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Hua Medicine Ltd. (HK:2552)
:2552
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Hua Medicine (2552) AI Stock Analysis

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HK:2552

Hua Medicine

(2552)

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Neutral 52 (OpenAI - 5.2)
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)

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
null...

Hua Medicine Financial Statement Overview

Summary
Revenue growth accelerated in 2025 and gross margin improved, but the core business remains loss-making at the operating level and cash conversion is weak. Negative operating/free cash flow alongside strongly positive net income raises concerns about earnings quality and funding needs, despite a healthier balance sheet versus 2024.
Income Statement
48
Neutral
Balance Sheet
52
Neutral
Cash Flow
34
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue480.18M255.89M76.61M17.60M0.00
Gross Profit273.10M124.72M37.37M7.69M-38.48M
EBITDA-109.50M-345.36M-167.09M-168.06M-309.69M
Net Income1.08B-250.14M-211.23M-203.77M-330.95M
Balance Sheet
Total Assets1.47B1.53B1.73B1.12B903.55M
Cash, Cash Equivalents and Short-Term Investments1.09B1.14B1.46B490.63M675.24M
Total Debt301.80M300.18M167.75M97.58M71.53M
Total Liabilities463.48M1.66B1.62B841.92M453.22M
Stockholders Equity1.01B-135.47M101.15M279.58M450.33M
Cash Flow
Free Cash Flow-59.70M-421.83M879.52M-257.58M-339.87M
Operating Cash Flow-52.15M-417.97M889.37M-230.11M-272.98M
Investing Cash Flow-654.00K10.04M8.08M-4.75M-68.22M
Financing Cash Flow9.10M83.72M69.07M21.48M-6.13M

Hua Medicine Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.29
Price Trends
50DMA
2.87
Negative
100DMA
3.05
Negative
200DMA
3.30
Negative
Market Momentum
MACD
-0.20
Negative
RSI
46.44
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$27.67B13.5013.95%4.09%1.48%-1.55%
72
Outperform
HK$191.14B29.3316.71%0.97%22.62%26.23%
63
Neutral
HK$14.46B36.183.12%5.23%3.74%-40.22%
58
Neutral
HK$27.45B6.157.98%2.95%4.66%20.76%
55
Neutral
HK$15.35B4.1437.04%-13.04%1113.58%
52
Neutral
HK$2.27B1.80206.86%92.87%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.Date of analysis: Jul 03, 2026