China Medical System Holdings (0867) AI Stock Analysis

• Market Cap: HK$26.74B
• Dividend Yield: 5.99%
• Average Volume (3M): 14.88M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.89
• Revenue Growth: -8.91%
• EPS Growth: -34.40%
• Country: HK
• Employees: 6,141
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.72
• Shares Outstanding: 2,439,528,600
• 10 Day Avg. Volume: 20,123,421
• 30 Day Avg. Volume: 14,881,071
• 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: HK$10.99
• Price Target Upside: -2.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• 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 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
	EBIT
1.73B	2.71B	4.02B	3.87B	3.28B
	EBITDA
2.31B	2.92B	3.85B	3.70B	3.05B
	Net Income Common Stockholders
1.62B	2.40B	3.26B	3.02B	2.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.87B	6.14B	5.87B	4.36B	2.67B
	Total Assets
18.05B	17.73B	17.75B	15.81B	12.70B
	Total Debt
860.74M	1.30B	1.81B	1.71B	600.16M
	Net Debt
-2.85B	-3.01B	-2.56B	-1.67B	-2.07B
	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: 11.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0867	76 Outperform	HK$26.74B	15.15	10.17%	5.99%	-8.91%	-34.40%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
ULIHF		$3.71B	7.01	19.62%	6.37%	―	―
GZPHF		$5.79B	9.62	7.22%	4.79%	―	―
LVZPF		$4.58B	13.22	14.56%	4.69%	―	―
640		€3.73B	8.54		2.97%	―	―
0512	83 Outperform	HK$33.40B	13.35	15.61%	2.76%	10.59%	31.83%

China Medical System Holdings Corporate Events

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.

China Medical System Holdings Announces AGM and Key Resolutions

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

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

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

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.