Fusen Pharmaceutical Co., Ltd. (1652) AI Stock Analysis

• Market Cap: HK$558.77M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -43.46%
• EPS Growth: -96.48%
• Country: HK
• Employees: 1,131
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.03
• Shares Outstanding: 739,301,000
• 10 Day Avg. Volume: 642,000
• 30 Day Avg. Volume: 1,233,253
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 9.68
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$1.00 ▲(31.58% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues, profitability issues, and liquidity risks. While technical indicators show some positive trends, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation, resulting in a low overall score.

Positive Factors

Diverse Product Portfolio

A diverse product portfolio across key therapeutic areas can help mitigate risks associated with market fluctuations and enhance long-term growth potential.

Strategic Partnerships

Strategic partnerships and licensing agreements can provide additional revenue streams and enhance innovation, supporting sustainable growth.

Innovation Focus

A focus on innovation and pipeline expansion positions Fusen to capture new market opportunities and drive long-term competitive advantage.

Negative Factors

Declining Revenues

Declining revenues indicate potential market share loss or reduced demand, which can impact long-term financial health and growth prospects.

Liquidity Challenges

Severe liquidity challenges can limit the company's ability to invest in growth initiatives and meet financial obligations, affecting long-term viability.

Profitability Issues

Negative profitability margins suggest operational inefficiencies or pricing pressures, which can hinder sustainable growth and financial stability.

Fusen Pharmaceutical Co., Ltd. Business Overview & Revenue Model

Company Description

Fusen Pharmaceutical Co., Ltd. (1652) is a leading pharmaceutical company based in Taiwan, specializing in the research, development, manufacturing, and marketing of innovative pharmaceutical products. The company primarily operates in the sectors of prescription drugs, over-the-counter medications, and health supplements. Fusen focuses on a diverse portfolio of therapeutic areas, including oncology, cardiology, and infectious diseases, contributing to improved healthcare outcomes.

How the Company Makes Money

Fusen Pharmaceutical generates revenue through multiple key streams, including the sale of prescription medications and over-the-counter products. The company profits from its proprietary drug formulations, which are marketed through a combination of direct sales and partnerships with healthcare providers and distributors. Additionally, Fusen engages in research collaborations and licensing agreements with other pharmaceutical firms, which provide upfront payments and royalties based on sales of co-developed products. The company's strategic focus on innovation and expanding its product pipeline also enhances its market position and capability to drive revenue growth.

Fusen Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Fusen Pharmaceutical Co., Ltd. faces significant financial challenges across all verticals. The income statement reflects declining revenues and profitability, while the balance sheet shows increased leverage and reduced equity. Cash flow issues are particularly concerning, with negative or zero free cash flow in recent years, indicating potential liquidity risks.

Income Statement

The company's income statement shows a troubling trend with declining revenues from 2023 to 2024 and negative net income for both years. Gross profit margin deteriorated significantly from 2023 to 2024, reflecting inefficiencies or pricing pressures. The EBIT margin turned negative in 2024, indicating operational challenges. The revenue growth rate was negative, suggesting a contraction phase.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of approximately 1.04 in 2024. The equity ratio is stable, but stockholders' equity decreased over the period, indicating potential financial strain. Return on equity was negative in 2024, further signaling profitability issues.

Cash Flow

The cash flow analysis highlights severe liquidity challenges with zero free cash flow in 2024 and negative operating cash flow in 2023. The free cash flow growth rate is not calculable due to zero cash flow in 2024, and the operating cash flow to net income ratio is also indeterminate, underscoring cash generation issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	326.03M	565.61M	491.76M	385.66M	486.85M
Gross Profit	162.64M	299.51M	225.02M	211.13M	266.07M
EBITDA	-39.07M	18.93M	49.90M	55.82M	110.30M
Net Income	-188.78M	-36.28M	-34.65M	16.64M	70.13M
Balance Sheet
Total Assets	1.24B	1.34B	1.35B	1.24B	1.24B
Cash, Cash Equivalents and Short-Term Investments	21.06M	34.85M	128.11M	81.70M	312.53M
Total Debt	383.69M	344.12M	228.38M	240.69M	198.50M
Total Liabilities	869.80M	781.52M	737.38M	582.39M	583.10M
Stockholders Equity	369.67M	563.52M	614.17M	658.17M	659.44M
Cash Flow
Free Cash Flow	57.43M	-161.84M	86.63M	-62.37M	94.56M
Operating Cash Flow	133.73M	-73.33M	110.49M	47.77M	153.21M
Investing Cash Flow	-163.42M	-108.32M	-13.13M	-282.98M	-68.20M
Financing Cash Flow	15.99M	88.50M	-51.77M	20.53M	-116.33M

Fusen Pharmaceutical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1652, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.78, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1652.

