PuraPharm Corp. Ltd. (1498) AI Stock Analysis

• Market Cap: HK$169.82M
• Dividend Yield: N/A
• Average Volume (3M): 128.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -17.32%
• EPS Growth: 55.74%
• Country: HK
• Employees: 479
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.06
• Shares Outstanding: 395,897,280
• 10 Day Avg. Volume: 96,100
• 30 Day Avg. Volume: 128,800
• PEG Ratio: 0.09
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 2.44
• 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

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(21.95% Upside)

PuraPharm Corp. Ltd. is facing significant financial challenges with declining revenues and persistent net losses, which are the most impactful factors. The technical analysis indicates a bearish trend, and the valuation is poor due to a negative P/E ratio and lack of dividend yield. Improvements in cash flow offer some optimism, but strategic actions are needed for long-term stability.

PuraPharm Corp. Ltd. Business Overview & Revenue Model

Company Description

PuraPharm Corporation Limited, an investment holding company, researches, develops, produces, and sells concentrated Chinese medicine granule (CCMG) and Chinese healthcare products in Hong Kong, Mainland China, and internationally. It operates through five segments: China CCMG, Hong Kong CCMG, Chinese Healthcare Products, Clinics, and Plantation. The company offers over the counter health products under the PuraGold, Haveron, Oncozac, and Immuzac names. It also provides Chinese medicine clinic management system for general clinic management; and operates Chinese medicine clinics under the Nong's name that provide Chinese medicine services and concentrated Chinese medicine granules products. In addition, the company engages in the plantation and trading of raw Chinese herbs; and manufacture and sale of traditional Chinese medicine decoction pieces. Further, it provides modernized Chinese medicine services; and Chinese medical diagnostic services. The company sells its products to hospitals, healthcare institutions, and medicine practitioners, as well as operates an online store. It operates 43 Nong's clinics in Hong Kong and 1 Nong's clinic in Guangxi, China. The company was founded in 1998 and is headquartered in Tai Po, Hong Kong.

How the Company Makes Money

PuraPharm Corp. Ltd. generates revenue through the sale of its proprietary Chinese medicine granules, which are widely used in hospitals and clinics. The company also earns income from its health supplement products, targeting wellness-conscious consumers. Additionally, PuraPharm provides traditional Chinese medicine services through its clinics, offering consultations and treatments that contribute to its revenue streams. Strategic partnerships with healthcare providers and research institutions further bolster its earnings, allowing the company to expand its market reach and enhance product innovation.

PuraPharm Corp. Ltd. Financial Statement Overview

Summary

PuraPharm Corp. Ltd. faces financial challenges with declining revenues and persistent net losses. High leverage and declining equity raise financial risks, despite some recovery in operating efficiency and improved cash flow.

Income Statement

PuraPharm Corp. Ltd. has experienced a declining revenue trend over the past few years, with a notable decrease from 2019 to 2024. The gross profit margin remains relatively stable, although the company has been operating at a net loss, evidenced by negative net profit margins and EBIT margins in recent years. The EBITDA margin has improved in 2024, indicating some recovery in operating efficiency, but overall profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio is high, indicating significant leverage, which poses financial risk. Stockholders' equity has decreased over the years, reflecting a decline in financial stability. However, the equity ratio remains positive, suggesting some level of asset-backed security. The return on equity is negative due to persistent net losses, highlighting the challenges in generating shareholder returns.

Cash Flow

PuraPharm has seen improvements in operating cash flow, with a positive operating cash flow to net income ratio, suggesting that the company is generating cash despite net losses. Free cash flow has grown, indicating effective management of capital expenditures and operational improvements. However, the high level of debt financing remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	346.76M	382.09M	406.86M	448.07M	659.59M	601.82M
Gross Profit	187.00M	205.14M	216.63M	260.59M	421.85M	368.69M
EBITDA	10.45M	17.35M	-26.31M	-46.34M	-40.03M	114.67M
Net Income	-38.56M	-35.44M	-106.08M	-120.21M	-121.88M	31.71M
Balance Sheet
Total Assets	678.76M	715.73M	843.96M	1.02B	1.21B	1.37B
Cash, Cash Equivalents and Short-Term Investments	49.89M	12.79M	47.22M	91.36M	85.05M	126.46M
Total Debt	374.45M	363.76M	424.77M	503.16M	531.96M	524.11M
Total Liabilities	577.10M	604.53M	690.73M	757.18M	803.13M	859.07M
Stockholders Equity	101.66M	111.20M	153.24M	258.29M	401.56M	511.66M
Cash Flow
Free Cash Flow	78.85M	89.18M	57.95M	42.29M	-45.89M	3.84M
Operating Cash Flow	92.78M	103.98M	79.61M	65.85M	-39.33M	86.68M
Investing Cash Flow	-5.66M	-11.71M	-18.20M	-25.45M	6.00M	-92.11M
Financing Cash Flow	-72.29M	-86.43M	-122.39M	-12.94M	-13.87M	-3.61M

PuraPharm Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1498, the sentiment is Negative. The current price of 0.41 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.44, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.90 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1498.

