PuraPharm Corp. Ltd. (1498) AI Stock Analysis

• Market Cap: HK$185.62M
• Dividend Yield: N/A
• Average Volume (3M): 54.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -6.09%
• EPS Growth: 66.59%
• Country: HK
• Employees: 479
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.09
• Shares Outstanding: 395,897,280
• 10 Day Avg. Volume: 86,050
• 30 Day Avg. Volume: 54,558
• PEG Ratio: 1.30
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.94
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(4.17%Upside)

The overall stock score is primarily impacted by the company's financial performance challenges, including declining revenue and high leverage. Technical analysis shows a neutral trend with no strong momentum, while valuation concerns are highlighted by the negative P/E ratio.

PuraPharm Corp. Ltd. Business Overview & Revenue Model

Company Description

PuraPharm 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 Money

PuraPharm 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
382.09M	406.86M	448.07M	659.59M	601.82M
	Gross Profit
205.14M	216.63M	260.59M	421.85M	368.69M
	EBIT
-29.41M	-66.05M	-64.50M	17.62M	-4.88M
	EBITDA
17.35M	-26.17M	-46.34M	-40.03M	114.67M
	Net Income Common Stockholders
-35.44M	-106.08M	-120.21M	-121.88M	31.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.79M	47.22M	107.01M	85.05M	126.46M
	Total Assets
715.73M	843.96M	1.02B	1.21B	1.37B
	Total Debt
363.76M	424.77M	503.16M	531.96M	524.11M
	Net Debt
350.96M	404.64M	396.14M	446.90M	397.65M
	Total Liabilities
604.53M	690.73M	757.18M	803.13M	859.07M
	Stockholders Equity
111.20M	153.24M	258.29M	401.56M	511.66M
Cash Flow		Free Cash Flow
89.18M	57.95M	42.29M	-45.89M	3.84M
	Operating Cash Flow
103.98M	79.61M	65.85M	-39.33M	86.68M
	Investing Cash Flow
-11.71M	-18.20M	-25.45M	-3.67M	-82.17M
	Financing Cash Flow
-86.43M	-122.39M	-12.94M	8.77M	29.56M

PuraPharm Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 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 0.48 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.50, and below the 200-day MA of 0.59, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 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
3737	70 Outperform	HK$711.48M	6.88	8.81%	6.47%	5.79%	-43.49%
2607	66 Neutral	$67.05B	9.55	6.08%	2.89%	3.27%	12.87%
1177	66 Neutral	$94.43B	49.76	6.14%	2.17%	7.63%	-24.23%
3320	62 Neutral	HK$33.55B	9.23		6.85%	―	―
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
1498	46 Neutral	HK$185.62M	―	-26.80%	―	-6.09%	66.59%
8080	46 Neutral	HK$127.26M	―	-0.21%	―	-22.84%	-103.13%

PuraPharm Corp. Ltd. Corporate Events

PuraPharm Announces Disposal of Accounts Receivables in HK$15 Million Deal

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

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

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.

PuraPharm Reports Reduced Losses Amid Revenue Decline in 2024

PuraPharm Corporation Limited reported its financial results for the year ending December 31, 2024, showing a revenue decline of 6.1% to HK$382,090,000 compared to the previous year. The company also reduced its net loss by 66.6% to HK$35,439,000, indicating improved financial management despite challenges in the Chinese medicine granule market, particularly in China.

PuraPharm Further Delays Board Meeting for 2024 Results

PuraPharm Corporation Limited has announced a further postponement of its board meeting, originally scheduled to approve the company’s 2024 annual results and consider the payment of a final dividend. This delay, now set for March 31, 2025, indicates additional time is needed to finalize the financial results, which could impact stakeholders’ expectations regarding the company’s financial performance and dividend decisions.

PuraPharm Postpones Board Meeting to Finalize Annual Results

PuraPharm Corporation Limited has announced the postponement of its board meeting originally scheduled for March 27, 2025, to March 28, 2025. The delay is due to the need for additional time to finalize the company’s annual results for the year ended December 31, 2024, which are crucial for considering the approval of annual financial statements and potential dividend payments.

PuraPharm Projects Reduced Losses for FY2024 Amid Cost Control Efforts

PuraPharm Corporation Limited announced an expected net loss of approximately HK$36 million for the fiscal year ending December 31, 2024, a significant improvement from the HK$106.1 million loss in 2023. This reduction is attributed to decreased impairment losses and fair value losses in their plantation segment, alongside successful cost control measures that reduced administrative and selling expenses. The final results are pending and subject to adjustments, with the official announcement expected by the end of March 2025.

PuraPharm Schedules Board Meeting to Approve 2024 Annual Results

PuraPharm Corporation Limited has announced an upcoming board meeting scheduled for March 27, 2025. The meeting will focus on approving the annual results for the year ending December 31, 2024, and considering the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.