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China Medical System Holdings Ltd. (HK:0867)
:0867

China Medical System Holdings (0867) AI Stock Analysis

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HK

China Medical System Holdings

(OTC:0867)

Rating:75Outperform
Price Target:
HK$11.50
▲(7.68%Upside)
The overall stock score of 75 reflects strong technical performance with the stock trading above key moving averages. Despite financial stability, declining revenue and profitability are concerns. The valuation is reasonable with an attractive dividend yield, but caution is advised due to potential overbought conditions.

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 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 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's balance sheet is strong with low leverage and high equity, which provides financial stability. However, declining revenue and profitability are concerning for future growth. While operational efficiency remains strong, improving revenue growth and cash flow generation will be crucial.
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 Price10.68
Price Trends
50DMA
8.50
Positive
100DMA
8.03
Positive
200DMA
7.83
Positive
Market Momentum
MACD
0.67
Negative
RSI
69.96
Neutral
STOCH
56.72
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 10.68 is above the 20-day moving average (MA) of 9.57, above the 50-day MA of 8.50, and above the 200-day MA of 7.83, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 69.96 is Neutral, neither overbought nor oversold. The STOCH value of 56.72 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
75
Outperform
$26.05B14.7610.17%3.99%-8.91%-34.40%
54
Neutral
$5.31B3.28-45.10%2.80%16.76%0.02%
$3.55B7.0119.62%5.52%
$5.78B9.627.22%7.36%
$4.20B11.8714.56%5.03%
DE640
€3.76B8.39
3.02%
80
Outperform
HK$30.60B12.2315.61%3.02%10.59%31.83%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0867
China Medical System Holdings
10.68
3.88
57.15%
ULIHF
The United Laboratories International Holdings
1.42
0.27
23.48%
GZPHF
Guangzhou Baiyunshan Pharmaceutical Holdings Company
2.20
-0.78
-26.17%
LVZPF
Livzon Pharmaceutical Group
3.77
0.29
8.33%
DE:640
China Resources Pharmaceutical Group Ltd.
0.58
-0.09
-13.43%
HK:0512
Grand Pharmaceutical Group Limited
8.62
4.01
86.98%

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.