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China Resources Pharmaceutical Group Ltd. (HK:3320)
:3320

China Resources Pharmaceutical Group Ltd. (3320) AI Stock Analysis

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HK:3320

China Resources Pharmaceutical Group Ltd.

(3320)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
HK$5.50
▲(20.09% Upside)
The overall stock score is primarily influenced by solid financial performance, despite challenges in cash flow and profitability. Technical analysis indicates potential short-term weakness, while valuation metrics suggest the stock is reasonably priced with a moderate dividend yield. Addressing liquidity and profitability issues is crucial for future growth.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.
Stable Gross Margins
Stable gross margins suggest effective cost management and pricing strategies, which are crucial for maintaining profitability over time.
Strong Balance Sheet
A strong balance sheet with moderate leverage provides financial stability and flexibility to pursue growth opportunities and withstand economic fluctuations.
Negative Factors
Declining Net Profit Margins
Declining net profit margins indicate pressure on profitability, which can affect long-term earnings potential and shareholder value if not addressed.
Zero Cash Flows
Lack of cash flow generation can hinder the company's ability to invest in growth, pay down debt, and manage day-to-day operations effectively.
Declining Return on Equity
A declining ROE suggests reduced efficiency in generating returns from shareholders' equity, which may impact investor confidence and capital raising abilities.

China Resources Pharmaceutical Group Ltd. (3320) vs. iShares MSCI Hong Kong ETF (EWH)

China Resources Pharmaceutical Group Ltd. Business Overview & Revenue Model

Company DescriptionChina Resources Pharmaceutical Group Limited, an investment holding company, engages in the research and development, manufacture, distribution, and retail of pharmaceutical and other healthcare products in Mainland China and Hong Kong. The company operates through four segments: Pharmaceutical Manufacturing, Pharmaceutical Distribution, Pharmaceutical Retail, and Others. It offers a range of chemical drugs, Chinese medicines, and biopharmaceutical drugs, as well as nutritional and healthcare products for various therapeutic areas, including cardiovascular and cerebrovascular, alimentary tract, metabolism and endocrine, respiratory, orthopedics, oncology, medical nutrition, gastroenterology, pediatrics, genitourinary system, cough and cold, anti-infection, dermatology, infusion solutions, etc. The company also provides warehousing, logistics, and other value-added pharmaceutical supply chain solutions and related services to pharmaceutical manufacturers and dispensers, such as hospitals, distributors, and retail pharmacies. In addition, it is involved in property holding activities. As of December 31, 2021, the company operated 801 retail pharmacies under the CR Care and Teck Soon Hong brands. It distributes its products to hospitals and other medical institutions. The company was formerly known as China Resources Medications Group Limited and changed its name to China Resources Pharmaceutical Group Limited in December 2011. The company was incorporated in 2007 and is based in Wan Chai, Hong Kong. China Resources Pharmaceutical Group Limited is a subsidiary of CRH (Pharmaceutical) Limited.
How the Company Makes MoneyChina Resources Pharmaceutical Group Ltd. generates revenue through multiple key streams, including the manufacturing and sale of pharmaceutical products, which constitutes a significant portion of its income. The company also earns from its distribution network, providing logistics and supply chain services to various healthcare providers and pharmacies. Additionally, retail operations through pharmacies and health stores contribute to consumer sales. Strategic partnerships with healthcare institutions and global pharmaceutical companies enhance its product offerings and market reach. The growing demand for healthcare products in China, coupled with government policies supporting the pharmaceutical industry, further bolsters the company’s revenue potential.

China Resources Pharmaceutical Group Ltd. Financial Statement Overview

Summary
The company demonstrates robust revenue growth and stable gross margins. However, declining net profit margins and zero cash flows in 2024 raise concerns about liquidity and profitability. The balance sheet is strong with manageable leverage, but improvements in cash flow and profitability are needed for long-term health.
Income Statement
85
Very Positive
The company shows a solid financial performance with consistent revenue growth from 2020 to 2024. The gross profit margin remains strong, around 15.8% in 2024. The EBIT and EBITDA margins are healthy at 4.7% and 5.6%, respectively. However, the net profit margin has slightly decreased to 1.3% in 2024, indicating pressure on net profitability despite revenue growth.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.43 in 2024, indicating moderate leverage. The equity ratio is relatively stable at 18.7%, ensuring a good equity base. However, the return on equity (ROE) has slightly declined to 6.9% in 2024, suggesting a need to improve net profitability for better shareholder returns.
Cash Flow
65
Positive
The cash flow analysis reveals challenges in cash generation, as evidenced by zero operating and free cash flows in 2024. Historically, the company had positive free cash flow but has experienced volatility. The lack of operating cash flow in 2024 raises potential concerns about liquidity management and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue281.84B274.18B270.40B254.11B236.81B200.42B
Gross Profit44.59B43.30B42.18B39.13B35.38B32.29B
EBITDA15.71B15.45B15.43B15.47B11.95B12.47B
Net Income3.07B3.57B3.85B3.50B3.08B2.78B
Balance Sheet
Total Assets314.32B274.28B271.48B243.93B248.56B209.37B
Cash, Cash Equivalents and Short-Term Investments34.54B17.48B59.27B32.52B37.32B52.34B
Total Debt90.96B73.43B62.16B63.85B67.96B55.20B
Total Liabilities191.56B169.90B169.20B150.24B152.69B128.69B
Stockholders Equity54.75B51.34B50.60B49.56B50.98B46.47B
Cash Flow
Free Cash Flow17.88B14.55B12.42B7.54B8.32B4.06B
Operating Cash Flow21.15B17.55B15.55B10.90B11.22B6.28B
Investing Cash Flow-8.37B-8.89B-2.07B-3.30B-8.83B-2.02B
Financing Cash Flow-13.39B-16.84B-4.07B-9.00B5.31B-3.60B

