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Hua Medicine
(2552)
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Rating:52Neutral
Price Target:
HK$2.50
▼(-24.01% Downside)
Action:Reiterated
Date:07/03/26
The score is primarily held back by financial performance: ongoing operating losses and negative operating/free cash flow in 2025 reduce confidence in profit quality despite stronger revenue growth and improved gross margin. Technicals also lean weak with price below key moving averages and negative MACD. Valuation is the main offset due to a very low P/E, but the absence of a dividend and questions around earnings sustainability temper that support.
Positive Factors
Revenue & Gross Margin Improvement
Sustained revenue acceleration and a materially higher gross margin indicate stronger product economics and demand for core therapies. Over 2–6 months this supports margin sustainability and gives the company a clearer path to absorb fixed costs and move toward operating leverage if sales growth continues.
Negative Factors
Persistent Operating Losses
Deep negative operating and EBITDA margins show the company has not yet turned underlying operations profitable. Over the medium term this limits internal funding for growth, makes operating leverage distant, and requires either sustained revenue acceleration or significant cost restructuring to reach durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Gross Margin Improvement
Sustained revenue acceleration and a materially higher gross margin indicate stronger product economics and demand for core therapies. Over 2–6 months this supports margin sustainability and gives the company a clearer path to absorb fixed costs and move toward operating leverage if sales growth continues.
Read all positive factors
Hua Medicine (2552) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.27B
Dividend YieldN/A
Average Volume (3M)6.34M
Price to Earnings (P/E)1.8
Beta (1Y)1.43
Revenue Growth92.87%
EPS GrowthN/A
CountryHK
Employees168
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.13
Shares Outstanding1,056,605,000
10 Day Avg. Volume6,422,209
30 Day Avg. Volume6,335,350
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.71
Price to Sales (P/S)5.69
P/FCF Ratio-45.79
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)0.04
Revenue Forecast (FY)HK$1.04B
Hua Medicine Business Overview & Revenue Model
Company Description
Hua Medicine (Shanghai) Ltd., a biopharmaceutical enterprise established in 2011 and headquartered in Beijing, China, specializes in the clinical development of novel therapeutic solutions, with a primary focus on addressing diabetes within the Ch...
How the Company Makes Money
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Hua Medicine Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
52
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 480.18M | 255.89M | 76.61M | 17.60M | 0.00 |
| Gross Profit | 273.10M | 124.72M | 37.37M | 7.69M | -38.48M |
| EBITDA | -109.50M | -345.36M | -167.09M | -168.06M | -309.69M |
| Net Income | 1.08B | -250.14M | -211.23M | -203.77M | -330.95M |
Balance Sheet | |||||
| Total Assets | 1.47B | 1.53B | 1.73B | 1.12B | 903.55M |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.14B | 1.46B | 490.63M | 675.24M |
| Total Debt | 301.80M | 300.18M | 167.75M | 97.58M | 71.53M |
| Total Liabilities | 463.48M | 1.66B | 1.62B | 841.92M | 453.22M |
| Stockholders Equity | 1.01B | -135.47M | 101.15M | 279.58M | 450.33M |
Cash Flow | |||||
| Free Cash Flow | -59.70M | -421.83M | 879.52M | -257.58M | -339.87M |
| Operating Cash Flow | -52.15M | -417.97M | 889.37M | -230.11M | -272.98M |
| Investing Cash Flow | -654.00K | 10.04M | 8.08M | -4.75M | -68.22M |
| Financing Cash Flow | 9.10M | 83.72M | 69.07M | 21.48M | -6.13M |
Hua Medicine Technical Analysis
Neutral
3.29
Price Trends
2.87
Negative
3.05
Negative
3.30
Negative
Market Momentum
-0.20
Negative
46.44
Neutral
59.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2552, the sentiment is Neutral. The current price of 3.29 is above the 20-day moving average (MA) of 2.23, above the 50-day MA of 2.87, and below the 200-day MA of 3.30, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 59.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$27.67B | 13.50 | 13.95% | 4.09% | 1.48% | -1.55% | |
72 Outperform | HK$191.14B | 29.33 | 16.71% | 0.97% | 22.62% | 26.23% | |
63 Neutral | HK$14.46B | 36.18 | 3.12% | 5.23% | 3.74% | -40.22% | |
58 Neutral | HK$27.45B | 6.15 | 7.98% | 2.95% | 4.66% | 20.76% | |
55 Neutral | HK$15.35B | 4.14 | 37.04% | ― | -13.04% | 1113.58% | |
52 Neutral | HK$2.27B | 1.80 | 206.86% | ― | 92.87% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:2552
Hua Medicine
2.34
-0.79
-25.24%
HK:0013
HUTCHMED (China)
17.60
-7.35
-29.46%
HK:1513
Livzon Pharmaceutical Group
24.34
-3.76
-13.39%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.37
-0.59
-11.98%
HK:9989
Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H
4.14
-1.12
-21.22%
HK:3692
Hansoh Pharmaceutical Group Company Limited
31.52
0.58
1.87%
Hua Medicine Corporate Events
Hua Medicine Shareholders Approve All AGM Resolutions, Renew Capital Mandates
Jun 25, 2026
Shareholders of Hua Medicine approved all resolutions at the annual general meeting held on June 25, 2026, including the adoption of the audited financial statements for 2025 and the re-election of executive, non-executive and independent non-exec...
Hua Medicine Sets New Board and Committee Line-Up Effective June 2026
Jun 25, 2026
Hua Medicine has announced the composition of its board of directors effective June 25, 2026, confirming a mix of executive, non-executive and independent non-executive directors led by executives Li Chen, George Chien Cheng Lin and Yi Zhang. This...
Hua Medicine Formalizes Nomination Committee Governance and Diversity Framework
Jun 25, 2026
Hua Medicine has formalized the terms of reference for its nomination committee, setting out its mandate to identify, evaluate, and recommend candidates for the board of directors in line with applicable laws, regulations, and listing rules. The c...
Hua Medicine Strengthens Governance with New Nomination Committee Appointments
Jun 25, 2026
Hua Medicine has appointed executive director Dr. Yi Zhang and independent non-executive director Yiu Leung Andy Cheung to its Nomination Committee, effective June 25, 2026. Their existing roles on the board remain unchanged, and their biographica...
Hua Medicine Sets 2026 AGM to Approve Accounts and Renew Capital Mandates
Apr 22, 2026
Hua Medicine has called its annual general meeting for June 25, 2026, at its Shanghai headquarters, where shareholders will review the audited financial statements for the year ended December 31, 2025, and consider the re-election of three directo...
Hua Medicine Seeks Shareholder Approval for Digital-Friendly Articles Update
Apr 16, 2026
Hua Medicine plans to update its constitutional documents by replacing its third amended and restated memorandum and articles of association with a fourth version. The key change is to permit shareholder general meetings to be held as electronic o...
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.