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

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HK:0512

Grand Pharmaceutical Group Limited

(0512)

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Neutral 57 (OpenAI - 5.2)
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)

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
Steady revenue growth through 2025 supports demand resilience, and leverage remains moderate (debt-to-equity ~0.28). However, 2025 profitability weakened sharply (net margin ~10.1% vs ~21.2% in 2024; operating margin ~12.6% vs ~24.8%) and cash generation deteriorated (free cash flow down ~27.8% YoY; FCF ~52% of net income), raising near-term quality-of-earnings concerns.
Income Statement
64
Positive
Balance Sheet
71
Positive
Cash Flow
56
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.28B11.64B10.53B9.56B8.60B
Gross Profit6.78B6.74B6.52B5.95B5.25B
EBITDA2.31B3.39B2.97B3.09B3.10B
Net Income1.24B2.47B1.88B2.08B2.40B
Balance Sheet
Total Assets27.17B24.99B22.52B22.37B21.06B
Cash, Cash Equivalents and Short-Term Investments2.09B3.14B2.47B2.48B2.87B
Total Debt4.72B4.44B3.40B4.48B3.65B
Total Liabilities9.99B8.47B7.24B8.16B7.61B
Stockholders Equity17.02B16.47B15.16B14.14B13.39B
Cash Flow
Free Cash Flow774.37M1.28B1.93B245.79M1.49B
Operating Cash Flow1.50B1.90B2.42B1.92B2.12B
Investing Cash Flow-952.79M-2.00B-515.75M-2.58B-1.77B
Financing Cash Flow-795.17M29.96M-1.89B464.49M-333.17M

Grand Pharmaceutical Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.80
Price Trends
50DMA
5.50
Negative
100DMA
6.30
Negative
200DMA
7.18
Negative
Market Momentum
MACD
-0.23
Negative
RSI
23.32
Positive
STOCH
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$10.26B8.5124.26%3.93%15.28%14.76%
72
Outperform
HK$26.30B12.8113.95%4.09%1.48%-1.55%
63
Neutral
HK$24.22B14.098.65%2.26%10.00%-7.54%
58
Neutral
HK$27.08B6.077.98%2.95%4.66%20.76%
57
Neutral
HK$16.22B13.047.26%3.13%5.48%-49.67%
56
Neutral
HK$35.17B10.867.70%7.15%7.32%12.84%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.Date of analysis: May 02, 2026