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CSPC Pharmaceutical Group Limited (HK:1093)
:1093
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CSPC Pharmaceutical Group (1093) AI Stock Analysis

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HK:1093

CSPC Pharmaceutical Group

(OTC:1093)

Rating:77Outperform
Price Target:
HK$10.00
▼(-10.63% Downside)
CSPC Pharmaceutical Group's strong financial performance, highlighted by impressive revenue growth and profitability, is the primary driver of its stock score. Technical indicators suggest strong momentum, though caution is warranted due to overbought signals. The valuation is reasonable but doesn't stand out, and no recent earnings call or corporate events impact the score.
Positive Factors
Business Development
Two additional large-scale BD deals are expected, each anticipated to exceed US$5 billion in value, indicating strong future revenue potential.
Product Launches
The Company expects incremental sales from newly launched products, which should help partially offset the drag from legacy products.
Research and Development
CSPC's strong research and development capabilities, supported by significant spending, have resulted in a rich pipeline of 40–50 assets with business development potential.
Negative Factors
Oncology Sales
Inventory destocking in oncology products continues, with a sharp fall in oncology revenue mainly due to significant price cuts.
Price Cuts
The significant decline in net profit is attributed to margin erosion caused by large price cuts under the '3+N' Alliance provincial VBP program.
Profit Decline
CSPC released profit warning for FY24, with management expecting net profit to decline by 26% due to weak finished drug sales.

CSPC Pharmaceutical Group (1093) vs. iShares MSCI Hong Kong ETF (EWH)

CSPC Pharmaceutical Group Business Overview & Revenue Model

Company DescriptionCSPC Pharmaceutical Group (1093) is a leading pharmaceutical company based in China, engaged in the development, manufacture, and sale of pharmaceutical products. The company operates across several key sectors, including innovative drug development, generic drugs, and bulk drugs. CSPC focuses on various therapeutic areas such as oncology, cardiovascular, and central nervous system disorders, offering a diverse portfolio of products that cater to both domestic and international markets.
How the Company Makes MoneyCSPC Pharmaceutical Group generates revenue primarily through the sale of its pharmaceutical products across different segments. The innovative drug segment involves the development and commercialization of proprietary medications, typically yielding higher profit margins due to their unique formulations and patent protections. The generic drug segment contributes to revenue by offering more affordable versions of branded drugs, capturing market share through competitive pricing strategies. Additionally, the bulk drug segment involves the production and sale of active pharmaceutical ingredients (APIs) to other pharmaceutical companies, providing essential components for drug manufacturing. CSPC's earnings are further bolstered by strategic partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare organizations, which enhance its research capabilities and expand its market reach.

CSPC Pharmaceutical Group Financial Statement Overview

Summary
CSPC Pharmaceutical Group exhibits strong financial health with impressive revenue growth, profitability, and a solid balance sheet. A slight decline in profitability and cash flow variability indicate areas for improvement.
Income Statement
85
Very Positive
CSPC Pharmaceutical Group has demonstrated strong revenue growth with a 38.1% increase from 2019 to 2023. The company maintains impressive gross and net profit margins, averaging around 70% and 16.5% respectively, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, reflecting healthy operational performance, although there was a slight decline in profitability in the TTM period.
Balance Sheet
80
Positive
The company's balance sheet is solid, with a low debt-to-equity ratio averaging around 0.02, signifying low leverage. The return on equity has been strong, peaking at 19.5% in 2021. The equity ratio remains high, indicating financial stability, although a slight decrease in equity from 2023 suggests a need for monitoring.
Cash Flow
75
Positive
CSPC Pharmaceutical Group shows a mixed cash flow picture. While it has consistently generated positive free cash flow, fluctuations in operating cash flow and capital expenditures suggest variability. The free cash flow to net income ratio supports operational efficiency, but volatile investing and financing activities could imply strategic shifts.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.87B34.60B31.59B33.59B28.03B
Gross Profit21.60B24.40B22.73B25.47B21.00B
EBITDA6.96B8.53B8.66B9.28B8.09B
Net Income4.61B5.87B6.09B5.61B5.16B
Balance Sheet
Total Assets44.39B46.28B41.77B42.50B35.65B
Cash, Cash Equivalents and Short-Term Investments8.60B13.09B13.68B13.87B10.47B
Total Debt507.33M706.90M659.28M115.04M375.51M
Total Liabilities10.52B11.26B11.07B9.37B8.28B
Stockholders Equity32.26B33.20B29.77B31.79B26.48B
Cash Flow
Free Cash Flow1.86B2.29B5.32B3.74B5.91B
Operating Cash Flow4.53B4.18B7.63B4.64B6.74B
Investing Cash Flow-3.86B607.27M-6.80B-637.33M-2.13B
Financing Cash Flow-5.25B-2.30B-1.90B-2.20B-1.47B

