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

• Market Cap: HK$279.38M
• Dividend Yield: N/A
• Average Volume (3M): 176.10K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: -43.73%
• EPS Growth: -434.56%
• Country: HK
• Employees: 1,131
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.28
• Shares Outstanding: 739,301,000
• 10 Day Avg. Volume: 170,500
• 30 Day Avg. Volume: 176,100
• PEG Ratio: 0.04
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.27
• 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: 49 Neutral
• Price Target: HK$0.50 ▲(31.58%Upside)

Fusen Pharmaceutical Co., Ltd.'s stock is rated below average due to significant financial performance issues, particularly in cash flow and profitability, which are the most impactful factors. Technical analysis provides some positive signals, but the overall valuation remains weak, contributing to the lower score.

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. Declining revenues and profitability, increased leverage, and zero or negative free cash flow underscore severe liquidity risks. The negative net income and operating cash flow highlight ongoing operational difficulties.

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	86.84M	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: Positive
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.33, and below the 200-day MA of 0.59, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 47.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	70 Outperform	HK$736.89M	7.13	8.81%	5.75%	5.79%	-43.49%
Sector *	59 Neutral	HK$15.37B	5.76	-7.44%	4.08%	11.55%	-28.15%
8622	52 Neutral	HK$185.17M	―	-7.93%	―	1.13%	38.41%
1652	49 Neutral	HK$279.38M	―	-40.39%	―	-43.73%	-434.56%
1011	48 Neutral	HK$293.30M	―		―	―	―
1498	45 Neutral	HK$189.57M	―	-26.80%	―	-6.09%	66.59%

Fusen Pharmaceutical Co., Ltd. Corporate Events

Fusen Pharmaceutical Reports Unanimous Approval of AGM Resolutions

Fusen Pharmaceutical Company Limited, a pharmaceutical company incorporated in the Cayman Islands, announced that all proposed resolutions at its Annual General Meeting held on May 29, 2025, were passed unanimously by shareholders. These resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Fusen Pharmaceutical Announces Change in Shareholding Structure

Fusen Pharmaceutical Co., Ltd. has announced a significant change in its shareholding structure following the passing of Mr. Cao, the former chairman and investment manager of Fusen Trust. The Vesting Arrangement has transferred control of the voting rights of Fusen Trust Shares to Mr. Cao Zhiming, increasing his voting rights to 45.29% of the total issued shares. This change has triggered a potential requirement for a mandatory general offer under the Takeovers Code, but Mr. Cao Zhiming has obtained a waiver from this obligation.

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.