Grand Pharmaceutical Group Limited (0512) AI Stock Analysis

• Market Cap: HK$34.61B
• Dividend Yield: 2.67%
• Average Volume (3M): 24.03M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.83
• Revenue Growth: 10.59%
• EPS Growth: 31.83%
• Country: HK
• Employees: 11,987
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.26
• Shares Outstanding: 3,549,571,000
• 10 Day Avg. Volume: 20,331,245
• 30 Day Avg. Volume: 24,033,463
• PEG Ratio: 4.51
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.60
• 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$9.50
• Price Target Upside: -2.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: HK$11.00 ▲(12.82%Upside)

Grand Pharmaceutical Group Limited demonstrates strong financial performance, with significant revenue growth and robust cash flow supporting strategic investments. The bullish technical indicators strengthen the outlook, though the stock nears overbought levels. Valuation metrics suggest moderate growth prospects. Improving EBIT margins and asset utilization are critical for future performance.

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 CAGR of 12% and a consistent gross profit margin over 50%. Despite a concerning decline in EBIT margin to 0%, the EBITDA margin remains satisfactory. The balance sheet is solid with a healthy equity ratio and manageable debt levels, although asset utilization can be improved. Cash flow is strong, supporting operations and strategic investments.

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: 9.75
• 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 9.75 is above the 20-day moving average (MA) of 9.13, above the 50-day MA of 8.91, and above the 200-day MA of 5.84, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 63.24 is Neutral, neither overbought nor oversold. The STOCH value of 70.98 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	78 Outperform	HK$34.61B	13.83	15.61%	2.67%	10.59%	31.83%
3933	75 Outperform	$26.49B	9.19	19.62%	4.10%	-1.82%	-3.34%
1513	74 Outperform	HK$38.75B	15.23	14.56%	3.18%	-5.37%	6.28%
0867	71 Outperform	$32.64B	18.49	10.17%	4.90%	-8.91%	-34.40%
0013	63 Neutral	£24.33B	82.59	5.02%	―	-25.07%	-64.03%
3320	62 Neutral	HK$33.99B	9.36		6.71%	―	―
Sector *	57 Neutral	£4.72B	6.68	-62.36%	5.42%	34.03%	6.31%

Grand Pharmaceutical Group Limited Corporate Events

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.

Grand Pharmaceutical Advances Prostate Cancer Diagnostic in China

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

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

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

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

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

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

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

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.