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Livzon Pharmaceutical Group Inc Class H (HK:1513)
:1513

Livzon Pharmaceutical Group (1513) AI Stock Analysis

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HK:1513

Livzon Pharmaceutical Group

(1513)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
HK$32.00
▲(3.43% Upside)
The score is driven mainly by solid financial performance (strong TTM margins and rebounding growth) and attractive valuation (low P/E with a ~4.1% dividend yield). These positives are tempered by weaker technicals (below major moving averages with negative MACD) and some balance-sheet/cash-conversion risk from rising leverage and historically uneven operating cash flow coverage.
Positive Factors
High profit margins
Sustained high gross and net margins indicate strong product economics and pricing power across the portfolio. Persistently healthy margins provide a durable earnings buffer versus cost shocks, support reinvestment in R&D and distribution, and underpin consistent returns on equity.
Rebounding revenue growth
A sharp TTM revenue re-acceleration signals regained commercial momentum and demand for the company’s drugs. If driven by product uptake and improved distribution rather than one-offs, this trend supports scale economies, future margin stability, and a stronger baseline for multi-quarter revenue visibility.
Strong free cash generation
Free cash flow roughly matching net income and robust FCF growth provide durable funding for dividends, capex, and debt reduction. Reliable cash generation strengthens financial flexibility, enabling sustained investment in R&D and manufacturing capacity without overreliance on external financing.
Negative Factors
Rising leverage
An upward drift in leverage reduces balance-sheet flexibility and increases interest-cost sensitivity over time. Higher debt levels limit the company’s ability to absorb demand shocks or fund opportunistic R&D and M&A, and raise refinancing and covenant risk if operating cash flow weakens.
Uneven cash conversion
Low and variable operating cash conversion implies working-capital swings and inconsistent collection or inventory dynamics. Over the medium term this can constrain liquidity, make funding cyclical expenses harder, and increase reliance on short-term financing during growth or seasonal peaks.
Margin volatility
Observed fluctuations in EBITDA and other margins suggest sensitivity to product mix, pricing, or input costs. Persistent margin volatility undermines earnings predictability, complicates long-term planning and forecasting, and may pressure returns if competitive or cost dynamics persist.

Livzon Pharmaceutical Group (1513) vs. iShares MSCI Hong Kong ETF (EWH)

Livzon Pharmaceutical Group Business Overview & Revenue Model

Company DescriptionLivzon Pharmaceutical Group Co., Ltd. (1513) is a leading pharmaceutical company based in China, engaged in the research, development, manufacturing, and distribution of a wide range of pharmaceutical products. The company operates in multiple sectors, including pharmaceuticals, healthcare products, and diagnostic reagents. Livzon is renowned for its core products, which comprise prescription drugs, over-the-counter (OTC) medications, and traditional Chinese medicine (TCM) products, catering to various therapeutic areas such as antibiotics, cardiovascular, gastroenterology, and endocrinology.
How the Company Makes MoneyLivzon Pharmaceutical Group generates revenue primarily through the sale of its diverse pharmaceutical product portfolio. Key revenue streams include domestic and international sales of prescription medications, OTC drugs, and TCM products. The company also invests in research and development to innovate and expand its product offerings, thereby enhancing its revenue potential. Significant partnerships with healthcare providers, research institutions, and distribution networks further amplify its market reach and sales performance. Additionally, Livzon's focus on quality assurance and compliance with global standards strengthens its competitive position, contributing to its earnings.

