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

• Market Cap: HK$1.09B
• Dividend Yield: 2.83%
• Average Volume (3M): 5.40M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.56
• Revenue Growth: 19.80%
• EPS Growth: 55.09%
• Country: HK
• Employees: 1,022
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.11
• Shares Outstanding: 588,835,300
• 10 Day Avg. Volume: 4,101,801
• 30 Day Avg. Volume: 5,400,283
• PEG Ratio: 0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 24.27
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$2.00 ▲(20.48% Upside)

The overall stock score is primarily influenced by the company's solid financial performance and attractive valuation. However, the bearish technical indicators suggest caution in the short term. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Revenue Growth

Consistent revenue growth indicates recovery and expansion in market presence, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling investment in growth opportunities and resilience against economic fluctuations.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial management, reducing risk and enhancing the company's ability to withstand market volatility.

Negative Factors

Profitability Concerns

Low EBIT margin indicates potential inefficiencies, which could hinder profit growth and require strategic focus to improve operational performance.

Moderate Profitability

Moderate return on equity suggests limited profitability, which may impact the company's ability to generate shareholder value in the long term.

Operational Efficiency

While cash conversion is efficient, the ratio indicates potential constraints in operational efficiency, which could affect future growth and profitability.

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 generates revenue primarily through the sale of its pharmaceutical products, which include both proprietary drugs and generic medications. The company has a diversified revenue model that includes direct sales to healthcare providers and institutions, as well as partnerships with other pharmaceutical companies for co-development and distribution of products. Key revenue streams also come from licensing agreements, where Lee's licenses its drug candidates to other firms for further development and commercialization, leading to milestone payments and royalties. Additionally, the company benefits from strategic collaborations and partnerships, which enhance its product pipeline and market reach, contributing significantly to its overall earnings.

Lee's Pharmaceutical Holdings Limited Financial Statement Overview

Summary

Lee's Pharmaceutical Holdings Limited demonstrates a solid financial position with stable revenue growth and strong cash flow generation. The balance sheet reflects low leverage and a strong equity base, while profitability metrics indicate potential for operational improvements. Overall, the company is on a positive trajectory with manageable risks.

Income Statement

The company shows a positive revenue growth rate of 1.29% TTM, indicating a recovery from previous declines. Gross profit margin remains stable at 53.10%, while net profit margin has improved to 6.81% TTM. However, the EBIT margin is relatively low at 9.25%, suggesting room for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio is low at 0.13, reflecting a conservative leverage approach. Return on equity is modest at 5.44% TTM, indicating moderate profitability. The equity ratio stands at 64.86%, showcasing a strong equity position relative to assets.

Cash Flow

The company exhibits strong free cash flow growth of 24.27% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.45, suggesting efficient cash conversion. Free cash flow to net income ratio is high at 0.88, highlighting robust cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.44B	1.40B	1.05B	1.23B	1.27B	1.22B
Gross Profit	762.81M	753.36M	551.31M	770.75M	806.28M	781.07M
EBITDA	263.90M	260.87M	193.05M	229.06M	2.13B	279.43M
Net Income	97.81M	93.10M	16.70M	51.28M	1.99B	129.32M
Balance Sheet
Total Assets	3.00B	2.62B	2.89B	2.78B	3.64B	3.25B
Cash, Cash Equivalents and Short-Term Investments	303.58M	216.84M	171.00M	189.30M	277.53M	414.54M
Total Debt	243.63M	227.30M	204.14M	163.49M	267.14M	156.71M
Total Liabilities	1.17B	1.07B	930.07M	939.50M	1.25B	1.14B
Stockholders Equity	1.94B	1.65B	2.04B	1.92B	2.46B	2.15B
Cash Flow
Free Cash Flow	324.98M	34.45M	-49.63M	69.81M	-160.04M	-139.23M
Operating Cash Flow	367.35M	242.01M	110.08M	283.63M	210.68M	218.91M
Investing Cash Flow	-211.36M	-190.23M	-145.22M	-256.05M	-370.28M	-523.74M
Financing Cash Flow	-35.65M	-1.96M	13.44M	-128.60M	60.97M	-9.80M

Lee's Pharmaceutical Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0950, the sentiment is Negative. The current price of 1.66 is below the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.96, and above the 200-day MA of 1.64, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2877	73 Outperform	HK$6.66B	7.47	10.85%	5.95%	-20.64%	-25.39%
2348	72 Outperform	HK$1.80B	9.47	5.34%	5.08%	2.89%	-68.83%
0719	70 Outperform	HK$9.95B	11.63	7.48%	4.20%	1.65%	-16.38%
0950	64 Neutral	HK$1.09B	11.14	5.35%	2.83%	19.80%	55.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0460	43 Neutral	$12.60B	―	-1.87%	0.81%	19.21%	-115.91%

Lee's Pharmaceutical Holdings Limited Corporate Events

Lee’s Pharmaceutical Advances Pain Management with Inhaled Fentanyl Study

Lee’s Pharmaceutical Holdings Limited is conducting a Phase I clinical study titled ‘A Phase I Clinical Study Evaluating the Safety, Tolerability, and Pharmacokinetics of Inhaled Fentanyl Aerosol (25µg/Dose) in Chinese Patients With Malignant Tumors.’ The study aims to assess the safety and pharmacokinetic profile of inhaled fentanyl aerosol compared to intravenous fentanyl in cancer patients, which could offer a new pain management option.

