Hansoh Pharmaceutical Group Company Limited (3692) AI Stock Analysis

• Market Cap: HK$251.89B
• Dividend Yield: 0.97%
• Average Volume (3M): 9.67M
• Price to Earnings (P/E): 47.9
• Beta (1Y): 0.64
• 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): 0.59
• 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$43.82
• Price Target Upside: 7.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$44.00 ▲(8.00% 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, an investment holding company, engages in the research, development, manufacture, and sale of pharmaceutical products in the People's Republic of China. The company provides products for therapeutic areas, including central nervous system diseases, oncology, anti-infectives, and metabolic diseases. Its principal products include Mailingda, a drug for the treatment of chronic myelogenous leukemia; and Ameile, Hansoh Xinfu, Pulaile, Zefei, Xinwei, Xinmei, Xintai, Tanneng, Oulanning, Ameining, Zetan, Hengjie, Hengsen, Fulaimei, Fulaidi, and Ruibote drugs. The company serves pharmaceutical product distributors. It has a strategic collaboration with Scynexis, Inc. to develop and commercialize ibrexafungerp for treatment of vaginal yeast infections; and strategic collaboration with Keros to develop, manufacture, and commercialize KER-050 for treatment of cytopenias, anemia, and thrombocytopenia. The company also has a collaboration with Olix Pharmaceuticals for development of drug candidates for cardiovascular, metabolic, and other diseases associated with the liver; and strategic collaboration with Silence Therapeutics plc to develop siRNAs for three targets leveraging Silence's mRNAi GOLD platform. The company was founded in 1995 and is headquartered in Lianyungang, the People's Republic of China. Hansoh Pharmaceutical Group Company Limited is a subsidiary of Stellar Infinity Company Ltd.

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: 40.74
• 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 40.74 is above the 20-day moving average (MA) of 39.13, above the 50-day MA of 38.82, and above the 200-day MA of 32.59, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 94.46 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$43.86B	9.48	7.86%	7.15%	1.13%	-13.53%
3692	73 Outperform	HK$251.89B	47.92	16.09%	0.97%	8.68%	0.82%
0512	73 Outperform	HK$28.04B	13.30	12.65%	3.13%	10.56%	-13.58%
1513	71 Outperform	HK$33.02B	11.57	14.91%	4.09%	-0.45%	9.00%
3320	68 Neutral	HK$28.96B	9.52	5.90%	2.95%	―	―
2196	53 Neutral	HK$76.85B	15.87	6.75%	1.69%	-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 Pharma Licenses Hengrui’s Late-Stage Kidney Drug SHR6508 for China

Hansoh Pharmaceutical Group has signed a license agreement with Jiangsu Hengrui Pharmaceuticals to obtain exclusive rights to develop, manufacture and commercialise SHR6508 in mainland China, excluding Hong Kong, Macau and Taiwan. SHR6508, an allosteric modulator of the calcium-sensing receptor currently in Phase III clinical trials for secondary hyperparathyroidism in adult chronic kidney disease patients requiring hemodialysis, will require an upfront payment of RMB30 million, up to RMB190 million in potential milestone payments and tiered single-digit royalties on future net sales. The product is expected to complement Hansoh’s existing nephrology and dialysis portfolio, allowing the company to capitalise on its established commercial network to enhance execution efficiency and portfolio performance, while the relatively small transaction size means no notifiable or connected transaction implications under Hong Kong listing rules for shareholders.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$48.20 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

Hansoh Pharma Adds Veteran Lawyer Yan Jia to Board, Bolsters Governance Committees

Hansoh Pharmaceutical Group has appointed veteran corporate lawyer Yan Jia as an independent non-executive director effective 26 December 2025, adding a seasoned legal and governance specialist with extensive China and international capital markets experience to its board. Yan, who holds advanced law degrees from Fudan University, Yale University and City University of Hong Kong and currently serves as a partner and Co-Chair of China Practice at Pillsbury Winthrop Shaw Pittman, has been confirmed as independent under Hong Kong listing rules and will receive an annual director’s fee of RMB360,000, with his three-year term subject to standard re-election requirements. Concurrently, Hansoh has strengthened its board oversight structure by appointing Yan as a member of both the audit committee and the environmental, social and governance committee, a move that underscores the company’s effort to enhance corporate governance, legal and compliance risk management, and board diversity as it navigates a tightly regulated pharmaceutical and capital markets environment.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$48.20 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

Hansoh Pharmaceutical Details Board Composition and Committee Roles

Hansoh Pharmaceutical Group Company Limited has announced the current composition of its board of directors, comprising three executive directors led by chairlady and chief executive officer Zhong Huijuan, and four independent non-executive directors. The company has also detailed the structure and membership of its five key board committees—Audit, Remuneration, Strategy and Development, Environmental, Social and Governance, and Nomination—clarifying the leadership roles and responsibilities within each, a move that underscores its emphasis on corporate governance, strategic oversight and ESG management for investors and other stakeholders.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$48.20 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

Hansoh Pharma Enters Global Licensing Agreement with Glenmark for Aumolertinib

Hansoh Pharmaceutical Group Company Limited announced a license agreement with Glenmark Specialty S.A. for the development and commercialization of Aumolertinib in various global regions. This agreement, which includes upfront and potential milestone payments exceeding US$1 billion, along with tiered royalties, is expected to enhance Hansoh’s market presence and expand its reach in the oncology sector.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$48.20 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

Hansoh Pharmaceutical Advances with New Drug Inclusions in 2025 NRDL

Hansoh Pharmaceutical Group Company Limited announced that two new indications of its drug Ameile have been added to the 2025 National Reimbursement Drug List (NRDL), while all indications of its drugs Saint Luolai and Hengmu have been renewed. This inclusion, effective January 1, 2026, signifies a strategic advancement for Hansoh, potentially enhancing its market share and accessibility of its innovative treatments for non-small cell lung cancer, anemia in chronic kidney disease, and chronic hepatitis B.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

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.

The most recent analyst rating on (HK:3692) stock is a Hold with a HK$38.00 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

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.

The most recent analyst rating on (HK:3692) stock is a Hold with a HK$37.00 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.