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YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H (HK:1558)
:1558
Hong Kong Market

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H (1558) AI Stock Analysis

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HK

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H

(1558)

Rating:66Neutral
Price Target:
YiChang HEC ChangJiang Pharmaceutical's overall stock score reflects a mix of strong technical momentum and profitability margins, counterbalanced by financial challenges and valuation concerns. The company's stable balance sheet and upward price trends are positives, but cash flow issues and a high P/E ratio present risks that investors should consider.

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H (1558) vs. iShares MSCI Hong Kong ETF (EWH)

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H Business Overview & Revenue Model

Company DescriptionYiChang HEC ChangJiang Pharmaceutical Co., Ltd. develops, manufactures, and sells pharmaceutical products in the therapeutic areas of anti-virus, endocrine and metabolic diseases, and cardiovascular diseases in the People's Republic of China. It also manufactures and sells active pharmaceutical ingredients; researches and develops medical devices and drugs, as well as biotechnology; and provides medical consulting services. The company sells its products to hospitals and medical institutions through a network of distributors. It has a strategic cooperation framework agreement with Alibaba Health Technology (China) Limited to carry out influenza special projects; Jointown Pharmaceutical Group Co., Ltd.; Guangdong Yihao Pharmaceutical Co., Ltd.; and Shenzhen HEC Industrial Development Co., Ltd, as well as strategic cooperative partnership with China National Accord Medicines Corporation Ltd. The company was formerly known as Yichang Changjiang Pharmaceutical Company Limited and changed its name to YiChang HEC ChangJiang Pharmaceutical Co., Ltd. in May 2015. The company was incorporated in 2001 and is based in Yichang, China. YiChang HEC ChangJiang Pharmaceutical Co., Ltd. is a subsidiary of Guangdong HEC Technology Holding Co., Ltd.
How the Company Makes MoneyYiChang HEC ChangJiang Pharmaceutical Co. Ltd. primarily generates revenue through the production and sale of its pharmaceutical products. The company's revenue streams are diversified across various therapeutic categories, with a significant portion coming from antiviral drugs, which are in high demand due to global health concerns. Additionally, the company benefits from strategic partnerships and distribution agreements that enhance its market reach and product accessibility. Investments in research and development also contribute to its earnings by fostering the creation of new and improved medications, thus expanding its product portfolio and market share.

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H Financial Statement Overview

Summary
YiChang HEC ChangJiang Pharmaceutical exhibits strong profitability margins with a Gross Profit Margin of 75% and Net Profit Margin of 13% for 2024. However, the company faces substantial revenue volatility and operational cash flow challenges. The balance sheet is stable with a strong equity position, though leverage remains a concern due to a high Debt-to-Equity Ratio and decreased Return on Equity.
Income Statement
70
Positive
The company has shown a mixed revenue trend with a significant drop in 2024 compared to 2023. Gross Profit Margin and Net Profit Margin are strong at 75% and 13% respectively for 2024. However, EBIT and EBITDA margins have decreased compared to 2023, indicating operational challenges.
Balance Sheet
65
Positive
The Balance Sheet highlights a strong equity position with an Equity Ratio of 68% in 2024. However, the Debt-to-Equity Ratio is relatively high at 0.26, indicating moderate leverage. Return on Equity has decreased significantly, suggesting efficiency issues in generating returns from equity.
Cash Flow
50
Neutral
The Cash Flow statement reveals challenges, with Operating Cash Flow and Free Cash Flow both reported as zero in 2024. This poses a risk to liquidity and operational stability. Previous years showed better cash flow health, indicating recent operational and financial adjustments.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.72B6.29B3.74B913.79M2.35B
Gross Profit
2.79B4.99B2.85B483.70M2.00B
EBIT
674.47M2.35B322.72M-458.11M833.69M
EBITDA
1.05B2.75B691.48M-206.55M950.24M
Net Income Common Stockholders
482.71M1.99B76.60M-587.65M839.46M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.41B1.69B1.21B1.13B2.04B
Total Assets
12.43B12.74B11.89B10.54B9.56B
Total Debt
2.23B2.61B3.82B3.19B3.01B
Net Debt
831.06M934.91M2.90B2.06B965.69M
Total Liabilities
3.92B4.81B5.82B4.52B4.46B
Stockholders Equity
8.51B7.94B5.88B5.81B4.89B
Cash FlowFree Cash Flow
0.001.08B1.13B-1.02B305.33M
Operating Cash Flow
0.001.67B1.70B-662.51M1.30B
Investing Cash Flow
0.00554.57M-1.12B-439.11M-2.09B
Financing Cash Flow
0.00-1.48B-787.03M187.48M64.63M

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.20
Price Trends
50DMA
12.41
Positive
100DMA
11.07
Positive
200DMA
10.18
Positive
Market Momentum
MACD
0.39
Positive
RSI
56.02
Neutral
STOCH
57.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1558, the sentiment is Positive. The current price of 14.2 is above the 20-day moving average (MA) of 13.87, above the 50-day MA of 12.41, and above the 200-day MA of 10.18, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 57.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1558.