CSPC Pharmaceutical Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.19
Price Trends
50DMA
9.52
Positive
100DMA
8.21
Positive
200DMA
6.48
Positive
Market Momentum
MACD
0.36
Negative
RSI
59.72
Neutral
STOCH
80.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1093, the sentiment is Positive. The current price of 11.19 is above the 20-day moving average (MA) of 10.54, above the 50-day MA of 9.52, and above the 200-day MA of 6.48, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 80.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1093.

CSPC Pharmaceutical Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$124.58B29.9811.30%2.32%-18.07%-33.27%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
$19.25B34.9611.72%1.16%
$21.99B143.238.41%
$7.36B7.858.74%3.97%
$18.42B32.849.79%
73
Outperform
HK$214.96B40.8916.09%0.90%8.68%0.82%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1093
CSPC Pharmaceutical Group
11.19
6.71
149.83%
SBMFF
Sino Biopharmaceutical
1.00
0.61
156.41%
IVBXF
Innovent Biologics
13.65
8.33
156.58%
SHTDF
Sinopharm Group Co
2.42
0.38
18.63%
WXIBF
Wuxi Biologics (Cayman)
4.70
3.25
224.14%
HK:3692
Hansoh Pharmaceutical Group Company Limited
37.12
18.71
101.63%

CSPC Pharmaceutical Group Corporate Events

CSPC Innovation Reports Revenue Growth Amidst Profitability Challenges
Aug 15, 2025

CSPC Innovation Pharmaceutical Co., Ltd., a subsidiary of CSPC Pharmaceutical Group, reported its unaudited financial results for the first half of 2025, revealing a 7.99% increase in operating revenue compared to the same period last year. However, the company experienced a net loss attributable to shareholders, highlighting challenges in profitability despite increased revenue. The announcement underscores the importance for stakeholders to exercise caution when dealing in the company’s securities due to the unaudited nature of the financial information.

CSPC Pharmaceutical Group Schedules Board Meeting for Interim Results
Aug 12, 2025

CSPC Pharmaceutical Group Limited has announced a board meeting scheduled for August 22, 2025, to approve the unaudited interim results for the first half of the year. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing its market position.

CSPC Pharmaceutical’s Semaglutide Injection Gains NMPA Approval for Diabetes Treatment
Aug 5, 2025

CSPC Pharmaceutical Group announced that its application for marketing approval of Semaglutide Injection, a treatment for type 2 diabetes, has been accepted by China’s National Medical Products Administration. This product, developed by its subsidiary CSPC Baike, shows significant clinical advantages in glycemic control and safety compared to existing treatments. The company is also conducting trials for its use in treating obesity, indicating a strategic expansion in its product offerings to benefit a broader patient base.

CSPC Pharmaceutical Partners with Madrigal for Global Expansion of Diabetes Drug
Jul 30, 2025

CSPC Pharmaceutical Group has entered into an exclusive license agreement with Madrigal Pharmaceuticals for the global development, manufacturing, and commercialization of its oral small molecule GLP-1 receptor agonist, SYH2086. Under this agreement, CSPC will receive up to $2.075 billion, including an upfront payment and potential milestone payments, while retaining rights to develop similar products in China. This strategic partnership is expected to enhance CSPC’s market positioning in the pharmaceutical industry, particularly in the diabetes and obesity treatment sectors.

