PuraPharm Corp. Ltd. (1498) AI Stock Analysis

• Market Cap: HK$192.58M
• Dividend Yield: N/A
• Average Volume (3M): 128.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• 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: 535,897,640
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.33 ▼(-7.22% Downside)

PuraPharm Corp. Ltd. is facing significant financial and technical challenges. The company's declining revenues, persistent net losses, and high leverage pose substantial risks. Technical indicators suggest bearish momentum, and the negative P/E ratio further detracts from its attractiveness. Improvements in cash flow provide a glimmer of hope, but strategic actions are needed for recovery.

Positive Factors

Improved Cash Flow

Growth in free cash flow suggests improved capital management and operational efficiency, enhancing the company's ability to invest in growth opportunities.

Executive Appointment

The appointment of Dr. Tsoi, with extensive experience in Chinese medicine, strengthens leadership and could drive strategic growth and innovation.

Patent Licence Agreement

The patent licence agreement provides exclusive rights to certain intellectual property, potentially enhancing product offerings and competitive edge in the market.

Negative Factors

Profit Warning

The profit warning indicates ongoing financial difficulties, with rising costs and market challenges affecting profitability and long-term sustainability.

High Leverage

High leverage increases financial risk, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Declining Revenue

Continued revenue decline impacts financial stability and limits the company's ability to invest in growth, posing long-term challenges.

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 primarily through the sale of its TCM products, including herbal formulations and dietary supplements. The company's revenue model is based on direct sales to consumers, as well as distribution through pharmacies, healthcare providers, and e-commerce platforms. Key revenue streams include retail sales, wholesale distribution, and potential licensing agreements for its proprietary formulations. Additionally, partnerships with healthcare institutions and collaborations with research organizations enhance its product development capabilities and expand market reach, contributing positively to its earnings.

PuraPharm Corp. Ltd. Financial Statement Overview

Summary

PuraPharm Corp. Ltd. faces significant financial challenges, including declining revenues and persistent net losses. The company's high leverage and declining equity highlight financial risks, while improvements in cash flow offer some optimism for potential recovery.

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: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.36 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.40, and below the 200-day MA of 0.46, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 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
0858	54 Neutral	HK$237.15M	-0.66	-32.04%	―	-11.89%	-290.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$566.12M	-3.00	-40.38%	―	-43.46%	-96.48%
8622	48 Neutral	HK$216.50M	-41.18	-8.71%	―	2.54%	33.33%
1312	46 Neutral	HK$167.36M	-0.46	-41.48%	―	6.55%	-475.22%
1498	41 Neutral	HK$192.58M	-3.74	-33.22%	―	-17.32%	55.74%
1011	41 Neutral	HK$559.62M	-3.21	―	―	―	―

PuraPharm Corp. Ltd. Corporate Events

PuraPharm Announces Board Composition and Roles

PuraPharm Corporation Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement provides clarity on the governance structure of the company, which could impact its strategic direction and reassure stakeholders about its leadership stability.

PuraPharm Completes Key Share Transactions to Enhance Market Position

PuraPharm Corporation Limited announced the completion of a Patent Licence Agreement and a Subscription Agreement, both involving the issuance of new shares. Under the Patent Licence Agreement, 93,488,372 Consideration Shares were issued, representing a significant portion of the company’s share capital. Additionally, the Subscription Agreement led to the subscription of 46,512,000 new shares, further enlarging the company’s share capital. These transactions are expected to impact the company’s financial structure and market positioning.

PuraPharm Appoints Experienced Finance Professional as Non-Executive Director

PuraPharm Corporation Limited has announced the appointment of Mr. Dong Zimeng as a non-executive director effective from October 30, 2025. Mr. Dong brings 17 years of experience in finance, capital market investment, mergers and acquisitions, and corporate operations. His expertise is expected to enhance PuraPharm’s strategic direction and operational efficiency, potentially impacting its market positioning positively. Mr. Dong’s appointment follows a nomination by Providence Discovery Fund, aligning with a subscription agreement that allows the fund to nominate a non-executive director.

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.

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.