Lee’s Pharmaceutical Advances AU409 Study in Hepatocellular Carcinoma

Lee’s Pharmaceutical Holdings Limited is conducting a clinical study titled ‘A Phase I, Single-arm, Open-label, Dose-escalation, Safety and Pharmacokinetic Study of AU409 Capsule in Advanced Hepatocellular Carcinoma Patients Who Failed Standard Treatment.’ The study aims to evaluate the safety, tolerability, pharmacokinetics, and preliminary antitumor efficacy of AU409 in patients with advanced hepatocellular carcinoma who have not responded to standard treatments.

Lee’s Pharmaceutical Advances Neonatal Care with New Clinical Study

Lee’s Pharmaceutical Holdings Limited is conducting a Phase IV clinical study titled ‘A Prospective, Open, Single-arm, Multi-center Phase IV Clinical Study of Inhaled Nitric Oxide Combined With Ventilatory Support for the Treatment of Neonatal (Gestational Age ≥34 Weeks) Hypoxic Respiratory Failure With Pulmonary Hypertension.’ The study aims to evaluate the safety of INOmax, a treatment for newborns suffering from hypoxic respiratory failure with pulmonary hypertension, highlighting its potential significance in neonatal care.

Lee’s Pharmaceutical Advances in Cervical Cancer Treatment: A Phase III Study Update

Lee’s Pharmaceutical Holdings Limited is currently conducting a Phase III clinical trial titled ‘Efficacy and Safety of Socazolimab Combined With Chemotherapy With or Without Bevacizumab as First-Line Treatment in Persistent, Recurrent, or Metastatic Cervical Cancer.’ The study aims to assess whether Socazolimab, when combined with chemotherapy and possibly bevacizumab, offers better outcomes for cervical cancer patients compared to a placebo.

Lee’s Pharmaceutical Advances in Glioma Surgery: A Phase III Trial Update

Lee’s Pharmaceutical Holdings Limited is conducting a Phase III clinical trial to evaluate the efficacy of 5-aminolevulinic acid hydrochloride (5-ALA HCl) in fluorescence-guided microsurgery compared to conventional white light microsurgery for patients with malignant gliomas (WHO Grade 3/4). The study aims to improve the precision of tumor resections, potentially enhancing patient outcomes.

Lee’s Pharmaceutical Grants Share Options to Boost Engagement

Lee’s Pharmaceutical Holdings Limited announced the grant of share options to subscribe for 1,764,000 ordinary shares under its Share Option Scheme. This move, effective from October 15, 2025, aims to incentivize eligible participants, with options exercisable in two phases starting from October 2026 and April 2027. The exercise price is set at HK$2.022 per share, reflecting the market conditions, and the total market value of the shares granted is approximately HK$3,492,720. This strategic decision is expected to enhance employee engagement and align their interests with the company’s long-term growth objectives.

The most recent analyst rating on (HK:0950) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Lee’s Pharmaceutical Holdings Limited stock, see the HK:0950 Stock Forecast page.

Lee’s Pharmaceutical Enhances Governance with New Nomination Committee

Lee’s Pharmaceutical Holdings Limited has established a Nomination Committee to enhance its corporate governance structure. The committee’s primary role is to identify and recommend suitable candidates for the company’s board of directors, ensuring a diverse and effective board composition. This initiative is expected to strengthen the company’s leadership and align with applicable laws and regulations, potentially impacting the company’s strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:0950) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Lee’s Pharmaceutical Holdings Limited stock, see the HK:0950 Stock Forecast page.

Lee’s Pharmaceutical Announces Interim Dividend for First Half of 2025

Lee’s Pharmaceutical Holdings Limited announced an interim cash dividend of HKD 0.022 per share for the six months ending 30 June 2025. The ex-dividend date is set for 12 September 2025, with the payment date scheduled for 03 October 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.

The most recent analyst rating on (HK:0950) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Lee’s Pharmaceutical Holdings Limited stock, see the HK:0950 Stock Forecast page.

Lee’s Pharmaceutical Reports Revenue Growth Amid Strategic Product Diversification

Lee’s Pharmaceutical Holdings Limited reported a 5.5% increase in revenue for the first half of 2025, driven by strong sales in its product portfolio, particularly in rare disease and specialty products like Treprostinil Injection and Bredinin. Despite a slight decrease in gross profit margin due to a strategic shift towards a more diversified product portfolio, the company achieved a 2.7% increase in gross profit. This growth reflects the company’s adaptation to market demands and its focus on stabilizing its financial performance amid changing industry dynamics.

The most recent analyst rating on (HK:0950) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Lee’s Pharmaceutical Holdings Limited stock, see the HK:0950 Stock Forecast page.