Luye Pharma Group (2186) AI Stock Analysis

• Market Cap: HK$14.04B
• Dividend Yield: N/A
• Average Volume (3M): 129.61M
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.96
• Revenue Growth: -3.12%
• EPS Growth: -12.71%
• Country: HK
• Employees: 5,150
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.02
• Shares Outstanding: 3,761,670,700
• 10 Day Avg. Volume: 102,879,721
• 30 Day Avg. Volume: 129,611,384
• PEG Ratio: -1.34
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.29
• 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: HK$3.22
• Price Target Upside: -15.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$4.50 ▲(18.42%Upside)

Luye Pharma Group's overall score is driven by strong technical momentum supported by positive price trends and bullish indicators. Financial performance is robust but tempered by concerns over cash flow consistency. Valuation remains a concern due to a high P/E ratio, suggesting potential overvaluation.

Luye Pharma Group Business Overview & Revenue Model

Company Description

Luye Pharma Group (2186) is a multinational pharmaceutical company engaged in the development, production, and sale of innovative medicines. Operating primarily in the therapeutic areas of oncology, cardiovascular, metabolism, and central nervous system (CNS) disorders, the company is committed to advancing healthcare through its comprehensive portfolio of products. Luye Pharma leverages its robust R&D capabilities to deliver high-quality and effective treatment solutions to patients across the globe.

How the Company Makes Money

Luye Pharma Group generates revenue primarily through the sale of pharmaceutical products. Its revenue model is centered around the commercialization of its diverse range of medications, which are distributed to various markets worldwide. Key revenue streams include sales from proprietary drugs, generic medications, and licensing agreements. The company's strategic partnerships and collaborations with other pharmaceutical firms and research institutions also play a significant role in enhancing its market presence and expanding its product pipeline, thereby contributing to its earnings. Additionally, Luye Pharma invests in research and development to innovate and bring new drugs to market, further driving revenue growth.

Luye Pharma Group Financial Statement Overview

Summary

Luye Pharma Group demonstrates strong profitability with healthy EBIT and EBITDA margins. The balance sheet is solid with a moderate debt-to-equity ratio, but cash flow stability is a concern due to inconsistent free cash flow growth. Overall, the financial structure is robust, though sustaining growth momentum is challenging.

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	0.00	430.23M	490.14M	-1.36B	-486.43M
Operating Cash Flow	0.00	1.60B	1.65B	182.37M	1.03B
Investing Cash Flow	0.00	-1.42B	-1.66B	-3.44B	138.20M
Financing Cash Flow	0.00	841.60M	54.15M	1.88B	253.98M

Luye Pharma Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2186, the sentiment is Positive. The current price of 3.8 is above the 20-day moving average (MA) of 3.54, above the 50-day MA of 3.00, and above the 200-day MA of 2.57, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 94.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	€10.31B	10.30	23.28%	4.85%	12.70%	9.91%
1093	77 Outperform	$105.68B	22.99	13.20%	2.18%	-9.60%	-27.18%
6826	76 Outperform	HK$12.33B	15.20	7.25%	3.73%	-1.81%	-3.79%
2186	72 Outperform	HK$14.04B	27.94	3.53%	―	-3.12%	-12.71%
1558	65 Neutral	HK$15.31B	29.29	5.88%	―	-42.02%	-76.29%
Sector *	52 Neutral	$7.35B	-0.07	-63.71%	2.36%	16.17%	0.03%
0460	49 Neutral	HK$12.97B	―	-4.93%	1.51%	-0.11%	-290.77%

Luye Pharma Group Corporate Events

Luye Pharma Group Announces Successful AGM Results

Luye Pharma Group Ltd. held its Annual General Meeting on May 28, 2025, where all proposed resolutions were passed. Key resolutions included the re-election of board members, the re-appointment of Ernst & Young as auditors, and granting mandates for share issuance and repurchase. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued strategic growth and operational efficiency.

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 Group Announces 2025 Annual General Meeting

Luye Pharma Group Ltd. has announced its upcoming annual general meeting to be held on May 28, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, the re-election of several directors, and the re-appointment of Ernst & Young as the company’s auditor. Additionally, the meeting will consider resolutions to authorize the board to manage the company’s share capital, including the issuance and transfer of shares.