Luye Pharma Group (2186) AI Stock Analysis

• Market Cap: $13.28B
• Dividend Yield: N/A
• Average Volume (3M): 64.30M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.94
• 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: 44,985,674
• 30 Day Avg. Volume: 64,302,039
• 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: 1.23
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 9.12
• 1Y Price Target: $4.36
• Price Target Upside: 29.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: HK$3.50 ▲(4.17% Upside)

The overall stock score reflects strong profitability and a solid financial structure, but is weighed down by inconsistent revenue and cash flow growth, bearish technical indicators, and a high P/E ratio. The lack of a dividend yield further impacts its valuation appeal.

Luye Pharma Group Business Overview & Revenue Model

Company Description

Luye Pharma Group Ltd., an investment holding company, develops, produces, markets, and sells pharmaceutical products worldwide. The company offers Lipusu for ovarian and breast cancer; CMNa, a chemical sensitizer for cancer radiotherapy; Tiandida for ovarian or non-small cell lung cancer; Boyounuo, an injection for the treatment of various types of cancers and other solid tumors; and Xuezhikang, a lipid regulating drug for the treatment of hypercholesterolaemia. It also provides Maitongna for cerebral edema swelling by trauma or surgery, and for venous reflux disorders; Beixi, an acarbose capsule for Type 2 diabetes; Rivastigmine Transdermal Patch for the treatment of Alzheimer's disease; Fentanyl Transdermal Patch for cancer pain; Buprenorphine Transdermal Patch for chronic pain; and Seroquel and Seroquel XR for the treatment of schizophrenia and manic episodes of bipolar affective disorders, In addition, the company offers Rykindo, an injection for the treatment of schizophrenia; Tiandixin used as an adjuvant therapy for malignant tumors, hydrothorax and ascites, and respiratory infections; Yitaida for acute promyelocytic leukemia and liver cancer; Lutingnuo, a glutathione injection for toxicity and injuries caused by ionizing radiation; and Beitangning, a pioglitazone hydrochloride capsule to control blood glucose. Further, it offers Nuosen for acute upper digestive tract hemorrhage; Sailimai for the treatment of diarrhea; Apleek Transdermal Patch for contraception; Sidinuo for osteoporosis; Glucosamine hydrochloride tablets for osteoarthritis; Oulai, a compound sodium aescinate gel for local swelling; Oukai for the treatment of soft tissue swelling and venous edema; and Fengshiye for patients who have pains in bones, joints, and limbs. The company distributes and sells pharmaceutical drugs; and manufactures and sells biopharmaceutical products. Luye Pharma Group Ltd. was founded in 1994 and is headquartered in Yantai, the People's Republic of China.

How the Company Makes Money

Luye Pharma Group generates revenue primarily through the sale of its pharmaceutical products across a wide range of therapeutic areas. The company's key revenue streams include the sale of proprietary drugs and the licensing of its products for distribution in different markets. Luye Pharma also invests in research and development to create new drugs, which can lead to additional revenue through patents and partnerships with other pharmaceutical companies. Strategic collaborations and partnerships with other healthcare organizations and research institutions further contribute to the company's earnings, enabling it to expand its market presence and enhance its product offerings.

Luye Pharma Group Financial Statement Overview

Summary

Luye Pharma Group demonstrates strong profitability with robust gross and net profit margins. The balance sheet shows a moderate debt-to-equity ratio, but cash flow stability is a concern due to inconsistent growth. Overall, the company is well-positioned but faces challenges in sustaining growth momentum.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.06B	6.14B	5.98B	5.20B	5.54B
Gross Profit	4.04B	4.20B	4.14B	3.40B	3.99B
EBITDA	1.79B	2.08B	1.81B	906.88M	1.88B
Net Income	471.89M	532.61M	604.81M	-144.78M	706.59M
Balance Sheet
Total Assets	29.61B	25.49B	24.25B	22.58B	20.63B
Cash, Cash Equivalents and Short-Term Investments	6.50B	6.11B	5.54B	5.51B	5.41B
Total Debt	10.32B	8.42B	9.10B	9.49B	9.98B
Total Liabilities	13.86B	11.96B	13.21B	13.47B	12.53B
Stockholders Equity	14.15B	12.53B	10.18B	8.49B	7.89B
Cash Flow
Free Cash Flow	-1.54B	430.23M	490.14M	-1.36B	-486.43M
Operating Cash Flow	167.76M	1.60B	1.65B	182.37M	1.03B
Investing Cash Flow	-1.47B	-1.42B	-1.66B	-3.44B	138.20M
Financing Cash Flow	2.96B	841.60M	54.15M	1.88B	253.98M

