Charmacy Pharmaceutical Co., Ltd. Class H (HK:2289)
:2289
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Charmacy Pharmaceutical Co., Ltd. Class H
(2289)
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Rating:51Neutral
Price Target:
HK$6.50
▼(-11.08% Downside)
Action:Reiterated
Date:05/31/26
The score is held back primarily by rising leverage and thin/softening profitability, with weak technical momentum adding near-term risk. These are partially offset by a reasonable valuation and high dividend yield, plus improved 2025 cash generation.
Positive Factors
Improved cash generation
2025 showed a meaningful recovery in cash generation with operating cash flow ~271M and free cash flow ~263M. Durable cash conversion supports dividend payments, debt servicing and reinvestment capacity over the next several quarters, improving financial flexibility despite prior weakness.
Negative Factors
Rising leverage
Leverage increased materially, with debt up sharply and debt-to-equity rising to ~3.39. Higher leverage raises interest and refinancing risk, limits strategic optionality, and amplifies downside given the company’s thin profitability, making balance-sheet risk a persistent concern.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
2025 showed a meaningful recovery in cash generation with operating cash flow ~271M and free cash flow ~263M. Durable cash conversion supports dividend payments, debt servicing and reinvestment capacity over the next several quarters, improving financial flexibility despite prior weakness.
Read all positive factors
Charmacy Pharmaceutical Co., Ltd. Class H (2289) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$680.40M
Dividend Yield8.03%
Average Volume (3M)283.00
Price to Earnings (P/E)12.7
Beta (1Y)-0.18
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$4.93B | 12.61 | 6.89% | 2.72% | 15.04% | 5.57% | |
60 Neutral | HK$62.40B | 10.16 | 7.64% | 2.67% | 6.45% | 35.60% | |
57 Neutral | HK$51.12B | 6.19 | 8.70% | 3.75% | -1.57% | 1.55% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | HK$680.40M | 12.69 | 7.66% | 8.03% | -1.11% | -13.09% | |
41 Neutral | HK$735.18M | -4.25 | 480.37% | ― | -17.39% | -45.76% | |
40 Underperform | HK$1.14B | 27.95 | 1.09% | 3.81% | -10.71% | -87.93% |
* Healthcare Sector Average
HK:2289
Charmacy Pharmaceutical Co., Ltd. Class H
6.50
-0.09
-1.31%
HK:0673
China Health Group
0.53
0.31
140.91%
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Shanghai Pharmaceuticals Holding Co
11.84
0.69
6.16%
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Sinopharm Group Co
16.31
-2.17
-11.74%
HK:1931
IVD Medical Holding Limited
0.66
-1.35
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HK:2192
Medlive Technology Co., Ltd.
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-8.15
-54.96%
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...
Charmacy Pharmaceutical Reshapes Company Secretarial and Governance Roles
Mar 27, 2026
Charmacy Pharmaceutical announced that the Hong Kong Stock Exchange has confirmed Ms. Yao Jiexi now fully meets the qualification requirements to serve as the company secretary, following an earlier waiver period. As a result, she will assume the ...
Charmacy Pharmaceutical Profit Slips in 2025 but Dividend Held
Mar 27, 2026
Charmacy Pharmaceutical Co., Ltd. reported 2025 operating revenue of RMB4.38 billion, a slight 1.15% decline from the prior year, reflecting a modest contraction in its pharmaceutical distribution business. The Hong Kong-listed company remains pro...
Charmacy Pharmaceutical Declares Final 2025 Dividend of RMB 0.3 per Share
Mar 27, 2026
Charmacy Pharmaceutical Co., Ltd. has declared a final ordinary cash dividend of RMB 0.3 per share for the financial year ended 31 December 2025, subject to shareholder approval at a meeting scheduled for 22 May 2026. Key details for Hong Kong sha...
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.