CSPC Pharmaceutical’s Mesalazine Tablets Gain Approval in China
Jul 4, 2025

CSPC Pharmaceutical Group Limited has announced that its Mesalazine Enteric-Coated Tablets have received drug registration approval from China’s National Medical Products Administration. This product, used for treating ulcerative colitis and Crohn’s disease, enriches the company’s offerings in immune system therapeutics and highlights its commitment to providing effective anti-inflammatory treatments.

CSPC Pharmaceutical Gains Approval for MMA Treatment Trials in China
Jul 3, 2025

CSPC Pharmaceutical Group has received approval from China’s National Medical Products Administration to conduct clinical trials for its high-concentration hydroxocobalamin hydrochloride injection, aimed at treating methylmalonic acidemia (MMA). This approval marks the first hydroxocobalamin injection approved in China for MMA, addressing a significant unmet medical need and potentially offering a new treatment option for patients with this rare metabolic disorder.

CSPC Pharmaceutical Group Enhances Nomination Committee with New Appointment
Jun 27, 2025

CSPC Pharmaceutical Group Limited has announced a change in the composition of its Nomination Committee with the appointment of Ms. LI Quan as a member, effective June 27, 2025. This strategic move is expected to enhance the company’s governance structure and potentially influence its decision-making processes, reflecting its commitment to strengthening leadership and oversight.

CSPC Pharmaceutical Group Announces Board Composition
Jun 27, 2025

CSPC Pharmaceutical Group Limited has announced the composition of its board of directors, including both executive and independent non-executive directors. This announcement provides clarity on the roles and functions of the board members, which is crucial for stakeholders to understand the company’s governance structure.

CSPC Pharmaceutical Group Updates Nomination Committee Terms
Jun 27, 2025

CSPC Pharmaceutical Group Limited has updated the terms of reference for its Nomination Committee, which is responsible for reviewing the board’s structure and diversity, identifying and recommending director candidates, and assessing the independence of non-executive directors. This move aims to enhance the company’s governance and ensure alignment with its corporate strategy, potentially impacting its operational efficiency and stakeholder confidence.

CSPC Pharmaceutical Group Renews Lease Agreements Amid Regulatory Compliance
Jun 24, 2025

CSPC Pharmaceutical Group Limited has announced the signing of new lease agreements as the previous ones are set to expire in June 2025. The new agreements involve several subsidiaries of the company and are structured as connected transactions under Hong Kong’s Listing Rules. These agreements, which extend the leases for various premises for three years, are subject to certain reporting and announcement requirements, reflecting the company’s ongoing operational adjustments and compliance with regulatory standards.

CSPC Pharmaceutical’s Meloxicam Injection Approved in China
Jun 23, 2025

CSPC Pharmaceutical Group has announced that its Meloxicam Injection (Ⅲ), a nanocrystal product for intravenous administration, has received drug registration approval in China. This approval marks a significant advancement in the company’s product portfolio, enhancing its position in the analgesic treatment market and demonstrating a breakthrough in nanomedicine research.

CSPC Pharmaceutical Group Partners with AstraZeneca for AI-Driven Drug Discovery
Jun 13, 2025

CSPC Pharmaceutical Group has entered into a strategic research collaboration with AstraZeneca to discover and develop novel oral small molecule candidates using CSPC’s AI-driven drug discovery platform. This agreement allows AstraZeneca to potentially license these candidates for global development and commercialization, with CSPC receiving significant upfront and milestone payments, as well as potential royalties, indicating a substantial impact on CSPC’s operations and industry positioning.

