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PuraPharm Corp. Ltd. (HK:1498)
:1498
Hong Kong Market

PuraPharm Corp. Ltd. (1498) AI Stock Analysis

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HK

PuraPharm Corp. Ltd.

(1498)

Rating:45Neutral
Price Target:
HK$0.50
▲(4.17%Upside)
The primary challenges for PuraPharm Corp. Ltd. are its declining financial performance and negative valuation metrics. Despite some positive cash flow developments, the stock's technical indicators suggest bearish momentum. The lack of dividend yield and negative earnings further weigh down its attractiveness.

PuraPharm Corp. Ltd. (1498) vs. iShares MSCI Hong Kong ETF (EWH)

PuraPharm Corp. Ltd. Business Overview & Revenue Model

Company DescriptionPuraPharm Corp. Ltd. (1498) is a Hong Kong-based company specializing in the research, development, manufacturing, and sale of traditional Chinese medicine (TCM) products. It operates across several sectors including healthcare, pharmaceuticals, and wellness, with a core focus on providing high-quality TCM solutions. The company markets a range of products under its proprietary brand, concentrating on various health needs and conditions.
How the Company Makes MoneyPuraPharm Corp. Ltd. generates revenue primarily through the sale of its TCM products, which are distributed through an extensive network of retail pharmacies, healthcare institutions, and international markets. The company's key revenue streams include its proprietary Chinese medicine products, particularly its Concentrated Chinese Medicine Granules (CCMG), which are widely used in both clinical and personal health settings. PuraPharm also benefits from strategic partnerships with medical institutions and healthcare providers, enhancing its market reach and product adoption. Additionally, the company invests in research and development to innovate and expand its product offerings, which contributes to sustaining its revenue growth.

PuraPharm Corp. Ltd. Financial Statement Overview

Summary
PuraPharm Corp. Ltd. faces significant financial challenges, with declining revenues and persistent net losses. The high leverage and declining equity suggest financial risks, though there are improvements in cash flow indicating some potential for recovery.
Income Statement
38
Negative
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
42
Neutral
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue382.09M406.86M448.07M659.59M601.82M
Gross Profit205.14M216.63M260.59M421.85M368.69M
EBITDA17.35M-26.17M-46.34M-40.03M114.67M
Net Income-35.44M-106.08M-120.21M-121.88M31.71M
Balance Sheet
Total Assets715.73M843.96M1.02B1.21B1.37B
Cash, Cash Equivalents and Short-Term Investments12.79M47.22M107.01M85.05M126.46M
Total Debt363.76M424.77M503.16M531.96M524.11M
Total Liabilities604.53M690.73M757.18M803.13M859.07M
Stockholders Equity111.20M153.24M258.29M401.56M511.66M
Cash Flow
Free Cash Flow89.18M57.95M42.29M-45.89M3.84M
Operating Cash Flow103.98M79.61M65.85M-39.33M86.68M
Investing Cash Flow-11.71M-18.20M-25.45M-3.67M-82.17M
Financing Cash Flow-86.43M-122.39M-12.94M8.77M29.56M

PuraPharm Corp. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.48
Price Trends
50DMA
0.49
Negative
100DMA
0.51
Negative
200DMA
0.57
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
48.53
Neutral
STOCH
56.67
Neutral
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 0.48 is above the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.49, and below the 200-day MA of 0.57, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
HK$185.17M-7.93%1.13%38.41%
52
Neutral
$7.45B0.27-61.87%2.30%16.62%1.04%
50
Neutral
HK$195.98M0.8723.02%-12.93%
49
Neutral
HK$279.38M-40.39%-43.73%-434.56%
48
Neutral
HK$293.30M
45
Neutral
HK$189.57M-26.80%-6.09%66.59%
36
Underperform
HK$161.78M-7.42%10.93%-159.62%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1498
PuraPharm Corp. Ltd.
0.48
-0.25
-34.25%
HK:8622
Huakang Biomedical Holdings Company Limited
0.38
0.27
245.45%
HK:1652
Fusen Pharmaceutical Co., Ltd.
0.38
-0.67
-63.81%
HK:1312
Kontafarma China Holdings Ltd
0.03
-0.01
-25.00%
HK:1011
China NT Pharma Group Co., Ltd.
0.46
0.11
31.43%
HK:0858
Extrawell Pharmaceutical Holdings Limited
0.08
0.04
100.00%