PuraPharm Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8622	―	HK$275.26M	―	-8.71%	―	2.54%	33.33%
1652	―	HK$691.11M	―	-40.38%	―	-43.46%	-96.48%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0858	―	HK$237.15M	1.00	23.02%	―	-6.21%	―
1498	―	HK$169.82M	―	-33.22%	―	-17.32%	55.74%
1011	―	HK$566.37M	-3.33	―	―	―	―
1312	―	HK$167.36M	―	-41.48%	―	6.55%	-475.22%

PuraPharm Corp. Ltd. Corporate Events

PuraPharm Shareholders Approve Key Resolutions at EGM

PuraPharm Corporation Limited announced that during their extraordinary general meeting held on October 24, 2025, shareholders approved two key resolutions. These resolutions included the ratification of a Patent Licence Agreement and the issuance of Consideration Shares to satisfy a HK$40,200,000 licence fee. The unanimous approval of these resolutions is expected to enhance the company’s operational capabilities and strengthen its market position.

The most recent analyst rating on (HK:1498) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on PuraPharm Corp. Ltd. stock, see the HK:1498 Stock Forecast page.

PuraPharm Announces Key Agreements at Upcoming EGM

PuraPharm Corporation Limited has announced an extraordinary general meeting to discuss and approve two major agreements. The first is a Patent Licence Agreement which involves granting an exclusive non-transferable licence of certain intellectual property to PuraPharm, with a one-off non-refundable licence fee of HK$40,200,000. The second is a Subscription Agreement for the issuance of 46,512,000 Subscription Shares at a price of HK$0.43 per share. These agreements are expected to impact the company’s operations and financial positioning.

The most recent analyst rating on (HK:1498) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on PuraPharm Corp. Ltd. stock, see the HK:1498 Stock Forecast page.

PuraPharm Appoints Dr. Hung Ting On as Independent Director

PuraPharm Corporation Limited has announced the appointment of Dr. Hung Ting On, John as an independent non-executive director, chairman of the audit committee, and member of both the remuneration and nomination committees, effective August 29, 2025. Dr. Hung brings over 40 years of experience in audit, accounting, and finance, having held senior positions at Deloitte Asia Pacific. His extensive expertise in financial audits, IPO projects, and risk management is expected to strengthen the company’s governance and compliance with the Hong Kong Stock Exchange listing rules.

The most recent analyst rating on (HK:1498) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on PuraPharm Corp. Ltd. stock, see the HK:1498 Stock Forecast page.

PuraPharm Announces Board Composition and Roles

PuraPharm Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the governance and strategic direction of the company.

The most recent analyst rating on (HK:1498) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on PuraPharm Corp. Ltd. stock, see the HK:1498 Stock Forecast page.

PuraPharm Reports Revenue Decline and Increased Losses in H1 2025

PuraPharm Corporation Limited reported a decline in revenue and an increase in losses for the first half of 2025 compared to the same period in 2024. The company’s revenue decreased by 17% to HK$172,295,000, primarily due to significant drops in the China CCMG and plantation segments. Despite a rise in Chinese healthcare product sales, the overall financial performance was impacted by increased administrative expenses and reduced selling and distribution expenses, leading to a loss of HK$21,806,000 for the period.

The most recent analyst rating on (HK:1498) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on PuraPharm Corp. Ltd. stock, see the HK:1498 Stock Forecast page.

PuraPharm Announces Delay in Circular Dispatch for Key Agreements

PuraPharm Corporation Limited has announced a delay in the dispatch of a circular related to the Patent Licence Agreement and Subscription Agreement. Initially scheduled for release by August 15, 2025, the circular will now be dispatched by October 17, 2025, due to the need for additional time to finalize its contents. This postponement may impact the company’s stakeholders as it involves significant agreements and transactions.

PuraPharm Schedules Board Meeting to Discuss Interim Results and Dividend

PuraPharm Corporation Limited has announced a board meeting scheduled for August 26, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the publication of these results and the potential declaration of an interim dividend, indicating a focus on financial transparency and shareholder returns.