China Medical System Holdings (0867) AI Stock Analysis

• Market Cap: $29.86B
• Dividend Yield: 5.36%
• Average Volume (3M): 19.90M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.87
• Revenue Growth: -8.91%
• EPS Growth: -34.40%
• Country: HK
• Employees: 6,141
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.32
• Shares Outstanding: 2,439,528,600
• 10 Day Avg. Volume: 13,444,374
• 30 Day Avg. Volume: 19,901,618
• PEG Ratio: 1.88
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.23
• 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: $10.99
• Price Target Upside: -10.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: HK$14.00 ▲(14.38%Upside)

The overall score is driven by strong technical indicators showing bullish momentum despite potential overbought conditions. The financial performance indicates stability with a strong balance sheet but highlights challenges with revenue and profitability declines. Valuation is attractive due to a reasonable P/E ratio and high dividend yield.

China Medical System Holdings Business Overview & Revenue Model

Company Description

China Medical System Holdings Limited, an investment holding company, manufactures, sells, markets, and promotes pharmaceutical products in the People's Republic of China. The company's products include Plendil for the treatment of hypertension and stable angina pectoris; XinHuoSu for the treatment of acute heart failure; Deanxit for the treating mild-to-moderate depression, anxiety, and psychosomatic affections; Ursofalk for the treatment of cholesterol gallstones in the gallbladder, cholestatic liver disease, and biliary reflux gastritis; Salofalk for treating Ulcerative Colitis and Crohn's disease; Bioflor for the treatment of diarrhea; Combizym for dyspepsia; Augentropfen Stulln Mono eye drops to treat senile macula degeneration and asthenopia; and Hirudoid for blunt traumata with or without hematomas and superficial phlebitis insofar. Its products also comprise DanShenTong capsules for treating acne, tonsillitis, otitis externa, boils, carbuncle, traumatic infection, burn infection, mastitis, cellulitis, osteomyelitis, etc.; XiDaKang, a protein hydrolysate oral solution; YiNuoShu for treating respiratory diseases; Ganfule capsules for the treatment of primary cancer of the liver; Imdur for the treatment of coronary heart disease, chronic heart failure, and myocardial infarction, as well as for prevention of vasospasm and mixed angina; and Parlodel tablets for the endocrine and neuro system indications. In addition, the company also offers Elcatonin injection for osteoporosis; YinlianQinggan granules for treating acute hepatitis A and chronic hepatitis B; Lamisil tablets for treating fungal infections on skin and hair; and MOVICOL for treating chronic constipation and faecal impaction. In addition, it is involved in the agriculture and livestock activities. The company was founded in 1995 and is headquartered in North Point, Hong Kong. China Medical System Holdings Limited is a subsidiary of Treasure Sea Limited.

How the Company Makes Money

China Medical System Holdings generates revenue primarily through the sales and distribution of pharmaceutical and medical products. The company leverages an extensive network to market and promote its products directly to healthcare professionals and hospitals. Key revenue streams include sales from proprietary products it develops or acquires through in-licensing agreements and distribution agreements with global pharmaceutical companies. Additionally, the company benefits from strategic partnerships and collaborations to expand its product offerings and market reach. These partnerships often involve co-promotion and distribution agreements that enhance its portfolio and revenue potential.

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: 12.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 12.24 is above the 20-day moving average (MA) of 11.64, above the 50-day MA of 10.11, and above the 200-day MA of 8.29, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 66.91 is Neutral, neither overbought nor oversold. The STOCH value of 81.52 is Negative, 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
0867	75 Outperform	$29.86B	16.92	10.17%	5.36%	-8.91%	-34.40%
Sector *	55 Neutral	€4.86B	18.25	-49.50%	1.91%	13.92%	-4.82%
ULIHF		$3.64B	9.10	19.62%	4.91%	―	―
GZPHF		$5.69B	9.75	7.22%	2.49%	―	―
LVZPF		$4.21B	12.02	14.56%	0.56%	―	―
640		€3.54B	7.96		6.98%	―	―
0512	78 Outperform	HK$33.72B	13.48	15.61%	2.74%	10.59%	31.83%

China Medical System Holdings Corporate Events

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.

China Medical System Holdings Reports Successful AGM Outcomes

China Medical System Holdings Limited announced the successful passage of all proposed resolutions at its Annual General Meeting held on April 24, 2025. The resolutions, which included the adoption of financial statements, approval of a final dividend, and re-election of directors, were passed with overwhelming support, indicating strong shareholder confidence in the company’s strategic direction.

China Medical System Holdings Proposes Spin-Off and Listing of Dermavon

China Medical System Holdings has announced its proposal to spin off its subsidiary, Dermavon Holdings Limited, and list it separately on the Main Board of the Stock Exchange of Hong Kong. This move is expected to provide Dermavon with a new financing platform, improve its corporate image, and enhance its business profile, allowing it to independently raise funds and focus on its core business. The spin-off aims to incentivize employees, improve transparency, and potentially offer higher returns to shareholders.

China Medical System Proposes Amendments to Modernize Operations

China Medical System Holdings Limited has announced proposed amendments to its memorandum and articles of association, which include provisions for electronic proxy submissions, electronic voting, and the removal of manual signature requirements for transfer instruments. These changes aim to modernize the company’s operations and improve efficiency, subject to shareholder approval at the upcoming Annual General Meeting.