PuraPharm Corp. Ltd. Corporate Events

PuraPharm Faces Compliance Challenges After Director Resignation
Jul 4, 2025

PuraPharm Corporation Limited announced the resignation of Mr. Ho Kwok Wah, George from his roles as an independent non-executive director and chairman of the audit committee, among other positions, effective July 4, 2025. His departure is due to personal and business commitments, and he has no disagreements with the board. This resignation results in the company not complying with several Hong Kong Stock Exchange listing rules, including the requirement for a minimum number of independent non-executive directors and specific committee compositions.

PuraPharm Announces Board of Directors and Roles
Jul 4, 2025

PuraPharm Corporation Limited has announced the composition of its board of directors and their respective roles within the company. This announcement highlights the leadership structure and committee memberships, which are crucial for the company’s governance and strategic decision-making processes.

PuraPharm Announces Lapse of Disposal Agreement
Jun 30, 2025

PuraPharm Corporation Limited, a company listed on the Hong Kong Stock Exchange, announced the lapse of a disposal agreement related to its accounts receivables. The agreement was not completed due to the short timeframe before the receivables matured, leading to a mutual decision between the seller and purchaser to not proceed. The company stated that this lapse will not have a material impact on its financial position or business operations.

PuraPharm Appoints Dr. Kam Biu Tsoi as Executive Director
Jun 30, 2025

PuraPharm Corporation Limited has announced the appointment of Dr. Kam Biu Tsoi as an executive director effective June 30, 2025. Dr. Tsoi, who has over 40 years of experience in sales management and Chinese medicine, will also join the company’s nomination committee. His appointment is expected to strengthen the company’s leadership in the Chinese medicine sector, given his extensive background and previous association with the company.

PuraPharm Announces Board Composition and Roles
Jun 30, 2025

PuraPharm Corporation Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement is significant for stakeholders as it outlines the leadership structure and committee memberships, which are crucial for the company’s governance and strategic direction.

PuraPharm Updates Nomination Committee Terms to Enhance Governance
Jun 30, 2025

PuraPharm Corporation Limited has revised the terms of reference for its Nomination Committee, emphasizing the inclusion of independent non-executive directors and gender diversity among its members. The committee is responsible for overseeing the nomination process, with meetings held at least once a year and resolutions requiring a majority vote to pass. This update reflects the company’s commitment to governance and diversity, potentially enhancing its operational effectiveness and stakeholder confidence.

PuraPharm Announces Disposal of Accounts Receivables in HK$15 Million Deal
Jun 10, 2025

PuraPharm Corporation Limited announced a discloseable transaction involving the disposal of accounts receivables by its indirect wholly owned subsidiary, Nong’s Company Limited, to Intrabase Financial Services Limited for HK$15,000,000. This transaction, which falls under the Listing Rules due to its applicable percentage ratios, is expected to impact the company’s financials by potentially altering its cash flow and balance sheet. The agreement includes provisions for adjustments based on the actual collection of the receivables, with the company guaranteeing the seller’s obligations.

PuraPharm Corporation Announces Successful AGM Resolutions
May 27, 2025

PuraPharm Corporation Limited announced the successful passing of all proposed resolutions at its annual general meeting held on May 27, 2025. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of the auditor, and granting of mandates to buy back and issue shares. These decisions, unanimously supported by shareholders, reflect strong confidence in the company’s governance and strategic direction.

PuraPharm Announces 2025 Annual General Meeting Agenda
Apr 29, 2025

PuraPharm Corporation Limited has announced its upcoming Annual General Meeting scheduled for May 27, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, re-appointment of the auditor, and a proposal for a share buyback mandate. These resolutions aim to strengthen corporate governance and potentially enhance shareholder value.

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 05, 2025