CSPC Pharmaceutical Gains U.S. FDA Approval for Cancer Drug Trial
Jun 10, 2025

CSPC Pharmaceutical Group has received approval from the U.S. FDA to conduct clinical trials for its new antibody-drug conjugate, SYS6040, targeting advanced solid tumors. This development signifies a significant step in the company’s expansion into the U.S. market, potentially enhancing its competitive position in oncology therapeutics.

CSPC Pharmaceutical’s Cobamamide Capsules Gain Approval in China
Jun 5, 2025

CSPC Pharmaceutical Group Limited has announced that its Cobamamide Capsules have received drug registration approval from the National Medical Products Administration of China. This approval enhances the company’s product portfolio in the therapeutic areas of hematology and neurology, potentially strengthening its market position and offering new treatment options for various types of anemia and nerve-related conditions.

CSPC’s JMT101 Receives Breakthrough Therapy Designation in China
Jun 2, 2025

CSPC Pharmaceutical Group announced that its drug JMT101 has been granted Breakthrough Therapy Designation in China for treating advanced colorectal cancer. This designation, based on promising phase II clinical trial results, highlights JMT101’s potential to improve treatment outcomes for patients who have failed standard therapies, positioning it as a potential new standard for later-line colorectal cancer treatment.

CSPC Pharmaceutical Group’s AGM Resolutions Passed Successfully
May 30, 2025

CSPC Pharmaceutical Group Limited announced the successful passing of all resolutions at its Annual General Meeting held on May 30, 2025. Key resolutions included the approval of financial statements for 2024, the declaration of a final dividend, re-election of directors, and the granting of mandates for share buy-backs and issuance. These resolutions reflect the company’s strategic direction and commitment to shareholder value, potentially impacting its market positioning and stakeholder confidence.

CSPC Pharmaceutical Group in Talks for Major Licensing Deals
May 30, 2025

CSPC Pharmaceutical Group has announced ongoing negotiations for three potential license and collaboration transactions aimed at the development and commercialization of its pharmaceutical products, including EGFR-ADC. These transactions could bring in approximately US$5 billion in aggregate payments, with one deal expected to be finalized by June 2025, potentially impacting the company’s market positioning and financial outlook.

CSPC Pharmaceutical Group Reports Decline in Q1 2025 Results Amid Industry Challenges
May 29, 2025

CSPC Pharmaceutical Group reported a significant decline in its quarterly financial results for the three months ended March 31, 2025. The company’s total revenue decreased by 21.9% compared to the previous year, primarily due to a 27.3% drop in finished drug sales, impacted by industry policies such as centralized procurement and drug price adjustments. Despite this, the bulk products segment saw a 14.6% revenue increase, driven by higher demand and prices for vitamin C products. The company has been actively promoting product internationalization and out-licensing initiatives, which have contributed to a rise in license fee income, partially offsetting the decline in drug sales and providing potential future growth.

CSPC Pharmaceutical’s JMT106 Gains Clinical Trial Approval in China
May 19, 2025

CSPC Pharmaceutical Group Limited has announced that its bispecific fusion protein drug, JMT106, has received approval from the National Medical Products Administration of China to conduct clinical trials for advanced solid tumors. This approval, alongside a similar approval from the U.S. FDA, highlights the drug’s potential in treating various cancers, including hepatocellular carcinoma and ovarian cancer, and signifies a promising step in the company’s clinical development efforts.

CSPC’s CPO301 Receives Third FDA Fast Track Designation
May 19, 2025

CSPC Pharmaceutical Group announced that its drug CPO301 has received the third Fast Track designation from the U.S. FDA for treating advanced non-small cell lung cancer (NSCLC) without EGFR mutations. This designation highlights the drug’s promising clinical efficacy and is expected to expedite its development and registration globally, potentially enhancing CSPC’s position in the oncology market.

CSPC Pharmaceutical Group Schedules Board Meeting for Quarterly Results
May 19, 2025

CSPC Pharmaceutical Group Limited has announced a board meeting scheduled for May 29, 2025, to approve the unaudited first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance for the first quarter of 2025, which could impact its market positioning and stakeholder confidence.

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: Jul 18, 2025