Luye Pharma Group (2186) AI Stock Analysis

• Market Cap: $13.99B
• Dividend Yield: N/A
• Average Volume (3M): 84.99M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.96
• Revenue Growth: -2.54%
• EPS Growth: -48.74%
• Country: HK
• Employees: 5,150
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.09
• Shares Outstanding: 3,888,677,200
• 10 Day Avg. Volume: 74,116,150
• 30 Day Avg. Volume: 84,990,671
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 9.12
• 1Y Price Target: $4.37
• Price Target Upside: 15.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: HK$5.00 ▲(31.93% Upside)

Luye Pharma Group scores well due to strong technical momentum and solid financial performance. However, valuation concerns and inconsistent cash flow growth slightly dampen the overall score.

Luye Pharma Group Business Overview & Revenue Model

Company Description

Luye Pharma Group (2186) is a multinational pharmaceutical company engaged in the development, production, and distribution of innovative medical products. The company operates in various sectors including oncology, cardiovascular, metabolism, and central nervous system (CNS) therapies. Luye Pharma is committed to advancing healthcare through its comprehensive portfolio of pharmaceuticals and its focus on research and development of new drugs and therapies.

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 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: 3.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3.79 is above the 20-day moving average (MA) of 3.74, above the 50-day MA of 3.75, and above the 200-day MA of 2.70, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.13 is Neutral, 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
2186	71 Outperform	$13.99B	33.36	2.85%	―	-2.54%	-48.74%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
CHJTF	―	$15.98B	27.48	11.30%	2.80%	―	―
SHPHF	―	$1.93B	―	-1.87%	5.40%	―	―
C1P	―	€1.39B	9.57	25.92%	―	―	―
6826	67 Neutral	HK$12.37B	14.52	6.98%	4.03%	-5.62%	-9.71%
1558	65 Neutral		―		―	-42.02%	-76.29%

Luye Pharma Group Corporate Events

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.

Luye Pharma Converts Tranche A Bonds to Shares

Luye Pharma Group Ltd. announced the conversion of a portion of its Tranche A Bonds, valued at US$10,000,000, at a conversion price of HK$3.672 per share. This move is part of the company’s ongoing financial management and compliance with regulatory requirements, aiming to maintain transparency and equal information dissemination among investors.

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.