tiprankstipranks
Trending News
More News >
China Medical System Holdings (HK:0867)
:0867

China Medical System Holdings (0867) AI Stock Analysis

Compare
3 Followers

Top Page

HK

China Medical System Holdings

(OTC:0867)

Rating:76Outperform
Price Target:
HK$13.00
▲(15.25%Upside)
China Medical System Holdings has a strong technical setup with bullish momentum, supported by a solid balance sheet. However, declining revenue and profitability pose risks. The valuation remains reasonable, and the dividend yield is attractive, but improving financial performance is crucial for long-term growth.

China Medical System Holdings (0867) vs. iShares MSCI Hong Kong ETF (EWH)

China Medical System Holdings Business Overview & Revenue Model

Company DescriptionChina Medical System Holdings (0867) is a specialty pharmaceutical company focused on marketing and promoting prescription drugs and medical products in China. The company operates in the healthcare sector, with a diverse portfolio that includes a wide range of therapeutic areas such as dermatology, gastroenterology, orthopedics, and cardiovascular health. Its core services revolve around the in-licensing, marketing, promotion, and sales of pharmaceutical and medical products, targeting hospitals and healthcare professionals across China.
How the Company Makes MoneyChina 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
65
Positive
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
78
Positive
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
72
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
7.47B8.01B9.15B8.34B6.95B
Gross Profit
5.42B6.11B7.04B6.25B5.13B
EBIT
1.73B2.71B4.02B3.87B3.28B
EBITDA
2.31B2.92B3.85B3.70B3.05B
Net Income Common Stockholders
1.62B2.40B3.26B3.02B2.53B
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.87B6.14B5.87B4.36B2.67B
Total Assets
18.05B17.73B17.75B15.81B12.70B
Total Debt
860.74M1.30B1.81B1.71B600.16M
Net Debt
-2.85B-3.01B-2.56B-1.67B-2.07B
Total Liabilities
1.64B2.17B3.02B2.96B1.60B
Stockholders Equity
16.31B15.52B14.59B12.75B11.03B
Cash FlowFree Cash Flow
812.64M2.18B3.03B2.31B2.35B
Operating Cash Flow
1.27B2.50B3.55B2.49B2.69B
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 Price11.28
Price Trends
50DMA
8.72
Positive
100DMA
8.15
Positive
200DMA
7.90
Positive
Market Momentum
MACD
0.72
Negative
RSI
70.50
Negative
STOCH
78.01
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 11.28 is above the 20-day moving average (MA) of 10.01, above the 50-day MA of 8.72, and above the 200-day MA of 7.90, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 70.50 is Negative, neither overbought nor oversold. The STOCH value of 78.01 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
HK$33.40B13.3515.61%2.76%10.59%31.83%
76
Outperform
HK$26.74B15.1510.17%5.99%-8.91%-34.40%
74
Outperform
$35.91B13.3114.56%4.43%-5.37%6.28%
71
Outperform
$29.11B10.0919.62%6.37%-1.82%-3.34%
66
Neutral
$45.48B10.027.22%4.79%-4.07%-35.32%
62
Neutral
€33.74B9.29
6.76%
54
Neutral
$5.38B3.40-45.06%3.28%16.75%-0.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0867
China Medical System Holdings
11.28
4.36
62.98%
HK:0512
Grand Pharmaceutical Group Limited
9.25
4.64
100.65%
HK:3933
The United Laboratories International Holdings
15.98
7.52
88.96%
HK:3320
China Resources Pharmaceutical Group Ltd.
5.36
-0.26
-4.58%
HK:1513
Livzon Pharmaceutical Group
32.75
7.24
28.38%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
18.16
-2.56
-12.36%

China Medical System Holdings Corporate Events

China Medical System Holdings Reports Successful AGM Outcomes
Apr 24, 2025

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
Apr 22, 2025

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
Apr 17, 2025

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.

China Medical System Holdings Announces AGM and Key Resolutions
Apr 2, 2025

China Medical System Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for April 24, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, approval of a final dividend, re-election of directors, and re-appointment of auditors. The company also seeks shareholder approval to authorize the board to issue new shares, which could impact its capital structure and market positioning.

China Medical System Holdings Announces Final Dividend for 2024
Mar 17, 2025

China Medical System Holdings Limited announced a final cash dividend of RMB 0.1174 per share for the financial year ending December 31, 2024. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0841, with a payment date set for May 9, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

China Medical System Reports 2024 Results Amidst Strategic R&D Advances
Mar 17, 2025

China Medical System Holdings Limited announced its annual results for the year ending December 31, 2024, reporting a decline in turnover and profit due to the impact of the National Volume-Based Procurement (VBP) policy. Despite these challenges, the company made significant strides in its R&D efforts, with several innovative drugs approved for marketing and others submitted for approval. The company’s focus on exclusive and innovative products resulted in a 4.1% increase in revenue from non-VBP products, accounting for over half of the total revenue. This strategic emphasis on innovation aims to strengthen the company’s market position and drive future growth.

China Medical System’s CMS-D003 Receives Clinical Trial Approval
Mar 12, 2025

China Medical System Holdings Limited announced that its self-developed innovative drug, CMS-D003, has received approval from China’s National Medical Products Administration to conduct clinical trials. This approval marks a significant step in evaluating CMS-D003’s safety and efficacy for treating symptomatic obstructive hypertrophic cardiomyopathy, potentially enhancing the company’s market position and offering improved treatment options for patients.

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.