Luye Pharma Group (2186) AI Stock Analysis

• Market Cap: HK$11.31B
• Dividend Yield: N/A
• Average Volume (3M): 38.67M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.96
• Revenue Growth: -2.54%
• EPS Growth: -48.74%
• Country: HK
• Employees: 5,150
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.09
• Shares Outstanding: 3,994,515,900
• 10 Day Avg. Volume: 34,399,920
• 30 Day Avg. Volume: 38,673,367
• PEG Ratio: -2.27
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -4.98
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$3.50 ▲(21.53% Upside)

Luye Pharma Group's overall stock score is primarily influenced by its strong financial performance, despite challenges in revenue and cash flow consistency. The technical analysis indicates a bearish trend, and the high P/E ratio suggests the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Profitability

Strong profitability with healthy margins indicates effective cost management and operational efficiency, supporting long-term financial stability.

Operational Efficiency

Maintaining positive cash flow from operations reflects operational efficiency, ensuring the company can fund its activities and growth without excessive reliance on external financing.

Capital Structure

A moderate debt-to-equity ratio indicates a balanced capital structure, providing financial flexibility and reducing risk associated with high leverage.

Negative Factors

Revenue Growth

Inconsistent revenue growth can hinder long-term strategic planning and investment, potentially affecting the company's ability to expand and compete effectively.

Cash Flow Stability

Inconsistent cash flow stability can limit the company's ability to invest in new opportunities and manage financial obligations, impacting long-term growth prospects.

Debt Management

High debt levels can strain financial resources and limit strategic flexibility, posing a risk to long-term financial health and stability.

Luye Pharma Group Business Overview & Revenue Model

Company Description

Luye Pharma Group (2186) is a global biopharmaceutical company headquartered in China, specializing in the research, development, manufacturing, and commercialization of innovative drugs. The company focuses primarily on therapeutic areas such as oncology, central nervous system disorders, and anesthetics, and has a diverse portfolio that includes both proprietary products and generic medications. Luye Pharma is committed to enhancing patient outcomes through advanced drug delivery systems and formulations.

How the Company Makes Money

Luye Pharma Group generates revenue through multiple streams, including the sale of its proprietary pharmaceuticals and generic drugs. The company has established a robust pipeline of products that are marketed both domestically and internationally, providing a steady flow of income. Key revenue streams include sales from core therapeutic areas such as oncology and CNS disorders, along with income from partnerships and collaborations with other pharmaceutical firms for co-development and distribution of drugs. Significant strategic partnerships enhance its market reach and product offerings, while ongoing investments in research and development contribute to future revenue growth through the introduction of new therapies.

Luye Pharma Group Financial Statement Overview

Summary

Luye Pharma Group demonstrates strong profitability with robust gross and net profit margins and healthy EBIT and EBITDA margins. However, inconsistent revenue growth and cash flow stability are concerns. The balance sheet is solid with a moderate debt-to-equity ratio, but there is room for improvement in debt management.

Income Statement

Luye Pharma Group shows robust gross and net profit margins, indicating efficient cost management and profitability. However, the revenue growth has been inconsistent, showing a decline in the most recent year. EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. ROE is relatively stable, indicating effective utilization of equity. The equity ratio signifies a solid capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Cash flow stability is a concern, with inconsistent free cash flow growth and operating cash flow to net income ratios. However, the company has managed to maintain positive cash flow from operations in recent years, indicating operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.17B	6.06B	6.14B	5.98B	5.20B	5.54B
Gross Profit	4.12B	4.04B	4.20B	4.14B	3.40B	3.99B
EBITDA	1.73B	1.79B	2.08B	1.81B	906.88M	1.88B
Net Income	396.94M	471.89M	532.61M	604.81M	-134.39M	706.59M
Balance Sheet
Total Assets	32.03B	29.61B	25.49B	24.25B	22.58B	20.63B
Cash, Cash Equivalents and Short-Term Investments	8.83B	6.50B	6.11B	5.54B	5.51B	5.41B
Total Debt	11.87B	10.32B	8.42B	9.10B	9.49B	9.98B
Total Liabilities	15.49B	13.86B	11.96B	13.21B	13.47B	12.53B
Stockholders Equity	14.69B	14.15B	12.53B	10.18B	8.49B	7.89B
Cash Flow
Free Cash Flow	-31.91M	-1.54B	430.23M	490.14M	-1.36B	-486.43M
Operating Cash Flow	562.16M	167.76M	1.60B	1.65B	182.37M	1.03B
Investing Cash Flow	-965.94M	-1.47B	-1.42B	-1.66B	-3.44B	138.20M
Financing Cash Flow	1.98B	2.96B	841.60M	54.15M	1.88B	253.98M

Luye Pharma Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.88
• 50DMA: Negative
• 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:2186, the sentiment is Negative. The current price of 2.88 is below the 20-day moving average (MA) of 2.98, below the 50-day MA of 3.11, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 28.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2186.

Luye Pharma Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1681	72 Outperform	HK$13.18B	12.32	25.92%	3.96%	19.05%	13.68%
6826	64 Neutral	HK$10.60B	14.18	6.69%	4.26%	-8.54%	-9.46%
1093	63 Neutral	$94.33B	22.70	11.30%	2.93%	-18.07%	-33.27%
2186	58 Neutral	HK$11.31B	25.35	2.85%	―	-2.54%	-48.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0460	43 Neutral	HK$11.76B	-132.63	-1.87%	0.87%	19.21%	-115.91%

Luye Pharma Group Corporate Events

Luye Pharma’s Five New Drugs Gain Inclusion in China’s 2025 Reimbursement Lists

Luye Pharma Group Ltd. announced the inclusion of five new products in China’s 2025 National Reimbursement Drug List and Commercial Insurance Innovative Drug List, enhancing its market presence. This inclusion marks a significant milestone for the company, as it positions its products, such as Mimeixin® and Ruibailai®, for broader access and potential growth in the Chinese market, addressing critical needs in pain management and schizophrenia treatment.

Luye Pharma Gains FDA Approval for New CNS Drug Trials

Luye Pharma Group Ltd. has received FDA clearance to initiate clinical trials in the U.S. for its new drug LY03017, designed to treat Alzheimer’s disease psychosis, Parkinson’s disease psychosis, and negative symptoms of schizophrenia. This development highlights the company’s strategic focus on CNS diseases and its commitment to addressing unmet medical needs in these areas, potentially enhancing its market position and offering new treatment options for patients globally.

Luye Pharma Announces USD150 Million Exchangeable Shares Issuance

Luye Pharma Group announced the issuance of exchangeable preference shares by its wholly-owned subsidiary, which involves a subscription agreement with a third-party subscriber for USD150 million. This transaction will result in a reduction of Luye Pharma’s shareholding in Boan Biotech, potentially affecting its control over the subsidiary and constituting a discloseable transaction under Hong Kong’s listing rules.

Luye Pharma Converts Convertible Bonds to Shares

Luye Pharma Group Ltd. announced the conversion of its Tranche A and Tranche B convertible bonds, valued at US$15 million and US$10 million respectively, into shares at a conversion price of HK$3.672 per share. This move is part of the company’s broader financial strategy, potentially impacting its market positioning and shareholder value.

Luye Pharma Converts $25 Million of Tranche A Bonds

Luye Pharma Group Ltd. announced the conversion of US$25,000,000 of its Tranche A Bonds at a conversion price of HK$3.672 per share. This move is part of the company’s ongoing financial strategy involving US$100,000,000 5.85% convertible bonds due in 2025, which may impact its financial structure and investor relations.