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

• Market Cap: HK$246.30M
• Dividend Yield: N/A
• Average Volume (3M): 328.79K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• Revenue Growth: -43.73%
• EPS Growth: -434.17%
• Country: HK
• Employees: 1,131
• Sector: Healthcare
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.28
• Shares Outstanding: 739,301,000
• 10 Day Avg. Volume: 95,300
• 30 Day Avg. Volume: 328,786
• PEG Ratio: -1.16
• Price to Book (P/B): 5.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.07
• 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: 39 Underperform
• Price Target: ―

Fusen Pharmaceutical Co., Ltd. has a low overall stock score, primarily due to significant financial challenges and weak technical indicators. The company's declining revenues, increased leverage, and severe cash flow issues pose substantial risks. Additionally, the bearish technical analysis and poor valuation metrics further detract from the stock's appeal. The company needs to address these operational and financial difficulties to enhance its stock performance.

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

Company Description

Fusen Pharmaceutical Co., Ltd. is a China-based company engaged in the development, manufacture, and sale of pharmaceuticals. The company operates within the pharmaceutical sector, with a focus on producing a range of medical products including traditional Chinese medicines, chemical drugs, and active pharmaceutical ingredients (APIs). Fusen Pharmaceutical is committed to innovation and quality, serving both domestic and international markets with its diverse product offerings.

How the Company Makes Money

Fusen Pharmaceutical Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company capitalizes on its product portfolio, which includes traditional Chinese medicines, chemical drugs, and APIs, catering to both domestic and international markets. Revenue streams are largely driven by the demand for these medical products in healthcare institutions, pharmacies, and direct sales to consumers. The company may also engage in partnerships or collaborations with other pharmaceutical entities to enhance its distribution network and product offerings, contributing to its earnings. Additionally, Fusen Pharmaceutical might benefit from government contracts or subsidies that support the pharmaceutical industry.

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. The company must address these operational and financial challenges to stabilize and improve its financial health.

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
	EBIT
-67.51M	20.02M	15.74M	52.14M	103.22M
	EBITDA
-39.07M	18.93M	49.90M	86.84M	110.30M
	Net Income Common Stockholders
-188.78M	-36.28M	-34.65M	16.64M	70.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.06M	34.85M	128.11M	81.70M	312.53M
	Total Assets
1.24B	1.34B	1.35B	1.24B	1.24B
	Total Debt
383.69M	344.12M	228.38M	240.69M	198.50M
	Net Debt
362.64M	309.27M	100.28M	159.63M	-98.54M
	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
0.00	-161.84M	86.63M	-62.37M	94.56M
	Operating Cash Flow
0.00	-73.33M	110.49M	47.77M	153.21M
	Investing Cash Flow
0.00	-108.32M	-13.13M	-282.98M	-68.20M
	Financing Cash Flow
0.00	88.50M	-51.77M	20.53M	-116.33M

Fusen Pharmaceutical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 0.34 is below the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.30, and below the 200-day MA of 0.64, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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
1093	76 Outperform	$101.65B	22.11	13.20%	2.55%	-9.60%	-27.18%
1513	74 Outperform	$34.08B	12.80	14.56%	3.79%	-5.37%	6.28%
2318	72 Outperform	$991.98B	6.84		7.49%	11.71%	37.04%
1177	66 Neutral	$98.90B	52.12	6.14%	2.17%	7.63%	-24.23%
2196	65 Neutral	HK$69.10B	15.08	6.22%	1.77%	-2.82%	11.93%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
1652	39 Underperform	HK$246.30M	―	-40.39%	―	-43.73%	-434.17%

Fusen Pharmaceutical Co., Ltd. Corporate Events

Fusen Pharmaceutical Announces AGM and Special Resolution on Share Management

Fusen Pharmaceutical Co., Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for May 29, 2025, in Hong Kong. The meeting will address standard business matters such as the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be considered to authorize the company’s directors to manage share allotments and transfers, potentially impacting the company’s capital structure and shareholder value.

Fusen Pharmaceutical Reports Significant Financial Decline in 2024

Fusen Pharmaceutical Co., Ltd. reported a significant decline in its financial performance for the year ended December 31, 2024, with revenue dropping by 42.4% to approximately RMB326.0 million and a substantial increase in net loss attributable to equity shareholders to approximately RMB188.8 million. The company’s gross profit margin also decreased to 49.9%, and the board decided not to recommend any final dividend for the year, reflecting the challenging market conditions and operational difficulties faced by the company.

Fusen Pharmaceutical Postpones Board Meeting to Finalize Annual Results

Fusen Pharmaceutical Company Limited, a company incorporated in the Cayman Islands, has announced a change in the date of its board meeting. Originally scheduled for March 28, 2025, the meeting has been postponed to March 31, 2025, to allow additional time for finalizing the company’s annual results for the year ended December 31, 2024. This delay may impact the timing of the approval and publication of the annual results and the consideration of a final dividend.

Fusen Pharmaceutical Issues Profit Warning Amid Increased Losses

Fusen Pharmaceutical Co., Ltd. has issued a profit warning for the fiscal year ending December 31, 2024, anticipating a significant increase in losses compared to the previous year. The expected loss, ranging from RMB170 million to RMB210 million, is attributed to industry-wide inventory destocking, increased R&D expenses, and an impairment loss on an associate company. Despite these challenges, the company maintains a stable gross profit margin. Stakeholders are advised to exercise caution when dealing with the company’s securities.

Fusen Pharmaceutical Schedules Board Meeting to Review Annual Results

Fusen Pharmaceutical Company Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the potential payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.