Luye Pharma Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.36 is below the 20-day moving average (MA) of 3.65, below the 50-day MA of 3.78, and above the 200-day MA of 2.78, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 8.37 is Positive, 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
1093	77 Outperform	108.71B	26.16	14.27%	2.80%	-18.07%	-33.27%
1681	75 Outperform	13.81B	12.84	22.22%	3.96%	19.05%	13.68%
6826	70 Outperform	12.07B	14.83	7.54%	4.09%	-5.62%	-9.71%
2186	58 Neutral	$13.28B	29.75	2.85%	―	-2.54%	-48.74%
0460	55 Neutral	14.83B	-166.32	-4.96%	0.69%	19.21%	-115.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Luye Pharma Group Corporate Events

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.

The most recent analyst rating on (HK:2186) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.

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.

The most recent analyst rating on (HK:2186) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.

Luye Pharma Reports Mixed Interim Financial Results for 2025

Luye Pharma Group Ltd. announced its interim financial results for the first half of 2025, reporting a revenue increase of 3.5% to RMB3,181.1 million and a gross profit rise of 3.8% to RMB2,157.6 million. Despite these gains, the company experienced an 18.4% decline in net profit to RMB357.4 million and a 19.3% decrease in profit attributable to shareholders, reflecting increased selling, distribution, and finance costs. The company did not propose an interim dividend, indicating a cautious approach amidst these financial challenges.

The most recent analyst rating on (HK:2186) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.

Luye Pharma Announces Partial Conversion of Convertible Bonds

Luye Pharma Group Ltd. has announced the partial conversion of its US$100,000,000 5.85% convertible bonds due 2025, with a principal amount of US$25,000,000 converted at a price of HK$3.672 per share. This move is part of the company’s strategic financial management to optimize its capital structure and could potentially impact its market positioning by enhancing liquidity and investor confidence.

The most recent analyst rating on (HK:2186) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.

Luye Pharma Group to Review Interim Results and Dividend

Luye Pharma Group Ltd. has announced that its board of directors will meet on August 28, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

The most recent analyst rating on (HK:2186) stock is a Hold with a HK$3.13 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.

Luye Pharma Completes Enrollment for Pioneering Anxiety Drug Trial

Luye Pharma Group announced the completion of patient enrollment for a Phase 3 clinical trial of Ruoxinlin® in China, aimed at treating Generalized Anxiety Disorder (GAD). This trial could position Ruoxinlin® as the first serotonin, norepinephrine, and dopamine reuptake inhibitor approved for anxiety treatment globally, addressing a significant unmet need due to the lack of new anxiety drugs over the past 15 years. The successful trial and subsequent approval could enhance Luye Pharma’s market position and offer a new treatment option for millions of anxiety sufferers in China.

The most recent analyst rating on (HK:2186) stock is a Hold with a HK$3.13 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.

Luye Pharma Announces Partial Conversion of Convertible Bonds

Luye Pharma Group Ltd. has announced the partial conversion of its US$100 million 5.85% convertible bonds due 2025, specifically converting US$25 million at a price of HK$3.672 per share. This move is part of the company’s strategic financial management, potentially impacting its capital structure and market positioning by enhancing liquidity and investor confidence.

The most recent analyst rating on (HK:2186) stock is a Hold with a HK$3.13 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.