Livzon Pharmaceutical Group Financial Statement Overview

Summary
Strong TTM profitability (gross margin ~64%, net margin ~18%) and a sharp revenue re-acceleration (+37%) support the score. Offsetting factors include creeping leverage (debt-to-equity ~0.33 vs lower prior years) and historically uneven cash conversion despite solid recent free cash flow (FCF roughly matching net income).
Income Statement
78
Positive
TTM (Trailing-Twelve-Months) results show strong operating profitability with solid gross and net margins (gross margin ~64%, net margin ~18%) and healthy EBIT/EBITDA margins. Revenue growth re-accelerated sharply in TTM (+37%) after modest declines in 2023–2024, and net income has trended upward over the last several years. The main watch-out is some margin variability versus prior periods (e.g., EBITDA margin lower than 2024), suggesting profitability can fluctuate with mix and costs.
Balance Sheet
74
Positive
Leverage remains moderate, with debt-to-equity around 0.33 in TTM (up from ~0.16–0.28 in 2020–2024), indicating increased reliance on debt but not at distressed levels. Equity is sizable relative to assets, and returns on equity are steady in the mid-teens (~15% TTM), pointing to consistent profitability on the capital base. Risk is primarily the upward drift in debt levels versus prior years, which reduces balance-sheet flexibility if operating conditions weaken.
Cash Flow
70
Positive
Cash generation is solid in TTM, with free cash flow roughly matching net income (free cash flow to net income ~1.0) and very strong free cash flow growth (+54%). However, operating cash flow has not consistently covered revenue at a high level (operating cash flow coverage ~0.35–0.40 in recent years and ~0.35 in TTM), implying working-capital swings or cash conversion volatility. Overall, cash flow quality looks good in TTM but has been uneven historically.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.85B11.81B12.43B12.63B12.06B10.52B
Gross Profit7.81B7.73B7.66B8.17B7.81B6.85B
EBITDA3.05B3.47B3.33B3.08B2.77B2.91B
Net Income2.14B2.06B1.95B1.91B1.78B1.71B
Balance Sheet
Total Assets24.54B24.46B25.04B24.86B22.37B20.59B
Cash, Cash Equivalents and Short-Term Investments11.04B10.92B11.41B10.52B9.33B9.98B
Total Debt4.66B3.93B3.48B3.62B2.69B1.93B
Total Liabilities9.17B9.55B10.28B9.93B8.06B6.95B
Stockholders Equity13.96B13.86B14.04B13.88B13.00B12.11B
Cash Flow
Free Cash Flow2.57B2.41B2.43B1.83B593.23M1.51B
Operating Cash Flow2.56B2.98B3.25B2.77B1.90B2.16B
Investing Cash Flow-1.65B-660.33M-708.37M-1.23B-1.88B-467.84M
Financing Cash Flow-2.37B-2.49B-1.66B-720.36M-815.02M-518.04M

Livzon Pharmaceutical Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price30.94
Price Trends
50DMA
30.02
Negative
100DMA
31.92
Negative
200DMA
31.62
Negative
Market Momentum
MACD
-0.07
Negative
RSI
45.05
Neutral
STOCH
66.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1513, the sentiment is Negative. The current price of 30.94 is above the 20-day moving average (MA) of 29.80, above the 50-day MA of 30.02, and below the 200-day MA of 31.62, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 66.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1513.

Livzon 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
73
Outperform
HK$27.76B13.1712.65%3.13%10.56%-13.58%
72
Outperform
HK$31.92B11.3314.91%4.09%-0.45%9.00%
68
Neutral
HK$28.59B9.405.90%2.95%
65
Neutral
HK$34.23B19.1310.01%2.26%11.78%19.06%
64
Neutral
HK$23.48B6.5521.02%5.11%0.39%4.94%
61
Neutral
HK$44.07B9.607.86%7.15%1.13%-13.53%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1513
Livzon Pharmaceutical Group
29.40
4.06
16.04%
HK:3933
The United Laboratories International Holdings
11.90
1.05
9.73%
HK:0867
China Medical System Holdings
14.03
7.16
104.16%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
18.98
2.02
11.93%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.55
-0.51
-10.08%
HK:0512
Grand Pharmaceutical Group Limited
7.82
3.75
92.14%

Livzon Pharmaceutical Group Corporate Events

Livzon’s Psoriasis Biologic Lecankitug Enters China’s Priority Review Channel
Jan 7, 2026

Livzon Pharmaceutical Group’s subsidiary Livzon MABPharm has secured inclusion of its innovative biologic Lecankitug Injection in China’s priority review and approval process for marketing authorization, targeting adult patients with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy. As the first domestically developed and second globally developed dual IL-17A/F inhibitor, Lecankitug demonstrated superior efficacy and a favorable safety profile versus secukinumab in a Phase III trial, underscoring the company’s strengthening position in high-value dermatology biologics and potentially accelerating time-to-market in a large, underserved psoriasis population, though regulatory and competitive uncertainties remain for investors and other stakeholders.

