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Charmacy Pharmaceutical Co., Ltd. Class H (HK:2289)
:2289
Hong Kong Market
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Charmacy Pharmaceutical Co., Ltd. Class H (2289) AI Stock Analysis

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HK:2289

Charmacy Pharmaceutical Co., Ltd. Class H

(2289)

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Neutral 57 (OpenAI - 5.2)
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)

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
Results show steady revenue and improved gross margin, but net profitability remains very thin and net income declined in 2025. The balance sheet is the main concern: leverage increased materially (debt-to-equity rose to ~3.39) while equity and ROE weakened. Cash flow is a relative strength with strong 2025 operating cash flow and free cash flow, though historical volatility reduces confidence in consistency.
Income Statement
55
Neutral
Balance Sheet
38
Negative
Cash Flow
58
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.38B4.44B4.40B4.18B3.79B
Gross Profit336.01M324.76M292.74M268.61M234.12M
EBITDA152.14M155.71M136.92M121.03M107.55M
Net Income46.27M53.28M51.34M90.47M23.15M
Balance Sheet
Total Assets3.96B3.46B3.25B2.87B2.76B
Cash, Cash Equivalents and Short-Term Investments753.92M563.15M644.76M503.81M641.76M
Total Debt2.09B1.70B1.37B1.19B1.33B
Total Liabilities3.35B2.84B2.65B2.27B2.26B
Stockholders Equity616.63M618.69M597.81M594.48M504.10M
Cash Flow
Free Cash Flow263.42M90.31M-137.39M35.46M-44.58M
Operating Cash Flow270.89M106.04M-96.54M44.05M-19.54M
Investing Cash Flow-7.09M-15.64M39.34M71.76M-24.40M
Financing Cash Flow-213.98M-31.54M101.26M-191.21M74.40M

Charmacy Pharmaceutical Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$5.90B14.606.89%2.72%15.04%5.57%
60
Neutral
HK$66.28B10.587.64%2.67%6.45%35.60%
57
Neutral
HK$788.40M15.047.66%8.03%-1.11%-13.09%
57
Neutral
HK$55.58B6.648.70%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-7.74480.37%5.52%56.54%
40
Underperform
HK$1.09B25.361.09%3.81%-10.71%-87.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.Date of analysis: Jun 30, 2026