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Grand Pharmaceutical Group Limited
(0512)
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Rating:57Neutral
Price Target:
HK$4.50
â–¼(-42.31% 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 signals durable end-market demand and successful commercialization. This steady revenue base supports longer-term R&D payback, predictable production planning, and reduces reliance on one-off product wins, improving multi-quarter cash visibility.
Negative Factors
Sharp profitability decline in 2025
A near-halving of net and operating margins materially reduces the company's earnings power and return on capital. If driven by structural cost, pricing, or mix shifts, this deterioration limits reinvestment capacity and may persist absent sustained margin-restoration measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent top-line growth across 2021–2025 signals durable end-market demand and successful commercialization. This steady revenue base supports longer-term R&D payback, predictable production planning, and reduces reliance on one-off product wins, improving multi-quarter cash visibility.
Read all positive factors
Grand Pharmaceutical Group Limited (0512) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$16.22B
Dividend Yield3.13%
Average Volume (3M)9.26M
Price to Earnings (P/E)13.0
Beta (1Y)0.75
Revenue Growth5.48%
EPS Growth-49.67%
CountryHK
Employees12,614
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
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-0.45
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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
5.50
Negative
6.30
Negative
7.18
Negative
Market Momentum
-0.23
Negative
23.32
Positive
10.31
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 4.90, above the 50-day MA of 5.50, and above the 200-day MA of 7.18, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 23.32 is Positive, neither overbought nor oversold. The STOCH value of 10.31 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$10.26B | 8.51 | 24.26% | 3.93% | 15.28% | 14.76% | |
72 Outperform | HK$26.30B | 12.81 | 13.95% | 4.09% | 1.48% | -1.55% | |
63 Neutral | HK$24.22B | 14.09 | 8.65% | 2.26% | 10.00% | -7.54% | |
58 Neutral | HK$27.08B | 6.07 | 7.98% | 2.95% | 4.66% | 20.76% | |
57 Neutral | HK$16.22B | 13.04 | 7.26% | 3.13% | 5.48% | -49.67% | |
56 Neutral | HK$35.17B | 10.86 | 7.70% | 7.15% | 7.32% | 12.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:0512
Grand Pharmaceutical Group Limited
4.57
-3.86
-45.78%
HK:0867
China Medical System Holdings
9.93
-1.77
-15.16%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
14.19
-2.22
-13.55%
HK:1513
Livzon Pharmaceutical Group
23.40
-4.33
-15.61%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.31
-0.58
-11.84%
HK:1681
Consun Pharmaceutical Group Ltd.
12.48
1.71
15.88%
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.