Fusen Pharmaceutical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3737	61 Neutral	HK$482.79M	21.67	1.87%	8.77%	-1.99%	-81.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$558.77M	-2.96	-40.38%	―	-43.46%	-96.48%
8622	48 Neutral	HK$216.50M	-41.18	-8.71%	―	2.54%	33.33%
0455	41 Neutral	HK$245.10M	-3.64	-13.08%	―	-19.28%	-42.27%
1498	41 Neutral	HK$195.25M	-3.74	-33.22%	―	-17.32%	55.74%
1011	41 Neutral	HK$559.62M	-3.29	―	―	―	―

Fusen Pharmaceutical Co., Ltd. Corporate Events

Fusen Pharmaceutical’s New Hypertension Drug Gains Approval in China

Fusen Pharmaceutical Co., Ltd. announced that its subsidiary, Jiaheng Pharmaceutical Technology, has received approval from the National Medical Products Administration of the PRC to market ‘Measartan Potassium Tablets’ for treating primary hypertension. This product, containing azilsartan medoxomil potassium, enhances the company’s portfolio in the blood circulatory system field, offering a new treatment option for hypertension with significant and stable effects, and aligns with the company’s strategy to strengthen its market position in the antihypertensive drug sector.

Fusen Pharmaceutical’s Enzalutamide Soft Capsule Approved for Prostate Cancer Treatment in China

Fusen Pharmaceutical Co., Ltd. announced the approval of its ‘Enzalutamide Soft Capsule’ for marketing in China, targeting non-metastatic and metastatic castration-resistant prostate cancer. This product, developed by its subsidiary Jiaheng Pharmaceutical Technology, aligns with international standards and offers a favorable risk-benefit ratio for patients, enhancing the company’s therapeutic offerings and potentially strengthening its market position in prostate cancer treatment.

Fusen Pharmaceutical’s Product Selected in National Procurement

Fusen Pharmaceutical Co., Ltd. announced that its Metformin Empagliflozin Tablets were selected in the eleventh batch of China’s National Centralised Medicines Procurement. This selection is a significant development for the company, potentially enhancing its market position and offering growth opportunities in the Chinese pharmaceutical market.

Fusen Pharmaceutical Announces Disposal of Equity Interests

Fusen Pharmaceutical Co., Ltd. announced a supplemental disclosure regarding the disposal of its entire equity interests in Henan Fusen Intelligent Energy Conservation Technology Co., Ltd. The consideration for this transaction was determined through negotiations based on the appraised net asset value of approximately RMB73.4 million. The valuation, conducted by an independent valuer, utilized the asset approach due to the target company’s short operational history, making other valuation methods less reliable.

Fusen Pharmaceutical Announces Board Composition and Committee Roles

Fusen Pharmaceutical Company Limited has announced the composition of its board of directors and their respective roles, highlighting the leadership structure within the company. The announcement details the membership of three board committees, which are crucial for the company’s governance and operational oversight, potentially impacting its strategic direction and stakeholder engagement.

Fusen Pharmaceutical Announces Board Restructuring

Fusen Pharmaceutical Co., Ltd. has announced significant changes in its board composition effective from September 30, 2025. Mr. Sze Wing Chun has resigned as an independent non-executive director and chairman of the Audit Committee, while Mr. Yu Ho Ming has been appointed as an independent non-executive director and a member of the Audit Committee. Additionally, Mr. Lee Kwok Tung Louis has been appointed as the chairman of the Audit Committee. These changes are expected to bring new expertise and perspectives to the company’s governance, potentially impacting its strategic direction and stakeholder relations.

Fusen Pharmaceutical Announces Strategic Disposal of Subsidiary

Fusen Pharmaceutical Co., Ltd. has announced a discloseable transaction involving the sale of its entire equity interests in Henan Fusen Intelligent Energy Conservation Technology Company Limited. The transaction is valued at RMB73.0 million and involves a conditional agreement with a purchaser owned by state and local government authorities in China. This strategic move is part of Fusen Pharmaceutical’s efforts to streamline its operations and focus on its core business areas. The disposal is subject to certain conditions and regulatory requirements, and stakeholders are advised to exercise caution.

Fusen Pharmaceutical Gains Approval for New Diabetes Treatment

Fusen Pharmaceutical Co., Ltd. has announced the approval of its ‘Metformin Empagliflozin Tablets (I)’ by the National Medical Products Administration of China for the treatment of type 2 diabetes. This new product, which combines Metformin and Empagliflozin, is expected to enhance the company’s product pipeline in diabetes care, offering a synergistic hypoglycemic effect and better patient tolerance. The approval aligns with China’s national health goals, potentially increasing demand for diabetes medications and strengthening Fusen’s market position in the industry.