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$12.50B23.905.88%-42.02%-76.29%
54
Neutral
$5.37B3.35-45.10%2.79%16.77%-0.01%
$124.52B6.11
7.57%
$10.87B46.276.14%1.22%
$13.30B19.7313.20%2.55%
$3.41B10.0810.17%0.48%
$4.58B13.2214.56%4.69%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1558
YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H
13.96
4.84
53.07%
PIAIF
Ping An Insurance Company of China
6.08
1.59
35.41%
SBMFF
Sino Biopharmaceutical
0.63
0.28
80.00%
CHJTF
CSPC Pharmaceutical Group
1.01
0.17
20.24%
CHSYF
China Medical System Holdings
0.93
0.06
6.90%
LVZPF
Livzon Pharmaceutical Group
4.09
0.63
18.21%

YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H Corporate Events

YiChang HEC ChangJiang Pharmaceutical Announces 2025 AGM
Apr 28, 2025

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. has announced its 2025 Annual General Meeting (AGM) scheduled for May 29, 2025, in Dongguan, Guangdong Province, China. The AGM will address several resolutions, including the approval of the 2024 annual financial reports and the re-appointment of KPMG as the company’s auditor. This meeting is significant for stakeholders as it will determine the company’s financial and operational strategies for the upcoming year.

YiChang HEC ChangJiang Pharmaceutical’s Proposed Privatization Update
Apr 10, 2025

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. is undergoing a proposed pre-conditional privatization by Sunshine Lake Pharma Co., Ltd. through a merger by absorption. The merger is contingent upon fulfilling several pre-conditions, including obtaining necessary governmental approvals and listing permissions. As of the latest update, the NDRC approval has been obtained, but other approvals and conditions are still pending. The merger’s completion remains uncertain, and stakeholders are advised to stay informed about further announcements regarding the fulfillment of these conditions.

YiChang HEC ChangJiang Pharmaceutical Faces Financial Decline Amidst Strategic Product Expansions
Mar 28, 2025

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. reported a significant decline in financial performance for the year ending December 31, 2024, with a 40.84% decrease in revenue and a 75.78% drop in profit attributable to equity shareholders. Despite these challenges, the company has made strides in expanding its product pipeline, particularly in the chronic disease and new drug sectors. The launch of self-developed insulin products and the approval of innovative drugs like Olorigliflozin and Encofosbuvir Tablets mark significant milestones, enhancing the company’s competitive position in the pharmaceutical industry.

YiChang HEC ChangJiang Pharmaceutical Launches Innovative Hepatitis C Drug
Mar 27, 2025

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced the approval and upcoming launch of its Encofosbuvir Tablets, a Class I innovative drug for treating Hepatitis C. This approval marks a significant milestone for the company, enhancing its competitive edge in the hepatitis C treatment market and reinforcing its position as a leader among innovative pharmaceutical companies in China.

YiChang HEC ChangJiang Pharmaceutical Announces Board Meeting for Annual Results
Mar 18, 2025

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the annual results for the year ending December 31, 2024, and consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial standing and potential shareholder returns, impacting its market position and stakeholder interests.

YiChang HEC ChangJiang Pharmaceutical Advances in Merger Process
Mar 10, 2025

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. is undergoing a proposed pre-conditional privatization through a merger by absorption with Sunshine Lake Pharma Co., Ltd. The merger process involves several pre-conditions, including approvals from various regulatory bodies and shareholder consent. As of the latest update, one of the pre-conditions has been fulfilled, and applications and filings have been made to relevant authorities. The company is awaiting further approvals to proceed with the merger, which could impact its market positioning and stakeholder interests.

Progress Update on YiChang HEC ChangJiang Pharmaceutical’s Proposed Merger
Feb 10, 2025

The recent joint announcement details the progress of the proposed pre-conditional privatization of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. by Sunshine Lake Pharma Co., Ltd. through a merger by absorption. While one of the pre-conditions has been fulfilled, with filings made to the relevant authorities, the merger remains conditional on further approvals and filings, including those from the Stock Exchange and the China Securities Regulatory Commission. Stakeholders are advised that the merger agreement’s effectiveness is still uncertain, pending the fulfillment of these conditions.

YiChang HEC ChangJiang Pharmaceutical Renews Revenue Sharing Agreement with Sunshine Lake Pharma
Feb 7, 2025

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. has renewed its Sharing Agreement with Sunshine Lake Pharma for 2025, allowing the company to receive a percentage of sales revenue from designated pharmaceutical products in both centralized and non-centralized tender businesses. This agreement extends till the end of 2025 and stipulates that Sunshine Lake Pharma will provide a breakdown of revenues and profits, distributing them to YiChang HEC ChangJiang Pharmaceutical after annual audits. The renewal is based on multiple factors, including profit margins and cost-to-revenue ratios, and aims to continue the benefits derived from the sharing arrangement.

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.