Hansoh Pharmaceutical Group Company Limited (3692) AI Stock Analysis

• Market Cap: HK$260.37B
• Dividend Yield: 0.85%
• Average Volume (3M): 9.67M
• Price to Earnings (P/E): 49.5
• Beta (1Y): 0.74
• Revenue Growth: 8.68%
• EPS Growth: 0.82%
• Country: HK
• Employees: 8,989
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.58
• Shares Outstanding: 6,055,150,000
• 10 Day Avg. Volume: 6,926,281
• 30 Day Avg. Volume: 9,666,344
• PEG Ratio: 0.46
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 7.85
• P/FCF Ratio: 26.44
• 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: HK$43.70
• Price Target Upside: 1.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$44.00 ▲(2.33% Upside)

Hansoh Pharmaceutical Group's strong financial performance, particularly in revenue and profit growth, is a major strength. However, concerns about cash flow sustainability and a high P/E ratio suggest potential risks. The stock's positive technical momentum is a favorable factor, but caution is advised due to potential overvaluation and overbought signals.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's expanding market reach and effective product adoption, particularly in key therapeutic areas.

Market Position

As a leading player in the Chinese biopharmaceutical market, Hansoh benefits from a strong domestic presence and brand recognition, supporting long-term growth.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and weathering economic fluctuations.

Negative Factors

Cash Flow Concerns

Lack of operating and free cash flow may hinder the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Cash Generation Ability

Inability to generate cash flow could limit the company's capacity to invest in R&D and new product development, affecting long-term competitiveness.

Cash Flow Sustainability

Uncertainty in cash flow sustainability raises concerns about the company's ability to maintain operations without relying on external financing.

Hansoh Pharmaceutical Group Company Limited Business Overview & Revenue Model

Company Description

Hansoh Pharmaceutical Group Company Limited (3692) is a leading biopharmaceutical company based in China, primarily focused on the research, development, manufacturing, and commercialization of innovative medicines. The company operates in several therapeutic areas, including oncology, central nervous system disorders, anti-infectives, and autoimmune diseases. Hansoh is known for its extensive product portfolio that includes both proprietary drugs and generic medicines, as well as a strong pipeline of drug candidates in various stages of clinical development.

How the Company Makes Money

Hansoh Pharmaceutical generates revenue through multiple streams, primarily by selling its pharmaceutical products to hospitals, pharmacies, and healthcare providers in China and internationally. The company’s key revenue drivers include sales of its innovative drug portfolio, particularly in oncology and CNS disorder treatments, where it holds significant market share. Additionally, Hansoh benefits from strategic partnerships and collaborations with other pharmaceutical companies, which can include co-development agreements and licensing deals that provide upfront payments, milestone payments, and royalties on sales. The company's focus on research and development also positions it to earn from new drug approvals, expanding its product offerings and enhancing its market competitiveness.

Hansoh Pharmaceutical Group Company Limited Financial Statement Overview

Summary

Hansoh Pharmaceutical Group has demonstrated strong financial performance with significant revenue and profit growth, a robust equity position, and efficient operations. However, the recent absence of operating and free cash flows could pose a risk if not addressed.

Income Statement

Hansoh Pharmaceutical Group has demonstrated strong revenue growth, with a notable increase from the previous year. The gross profit margin is robust, indicating efficient production processes. Their EBIT and EBITDA margins are healthy, reflecting strong operational efficiency. Net profit margin has also improved, showcasing the company's ability to convert revenue into profit effectively.

Balance Sheet

The company maintains an excellent equity position with a high equity ratio, indicating financial stability and low leverage risk. The debt-to-equity ratio is very low, suggesting a conservative approach to leveraging. Return on equity has improved, reflecting efficient use of shareholder funds to generate profits.

