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Charmacy Pharmaceutical Co., Ltd. Class H
(2289)
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Rating:57Neutral
Price Target:
HK$7.50
▲(2.60% Upside)
Action:Reiterated
Date:06/30/26
The score is held back primarily by financial risk from sharply higher leverage and very thin profitability despite steady revenue. Offsetting factors include strong recent cash generation and supportive technical trend strength, while valuation is moderately favorable with a mid-teens P/E and a high dividend yield.
Positive Factors
Improved cash generation
Material improvement in operating and free cash flow in 2025 shows the business can convert earnings to cash. Durable cash generation supports debt servicing, capex, and dividends, improving financial flexibility and giving management options to deleverage or invest for growth over the medium term.
Negative Factors
Rising leverage
Material increase in leverage shifts funding toward debt rather than retained earnings, raising interest and refinancing risk. High debt-to-equity constrains strategic flexibility, makes the firm more sensitive to cash flow swings, and elevates solvency concerns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Material improvement in operating and free cash flow in 2025 shows the business can convert earnings to cash. Durable cash generation supports debt servicing, capex, and dividends, improving financial flexibility and giving management options to deleverage or invest for growth over the medium term.
Read all positive factors
Charmacy Pharmaceutical Co., Ltd. Class H (2289) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$788.40M
Dividend Yield8.03%
Average Volume (3M)283.00
Price to Earnings (P/E)15.0
Beta (1Y)-0.19
Revenue Growth-1.11%
EPS Growth-13.09%
CountryHK
Employees847
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)0.42
Shares Outstanding108,000,000
10 Day Avg. Volume100
30 Day Avg. Volume283
Financial Highlights & Ratios
PEG Ratio-1.24
Price to Book (P/B)1.15
Price to Sales (P/S)0.16
P/FCF Ratio2.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Charmacy Pharmaceutical Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Charmacy Pharmaceutical Co., Ltd. serves as a prominent distributor of pharmaceutical products across the People's Republic of China. The company's comprehensive portfolio includes Western medications, traditional Chinese patent medicines, and var...
How the Company Makes Money
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Charmacy Pharmaceutical Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
38
Negative
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.38B | 4.44B | 4.40B | 4.18B | 3.79B |
| Gross Profit | 336.01M | 324.76M | 292.74M | 268.61M | 234.12M |
| EBITDA | 152.14M | 155.71M | 136.92M | 121.03M | 107.55M |
| Net Income | 46.27M | 53.28M | 51.34M | 90.47M | 23.15M |
Balance Sheet | |||||
| Total Assets | 3.96B | 3.46B | 3.25B | 2.87B | 2.76B |
| Cash, Cash Equivalents and Short-Term Investments | 753.92M | 563.15M | 644.76M | 503.81M | 641.76M |
| Total Debt | 2.09B | 1.70B | 1.37B | 1.19B | 1.33B |
| Total Liabilities | 3.35B | 2.84B | 2.65B | 2.27B | 2.26B |
| Stockholders Equity | 616.63M | 618.69M | 597.81M | 594.48M | 504.10M |
Cash Flow | |||||
| Free Cash Flow | 263.42M | 90.31M | -137.39M | 35.46M | -44.58M |
| Operating Cash Flow | 270.89M | 106.04M | -96.54M | 44.05M | -19.54M |
| Investing Cash Flow | -7.09M | -15.64M | 39.34M | 71.76M | -24.40M |
| Financing Cash Flow | -213.98M | -31.54M | 101.26M | -191.21M | 74.40M |
Charmacy Pharmaceutical Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$5.90B | 14.60 | 6.89% | 2.72% | 15.04% | 5.57% | |
60 Neutral | HK$66.28B | 10.58 | 7.64% | 2.67% | 6.45% | 35.60% | |
57 Neutral | HK$788.40M | 15.04 | 7.66% | 8.03% | -1.11% | -13.09% | |
57 Neutral | HK$55.58B | 6.64 | 8.70% | 3.75% | -1.57% | 1.55% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | HK$527.11M | -7.74 | 480.37% | ― | 5.52% | 56.54% | |
40 Underperform | HK$1.09B | 25.36 | 1.09% | 3.81% | -10.71% | -87.93% |
* Healthcare Sector Average
HK:2289
Charmacy Pharmaceutical Co., Ltd. Class H
7.30
0.67
10.06%
HK:0673
China Health Group
0.38
0.12
46.15%
HK:2607
Shanghai Pharmaceuticals Holding Co
12.07
0.13
1.11%
HK:1099
Sinopharm Group Co
17.57
-0.30
-1.68%
HK:1931
IVD Medical Holding Limited
0.63
-3.29
-83.93%
HK:2192
Medlive Technology Co., Ltd.
7.59
-6.72
-46.95%
Charmacy Pharmaceutical Co., Ltd. Class H Corporate Events
Charmacy Pharmaceutical Wins Shareholder Backing for Dividend, Credit Line and Share Mandate
May 22, 2026
Shareholders of Charmacy Pharmaceutical Co., Ltd. approved all resolutions at the annual general meeting held on 22 May 2026, including the 2025 board and auditor reports, the profit distribution plan and final dividend, director remuneration for ...
Charmacy Pharmaceutical Sets Final 2025 Dividend and Clarifies Tax Treatment
May 22, 2026
Charmacy Pharmaceutical has declared a final ordinary dividend of RMB 0.3 per share for the financial year ended 31 December 2025, with shareholder approval obtained on 22 May 2026. The dividend will be paid in Hong Kong dollars at HKD 0.343531 pe...
Charmacy Pharmaceutical Sets 2026 AGM to Approve Dividend, Credit Line and Share Issue Mandate
Apr 28, 2026
Charmacy Pharmaceutical Co., Ltd. has called its annual general meeting for 22 May 2026 in Guangzhou, where shareholders will vote on the board and auditor reports and the audited financial statements for the year ended 31 December 2025. The meeti...
Charmacy Pharmaceutical Sets Updated Final Dividend and Outlines Tax Treatment
Apr 28, 2026
Charmacy Pharmaceutical Co., Ltd. has announced an updated final dividend for the financial year ended 31 December 2025, declaring a payout of RMB 0.3 per share, with the exact Hong Kong dollar amount and exchange rate to be confirmed. The dividen...
Charmacy Pharmaceutical Corrects EPS and ROE Note in 2025 Results
Apr 9, 2026
Charmacy Pharmaceutical Co., Ltd. has issued a clarification regarding its 2025 annual results announcement, correcting a clerical error in the note on return on net assets and earnings per share within the financial statements. The revised figure...
Charmacy Pharmaceutical Sets Final 2025 Dividend at RMB 0.3 per Share
Apr 1, 2026
Charmacy Pharmaceutical Co., Ltd., a Hong Kong-listed pharmaceutical company, has declared a final ordinary cash dividend of RMB 0.3 per share for the financial year ended 31 December 2025. The dividend, subject to shareholder approval on 22 May 2...
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.