China Medical System Holdings (0867) AI Stock Analysis

• Market Cap: $31.86B
• Dividend Yield: 4.32%
• Average Volume (3M): 9.80M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.86
• Revenue Growth: -8.91%
• EPS Growth: -34.40%
• Country: HK
• Employees: 6,141
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.32
• Shares Outstanding: 2,439,528,600
• 10 Day Avg. Volume: 9,059,756
• 30 Day Avg. Volume: 9,802,883
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 2.43
• Enterprise Value/Ebitda: 5.71
• 1Y Price Target: $14.32
• Price Target Upside: 6.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: HK$14.50 ▲(7.41% Upside)

The overall stock score of 71 reflects strong financial stability with low leverage and high equity, although declining revenue and cash flow generation present challenges. Technical indicators suggest strong momentum but caution is warranted due to potential overbought conditions. The valuation appears reasonable with a high dividend yield enhancing attractiveness.

China Medical System Holdings Business Overview & Revenue Model

Company Description

China Medical System Holdings Limited (0867) is a specialty pharmaceutical company based in China, primarily engaged in the development, manufacturing, marketing, and distribution of pharmaceutical products. The company focuses on providing prescription drugs and has a broad portfolio that encompasses various therapeutic areas including dermatology, orthopedics, and gastroenterology. With a strong emphasis on innovative and differentiated products, China Medical System serves both domestic and international markets, leveraging its extensive sales network and strategic partnerships.

How the Company Makes Money

China Medical System Holdings makes money through the sale of its pharmaceutical products, which are distributed across hospitals, pharmacies, and clinics. The company's revenue model is largely driven by its portfolio of proprietary and licensed prescription medications. Key revenue streams include the commercialization of innovative drugs developed in-house, the distribution of licensed pharmaceutical products from international partners, and the provision of marketing and promotion services for third-party products. Strategic alliances with global pharmaceutical companies allow China Medical System to enhance its product offerings and access new markets, contributing significantly to its earnings. Additionally, the company invests in research and development to maintain a pipeline of new products, ensuring sustained growth and market competitiveness.

China Medical System Holdings Financial Statement Overview

Summary

The company has a strong balance sheet with low leverage, but declining revenues and profitability have impacted its financial performance. The net profit margin has decreased, and operating cash flow has declined, posing challenges for future growth. Despite this, the gross profit margins and EBITDA margins indicate effective cost management and operational efficiency.

Income Statement

The company has shown a declining trend in revenue from 2022 to 2024, with revenue decreasing by approximately 8.4% in 2023 and 6.8% in 2024. Gross profit margins remain strong, indicating effective cost management. However, the net profit margin in 2024 is lower than in previous years, reflecting a decrease in profitability. The lack of EBIT in 2024 is a concern, though EBITDA margins remain decent, showing continued operational efficiency.

Balance Sheet

The balance sheet is strong with a substantial equity base and a low debt-to-equity ratio, indicating low leverage risk. The equity ratio is high, showcasing financial stability. The high return on equity indicates effective use of equity to generate profits, although it has been decreasing over the years, signaling a need for improvement in generating returns.

Cash Flow

Operating cash flow has decreased significantly from previous years, which is a concern. The free cash flow to net income ratio remains robust, indicating healthy cash generation relative to net income. However, the free cash flow has also declined in 2024 compared to 2022, suggesting potential challenges in future cash availability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.47B	8.01B	9.15B	8.34B	6.95B
Gross Profit	5.42B	6.11B	7.04B	6.25B	5.13B
EBITDA	2.31B	2.92B	3.85B	3.70B	3.05B
Net Income	1.62B	2.40B	3.26B	3.02B	2.53B
Balance Sheet
Total Assets	18.05B	17.73B	17.75B	15.81B	12.70B
Cash, Cash Equivalents and Short-Term Investments	5.87B	6.14B	5.87B	4.36B	2.67B
Total Debt	860.74M	1.30B	1.81B	1.71B	600.16M
Total Liabilities	1.64B	2.17B	3.02B	2.96B	1.60B
Stockholders Equity	16.31B	15.52B	14.59B	12.75B	11.03B
Cash Flow
Free Cash Flow	812.64M	2.18B	3.03B	2.31B	2.35B
Operating Cash Flow	1.27B	2.50B	3.55B	2.49B	2.69B
Investing Cash Flow	-615.10M	-442.28M	-1.18B	-1.52B	-353.82M
Financing Cash Flow	-1.26B	-2.13B	-1.40B	-258.39M	-1.03B

China Medical System Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0867, the sentiment is Positive. The current price of 13.5 is above the 20-day moving average (MA) of 13.28, above the 50-day MA of 12.51, and above the 200-day MA of 9.02, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0867.