Cash Flow

While Hansoh Pharmaceutical has shown positive free cash flow growth over the years, the recent year shows zero operating and free cash flow, which could be a concern for cash generation sustainability. Historically, the operating cash flow to net income ratio was strong, indicating efficient cash conversion, but recent data is lacking for a complete assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.19B	12.26B	10.10B	9.38B	9.94B	8.69B
Gross Profit	11.98B	11.16B	9.07B	8.51B	9.06B	7.89B
EBITDA	4.79B	4.28B	4.20B	2.93B	3.08B	2.99B
Net Income	4.78B	4.37B	3.28B	2.58B	2.71B	2.57B
Balance Sheet
Total Assets	35.07B	31.66B	33.04B	30.00B	27.16B	20.79B
Cash, Cash Equivalents and Short-Term Investments	27.12B	23.39B	24.86B	21.63B	18.94B	13.73B
Total Debt	116.86M	117.89M	4.30B	4.38B	3.83B	92.75M
Total Liabilities	3.97B	2.98B	7.24B	7.35B	7.13B	2.92B
Stockholders Equity	31.10B	28.68B	25.79B	22.65B	20.03B	17.88B
Cash Flow
Free Cash Flow	1.06B	3.64B	2.90B	2.47B	2.12B	962.83M
Operating Cash Flow	1.18B	3.86B	3.12B	2.74B	2.58B	2.39B
Investing Cash Flow	-3.76B	-1.39B	1.07B	-5.94B	-2.26B	-2.87B
Financing Cash Flow	-1.87B	-6.07B	-753.70M	-818.14M	3.42B	-1.04B

Hansoh Pharmaceutical Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3692, the sentiment is Positive. The current price of 43 is above the 20-day moving average (MA) of 40.64, above the 50-day MA of 38.10, and above the 200-day MA of 30.92, indicating a bullish trend. The MACD of 1.42 indicates Negative momentum. The RSI at 69.50 is Neutral, neither overbought nor oversold. The STOCH value of 84.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3692.

Hansoh Pharmaceutical Group Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0874	75 Outperform	HK$44.48B	9.43	7.86%	7.07%	1.13%	-13.53%
1513	74 Outperform	HK$32.72B	11.94	14.91%	3.87%	-0.45%	9.00%
3692	73 Outperform	HK$260.37B	49.53	16.09%	0.85%	8.68%	0.82%
0512	73 Outperform	HK$29.04B	13.78	12.65%	3.18%	10.56%	-13.58%
3320	68 Neutral	HK$28.96B	9.52	5.90%	2.93%	―	―
2196	65 Neutral	HK$78.48B	17.15	6.75%	1.55%	-1.12%	76.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Hansoh Pharmaceutical Group Company Limited Corporate Events

Hansoh Pharmaceutical’s New Drug Application for Lung Cancer Treatment Accepted

Hansoh Pharmaceutical Group Company Limited announced that its New Drug Application for HS-10365 capsules, a RET inhibitor for treating RET fusion-positive non-small cell lung cancer, has been accepted by China’s National Medical Products Administration. This development marks a significant step in Hansoh’s drug development efforts, potentially enhancing its position in the oncology market and offering new treatment options for lung cancer patients.

Hansoh Pharmaceutical Partners with Roche for Global Cancer Drug Development

Hansoh Pharmaceutical Group has entered into a license agreement with F. Hoffmann-La Roche Ltd, granting Roche an exclusive worldwide license to develop, manufacture, and commercialize Hansoh’s investigational CDH17-targeting antibody-drug conjugate, HS-20110, for colorectal cancer and other solid tumors. This agreement, which excludes the Chinese Mainland, Hong Kong, Macau, and Taiwan, involves an upfront payment of $80 million and potential milestone payments up to $1.45 billion, along with tiered royalties on future sales. This strategic partnership is expected to enhance Hansoh’s scientific and commercial capabilities, positioning it favorably in the global pharmaceutical market.

Hansoh Pharmaceutical Announces Interim Dividend for 2025

Hansoh Pharmaceutical Group Company Limited has announced an interim cash dividend of HKD 0.2316 per share for the six months ending June 30, 2025. This update includes changes to the timeline for lodging transfer documents for registration, the book close period, and the record date. The dividend will be paid on October 30, 2025, and reflects the company’s ongoing financial health and commitment to shareholder returns.

Hansoh Pharmaceutical Adjusts Interim Dividend Dates Due to Weather

Hansoh Pharmaceutical Group Company Limited announced a rescheduling of dates related to its interim dividend for the six months ended June 30, 2025, due to unstable weather conditions. The changes affect the timeline for lodging transfer documents, the book closure period, and the record date, but the payment date remains unchanged. This adjustment ensures the company maintains its operational commitments despite external challenges.