China Resources Pharmaceutical Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.58
Price Trends
50DMA
4.84
Negative
100DMA
4.94
Negative
200DMA
5.01
Negative
Market Momentum
MACD
-0.08
Positive
RSI
34.22
Neutral
STOCH
13.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3320, the sentiment is Negative. The current price of 4.58 is below the 20-day moving average (MA) of 4.75, below the 50-day MA of 4.84, and below the 200-day MA of 5.01, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 34.22 is Neutral, neither overbought nor oversold. The STOCH value of 13.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3320.

China Resources Pharmaceutical Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$44.48B9.437.86%7.07%1.13%-13.53%
74
Outperform
HK$32.72B11.9414.91%4.01%-0.45%9.00%
73
Outperform
HK$29.04B13.7812.65%3.18%10.56%-13.58%
68
Neutral
€28.96B9.525.90%2.95%
65
Neutral
HK$33.10B18.5010.01%2.25%11.78%19.06%
65
Neutral
$78.48B17.156.75%1.57%-1.12%76.16%
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:3320
China Resources Pharmaceutical Group Ltd.
4.58
-0.70
-13.32%
HK:0867
China Medical System Holdings
13.26
6.14
86.11%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
18.65
1.52
8.89%
HK:1513
Livzon Pharmaceutical Group
29.90
4.03
15.59%
HK:2196
Shanghai Fosun Pharmaceutical (Group) Co
22.36
8.59
62.38%
HK:0512
Grand Pharmaceutical Group Limited
8.17
3.71
83.18%

China Resources Pharmaceutical Group Ltd. Corporate Events

China Resources Pharmaceutical Group’s Subsidiary Secures Approval for Medium Term Notes Issuance
Dec 1, 2025

China Resources Pharmaceutical Group Ltd. announced that its subsidiary, CR Pharmaceutical Commercial, has received approval from the National Association of Financial Market Institutional Investors to issue medium term notes in China. The registration allows for the issuance of up to RMB3 billion in notes over two years, with proceeds intended for repaying interest-bearing debt, potentially impacting the company’s financial stability and market positioning.

China Resources Pharmaceutical Proposes Amendments to Articles of Association
Nov 27, 2025

China Resources Pharmaceutical Group Ltd. has announced proposed amendments to its Articles of Association, aiming to align with the latest legal and regulatory requirements concerning treasury shares and shareholder communication. These changes are subject to shareholder approval at an upcoming extraordinary general meeting, reflecting the company’s commitment to compliance and operational transparency.

China Resources Pharmaceutical Completes Second Tranche Bond Issuance
Nov 18, 2025

China Resources Pharmaceutical Group Ltd. has successfully completed the public issuance of the second tranche of its 2025 Corporate Bonds in the PRC, raising RMB1.1 billion. The proceeds will be utilized for various operational expenses, including debt repayment, working capital replenishment, and investments in scientific and technological innovations, which may strengthen the company’s financial position and support its growth initiatives.

China Resources Pharmaceutical Group Forms RMB500 Million Investment Fund
Oct 30, 2025

China Resources Pharmaceutical Group Ltd. has announced the formation of a new fund with a proposed size of RMB500 million, aimed at investing in high-growth enterprises in synthetic biology, innovative drugs, and biotechnology. The company’s subsidiaries, CR Pharm (Shantou), CR Double-Crane, and CR Pharmaceutical Investment, will collectively contribute RMB123 million, representing 24.6% of the total capital commitment. The fund will not be considered a subsidiary of the company, and Shenzhen CR Capital will manage it. This move is a connected transaction under the Hong Kong Listing Rules, due to the involvement of Hanwei Huayou Shantou, a connected person of the company.

