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$10.50
▼(-26.06% Downside)
Action:Reiterated
Date: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
Balance Sheet Health
The company's very low leverage and steadily growing equity provide durable financial flexibility. Low debt reduces refinancing risk, supports continued licensing and commercialization spending, and allows the firm to absorb revenue volatility or pursue selective M&A without stressing liquidity over the next several months.
Negative Factors
Earnings and Cash Flow Weakness
Net income fell materially (from ~3.26B in 2022 to ~1.45B in 2025) while operating cash flow decreased to ~0.76B and free cash flow to ~0.24B in 2025. This weaker cash conversion reduces internal funding for commercialization, limits buffer for setbacks, and heightens reliance on external financing or partner milestones.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
The company's very low leverage and steadily growing equity provide durable financial flexibility. Low debt reduces refinancing risk, supports continued licensing and commercialization spending, and allows the firm to absorb revenue volatility or pursue selective M&A without stressing liquidity over the next several months.
Read all positive factors
China Medical System Holdings (0867) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$24.22B
Dividend Yield2.26%
Average Volume (3M)6.44M
Price to Earnings (P/E)14.1
Beta (1Y)0.92
Revenue Growth10.00%
EPS Growth-7.54%
CountryHK
Employees6,141
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.61
Shares Outstanding2,439,528,600
10 Day Avg. Volume4,711,227
30 Day Avg. Volume6,437,247
Financial Highlights & Ratios
PEG Ratio-2.50
Price to Book (P/B)1.61
Price to Sales (P/S)3.41
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$19.48Price Target Upside37.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.82
Revenue Forecast (FY)HK$9.85B
China Medical System Holdings Business Overview & Revenue Model
Company Description
Established in 1995 and headquartered in North Point, Hong Kong, China Medical System Holdings Limited functions as an investment holding company with a primary focus on the development, marketing, and distribution of a wide array of pharmaceutica...
How the Company Makes Money
China Medical System primarily generates revenue from selling pharmaceutical products in its markets, with income recognized from the commercial distribution and marketing of prescription drugs. A key part of its model is acquiring or licensing co...
China Medical System Holdings Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.21B | 7.47B | 8.01B | 9.15B | 8.34B |
| Gross Profit | 5.87B | 5.42B | 6.08B | 7.04B | 6.25B |
| EBITDA | 1.82B | 2.31B | 2.92B | 3.76B | 3.70B |
| Net Income | 1.49B | 1.62B | 2.40B | 3.26B | 3.02B |
Balance Sheet | |||||
| Total Assets | 19.21B | 18.05B | 17.73B | 17.75B | 15.81B |
| Cash, Cash Equivalents and Short-Term Investments | 5.79B | 5.87B | 6.14B | 5.87B | 4.36B |
| Total Debt | 690.37M | 860.74M | 1.30B | 1.81B | 1.71B |
| Total Liabilities | 1.66B | 1.64B | 2.17B | 3.02B | 2.96B |
| Stockholders Equity | 17.40B | 16.31B | 15.52B | 14.59B | 12.75B |
Cash Flow | |||||
| Free Cash Flow | 244.01M | 812.64M | 2.18B | 3.03B | 2.31B |
| Operating Cash Flow | 758.42M | 1.27B | 2.50B | 3.55B | 2.49B |
| Investing Cash Flow | -984.32M | -615.10M | -442.28M | -1.18B | -1.52B |
| Financing Cash Flow | -770.94M | -1.26B | -2.13B | -1.40B | -258.39M |
China Medical System Holdings Technical Analysis
Negative
14.20
Price Trends
11.64
Negative
12.76
Negative
13.19
Negative
Market Momentum
-0.40
Negative
31.55
Neutral
34.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0867, the sentiment is Negative. The current price of 14.2 is above the 20-day moving average (MA) of 10.53, above the 50-day MA of 11.64, and above the 200-day MA of 13.19, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 31.55 is Neutral, neither overbought nor oversold. The STOCH value of 34.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$26.30B | 12.81 | 13.95% | 4.09% | 1.48% | -1.55% | |
63 Neutral | HK$24.22B | 14.12 | 8.65% | 2.26% | 10.00% | -7.54% | |
61 Neutral | HK$16.24B | 6.27 | 12.65% | 5.11% | -4.09% | -22.73% | |
58 Neutral | HK$27.08B | 6.07 | 7.98% | 2.95% | 4.66% | 20.76% | |
56 Neutral | HK$35.17B | 10.86 | 7.70% | 7.15% | 7.32% | 12.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | HK$7.74B | 36.72 | 3.51% | 0.87% | 37.90% | ― |
* Healthcare Sector Average
HK:0867
China Medical System Holdings
9.93
-1.77
-15.16%
HK:3933
The United Laboratories International Holdings
8.23
-6.18
-42.91%
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:0460
Sihuan Pharmaceutical Holdings Group
0.83
-0.27
-24.68%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.31
-0.58
-11.84%
China Medical System Holdings Corporate Events
China Medical System Wins China Approval for First Bispecific Rabies Antibody
Jun 22, 2026
China Medical System Holdings has secured Chinese regulatory approval for Silevimig Injection, a Class 1 innovative recombinant fully human bispecific antibody for passive immunization in adults after rabies virus exposure. The product, marketed a...
China Medical System Wins NMPA Nod for TYK2 IBD Trial
May 25, 2026
China Medical System Holdings has received approval from China’s National Medical Products Administration to begin clinical trials of CMS-D001, a highly selective TYK2 inhibitor, for ulcerative colitis and Crohn’s disease. The drug, de...
China Medical System’s MG‑K10 Allergy Drug NDA Accepted in China
Apr 23, 2026
China Medical System Holdings said China’s National Medical Products Administration has accepted a New Drug Application for MG-K10, a Class 1 innovative anti‑IL‑4Rα monoclonal antibody injection for adults with moderate̴...
China Medical System Wins Full Shareholder Backing for AGM Resolutions
Apr 23, 2026
China Medical System Holdings reported that all resolutions at its 23 April 2026 annual general meeting were approved by poll, with the full issued share capital of 2,439,528,512 shares eligible to vote and no restrictions on shareholder participa...
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...
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.