Grand Pharmaceutical Group Limited (HK:0512)
:0512
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Grand Pharmaceutical Group Limited
(0512)
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Rating:57Neutral
Price Target:
HK$6.50
▼(-16.67% Downside)
Action:Downgraded
Date:05/02/26
The score is primarily held back by the 2025 step-down in profitability and weakening cash-flow conversion, reinforced by bearish technicals with the stock trading below all major moving averages. A moderate balance sheet and a ~4.18% dividend yield provide partial support, but valuation (P/E ~22.15) is not strong enough to offset the operational and trend pressure.
Positive Factors
Steady revenue growth
Consistent top-line growth across 2021–2025 shows underlying demand resilience for the company’s pharmaceutical and device offerings. Durable revenue expansion supports capacity to fund R&D, manufacturing scale and incremental market penetration over the next 2–6 months and beyond.
Negative Factors
Sharp margin deterioration
A material drop in net margin more than halves prior profitability, eroding return on capital and reducing reinvestment capacity. If the margin step-down is structural—driven by cost pressure or adverse mix—it impairs sustainable earnings power and weakens long-term ability to fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent top-line growth across 2021–2025 shows underlying demand resilience for the company’s pharmaceutical and device offerings. Durable revenue expansion supports capacity to fund R&D, manufacturing scale and incremental market penetration over the next 2–6 months and beyond.
Read all positive factors
Grand Pharmaceutical Group Limited (0512) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$19.81B
Dividend Yield3.13%
Average Volume (3M)9.26M
Price to Earnings (P/E)22.2
Beta (1Y)0.71
Revenue Growth5.48%
EPS Growth-49.67%
CountryHK
Employees11,987
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.35
Shares Outstanding3,549,571,000
10 Day Avg. Volume7,622,050
30 Day Avg. Volume9,255,379
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)1.62
Price to Sales (P/S)2.24
P/FCF Ratio35.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$12.00Price Target Upside53.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.46
Revenue Forecast (FY)HK$13.73B
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
Income Statement
64
Positive
Balance Sheet
71
Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.28B | 11.64B | 10.53B | 9.56B | 8.60B |
| Gross Profit | 6.78B | 6.74B | 6.52B | 5.95B | 5.25B |
| EBITDA | 2.31B | 3.39B | 2.97B | 3.09B | 3.10B |
| Net Income | 1.24B | 2.47B | 1.88B | 2.08B | 2.40B |
Balance Sheet | |||||
| Total Assets | 27.17B | 24.99B | 22.52B | 22.37B | 21.06B |
| Cash, Cash Equivalents and Short-Term Investments | 2.09B | 3.14B | 2.47B | 2.48B | 2.87B |
| Total Debt | 4.72B | 4.44B | 3.40B | 4.48B | 3.65B |
| Total Liabilities | 9.99B | 8.47B | 7.24B | 8.16B | 7.61B |
| Stockholders Equity | 17.02B | 16.47B | 15.16B | 14.14B | 13.39B |
Cash Flow | |||||
| Free Cash Flow | 774.37M | 1.28B | 1.93B | 245.79M | 1.49B |
| Operating Cash Flow | 1.50B | 1.90B | 2.42B | 1.92B | 2.12B |
| Investing Cash Flow | -952.79M | -2.00B | -515.75M | -2.58B | -1.77B |
| Financing Cash Flow | -795.17M | 29.96M | -1.89B | 464.49M | -333.17M |
Grand Pharmaceutical Group Limited Technical Analysis
Negative
7.80
Price Trends
6.62
Negative
7.21
Negative
7.89
Negative
Market Momentum
-0.27
Positive
21.15
Positive
7.11
Positive
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 above the 20-day moving average (MA) of 6.14, above the 50-day MA of 6.62, and below the 200-day MA of 7.89, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 21.15 is Positive, neither overbought nor oversold. The STOCH value of 7.11 is Positive, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$29.40B | 9.36 | 13.95% | 4.09% | 1.48% | -1.55% | |
63 Neutral | HK$27.20B | 18.83 | 8.60% | 2.26% | 10.00% | -7.54% | |
61 Neutral | HK$17.52B | 9.41 | 12.65% | 5.11% | -4.09% | -22.73% | |
58 Neutral | HK$30.16B | 6.21 | 7.98% | 2.95% | 4.66% | 20.76% | |
57 Neutral | HK$19.81B | 22.15 | 7.26% | 3.13% | 5.48% | -49.67% | |
55 Neutral | HK$16.42B | ― | 41.38% | ― | -13.04% | 1113.58% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:0512
Grand Pharmaceutical Group Limited
5.58
-2.87
-33.96%
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Grand Pharmaceutical Group Limited Corporate Events
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...
Grand Pharmaceutical Lifts Revenue, Boosts Innovative Mix Amid Margin Pressure
Mar 26, 2026
Grand Pharmaceutical Group reported 2025 revenue of HK$12.28 billion, up 5.5% year-on-year, or 14.8% excluding centralized procurement price cuts, with innovative and high-barrier products rising to about 50% of sales from 40% a year earlier. Adju...
Grand Pharmaceutical Declares Final HKD 0.169 Dividend for 2025
Mar 26, 2026
Grand Pharmaceutical Group Limited has declared a final ordinary cash dividend of HKD 0.169 per share for the financial year ended 31 December 2025, underscoring its continued commitment to shareholder returns. The proposed payout, subject to shar...
Grand Pharmaceutical Wins China Phase II Trial Nod for Innovative Migraine TCM
Mar 25, 2026
Grand Pharmaceutical Group has secured approval from China’s National Medical Products Administration to begin a randomized, double-blind, placebo-controlled Phase II clinical trial of GPN01020, its Class 1.1 innovative traditional Chinese m...
Grand Pharmaceutical Wins China’s First Approval for Demodex Blepharitis Drug, Bolstering Ophthalmic Push
Mar 22, 2026
Grand Pharmaceutical Group has secured approval from China’s National Medical Products Administration for GPN01768, the lotilaner ophthalmic solution TP-03, as the first commercial treatment nationwide for Demodex blepharitis. The drug, alre...
Grand Pharmaceutical Warns of 2025 Profit Slump as It Accelerates Shift to Innovative Drugs
Mar 20, 2026
Grand Pharmaceutical Group has issued a profit warning, flagging a sharp drop in 2025 profit attributable to shareholders to between HK$1.20 billion and HK$1.25 billion, down from HK$2.47 billion a year earlier, with adjusted operating net profit ...
Grand Pharmaceutical Secures HK$0.8 Billion Loan Tied to Ownership Stability
Mar 19, 2026
Grand Pharmaceutical Group Limited has secured a HK$0.8 billion term loan facility via its wholly owned subsidiary China Grand Pharmaceutical (HK) Limited, with the company and certain subsidiaries acting as guarantors. The loan has a 36‑mon...
Grand Pharmaceutical Sets March 2026 Board Meeting to Approve 2025 Results and Final Dividend
Mar 17, 2026
Grand Pharmaceutical Group Limited has scheduled a board meeting for 26 March 2026 to review and approve the annual results of the company and its subsidiaries for the financial year ended 31 December 2025. The board will also consider the payment...
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.