CR Boya Bio-pharmaceutical Reports Nine-Month Financial Results
Oct 27, 2025

CR Boya Bio-pharmaceutical, a subsidiary of China Resources Pharmaceutical Group, reported its unaudited financial results for the nine months ending September 30, 2025. The company experienced a revenue increase to RMB 1.47 billion compared to the previous year, but net profit decreased to RMB 343 million. Additionally, there was a significant reduction in cash and cash equivalents, highlighting potential liquidity challenges. The financials, prepared under PRC accounting standards, have not been audited and may be subject to adjustments, urging caution among shareholders and investors.

CR Sanjiu Reports Revenue Growth Amid Profit Decline in 2025 Q3
Oct 24, 2025

CR Sanjiu reported its unaudited financial results for the nine months ending September 30, 2025, showing a revenue increase to RMB 21.99 billion from RMB 19.74 billion in the previous year, despite a decline in net profit to RMB 2.90 billion from RMB 3.24 billion. The financials highlight a net decrease in cash and cash equivalents and a significant rise in total assets and liabilities, indicating potential adjustments during auditing, and advising caution for shareholders and investors.

Jiangzhong Pharmaceutical Reports Increased Profit Amid Revenue Dip
Oct 24, 2025

Jiangzhong Pharmaceutical, a subsidiary of China Resources Pharmaceutical Group, reported its unaudited financial results for the nine months ending September 30, 2025. The company saw a slight decrease in revenue compared to the previous year, but net profit increased, indicating improved operational efficiency. The financials show a positive cash flow and an increase in total assets, suggesting a stable financial position. However, the figures have not been audited and may be subject to adjustments, prompting caution among investors.

KPC Pharmaceuticals Reports Decline in Revenue and Profit for 2025
Oct 24, 2025

KPC Pharmaceuticals, Inc., partially owned by China Resources Pharmaceutical Group Ltd., reported a decrease in revenue and net profit for the nine months ending September 30, 2025, compared to the previous year. The financial results indicate a net decrease in cash and cash equivalents, highlighting potential challenges in liquidity. The announcement advises caution for shareholders and potential investors due to the unaudited nature of the financials, which may require adjustments.

Dong-E-E-Jiao Reports Strong Nine-Month Financial Performance
Oct 24, 2025

Dong-E-E-Jiao, a subsidiary of China Resources Pharmaceutical Group Ltd., reported its unaudited financial results for the nine months ending September 30, 2025. The company saw an increase in revenue and net profit compared to the previous year, with revenue reaching RMB 4.77 billion and net profit at RMB 1.28 billion. Despite a decrease in total assets, the company experienced a positive net increase in cash and cash equivalents, indicating improved liquidity. Stakeholders are advised to exercise caution as the financials are unaudited and may require adjustments.

CR Double-Crane Reports Stable Financials Amid Revenue Decline
Oct 24, 2025

CR Double-Crane, a subsidiary of China Resources Pharmaceutical Group, reported its unaudited financial results for the nine months ending September 30, 2025. The company experienced a slight decline in revenue and net profit compared to the previous year, with revenue at RMB 8.28 billion and net profit at RMB 1.39 billion. Despite a decrease in cash and cash equivalents, the company saw an increase in total assets and owner’s equity, indicating a stable financial position. Shareholders and investors are advised to exercise caution as the financials are unaudited and may require adjustments.

Tasly Pharmaceutical’s Nine-Month Financials Show Increased Profit
Oct 24, 2025

Tasly Pharmaceutical reported its unaudited financial results for the nine months ending September 30, 2025, showing a slight decrease in revenue but a notable increase in net profit compared to the previous year. The financials reveal a positive cash flow change and a stable asset base, suggesting a solid financial position for Tasly, which could impact China Resources Pharmaceutical Group’s overall market standing and investor confidence.

China Resources Pharmaceutical Completes First Tranche of 2025 Bond Issuance
Oct 21, 2025

China Resources Pharmaceutical Group Ltd. announced the successful issuance of the first tranche of its 2025 corporate bonds in China, amounting to RMB1.1 billion with a 1.82% annual coupon rate. The proceeds will be used for various operational and developmental purposes, including debt repayment and investment in scientific and technological innovations, potentially enhancing the company’s operational capabilities and market position.

China Resources Pharmaceutical Announces Executive Leadership Changes
Sep 18, 2025

China Resources Pharmaceutical Group Ltd. announced a change in its executive leadership, with Mdm. Deng Rong resigning as an executive director and member of the executive committee, while continuing her role as CFO. Concurrently, Mr. Liu Changan has been appointed as an executive director and member of the executive committee, bringing his experience from previous roles within the company and other organizations. These changes are expected to maintain the company’s strategic direction and stability, ensuring continued focus on its growth and operational goals.

China Resources Pharmaceutical Group Ltd. Announces Board of Directors and Their Roles
Sep 18, 2025

China Resources Pharmaceutical Group Ltd. has announced the list of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the company’s governance and strategic direction.

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: Oct 24, 2025