China Medical System Holdings Ltd. (HK:0867)
:0867
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China Medical System Holdings
(0867)
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Rating:63Neutral
Price Target:
HK$15.50
▲(9.15% Upside)
Action:ReiteratedDate:04/04/26
The score is primarily supported by a conservative, low-debt balance sheet, but is held back by the post-2022 deterioration in earnings and the sharp weakening in 2025 cash flow. Technical indicators are mixed and valuation appears neutral, reinforcing a mid-range overall score.
Positive Factors
Strong balance sheet
Very low leverage and rising equity give China Medical System durable financial flexibility to fund in-licensing, lifecycle investments, or targeted M&A without stressing liquidity. A conservative balance sheet reduces refinancing risk and supports multi-month capital allocation and strategic options.
Negative Factors
Falling returns on equity
The marked drop in ROE signals weaker profitability and lower capital efficiency versus prior years. Persistently lower returns can limit the company's ability to fund growth internally and reduce long-term shareholder value unless operational performance is restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Very low leverage and rising equity give China Medical System durable financial flexibility to fund in-licensing, lifecycle investments, or targeted M&A without stressing liquidity. A conservative balance sheet reduces refinancing risk and supports multi-month capital allocation and strategic options.
Read all positive factors
China Medical System Holdings (0867) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$34.96B
Dividend Yield2.26%
Average Volume (3M)6.44M
Price to Earnings (P/E)13.0
Beta (1Y)0.86
Revenue Growth11.78%
EPS Growth19.06%
CountryHK
Employees6,141
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.26
Shares Outstanding2,439,528,600
10 Day Avg. Volume4,711,227
30 Day Avg. Volume6,437,247
Financial Highlights & Ratios
PEG Ratio-1.85
Price to Book (P/B)1.61
Price to Sales (P/S)3.50
P/FCF Ratio114.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$18.48Price Target Upside30.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.84
Revenue Forecast (FY)HK$9.92B
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 an...
How the Company Makes Money
China Medical System Holdings makes money mainly by selling pharmaceutical and healthcare products for which it holds commercialization rights and/or owns brands. Revenue is primarily generated from: (1) Product sales: income from distributing and...
China Medical System Holdings Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.86B | 8.00B | 7.47B | 8.01B | 9.15B | 8.34B |
| Gross Profit | 5.62B | 5.72B | 5.42B | 6.11B | 7.04B | 6.25B |
| EBITDA | 2.30B | 1.80B | 2.31B | 2.92B | 3.76B | 3.70B |
| Net Income | 1.65B | 1.45B | 1.62B | 2.40B | 3.26B | 3.02B |
Balance Sheet | ||||||
| Total Assets | 18.94B | 19.21B | 18.05B | 17.73B | 17.75B | 15.81B |
| Cash, Cash Equivalents and Short-Term Investments | 5.97B | 5.79B | 5.87B | 6.14B | 5.87B | 4.36B |
| Total Debt | 747.60M | 690.37M | 860.74M | 1.30B | 1.81B | 1.71B |
| Total Liabilities | 1.77B | 1.66B | 1.64B | 2.17B | 3.02B | 2.96B |
| Stockholders Equity | 17.02B | 17.40B | 16.31B | 15.52B | 14.59B | 12.75B |
Cash Flow | ||||||
| Free Cash Flow | 493.64M | 244.01M | 812.64M | 2.18B | 3.03B | 2.31B |
| Operating Cash Flow | 952.52M | 758.42M | 1.27B | 2.50B | 3.55B | 2.49B |
| Investing Cash Flow | -439.01M | -984.32M | -615.10M | -442.28M | -1.18B | -1.52B |
| Financing Cash Flow | -983.08M | -770.94M | -1.26B | -2.13B | -1.40B | -258.39M |
China Medical System Holdings Technical Analysis
Positive
14.20
Price Trends
13.98
Positive
13.78
Positive
13.52
Positive
Market Momentum
-0.06
Negative
58.90
Neutral
82.24
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 14.2 is above the 20-day moving average (MA) of 13.32, above the 50-day MA of 13.98, and above the 200-day MA of 13.52, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 82.24 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$20.80B | 9.66 | 12.63% | 5.11% | 0.39% | 4.94% | |
70 Outperform | HK$31.78B | 11.61 | 14.47% | 4.09% | -0.45% | 9.00% | |
63 Neutral | HK$34.96B | 13.02 | 8.60% | 2.26% | 11.78% | 19.06% | |
61 Neutral | HK$39.39B | 6.37 | 7.91% | 2.95% | ― | ― | |
59 Neutral | HK$40.60B | 8.90 | 7.89% | 7.15% | 1.13% | -13.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | HK$13.16B | 22.81 | -1.84% | 0.87% | 19.21% | -115.91% |
* Healthcare Sector Average
HK:0867
China Medical System Holdings
14.33
7.38
106.19%
HK:3933
The United Laboratories International Holdings
10.54
-0.25
-2.29%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
17.21
2.04
13.48%
HK:1513
Livzon Pharmaceutical Group
29.20
4.54
18.40%
HK:0460
Sihuan Pharmaceutical Holdings Group
1.41
0.85
153.60%
HK:3320
China Resources Pharmaceutical Group Ltd.
