Hua Medicine Ltd. (HK:2552)
:2552
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Hua Medicine
(2552)
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Rating:46Neutral
Price Target:
HK$2.50
▼(-24.01% Downside)
Action:ReiteratedDate:02/03/26
The score is primarily held back by weak financial quality (negative operating/free cash flow and poor core profitability) and bearish technicals (below major moving averages with negative MACD). A low P/E provides some valuation support, but it is tempered by the company’s profitability and cash burn issues.
Positive Factors
Revenue Growth
Sustained 18.32% TTM revenue growth indicates expanding commercial traction for its diabetes therapies and strengthens the recurring sales base. Over the next 2–6 months this supports reinvestment in R&D and commercialization, validating product-market fit.
Negative Factors
Negative Operating and Free Cash Flow
Ongoing negative operating and free cash flow indicate persistent cash burn that will likely require external financing or partnerships. Over 2–6 months this constrains discretionary spending, risks dilution or higher leverage, and limits independent scaling of commercialization.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained 18.32% TTM revenue growth indicates expanding commercial traction for its diabetes therapies and strengthens the recurring sales base. Over the next 2–6 months this supports reinvestment in R&D and commercialization, validating product-market fit.
Read all positive factors
Hua Medicine (2552) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.54B
Dividend YieldN/A
Average Volume (3M)6.34M
Price to Earnings (P/E)2.5
Beta (1Y)1.23
Revenue Growth238.71%
EPS GrowthN/A
CountryHK
Employees168
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.08
Shares Outstanding1,056,605,000
10 Day Avg. Volume6,422,209
30 Day Avg. Volume6,335,350
Financial Highlights & Ratios
PEG Ratio-0.39
Price to Book (P/B)-9.93
Price to Sales (P/S)5.26
P/FCF Ratio-3.19
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)-0.03
Revenue Forecast (FY)HK$1.00B
Hua Medicine Business Overview & Revenue Model
Company Description
Hua Medicine (Shanghai) Ltd. operates as a clinical-stage drug development company that focuses on therapies for the treatment of diabetes in China. It develops Dorzagliatin or HMS5552, an oral drug for the treatment of Type 2 Diabetes (T2D); and ...
How the Company Makes Money
Hua Medicine generates revenue primarily through the commercialization of its pharmaceutical products, particularly its lead candidate for type 2 diabetes. The company may also engage in collaborations and partnerships with other pharmaceutical co...
Hua Medicine Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 370.66M | 255.89M | 76.61M | 17.60M | 0.00 | 8.66M |
| Gross Profit | 194.78M | 124.72M | 37.37M | 7.69M | 0.00 | 8.66M |
| EBITDA | -216.67M | -345.36M | -167.09M | -168.06M | -309.69M | -347.43M |
| Net Income | 1.08B | -250.14M | -211.23M | -203.77M | -330.95M | -396.43M |
Balance Sheet | ||||||
| Total Assets | 1.42B | 1.53B | 1.73B | 1.12B | 903.55M | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 1.14B | 1.46B | 490.63M | 675.24M | 1.03B |
| Total Debt | 271.05M | 300.18M | 167.75M | 97.58M | 71.53M | 80.72M |
| Total Liabilities | 360.82M | 1.66B | 1.62B | 841.92M | 453.22M | 466.03M |
| Stockholders Equity | 1.06B | -135.47M | 101.15M | 279.58M | 450.33M | 732.50M |
Cash Flow | ||||||
| Free Cash Flow | -274.64M | -421.83M | 879.52M | -257.58M | -339.87M | -46.60M |
| Operating Cash Flow | -275.61M | -417.97M | 889.37M | -230.11M | -272.98M | -20.91M |
| Investing Cash Flow | 6.93M | 10.04M | 8.08M | -4.75M | -68.22M | -14.09M |
| Financing Cash Flow | -48.04M | 83.72M | 69.07M | 21.48M | -6.13M | -7.26M |
Hua Medicine Technical Analysis
Positive
3.29
Price Trends
3.14
Positive
3.18
Positive
3.43
Positive
Market Momentum
0.13
Negative
65.90
Neutral
92.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2552, the sentiment is Positive. The current price of 3.29 is above the 20-day moving average (MA) of 3.27, above the 50-day MA of 3.14, and below the 200-day MA of 3.43, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 92.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2552.
Hua Medicine Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$231.43B | 35.71 | 16.09% | 0.97% | 8.68% | 0.82% | |
70 Outperform | HK$32.00B | 11.61 | 14.47% | 4.09% | -0.45% | 9.00% | |
61 Neutral | HK$38.83B | 6.37 | 7.91% | 2.95% | ― | ― | |
59 Neutral | HK$17.83B | 19.65 | 3.43% | 5.23% | -1.40% | ― | |
55 Neutral | HK$20.29B | 4.97 | 41.38% | ― | -1.78% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | HK$3.54B | 2.54 | 206.86% | ― | 238.71% | ― |
* Healthcare Sector Average
HK:2552
Hua Medicine
3.65
1.78
95.19%
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Hua Medicine Corporate Events
Hua Medicine Advances Diabetes Treatment with New Phase Ib Trial
Dec 9, 2025
Hua Medicine has announced the successful dosing of the first patient in a U.S.-based Phase Ib trial for their second-generation glucokinase activator, HMS1005. This trial aims to assess the safety and efficacy of the drug, which is designed for o...
Hua Medicine Grants Share Options to Drive Growth and Commitment
Dec 1, 2025
Hua Medicine announced the grant of 20 million share options to three executive directors and 71 employees under its share option scheme. This initiative aims to reward outstanding performance and align employee interests with company growth, with...
Hua Medicine Announces Changes to Remuneration Committee
Nov 27, 2025
Hua Medicine has announced a change in the composition of its Remuneration Committee, appointing Mr. Yiu Leung Andy Cheung as a new member effective November 27, 2025. This appointment reflects the company’s ongoing efforts to strengthen its...
Hua Medicine Updates Board of Directors and Committee Roles
Nov 27, 2025
Hua Medicine has announced an updated list of its board of directors effective November 27, 2025. The announcement details the roles and committee memberships of each director, highlighting the strategic leadership structure within the company. Th...
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.