Guangzhou Baiyunshan Pharmaceutical Holdings Company (0874) AI Stock Analysis

• Market Cap: HK$45.52B
• Dividend Yield: 4.57%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.67
• Revenue Growth: -4.07%
• EPS Growth: -35.32%
• Country: HK
• Employees: 28,138
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.22
• Shares Outstanding: 219,900,000
• 10 Day Avg. Volume: 1,530,268
• 30 Day Avg. Volume: 1,096,019
• PEG Ratio: 1.27
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.88
• 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$16.02
• Price Target Upside: -11.77% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ―

Guangzhou Baiyunshan's overall stock score reflects strong financial performance and attractive valuation. The company's sound equity position and effective cash management are significant strengths. However, technical analysis indicates a bearish trend, which may pose short-term challenges. The absence of recent earnings call data or noteworthy corporate events does not influence the current assessment.

Guangzhou Baiyunshan Pharmaceutical Holdings Company Business Overview & Revenue Model

Company Description

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited, together with its subsidiaries, engages in the research, development, manufacture, and sale of Chinese patent and Western medicines, chemical raw materials, natural and biological medicines, and intermediates of chemical raw materials in the People's Republic of China and internationally. The company operates through four segments: Great Southern TCM, Great Commerce, Great Health, and Others. It is also involved in the wholesale, retail, import, and export of Western and Chinese medicines, and medical apparatus and instruments; and research and development, production, and sale of beverages, food, healthcare products, pre-packaging food, dairy products, tablets, capsules, lozenges, injections, tortoise herb jelly, etc. In addition, the company invests in health industry, such as medical care, health management, health preservation, elderly care, etc.; and provides commercial and advertising services. As of December 31, 2021, it had 154 retail chain pharmacy outlets, which included 22 Cai Zhi Lin pharmacy outlets, 36 Jian Min pharmacy outlets, 51 GPC Prescription Pharmacy outlets, and 23 Hainan Guangyao Chenfei Pharmaceutical Chain Co., Ltd outlets, as well as 22 retail stores. The company was formerly known as Guangzhou Pharmaceutical Company Limited and changed its name to Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited in August 2013. Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited was incorporated in 1997 and is based in Guangzhou, China.

How the Company Makes Money

Guangzhou Baiyunshan Pharmaceutical Holdings Company generates revenue primarily through the sale of its pharmaceutical products, including both traditional Chinese medicines and chemical pharmaceuticals. Key revenue streams include the domestic and international distribution of these products to hospitals, pharmacies, and other healthcare providers. The company also earns money through its consumer healthcare product line, which includes a range of over-the-counter drugs and wellness products. Significant partnerships with healthcare institutions and government agencies, along with a strong distribution network, contribute to its earnings by expanding market reach and enhancing product accessibility.

Guangzhou Baiyunshan Pharmaceutical Holdings Company Financial Statement Overview

Summary

Guangzhou Baiyunshan shows strong financial performance with stable profitability and operational efficiency. The income statement highlights healthy EBIT and EBITDA margins, although revenue growth has slowed slightly. The balance sheet is robust with a strong equity position and moderate leverage, while cash flow demonstrates effective management despite recent fluctuations.

Income Statement

The income statement shows stable profitability with a gross profit margin of approximately 16.7% and a net profit margin of 3.8% for 2024. However, there is a decline in revenue growth from 2023 to 2024, down by 0.7%. EBIT and EBITDA margins are healthy, indicating efficient operations. The company has seen consistent revenue growth over the past years, albeit with a recent slowdown.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 43.9% in 2024. The debt-to-equity ratio is moderate at 0.34, suggesting a balanced approach to leveraging. Return on Equity (ROE) is reasonable at 7.9%, indicating satisfactory profitability from shareholder investments. The company maintains a healthy asset base, providing stability.

Cash Flow

Cash flow analysis reveals a robust operating cash flow to net income ratio of 1.21 for 2024, signifying strong cash generation. The free cash flow to net income ratio is 0.82, reflecting effective cash management despite fluctuations. Free cash flow shows a decline from 2023 due to decreased operating cash flow, indicating potential short-term liquidity concerns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
74.52B	74.99B	75.52B	70.79B	69.01B	61.67B
	Gross Profit
12.05B	12.52B	14.19B	13.28B	13.23B	10.44B
	EBIT
3.78B	3.60B	5.12B	5.07B	4.79B	3.67B
	EBITDA
4.10B	4.90B	6.49B	5.00B	5.82B	4.68B
	Net Income Common Stockholders
3.02B	2.84B	4.06B	3.97B	3.72B	2.92B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.51B	18.27B	21.31B	22.56B	22.38B	19.47B
	Total Assets
80.05B	81.68B	78.59B	74.67B	66.12B	59.76B
	Total Debt
11.55B	12.37B	11.70B	11.43B	9.92B	9.56B
	Net Debt
―	―	-9.61B	-11.07B	-12.45B	-9.91B
	Total Liabilities
40.41B	43.91B	41.91B	41.03B	34.79B	31.55B
	Stockholders Equity
37.72B	35.90B	34.92B	32.07B	29.06B	26.14B
Cash Flow		Free Cash Flow
4.73B	2.31B	2.48B	5.62B	4.42B	―
	Operating Cash Flow
1.10B	3.44B	4.10B	7.00B	5.67B	585.19M
	Investing Cash Flow
―	―	-3.11B	―	―	―
	Financing Cash Flow
1.03B	―	-1.98B	45.95M	―	1.44B

Guangzhou Baiyunshan Pharmaceutical Holdings Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0874, the sentiment is Positive. The current price of 18.16 is above the 20-day moving average (MA) of 17.59, above the 50-day MA of 17.16, and above the 200-day MA of 17.91, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.99 is Neutral, neither overbought nor oversold. The STOCH value of 88.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0874.

