8.60B6.35B
Gross Profit6.74B6.52B5.95B5.25B4.04B
EBITDA3.39B2.97B3.09B3.10B2.41B
Net Income2.47B1.88B2.08B2.40B1.79B
Balance Sheet
Total Assets24.99B22.52B22.37B21.06B16.98B
Cash, Cash Equivalents and Short-Term Investments3.14B2.47B2.48B2.87B2.39B
Total Debt4.44B3.40B4.48B3.65B2.39B
Total Liabilities8.47B7.24B8.16B7.61B5.64B
Stockholders Equity16.47B15.16B14.14B13.39B11.24B
Cash Flow
Free Cash Flow1.28B1.93B245.79M1.49B1.31B
Operating Cash Flow1.90B2.42B1.92B2.12B1.78B
Investing Cash Flow-2.00B-515.75M-2.58B-2.05B-2.05B
Financing Cash Flow29.96M-1.89B464.49M-195.08M899.79M

Grand Pharmaceutical Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8.63
Price Trends
50DMA
7.97
Positive
100DMA
6.54
Positive
200DMA
5.48
Positive
Market Momentum
MACD
0.13
Positive
RSI
49.95
Neutral
STOCH
21.43
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 8.63 is below the 20-day moving average (MA) of 8.96, above the 50-day MA of 7.97, and above the 200-day MA of 5.48, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 21.43 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
79
Outperform
HK$30.63B12.2415.61%3.01%10.59%31.83%
51
Neutral
$7.41B0.36-61.88%2.33%16.99%1.69%
GBHCM
£1.95B64.415.02%
$3.44B9.1019.62%4.91%
$3.73B10.0810.17%0.48%
$4.18B11.7714.56%0.58%
DE640
€3.54B8.03
6.90%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0512
Grand Pharmaceutical Group Limited
8.63
4.17
93.50%
GB:HCM
HUTCHMED (China)
219.00
-59.00
-21.22%
ULIHF
The United Laboratories International Holdings
1.85
0.79
74.53%
CHSYF
China Medical System Holdings
0.93
0.12
14.81%
LVZPF
Livzon Pharmaceutical Group
3.74
0.76
25.50%
DE:640
China Resources Pharmaceutical Group Ltd.
0.55
-0.11
-16.67%

Grand Pharmaceutical Group Limited Corporate Events

Grand Pharmaceutical Advances Ophthalmic Drug Development with CBT-001 Trial Milestone
Jun 4, 2025

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
May 25, 2025

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
May 18, 2025

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.

Grand Pharmaceutical Advances Prostate Cancer Diagnostic in China
May 12, 2025

Grand Pharmaceutical Group Limited announced the completion of patient enrollment and dosing for its Phase III clinical trial of TLX591-CDx, a diagnostic radiopharmaceutical for prostate cancer, in China. The New Drug Application is scheduled for submission this year, marking significant progress in the company’s nuclear medicine segment. The product, already commercialized in multiple countries, is expected to enhance the company’s market position and provide integrated diagnosis and treatment solutions for prostate cancer in China.

Grand Pharmaceutical’s TLX591 Accepted for International Phase III Trial
May 7, 2025

Grand Pharmaceutical Group Limited announced that its investigational new drug application for the radionuclide-drug conjugate TLX591, aimed at treating prostate cancer, has been accepted for an international Phase III clinical trial by China’s National Medical Products Administration. This development marks a significant advancement in the company’s nuclear medicine segment, which is focused on providing integrated diagnostic and therapeutic solutions for prostate cancer. The trial will evaluate TLX591’s efficacy and safety in combination with standard care for patients with metastatic castration-resistant prostate cancer. The innovative design of TLX591, which requires a shorter treatment cycle and offers safety advantages, positions it as a potential new standard in prostate cancer treatment, addressing clinical challenges associated with existing therapies.