The most recent analyst rating on (HK:1513) stock is a Buy with a HK$32.00 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Trims Stake in Fluffy Buddy Through Connected Deemed Disposal
Dec 30, 2025

Livzon Pharmaceutical Group has agreed to a connected transaction involving a capital increase and equity transfer at its subsidiary Fluffy Buddy, under which Xinyou Maohai will inject RMB15 million into Fluffy Buddy and acquire Joincare’s 49% stake, resulting in Xinyou Maohai holding 52.56% and Livzon’s stake being diluted from 51% to 47.44%. As a result, Fluffy Buddy will cease to be consolidated into Livzon’s financial statements, and the deal is classified under Hong Kong Listing Rules as a deemed disposal and connected transaction subject only to reporting and announcement requirements, indicating a restructuring of Livzon’s exposure to this business without triggering shareholder approval or major disclosure obligations.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Extends Deadline and Launches Tender Offer Plan for Vietnam’s Imexpharm
Dec 30, 2025

Livzon Pharmaceutical Group has amended the terms of its planned acquisition of a controlling stake in Vietnam’s Imexpharm Corporation, extending the deadline for completion to 30 June 2026 and clarifying merger control conditions to ensure regulatory compliance. With all conditions precedent now satisfied, the company’s board has approved an intended public tender offer to all Imexpharm shareholders, lifting the maximum potential consideration to approximately VND6.89 trillion (about RMB1.846 billion). As the deal now triggers a mandatory tender offer under Vietnamese securities rules, it will proceed as a discloseable transaction under Hong Kong Listing Rules without requiring independent shareholder approval, marking a significant step in Livzon’s push to deepen its presence in the Vietnamese pharmaceutical market, subject to final clearance by Vietnamese regulators.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Sets 2026 Caps on Connected Transactions With Livzon MAB
Dec 30, 2025

Livzon Pharmaceutical Group has approved and signed a series of 2026 framework agreements with its connected subsidiary Livzon MAB to govern continuing connected transactions for the year ending 31 December 2026. Under these agreements, the group will supply water, electricity, steam, natural gas and sewage treatment services, lease assets, purchase drugs from Livzon MAB, and provide labour services, with respective annual caps of RMB20 million, RMB35 million, RMB75 million and RMB80.5 million. As Livzon MAB is deemed a connected person through common shareholding by controlling shareholder Joincare, these arrangements fall under continuing connected transactions as defined by Hong Kong Listing Rules, triggering reporting and announcement obligations but remaining exempt from shareholder approval due to their size. The structured caps and formalized contracts underscore the company’s efforts to standardize intra-group dealings, support Livzon MAB’s operations and ensure regulatory compliance, while clarifying the financial scope of related-party transactions for investors and other stakeholders.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Sets 2026 Caps for Connected Transactions With Controlling Shareholder Joincare
Dec 30, 2025

Livzon Pharmaceutical Group has approved a new series of continuing connected transactions with its controlling shareholder Joincare for the 2026 financial year, covering the supply of utilities, mutual provision of labour services, and the sale and purchase of products between the two groups. The parties have signed five framework agreements effective from 1 January to 31 December 2026, with annual caps of RMB36 million for water, electricity, steam, natural gas and sewage treatment, RMB33 million and RMB170 million for the receipt and provision of labour services, and RMB38 million and RMB310 million for product sales and purchases respectively. As the percentage ratios for these transactions fall between 0.1% and 5% under Hong Kong Listing Rules, they are classified as continuing connected transactions requiring public reporting and announcement but are exempt from independent shareholders’ approval, underscoring Livzon’s ongoing operational reliance on related-party arrangements while remaining within regulatory thresholds for such dealings.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon’s Psoriasis Biologic Lecankitug Accepted for Review by China’s NMPA
Dec 24, 2025

Livzon MABPharm has had its marketing authorization application for Lecankitug Injection, a domestically developed Class 1 therapeutic biological product for adult patients with moderate-to-severe plaque psoriasis, formally accepted for review by China’s National Medical Products Administration. Lecankitug is the first domestically developed and second globally developed dual IL-17A/F inhibitor, and Phase III trial results showed superior efficacy and comparable safety versus secukinumab, positioning Livzon to potentially strengthen its competitiveness in China’s psoriasis treatment market and broaden its innovative biologics portfolio if approval is granted.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Wins NMPA Nod to Test NS-041 Tablet for Depression in China
Dec 21, 2025

