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Lee's Pharmaceutical Holdings Limited (HK:0950)
:0950
Hong Kong Market

Lee's Pharmaceutical Holdings Limited (0950) AI Stock Analysis

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HK

Lee's Pharmaceutical Holdings Limited

(0950)

Rating:67Neutral
Price Target:
HK$2.00
▲(41.84%Upside)
The overall stock score for Lee's Pharmaceutical Holdings Limited is driven primarily by strong technical analysis indicating bullish momentum and attractive valuation metrics. However, the score is moderated by financial performance concerns, particularly around profitability and cash flow generation.

Lee's Pharmaceutical Holdings Limited (0950) vs. iShares MSCI Hong Kong ETF (EWH)

Lee's Pharmaceutical Holdings Limited Business Overview & Revenue Model

Company DescriptionLee's Pharmaceutical Holdings Limited, an investment holding company, develops, manufactures, markets, and sells pharmaceutical products primarily in the People's Republic of China. The company focuses on various disease areas, including cardiovascular, woman health, paediatrics, rare diseases, oncology, dermatology, obstetrics, and urology. It operates through Proprietary and Generic Products; and Licensed-In Products segments. The Proprietary and Generic Products segment manufactures and sells self-developed and generic pharmaceutical products, such as Livaracine to treat blood clots and deep vein thrombosis; Yallaferon for viral infection; Slounase for hemostasis; Eyprotor for corneal ulcers; Treprostinil injection for pulmonary arterial hypertension; fondaparinux sodium injection for deep vein thrombosis; and Sodium Phenylbutyrate Granules to treat Urea cycle disorders. The Licensed-In Products segment trades in licensed-in pharmaceutical products, including Carnitene for the treatment of carnitine deficiency; Aloxi and Sancuso for chemotherapy induced nausea and vomiting; Bredinin to treat Immunosuppression in renaltransplantation; Centraxal Plus for acute otitis media with tympanostomy tubes; Episil to treat oral mucositis pain; Ferplex to treat iron deficiency anemia; and Gaslon N for gastric ulcer and gastritis. This segment also offers Intrarosa for vulvovaginal atrophy; Levocarnitine oral solution to treat primary and secondary carnitine deficiency; Mictonorm for urinary incontinence; Natulan for Stage III and IV Hodgkin's disease; Omacor to treat Omega-3-acid ethyl esters; Zanidip and Rasilez for hypertension; Readyfusor for post-operative pain management; Teglutik to treat Amyotrophic lateral sclerosis; Trittico for insomnia/depression; Unidrox for urinary and respiratory tract infections; Dicoflor and VSL#3 for probiotics; and Zingo for topical local analgesics. The company was founded in 1994 and is headquartered in Sha Tin, Hong Kong.
How the Company Makes MoneyLee's Pharmaceutical Holdings Limited generates revenue primarily through the sale of its proprietary and generic pharmaceutical products across various therapeutic areas. The company benefits from a diverse product portfolio that includes both branded and generic drugs, allowing it to capture different segments of the market. In addition to direct sales, Lee's Pharmaceutical engages in strategic partnerships and collaborations with other pharmaceutical companies for the co-development and co-marketing of drugs, further enhancing its revenue streams. The company's investment in research and development also plays a crucial role in sustaining long-term profitability by continuously introducing innovative products to the market.

