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Luye Pharma Group
(2186)
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Rating:57Neutral
Price Target:
HK$2.00
▼(-33.77% Downside)
Action:Reiterated
Date:07/14/26
The score is primarily driven by decent profitability and an improving balance sheet, offset by a sharp 2025 revenue decline and historically volatile free cash flow. Technically, the stock remains below key longer-term moving averages with soft momentum, while the moderate P/E provides some valuation support.
Positive Factors
Margin Sustainability
Sustained high gross and operating margins provide a durable earnings buffer against revenue volatility. Strong margins support reinvestment in R&D and commercial efforts, enable pricing flexibility, and help maintain profitability even if sales face short-term pressure.
Negative Factors
Sharp Revenue Decline
A near-term ~37% revenue drop is a durable red flag about demand sustainability or product lifecycle issues. Such a large decline can erode scale economics, pressure future R&D funding, and make current profitability harder to sustain if revenue recovery is slow or uneven.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Sustainability
Sustained high gross and operating margins provide a durable earnings buffer against revenue volatility. Strong margins support reinvestment in R&D and commercial efforts, enable pricing flexibility, and help maintain profitability even if sales face short-term pressure.
Read all positive factors
Luye Pharma Group (2186) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$8.72B
Dividend YieldN/A
Average Volume (3M)38.67M
Price to Earnings (P/E)12.1
Beta (1Y)0.89
Revenue Growth4.09%
EPS Growth27.35%
CountryHK
Employees5,221
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.16
Shares Outstanding3,994,515,900
10 Day Avg. Volume34,399,920
30 Day Avg. Volume38,673,367
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)0.60
Price to Sales (P/S)1.52
P/FCF Ratio12.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.14Price Target Upside37.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.18
Revenue Forecast (FY)HK$6.95B
Luye Pharma Group Business Overview & Revenue Model
Company Description
Luye Pharma Group Ltd. functions as a global investment holding enterprise, focusing on the worldwide development, production, marketing, and sales of pharmaceutical products. The company's diverse portfolio includes several key oncology treatment...
How the Company Makes Money
Revenue is primarily generated from selling pharmaceutical products. The company develops or acquires product candidates, manufactures finished dosage forms through its production network, and monetizes them by commercializing branded drugs via it...
Luye Pharma Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.31B | 6.06B | 6.14B | 5.98B | 5.20B |
| Gross Profit | 4.16B | 4.04B | 4.20B | 4.14B | 3.40B |
| EBITDA | 2.01B | 1.79B | 2.08B | 1.81B | 906.88M |
| Net Income | 618.75M | 471.89M | 532.61M | 604.81M | -134.39M |
Balance Sheet | |||||
| Total Assets | 32.84B | 29.61B | 25.49B | 24.25B | 22.58B |
| Cash, Cash Equivalents and Short-Term Investments | 8.88B | 6.50B | 6.11B | 5.54B | 5.51B |
| Total Debt | 9.42B | 10.32B | 8.42B | 9.10B | 9.49B |
| Total Liabilities | 14.19B | 13.86B | 11.96B | 13.21B | 13.47B |
| Stockholders Equity | 16.08B | 14.15B | 12.53B | 10.18B | 8.49B |
Cash Flow | |||||
| Free Cash Flow | 780.44M | -1.54B | 430.23M | 490.14M | -1.36B |
| Operating Cash Flow | 1.78B | 167.76M | 1.60B | 1.65B | 182.37M |
| Investing Cash Flow | -3.99B | -1.47B | -1.42B | -1.66B | -3.44B |
| Financing Cash Flow | 1.79B | 2.96B | 841.60M | 54.15M | 1.88B |
Luye Pharma Group Technical Analysis
Neutral
3.02
Price Trends
2.11
Positive
2.36
Negative
2.71
Negative
Market Momentum
0.03
Negative
61.60
Neutral
85.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2186, the sentiment is Neutral. The current price of 3.02 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 2.11, and above the 200-day MA of 2.71, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2186.