Grand Pharmaceutical Achieves Breakthrough in Sepsis Treatment with STC3141
May 6, 2025

Grand Pharmaceutical Group Limited announced the successful completion of a Phase II clinical study in China for its innovative drug STC3141, aimed at treating sepsis. This breakthrough positions the company at the forefront of sepsis research, offering a novel approach by targeting immune homeostasis, potentially revolutionizing treatment options for this critical condition. The study demonstrated significant improvements in patient outcomes, confirming the drug’s efficacy and safety, and paving the way for further regulatory discussions to expedite its availability to patients.

Grand Pharmaceutical Advances Sepsis Treatment with Successful Phase II Study
May 6, 2025

Grand Pharmaceutical Group Limited announced that its Phase II clinical study of the innovative drug STC3141 for sepsis treatment in China has successfully reached its clinical endpoint. This development marks a significant advancement in sepsis treatment by targeting immune homeostasis, addressing a major clinical gap. The study demonstrated the drug’s effectiveness and safety, with significant improvements in patient outcomes compared to the placebo. The company plans to seek breakthrough therapeutic drug designation from Chinese regulators, highlighting its strong R&D capabilities and the urgent need for targeted sepsis treatments.

Grand Pharmaceutical Launches UI-SEEK for Early Tumor Detection in China
Apr 27, 2025

Grand Pharmaceutical Group Limited has announced the first commercial prescription of UI-SEEK, an early detection product for urinary system tumors, in Mainland China. This product, developed with AcornMed, is the first of its kind in China to use a dual mechanism of methylation and gene mutation for non-invasive tumor diagnosis. The company aims to strengthen its market position in urological tumor diagnosis and expand its product portfolio to meet clinical needs in early detection and treatment of various cancers.

Grand Pharmaceutical Group Enters Strategic Collaboration with Sirtex Medical US
Apr 25, 2025

Grand Pharmaceutical Group Limited announced a Business Collaboration Agreement between its subsidiary Chengdu Shetai and Sirtex Medical US. This agreement allows both parties to engage each other for services related to research and development of medical device and radiopharmaceutical products, with a financial cap of US$1.2 million annually. The collaboration is expected to enhance the company’s capabilities in clinical development and logistics support, potentially strengthening its position in the medical industry.

Grand Pharmaceutical’s Generic Nasal Spray Gains Approval in China
Apr 22, 2025

Grand Pharmaceutical Group Limited announced the approval for commercialization of its first generic fluticasone propionate nasal spray in China, marking a significant milestone in its respiratory product line. This approval addresses a substantial unmet need in the Chinese market for allergic rhinitis treatment, a condition affecting nearly 250 million people in China. The product’s inclusion in the National Medical Insurance Catalogue and the National Essential Medicines Catalogue highlights its potential impact. The company aims to break the market monopoly of foreign-funded products and strengthen its position in the respiratory disease treatment market.

Grand Pharmaceutical Achieves Breakthrough in HCC Diagnostic Study
Apr 21, 2025

Grand Pharmaceutical Group Limited has announced a significant breakthrough in the clinical study of its innovative radionuclide-drug conjugate, GPN02006, for diagnosing hepatocellular carcinoma (HCC) in China. The study demonstrated excellent safety and imaging efficacy, showing potential to improve early diagnosis and monitoring of HCC, which is crucial given the high incidence and mortality rates associated with liver cancer. This advancement further solidifies the company’s leading position in nuclear medicine and its commitment to advancing global R&D efforts for GPN02006, aiming for simultaneous clinical studies in China and the United States.

Grand Pharmaceutical Group Successfully Passes AGM Resolutions
Apr 10, 2025

Grand Pharmaceutical Group Limited announced the successful passing of all resolutions at its Annual General Meeting held on April 10, 2025. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting of general mandates for share issuance and repurchase. The results reflect strong shareholder support and are expected to positively impact the company’s governance and operational strategies.

Grand Pharmaceutical Group Announces Final Dividend for 2024
Apr 2, 2025

Grand Pharmaceutical Group Limited announced a final ordinary dividend of HKD 0.26 per share for the financial year ending December 31, 2024. The payment date for the dividend is set for April 28, 2025, following shareholder approval on April 10, 2025. This announcement reflects the company’s continued commitment to providing shareholder value.

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: Jun 21, 2025