Guangzhou Baiyunshan Pharmaceutical Holdings Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0874	66 Neutral	HK$45.52B	10.11	7.22%	4.57%	-4.07%	-35.32%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
ULIHF		$3.70B	7.01	19.62%	6.37%	―	―
LVZPF		$4.57B	13.22	14.56%	4.55%	―	―
SFOSF		$8.80B	12.84	6.22%	1.96%	―	―
640		€3.73B	8.54		2.97%	―	―
0512	83 Outperform	HK$33.40B	13.35	15.61%	2.76%	10.59%	31.83%

Guangzhou Baiyunshan Pharmaceutical Holdings Company Corporate Events

Guangzhou Baiyunshan Reports Decline in Q1 2025 Earnings

Guangzhou Baiyunshan Pharmaceutical Holdings Company reported a decrease in both income from operations and net profit for the first quarter of 2025 compared to the same period in 2024. The company experienced a 2.06% decline in income from operations and a 6.99% decrease in net profit attributable to shareholders. Additionally, the net cash flow from operating activities saw a significant drop of 24.19%. Despite these declines, the total equity attributable to shareholders increased by 5.05%, indicating a stronger financial position.

Guangzhou Baiyunshan’s Subsidiary Gains NEEQ Quotation Approval

Guangzhou Baiyunshan Pharmaceutical Holdings Company announced that its subsidiary, Guangzhou Pharmaceuticals Co., Ltd. (GP Corp.), has received approval for the public transfer and quotation of its shares on the National Equities Exchange and Quotations (NEEQ). This move allows GP Corp. to be governed as a non-listed public company while remaining a non-wholly owned subsidiary of Guangzhou Baiyunshan. The quotation on NEEQ will not significantly impact the financial position or operations of the parent company, maintaining its status as an independently listed entity.

Guangzhou Baiyunshan Subsidiary Receives Approval for Production License Changes

Guangzhou Baiyunshan Pharmaceutical Holdings Company announced that its subsidiary, Guangzhou Baiyunshan Mingxing Pharmaceutical Co., Ltd., received approval from the Guangdong Provincial Drug Administration for changes to its ‘Drug Production License’. The approval allows the subsidiary to reduce its production scope, workshops, and production lines, which could streamline operations and potentially impact its manufacturing efficiency and cost structure.

Guangzhou Baiyunshan to Review Q1 2025 Financial Results

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited has announced that its board of directors will meet on April 29, 2025, to review and approve the unaudited financial results for the first quarter of 2025. This meeting is significant as it provides insights into the company’s financial health and operational performance, which are crucial for stakeholders and investors monitoring the company’s market position and future prospects.

Guangzhou Baiyunshan Reports Strong 2024 Profits and Announces Dividend

Guangzhou Baiyunshan Pharmaceutical Holdings Company announced its 2024 annual report, highlighting a consolidated net profit of RMB 2.84 billion attributable to shareholders. The company proposed a cash dividend of RMB 0.40 per share, amounting to a total of RMB 650.32 million, with undistributed profits carried forward. This financial performance and profit distribution plan reflect the company’s stable position in the pharmaceutical industry and its commitment to rewarding shareholders.

Guangzhou Baiyunshan Announces Final Dividend for 2024

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited announced a final cash dividend of RMB 0.4 per share for the financial year ending December 31, 2024. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, although specific details regarding the payment date and other related information are yet to be disclosed.

Guangzhou Baiyunshan Pharmaceutical to Review 2024 Financial Results

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited has scheduled a board meeting for March 13, 2025, to review and approve the audited financial results for the year ending December 31, 2024. This meeting will be crucial for stakeholders as it will provide insights into the company’s financial health and operational performance over the past year.

Guangzhou Baiyunshan’s GP Corp. Completes Significant Asset Disposal

Guangzhou Baiyunshan Pharmaceutical Holdings Company, through its subsidiary GP Corp., has engaged in a series of transactions involving the sale of accounts receivable to Industrial Securities Asset Management. The latest transaction, completed on February 28, 2025, involves the disposal of new underlying assets valued at RMB583,087,010.44. This transaction, when aggregated with previous similar transactions within a 12-month period, constitutes a disclosable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but not shareholder approval.

Guangzhou Baiyunshan Pharmaceutical Announces Director Resignation

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited announced the resignation of Mr. Wu Changhai from his roles as an executive director, a member of the Nomination and Remuneration Committee, and other positions within its subsidiaries due to work adjustments. His departure does not affect the statutory minimum number of board members or the board’s operations, and an election for a new director will be conducted following statutory procedures. The company expressed gratitude for Mr. Wu’s contributions during his tenure.

Guangzhou Baiyunshan Pharmaceutical Updates Board of Directors

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited has announced the list of its board of directors and their respective roles and functions. This update on the board structure may influence the company’s strategic direction and operational efficiency, affecting its positioning in the pharmaceutical industry.