Lee's Pharmaceutical Holdings Limited Financial Statement Overview

Summary
Lee's Pharmaceutical Holdings Limited exhibits strong revenue growth and a stable balance sheet with low leverage. However, the company faces challenges with profitability due to a low net profit margin and concerning cash flow issues, indicating potential liquidity problems.
Income Statement
60
Neutral
The company shows a stable gross profit margin of 53.8% in 2024, indicating efficient production processes. However, the net profit margin is relatively low at 6.6%, suggesting high expenses or cost pressures. Revenue growth was 32.9% from 2023 to 2024, a strong recovery from previous periods, but historically, revenue has been inconsistent, highlighting potential market challenges.
Balance Sheet
70
Positive
The balance sheet reflects a solid equity position with an equity ratio of 63.1%, showing financial stability. The debt-to-equity ratio is low at 0.14, indicating prudent leverage levels. However, the return on equity (ROE) is modest at 5.6%, suggesting room for improved profitability.
Cash Flow
50
Neutral
Cash flow performance is concerning with zero operating and free cash flow in 2024, indicating potential liquidity issues. The free cash flow growth rate is unavailable due to missing data, and the operating cash flow to net income ratio cannot be determined, pointing to challenges in cash generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.40B1.05B1.23B1.27B1.22B
Gross Profit753.36M551.31M770.75M806.28M781.07M
EBITDA260.87M193.05M229.06M2.13B279.43M
Net Income93.10M16.70M51.28M1.99B78.53M
Balance Sheet
Total Assets2.62B2.89B2.78B3.64B3.25B
Cash, Cash Equivalents and Short-Term Investments216.84M171.00M189.30M277.53M414.54M
Total Debt227.30M204.14M163.49M267.14M156.71M
Total Liabilities1.07B930.07M939.50M1.25B1.14B
Stockholders Equity1.65B2.04B1.92B2.46B2.15B
Cash Flow
Free Cash Flow34.45M-45.89M69.81M-160.04M-139.23M
Operating Cash Flow242.01M110.08M283.63M210.68M218.91M
Investing Cash Flow-192.36M-145.22M-256.05M-370.28M-523.74M
Financing Cash Flow-1.96M13.44M-128.60M60.97M-9.80M

Lee's Pharmaceutical Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.41
Price Trends
50DMA
1.41
Positive
100DMA
1.35
Positive
200DMA
1.30
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
45.11
Neutral
STOCH
17.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0950, the sentiment is Neutral. The current price of 1.41 is below the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.41, and above the 200-day MA of 1.30, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 17.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0950.

Lee's Pharmaceutical Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$830.26M8.925.04%3.55%32.95%456.69%
52
Neutral
$7.53B0.32-61.76%2.28%16.60%1.56%
$1.28B-4.93%2.69%
74
Outperform
HK$6.25B6.8711.61%9.30%-18.09%-15.08%
73
Outperform
HK$1.86B3.0518.33%4.84%-9.95%67.56%
70
Outperform
HK$10.16B10.248.89%3.84%4.91%-11.80%
67
Neutral
HK$12.76B24.415.88%-42.02%-76.29%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0950
Lee's Pharmaceutical Holdings Limited
1.41
0.29
25.89%
SHPHF
Sihuan Pharmaceutical Holdings Group
0.10
0.04
66.67%
HK:1558
YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H
14.50
5.66
64.03%
HK:2348
Dawnrays Pharmaceutical Holdings Ltd.
1.24
0.14
12.73%
HK:2877
China Shineway Pharmaceutical Group Limited
8.28
0.60
7.81%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
7.11
2.28
47.20%

Lee's Pharmaceutical Holdings Limited Corporate Events

Lee’s Pharmaceutical Successfully Passes All AGM Resolutions
May 22, 2025

Lee’s Pharmaceutical Holdings Limited held its Annual General Meeting on May 22, 2025, where all proposed resolutions were passed. Key resolutions included the approval of audited financial statements, declaration of a final dividend, re-election of directors, and granting of mandates for share repurchase and issuance. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic growth.

Lee’s Pharmaceutical Announces AGM and Strategic Resolutions
Apr 23, 2025

Lee’s Pharmaceutical Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 22, 2025, where shareholders will consider several key resolutions. These include the approval of audited financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, the company seeks authorization to repurchase up to 10% of its issued shares, reflecting a strategic move to manage its share capital and potentially enhance shareholder value.

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.Date of analysis: Jun 13, 2025