Hua Medicine (2552) AI Stock Analysis

• Market Cap: HK$2.73B
• Dividend Yield: N/A
• Average Volume (3M): 6.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 221.43%
• EPS Growth: -16.04%
• Country: HK
• Employees: 168
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.28
• Shares Outstanding: 1,055,588,700
• 10 Day Avg. Volume: 9,216,600
• 30 Day Avg. Volume: 6,628,287
• PEG Ratio: -2.01
• Price to Book (P/B): -14.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$2.50 ▼(-11.03%Downside)

Hua Medicine's overall stock score is primarily influenced by its financial performance and valuation challenges. The company faces significant profitability and financial stability issues, reflected in a low financial performance score. Technical analysis offers some positive short-term momentum, but the lack of earnings call and corporate events data leaves these aspects out of consideration.

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 Dorzagliatin in combination with Metformin, Sitagliptin, and Empagliflozin that is in Phase I clinical trial for treatment of T2D. The company also offers Dorzagliatin in combination with Pioglitazone for NASH; in combination with GLP-1 for Alzheimer diseases; and in combination with late stage T2D and Type 1 Diabetes. In addition, it is developing mGLUR5 for the treatment of Parkinson's disease levodopa-induced dyskinesia. The company was incorporated in 2011 and is based in Beijing, China.

How the Company Makes Money

Hua Medicine generates revenue primarily through the commercialization of its pharmaceutical products, with a focus on its flagship product, Dorzagliatin. The company aims to monetize its innovative diabetes treatment through sales in domestic and international markets. Additionally, Hua Medicine may enter into strategic partnerships and licensing agreements with other pharmaceutical companies to expand the reach and distribution of its products. These partnerships can provide upfront payments, milestone fees, and royalties based on sales performance. As the company continues to develop its product pipeline, it may also secure funding through grants, investments, and collaborations with research institutions.

Hua Medicine Financial Statement Overview

Summary

Hua Medicine faces challenges with profitability and financial stability. Despite revenue growth in 2024, ongoing losses and a weak balance sheet pose significant risks. Cash flow fluctuations add to the uncertainty, requiring strategic financial improvements for long-term sustainability.

Income Statement

The company shows volatile revenue growth with a significant increase in 2024. However, profitability remains a concern due to persistent negative net income and EBIT margins. The gross profit margin improved, indicating better cost management, but overall profitability is weak.

Balance Sheet

The balance sheet reveals high leverage with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, highlighting the company's financial distress.

Cash Flow

Cash flow analysis shows fluctuations, with free cash flow turning negative in 2024 despite positive operating cash flow in 2023. The operating cash flow to net income ratio is not favorable due to negative net income, raising concerns about cash generation sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
255.89M	76.61M	17.60M	0.00	8.66M
	Gross Profit
124.72M	37.37M	7.69M	0.00	8.66M
	EBIT
-360.31M	-289.09M	-199.58M	-320.52M	-389.84M
	EBITDA
-345.36M	-167.09M	-168.06M	-309.69M	-347.43M
	Net Income Common Stockholders
-250.14M	-211.23M	-203.77M	-330.95M	-396.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.14B	1.46B	490.63M	675.24M	1.03B
	Total Assets
1.53B	1.73B	1.12B	903.55M	1.20B
	Total Debt
300.18M	167.75M	97.58M	71.53M	80.72M
	Net Debt
-839.57M	-1.29B	-393.05M	-603.71M	-951.38M
	Total Liabilities
1.66B	1.62B	841.92M	453.22M	466.03M
	Stockholders Equity
-135.47M	101.15M	279.58M	450.33M	732.50M
Cash Flow		Free Cash Flow
-421.83M	879.52M	-257.58M	-339.87M	-46.60M
	Operating Cash Flow
-417.97M	889.37M	-230.11M	-272.98M	-20.91M
	Investing Cash Flow
10.04M	8.08M	-4.75M	-68.22M	-14.09M
	Financing Cash Flow
83.72M	69.07M	21.48M	-6.13M	-7.26M

Hua Medicine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.81 is below the 20-day moving average (MA) of 2.92, above the 50-day MA of 2.43, and above the 200-day MA of 1.82, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 14.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2552.

Hua Medicine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2877	76 Outperform	HK$5.70B	6.25	11.61%	10.21%	-18.09%	-15.08%
1061	74 Outperform	HK$2.58B	8.40	15.18%	20.70%	-2.15%	12.09%
2348	73 Outperform	HK$1.85B	3.02	18.33%	4.88%	-9.95%	67.56%
2633	67 Neutral	HK$3.06B	10.63	12.47%	4.35%	-7.15%	2.38%
1558	66 Neutral	HK$12.32B	23.57	5.88%	―	-42.02%	-76.29%
Sector *	53 Neutral	$5.22B	3.33	-44.36%	7.55%	16.78%	-0.12%
2552	46 Neutral	HK$2.73B	―	-302.14%	―	221.43%	-16.04%

Hua Medicine Corporate Events

Hua Medicine Announces Key Resolutions for Upcoming AGM

Hua Medicine has announced its upcoming Annual General Meeting scheduled for June 26, 2025, at its headquarters in Shanghai. The meeting will address several key resolutions, including the re-election of directors, the re-appointment of auditors, and the authorization for the board to repurchase shares and issue additional shares. These resolutions are pivotal for the company’s governance and strategic flexibility, potentially impacting its market positioning and shareholder value.

Hua Medicine Grants 9.7 Million Share Options to Key Personnel

Hua Medicine announced the grant of 9,700,000 share options to its executive directors, employees, and a service provider, under its share option scheme. This move is aimed at recognizing the outstanding performance of its team in achieving critical milestones in 2024, reinforcing their commitment to the company’s long-term growth and development.

Hua Medicine Reports Strong 2024 Sales and Strategic Expansion Plans

Hua Medicine announced a significant increase in sales revenue for 2024, attributed to the inclusion of HuaTangNing in the National Reimbursement Drug List in China. The company has taken over full commercialization responsibilities from Bayer, leading to a substantial increase in sales volume. Hua Medicine is also advancing its international expansion plans, with successful trials of its glucokinase activator in the United States and plans to submit registration applications in Macau and Hong Kong. The company is recognized for its pharmacovigilance efforts and continues to invest in manufacturing capacity to meet future market demands.