Pharmaron Beijing Co., Ltd. Class H (3759) AI Stock Analysis

• Market Cap: €55.02B
• Dividend Yield: 0.99%
• Average Volume (3M): 19.55M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 2.02
• Revenue Growth: 13.28%
• EPS Growth: -28.34%
• Country: HK
• Employees: 21,370
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): 0.24
• Shares Outstanding: 301,537,140
• 10 Day Avg. Volume: 15,794,263
• 30 Day Avg. Volume: 19,549,596
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €33.24
• Price Target Upside: 62.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: ―

Pharmaron Beijing Co., Ltd. has demonstrated strong financial performance with robust revenue and income growth. However, increased leverage and volatile cash flow growth are areas to monitor. The technical analysis indicates bearish trends with potential overbought conditions. Valuation metrics suggest the stock is fairly valued, providing a reasonable entry point for investors. These factors culminate in a moderate overall stock score.

Pharmaron Beijing Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Pharmaron Beijing Co., Ltd., together with its subsidiaries, provides pharmaceutical research and development services to the life sciences industry in North America, Europe, Mainland China, rest of Asia, and internationally. The company operates through five segments: Laboratory Services; Chemistry, Manufacturing and Controls (CMC) Services; Clinical Development Services; Biologics and Cell and Gene Therapy Services; and Others. It offers laboratory chemistry solutions, including medicinal, synthetic, and analytical and purification chemistry, as well as computer-aided drug design services; bioscience services comprising in vitro and in vivo drug metabolism and pharmacokinetics/absorption, distribution, metabolism, and excretion solutions; and in vitro biology and in vivo pharmacology, safety assessment, and the U.S. laboratory services. The company also provides process development and manufacturing, material science/pre-formulation, formulation development and manufacturing, and analytical development services; and radiolabelled science services and early stage clinical trial services, as well as clinical research and site management services. It also provides business development; and contract research, development, and manufacturing services for pharmaceutical products. The company was incorporated in 2004 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Pharmaron makes its money primarily through service contracts with pharmaceutical and biotechnology companies. Its revenue streams are diversified across several key areas: drug discovery services, which include medicinal chemistry and biology; preclinical services that involve safety assessment and pharmacokinetics; clinical development services, focusing on clinical trial management and patient recruitment; and commercial manufacturing services, which involve the production of active pharmaceutical ingredients (APIs) and finished dosage forms. The company engages in strategic partnerships and collaborations with leading global pharmaceutical companies, which enhance its service offerings and expand its market reach. These partnerships, alongside its broad service portfolio, contribute significantly to its revenue generation.

Pharmaron Beijing Co., Ltd. Class H Financial Statement Overview

Summary

Pharmaron Beijing Co., Ltd. exhibits strong growth and profitability, particularly in revenue and net income. The balance sheet remains robust, though the increased leverage requires monitoring. Cash flow generation is solid, but some volatility in free cash flow growth warrants attention. Overall, the financial health is strong, with good prospects for future growth.

Income Statement

Pharmaron Beijing Co., Ltd. has shown consistent revenue growth, with a significant increase from 2019 to 2024. The gross profit margin is healthy, around 34% for the recent year. The net profit margin has improved over the years, indicating efficient cost management. EBIT and EBITDA margins are strong, reflecting good operational performance.

Balance Sheet

The company maintains a solid balance sheet with a stable equity ratio over 50%. The debt-to-equity ratio has increased, showing higher leverage, which could be a risk if not managed carefully. However, return on equity is strong, indicating good returns for shareholders.

Cash Flow

Operating cash flow remains robust, and the company has improved free cash flow generation in recent years. The operating cash flow to net income ratio suggests good cash conversion. However, free cash flow growth has been volatile, highlighting potential fluctuations in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.28B	11.54B	10.27B	7.44B	5.13B
Gross Profit	4.20B	4.12B	3.77B	2.68B	1.92B
EBITDA	3.38B	2.95B	2.53B	2.49B	1.72B
Net Income	1.79B	1.60B	1.37B	1.66B	1.17B
Balance Sheet
Total Assets	23.93B	26.48B	20.49B	18.39B	11.91B
Cash, Cash Equivalents and Short-Term Investments	2.81B	6.72B	2.24B	5.10B	3.85B
Total Debt	5.54B	9.36B	6.12B	5.29B	1.05B
Total Liabilities	9.70B	13.24B	9.65B	8.09B	2.98B
Stockholders Equity	13.62B	12.56B	10.55B	10.13B	8.87B
Cash Flow
Free Cash Flow	536.02M	―	―	―	332.77M
Operating Cash Flow	2.58B	2.75B	2.14B	2.06B	1.65B
Investing Cash Flow	―	-2.25B	―	―	―
Financing Cash Flow	―	3.92B	―	3.66B	―

Pharmaron Beijing Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3759, the sentiment is Positive. The current price of 20.46 is below the 20-day moving average (MA) of 21.65, above the 50-day MA of 19.61, and above the 200-day MA of 15.76, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3759.