China Medical System Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3933	75 Outperform	HK$30.78B	9.83	19.62%	3.74%	-1.82%	-3.34%
1513	74 Outperform	$36.82B	14.36	14.56%	3.30%	-5.37%	6.28%
0867	71 Outperform	$31.86B	18.05	10.17%	4.32%	-8.91%	-34.40%
0512	67 Neutral	HK$29.25B	11.69	15.61%	3.10%	10.59%	31.83%
0874	66 Neutral	$45.00B	10.20	7.22%	4.80%	-4.07%	-35.32%
3320	62 Neutral	€33.05B	9.10		4.87%	―	―
Sector *	60 Neutral	HK$18.32B	5.45	-4.00%	3.31%	9.92%	-18.97%

China Medical System Holdings Corporate Events

China Medical System’s Alzheimer’s Drug ZUNVYL Gains Approval in China

China Medical System Holdings announced that its new drug application for ZUNVYL, a treatment for mild-to-moderate Alzheimer’s dementia, has been accepted by China’s National Medical Products Administration. This acceptance marks a significant step in the company’s strategy to enhance its product portfolio and competitive edge in the pharmaceutical market, particularly in addressing the urgent need for safer Alzheimer’s therapies with fewer side effects.

The most recent analyst rating on (HK:0867) stock is a Buy with a HK$14.33 price target. To see the full list of analyst forecasts on China Medical System Holdings stock, see the HK:0867 Stock Forecast page.

China Medical System Holdings Secures Secondary Listing on Singapore Exchange

China Medical System Holdings Limited has successfully achieved a secondary listing on the Singapore Exchange’s Main Board, with its shares now traded under the stock code ‘8A8’. This strategic move is expected to enhance the company’s market presence and accessibility for investors in Singapore, while maintaining its primary listing on the Hong Kong Stock Exchange.

The most recent analyst rating on (HK:0867) stock is a Buy with a HK$14.33 price target. To see the full list of analyst forecasts on China Medical System Holdings stock, see the HK:0867 Stock Forecast page.

China Medical System’s CMS-D001 Receives Approval for Atopic Dermatitis Trials

China Medical System Holdings Limited announced that its innovative drug CMS-D001, a highly selective TYK2 inhibitor, has received approval from the National Medical Products Administration of China to conduct clinical trials for atopic dermatitis. This approval marks an expansion of CMS-D001’s indications, which already include psoriasis, and highlights the company’s commitment to addressing unmet needs in dermatological treatments. The drug is expected to offer reliable efficacy and safety, enhancing the company’s portfolio in skin health and potentially improving the quality of life for patients with skin diseases.

The most recent analyst rating on (HK:0867) stock is a Buy with a HK$14.33 price target. To see the full list of analyst forecasts on China Medical System Holdings stock, see the HK:0867 Stock Forecast page.

China Medical System Holdings Plans Secondary Listing on Singapore Exchange

China Medical System Holdings Limited announced its expected secondary listing on the Singapore Exchange, with trading set to commence on July 15, 2025. This move is part of the company’s strategic efforts to expand its market reach and enhance its financial flexibility, although the completion of the listing is contingent upon meeting certain conditions.

The most recent analyst rating on (HK:0867) stock is a Buy with a HK$14.33 price target. To see the full list of analyst forecasts on China Medical System Holdings stock, see the HK:0867 Stock Forecast page.

China Medical System Holdings Announces Eligibility for Secondary Listing on Singapore Exchange

China Medical System Holdings Limited has announced the receipt of an eligibility-to-list letter from the Singapore Exchange Securities Trading Limited for a proposed secondary listing of its ordinary shares. This move, which does not involve the issuance of new shares, aims to expand the company’s market presence and trading opportunities, although it remains subject to certain conditions and regulatory compliance.

The most recent analyst rating on (HK:0867) stock is a Buy with a HK$12.00 price target. To see the full list of analyst forecasts on China Medical System Holdings stock, see the HK:0867 Stock Forecast page.

China Medical System Holdings Announces Secondary Listing on SGX-ST

China Medical System Holdings Limited has announced its intention to pursue a secondary listing of its issued ordinary shares on the Singapore Exchange Securities Trading Limited (SGX-ST). This strategic move is expected to enhance the company’s market presence and provide additional opportunities for investment, potentially impacting its operations and positioning within the industry.

The most recent analyst rating on (HK:0867) stock is a Buy with a HK$12.00 price target. To see the full list of analyst forecasts on China Medical System Holdings stock, see the HK:0867 Stock Forecast page.

China Medical System Holdings Plans Secondary Listing on Singapore Exchange

China Medical System Holdings Limited has announced its intention to pursue a secondary listing of its ordinary shares on the Singapore Exchange Securities Trading Limited. This strategic move is aimed at enhancing the company’s presence in the Singapore market, increasing its global visibility, and facilitating international business expansion. Although the listing will not involve issuing new shares, it is expected to broaden the shareholder base and open additional fundraising channels in the future, thereby improving the company’s corporate image and liquidity of its securities.

The most recent analyst rating on (HK:0867) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on China Medical System Holdings stock, see the HK:0867 Stock Forecast page.