6.27
1.70
37.08%
China Medical System Holdings Corporate Events
China Medical System Sets AGM to Approve 2025 Results, Dividend and Share Issuance Mandate
Apr 1, 2026
China Medical System Holdings has called its annual general meeting for 23 April 2026 in Hong Kong, where shareholders will review and adopt the audited 2025 financial statements and related board and auditor reports. The board will also seek appr...
China Medical System Tightens Nomination Committee Governance Rules
Mar 16, 2026
China Medical System Holdings has updated the terms of reference for its nomination committee, which oversees the selection, appointment and reappointment of directors within the group. The revision, effective 16 March 2026, refines the committee&...
China Medical System Declares Final Dividend for 2025
Mar 16, 2026
China Medical System Holdings Limited has declared a final ordinary cash dividend of RMB 0.1366 per share for the financial year ended 31 December 2025, equivalent to HKD 0.155 per share based on an exchange rate of RMB 1 to HKD 1.1336. The divide...
China Medical System Sets Out Board and Committee Structure
Mar 16, 2026
China Medical System Holdings Limited has disclosed the composition of its board of directors, naming Lam Kong as chairman and chief executive and Chen Yanling as chief financial officer and vice-president, alongside three independent non-executiv...
China Medical System Lifts Revenue and Dividend as Innovation and Overseas Push Gather Pace
Mar 16, 2026
China Medical System reported a 9.9% rise in turnover to RMB8.21 billion and an 8.3% increase in gross profit for 2025, though headline profit fell 10.5% due to a one-off tax-related payment, leaving normalized profit up 3.6%. The board proposed a...
China Medical System Wins China Approval for New Renal Anaemia Drug
Mar 13, 2026
China Medical System Holdings has secured Chinese regulatory approval for Desidustat Tablets, a novel oral HIF-PHI therapy for treating anaemia in non-dialysis adult chronic kidney disease patients, following positive Phase III trial results showi...
China Medical System Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 4, 2026
China Medical System Holdings has scheduled a board meeting for 16 March 2026 to review and approve the annual results of the company and its subsidiaries for the financial year ended 31 December 2025. The board will also consider the payment of a...
China Medical System Wins NMPA Nod for Novel Obesity Drug Trials
Mar 4, 2026
China Medical System Holdings has received approval from China’s National Medical Products Administration to begin clinical trials of its self-developed siRNA injection CMS-D008 for overweight and obese patients. The novel therapy targets th...
China Medical System Wins Priority Review in China for Atopic Dermatitis Use of Ruxolitinib Cream
Feb 24, 2026
China Medical System Holdings said subsidiary Dermavon has had its new drug application for ruxolitinib phosphate cream to treat mild to moderate atopic dermatitis accepted by China’s National Medical Products Administration and placed on th...
China Medical System Wins Exclusive China Rights for Lidoderm Pain Patch
Feb 12, 2026
China Medical System Holdings has secured exclusive distribution rights in mainland China for Lidoderm-branded lidocaine cataplasms under a new agreement with Teikoku Pharma USA, a subsidiary of Japan’s Teikoku Seiyaku. The partner will hand...
China Medical System Wins NMPA Approval to Begin Trials of New Complement Factor B Inhibitor for Kidney Diseases
Feb 3, 2026
China Medical System Holdings has received approval from China’s National Medical Products Administration to begin clinical trials in healthy participants for its self-developed innovative drug CMS-D017, a novel small-molecule inhibitor of c...
China Medical System Wins NMPA Nod to Start Trials of Novel Oral PNH Drug CMS-D017
Jan 30, 2026
China Medical System Holdings has received approval from China’s National Medical Products Administration to begin clinical trials in healthy participants for CMS-D017, a self-developed, orally administered, small-molecule inhibitor of compl...
China Medical System Wins China’s First Targeted Vitiligo Drug Approval
Jan 30, 2026
China Medical System Holdings announced that its dermatology-focused subsidiary Dermavon has received approval from China’s National Medical Products Administration for ruxolitinib phosphate cream to treat non-segmental vitiligo with facial ...
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.