Pharmaron Beijing Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3759	67 Neutral	€55.02B	26.20	10.44%	0.99%	13.28%	-28.34%
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%
GNNSF	―	$5.22B	0.93	-6.09%	―	―	―
1ZLB	―	€3.25B	―	-29.51%	―	―	―
1877	54 Neutral	HK$46.13B	―	-16.25%	―	44.21%	46.11%
2096	―	HK$35.73B	37.41	12.36%	1.30%	―	―
6821	69 Neutral	HK$38.51B	28.35	6.33%	1.36%	6.68%	-0.96%

Pharmaron Beijing Co., Ltd. Class H Corporate Events

Pharmaron Announces Director Resignation

Pharmaron Beijing Co., Ltd. announced the resignation of Mr. Hu Baifeng from his role as a non-executive director and member of the strategy committee. This change is due to the reallocation of Mr. Hu’s primary work responsibilities, which may impact the company’s strategic direction and governance structure.

Pharmaron Beijing Co., Ltd. Releases 2025 First Quarterly Report

Pharmaron Beijing Co., Ltd. has released its first quarterly report for 2025, prepared in accordance with PRC Accounting Standards for Business Enterprises. The report, which remains unaudited, provides insights into the company’s financial performance for the quarter, potentially impacting its operations and market positioning.

Pharmaron Announces Director Resignation and Nomination

Pharmaron Beijing Co., Ltd. announced the resignation of Mr. Hu Baifeng from his position as a non-executive director and member of the strategy committee. Mr. Hu will continue his duties until a new director is elected at the 2024 AGM. The company has nominated Ms. Wan Xuan as a candidate for the non-executive director position, with her appointment subject to shareholder approval at the AGM. Ms. Wan, who has a background in investment management within the healthcare and biotechnology sectors, will also serve on the strategy committee if elected.

Pharmaron Beijing Co., Ltd. Schedules Board Meeting for Quarterly Results

Pharmaron Beijing Co., Ltd. has announced that its board of directors will meet on April 25, 2025, to consider and approve the company’s first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Pharmaron Beijing Co., Ltd. Reports 2024 Financial Results with Increased Revenue and Profit

Pharmaron Beijing Co., Ltd. reported its annual financial results for the year ending December 31, 2024, showing a 6.4% increase in revenue to RMB12,275.8 million and a 12% rise in profit attributable to owners of the parent to RMB1,793.4 million compared to the previous year. Despite a decrease in net cash flows from operating activities by 6.4%, the company proposed a final dividend of RMB2.0 per 10 shares, reflecting its continued commitment to shareholder returns.

Pharmaron Beijing Announces Final Cash Dividend for 2024

Pharmaron Beijing Co., Ltd. has announced a final cash dividend of RMB 2 per 10 shares for the financial year ending December 31, 2024. The distribution is contingent upon approval at the upcoming AGM, with an expected payout by the end of August 2025, reflecting the company’s solid financial performance and commitment to shareholder returns.

Pharmaron Announces New Share Award Scheme and Capital Increase

Pharmaron Beijing Co., Ltd. has announced several strategic initiatives, including the adoption of a new 2025 H Share Award Scheme to enhance employee loyalty and the expansion of its existing H Share Award Scheme to attract and retain talent. Additionally, the company plans to increase its registered capital and amend its articles of association to reflect these changes, aligning with recent regulatory updates and enhancing its operational framework.

Pharmaron Beijing Co., Ltd. Enhances Governance with New Nomination Committee

Pharmaron Beijing Co., Ltd. has established a Nomination Committee to enhance its corporate governance structure. This committee is tasked with overseeing the selection and appointment of directors and senior management, ensuring a diverse and independent board composition, which is crucial for the company’s strategic direction and operational efficiency.

Pharmaron Beijing Co., Ltd. Schedules Board Meeting to Approve Annual Results

Pharmaron Beijing Co., Ltd. has announced a board meeting scheduled for March 26, 2025, to discuss and approve the annual results for the year ended December 31, 2024, and to consider the recommendation of a final dividend payment. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders, impacting its market positioning and stakeholder interests.