Livzon Pharmaceutical Group announced that its subsidiary has received approval from China’s National Medical Products Administration to initiate clinical trials of NS-041 Tablet for an additional indication in the treatment of depression. NS-041 is a novel, highly selective KCNQ2/3 agonist and currently the only drug of its class in China cleared for clinical studies in both epilepsy and depression, with a Phase II epilepsy trial already under way. Preclinical data indicate favorable antidepressant effects and high target selectivity without observed ocular toxicity, and Livzon holds exclusive Greater China rights under a 2024 licensing deal with NeuShen Therapeutics. The move underscores Livzon’s push into innovative neuropsychiatric therapies and, given the lack of marketed next-generation KCNQ2/3-targeting drugs in China, could strengthen its competitive position if clinical results prove positive.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Strengthens Board with New Director Appointments
Dec 10, 2025

Livzon Pharmaceutical Group Inc. announced the election of Ms. Wang Zhiyao as an Independent Non-Executive Director and Ms. Ran Yongmei as an Employee Representative Director to its eleventh session of the Board. These appointments strengthen the company’s governance structure, ensuring compliance with regulatory requirements and enhancing representation within the board. The inclusion of Ms. Wang and Ms. Ran is expected to bring diverse perspectives and expertise, potentially impacting the company’s strategic direction and stakeholder engagement positively.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical’s 2025 EGM Resolutions Approved
Dec 10, 2025

Livzon Pharmaceutical Group Inc. announced that all resolutions proposed at its 2025 First Extraordinary General Meeting were approved by shareholders. The meeting saw participation from a significant number of shareholders and proxies, representing over half of the company’s voting shares, indicating strong shareholder engagement and support for the company’s strategic decisions.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Group Announces Board and Committee Positions
Dec 10, 2025

Livzon Pharmaceutical Group Inc. has announced the current positions held by its board of directors and the composition of its board committees. This announcement provides insights into the leadership structure of the company, which could impact its strategic direction and governance. The board includes a mix of executive, non-executive, and independent directors, with various members chairing key committees such as the Audit Committee and the Environmental, Social and Governance Committee. This structure reflects the company’s focus on robust governance and strategic oversight, potentially influencing its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical’s Products Gain Inclusion in 2025 NRDL
Dec 8, 2025

Livzon Pharmaceutical Group announced that 194 of its products have been included in the 2025 National Reimbursement Drug List (NRDL) in China, which is expected to enhance market reach and drug accessibility. This inclusion is anticipated to positively impact the company’s future performance, although it will not materially affect current operations.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Group Adjusts Annual Caps for Connected Transactions with Livzon MAB
Dec 5, 2025

Livzon Pharmaceutical Group has entered into the 2025 Utilities Supplemental Agreement and the 2025 Service Supplemental Agreement with Livzon MAB to adjust the annual caps for connected transactions. The agreements aim to meet Livzon MAB’s operational needs by increasing the maximum amounts for utilities and services provided by the Group. These transactions are subject to reporting requirements under Hong Kong Listing Rules but are exempt from independent shareholders’ approval.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Nominates New Independent Director
Nov 13, 2025

Livzon Pharmaceutical Group has announced the nomination of Ms. Wang Zhiyao as a candidate for the position of independent non-executive director on its board. Ms. Wang has completed the necessary pre-appointment training and obtained the required certification from the Shenzhen Stock Exchange, with her qualifications and independence reviewed and approved without objection. This move is subject to approval at the company’s general meeting, potentially strengthening the board’s expertise and governance.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Announces Key Resolutions for 2025 EGM
Nov 10, 2025

Livzon Pharmaceutical Group Inc. has announced its 2025 first extraordinary general meeting scheduled for December 10, 2025. The meeting will address several key resolutions, including the cancellation of the Supervisory Committee, amendments to the Articles of Association, and the appointment of Ms. Wang Zhiyao as an independent non-executive Director. These changes indicate a strategic shift in the company’s governance structure, potentially impacting its operational efficiency and stakeholder engagement.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

Livzon Pharmaceutical Proposes New Independent Director Appointment
Nov 10, 2025

Livzon Pharmaceutical Group Inc. has proposed the election of Ms. Wang Zhiyao as an independent non-executive director to replace retiring directors Mr. Tian Qiusheng and Mr. Wong Kam Wa. Ms. Wang’s appointment is pending approval at the 2025 extraordinary general meeting and is expected to bring her extensive experience in the pharmaceutical and biotechnology sectors to the company, potentially enhancing its strategic direction and governance.

The most recent analyst rating on (HK:1513) stock is a Sell with a HK$37.23 price target. To see the full list of analyst forecasts on Livzon Pharmaceutical Group stock, see the HK:1513 Stock Forecast page.

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: Jan 22, 2026