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

• Market Cap: HK$830.26M
• Dividend Yield: 3.55%
• Average Volume (3M): 435.17K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.48
• Revenue Growth: 32.95%
• EPS Growth: 456.69%
• Country: HK
• Employees: 1,022
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 588,835,300
• 10 Day Avg. Volume: 286,600
• 30 Day Avg. Volume: 435,166
• PEG Ratio: -0.19
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.75
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• 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 Business Overview & Revenue Model

Company Description

Lee'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 Money

Lee'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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.05B	1.23B	1.27B	1.22B
Gross Profit	753.36M	551.31M	770.75M	806.28M	781.07M
EBITDA	260.87M	193.05M	229.06M	2.13B	279.43M
Net Income	93.10M	16.70M	51.28M	1.99B	78.53M
Balance Sheet
Total Assets	2.62B	2.89B	2.78B	3.64B	3.25B
Cash, Cash Equivalents and Short-Term Investments	216.84M	171.00M	189.30M	277.53M	414.54M
Total Debt	227.30M	204.14M	163.49M	267.14M	156.71M
Total Liabilities	1.07B	930.07M	939.50M	1.25B	1.14B
Stockholders Equity	1.65B	2.04B	1.92B	2.46B	2.15B
Cash Flow
Free Cash Flow	34.45M	-45.89M	69.81M	-160.04M	-139.23M
Operating Cash Flow	242.01M	110.08M	283.63M	210.68M	218.91M
Investing Cash Flow	-192.36M	-145.22M	-256.05M	-370.28M	-523.74M
Financing Cash Flow	-1.96M	13.44M	-128.60M	60.97M	-9.80M

Lee's Pharmaceutical Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0950	67 Neutral	HK$830.26M	8.92	5.04%	3.55%	32.95%	456.69%
Sector *	52 Neutral	$7.53B	0.32	-61.76%	2.28%	16.60%	1.56%
SHPHF		$1.28B	―	-4.93%	2.69%	―	―
2877	74 Outperform	HK$6.25B	6.87	11.61%	9.30%	-18.09%	-15.08%
2348	73 Outperform	HK$1.86B	3.05	18.33%	4.84%	-9.95%	67.56%
0719	70 Outperform	HK$10.16B	10.24	8.89%	3.84%	4.91%	-11.80%
1558	67 Neutral	HK$12.76B	24.41	5.88%	―	-42.02%	-76.29%

Lee's Pharmaceutical Holdings Limited Corporate Events

Lee’s Pharmaceutical Successfully Passes All AGM Resolutions

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

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.