Luye Pharma Group Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$11.65B | 9.65 | 24.26% | 3.93% | 15.28% | 14.76% | |
69 Neutral | HK$98.93B | 21.85 | 11.47% | 2.70% | -10.34% | -7.91% | |
57 Neutral | HK$8.72B | 12.06 | 4.02% | ― | 4.09% | 27.35% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | HK$8.72B | 28.90 | 24.17% | ― | 154.21% | ― | |
47 Neutral | HK$18.43B | -12.60 | -24.29% | ― | 8.50% | 35.24% | |
41 Neutral | HK$8.17B | -21.31 | -64.78% | ― | -33.37% | -344.90% |
* Healthcare Sector Average
HK:2186
Luye Pharma Group
2.22
-1.68
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Consun Pharmaceutical Group Ltd.
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Lepu Biopharma Co. Ltd. Class H
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Luye Pharma Group Corporate Events
Luye Pharma Wins Shareholder Backing for All AGM Resolutions and Capital Mandates
Jun 26, 2026
Luye Pharma Group reported the results of its 26 June 2026 annual general meeting, where all resolutions put to shareholders by poll were approved. Shareholders adopted the 2025 audited financial statements, re-elected non-executive and long-servi...
Luye Pharma’s Novel CNS Drug LY03015 Delivers Strong Phase 2 Data in Tardive Dyskinesia
Jun 16, 2026
Luye Pharma Group reported that its class 1 innovative CNS drug candidate LY03015, a dual VMAT2 inhibitor and Sigma-1 receptor agonist, achieved positive results in a phase 2 trial in China for tardive dyskinesia, meeting its primary endpoint. Des...
Luye Pharma Halves 2028 Convertible Bond Float With US$89.74 Million Buyback
Jun 11, 2026
Luye Pharma Group has completed a concurrent repurchase of part of its outstanding 6.25% convertible bonds due 2028, buying back US$89.74 million in principal amount. This repurchased portion represents approximately 49.9% of the initial US$180 mi...
Luye Pharma Raises US$180 Million via Premium-Priced 2031 Convertible Bonds
Jun 11, 2026
Luye Pharma Group has completed the issuance of US$180 million in 5.25% convertible bonds due 2031, with listing on the Vienna Stock Exchange and approval for listing of the conversion shares in Hong Kong. The initial conversion price of HK$2.71 p...
Luye Pharma Wins Vienna MTF Listing Approval for New Bond Issue
Jun 8, 2026
Luye Pharma Group has obtained approval from the Vienna Stock Exchange for the admission to listing and trading of its bonds on the Vienna MTF, with the first trading day expected on 10 June 2026. The move broadens the company’s financing ch...
Luye Pharma to Swap 2028 Convertible Debt with New 2031 Issue
Jun 3, 2026
Luye Pharma Group plans to repurchase US$180 million of its 6.25% convertible bonds due 2028 while simultaneously issuing US$180 million of new 5.25% convertible bonds due 2031. The company has already secured commitments from eligible bondholders...
Luye Pharma Plans Bond Buyback and New USD Convertible Issue
Jun 3, 2026
Luye Pharma Group plans a concurrent repurchase of its outstanding US$180 million 6.25% convertible bonds due 2028, appointing a dealer manager to solicit interest from existing bondholders. The transaction is subject to conditions and may not com...
Luye Pharma sets 2026 AGM to renew board, auditor and share issuance mandate
May 29, 2026
Luye Pharma Group has called its annual general meeting for 26 June 2026 in Yantai, where shareholders will vote on the adoption of the 2025 audited financial statements and the re-election of several board members, including long-serving independ...
Luye Pharma Starts U.S. PK Bridging Trial for Novel CNS Drug LY03015
Apr 20, 2026
Luye Pharma Group has enrolled the first subject in a U.S. pharmacokinetic bridging trial for its in-house innovative drug LY03015, the first investigational therapy designed to both inhibit VMAT2 and activate sigma-1 receptors for treating tardiv...
Luye Pharma Advances Alzheimer’s Psychosis Drug LY03017 Into China Phase II Trial
Apr 15, 2026
Luye Pharma Group has enrolled the first subject in a China Phase II clinical trial of its in-house developed drug LY03017 for treating Alzheimer’s disease-related psychosis, a condition for which no approved therapies currently exist despit...
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.