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Pharmaron Beijing Co., Ltd. Class H (HK:3759)
FRANKFURT:3759

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

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HK:3759

Pharmaron Beijing Co., Ltd. Class H

(Frankfurt:3759)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
HK$21.00
▼(-13.01% Downside)
The score is anchored by solid underlying fundamentals and improved leverage, but is held back by weak cash conversion/FCF consistency and a clearly negative technical setup (price below key moving averages and negative MACD). Valuation is roughly middle-of-the-road with a modest dividend yield.
Positive Factors
Corporate Governance Enhancements
Improved governance policies and board structure can enhance regulatory compliance and investor confidence, supporting long-term stability.
Market Position Strengthening
The acquisition of Biortus enhances Pharmaron's market presence and operational capabilities, potentially driving long-term growth in the CRO sector.
Profitability and Scale
Strong profitability margins indicate efficient operations and competitive advantage, supporting sustainable business growth.
Negative Factors
Decelerating Revenue Growth
Slowing revenue growth could indicate market saturation or increased competition, potentially impacting future earnings potential.
Margin Compression
Margin compression suggests reduced pricing power or higher costs, which may affect profitability if not managed effectively.
Weak Cash Conversion
Weak cash conversion indicates potential issues in cash flow management, which could constrain financial flexibility and investment capacity.

Pharmaron Beijing Co., Ltd. Class H (3759) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionPharmaron Beijing Co., Ltd. Class H (3759) is a leading contract research organization (CRO) offering a comprehensive range of R&D and manufacturing services to the pharmaceutical and biotechnology sectors. Founded in Beijing, China, Pharmaron provides integrated services in discovery, development, and manufacturing, covering various stages of drug research and production. The company's core services include drug discovery, preclinical research, clinical development, and commercial manufacturing, serving clients across the globe.
How the Company Makes MoneyPharmaron 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.11B12.28B11.54B10.27B7.44B5.13B
Gross Profit4.52B4.20B4.12B3.77B2.68B1.92B
EBITDA2.08B3.38B2.95B2.53B2.49B1.72B
Net Income1.38B1.79B1.60B1.37B1.66B1.17B
Balance Sheet
Total Assets25.20B23.93B26.48B20.49B18.39B11.91B
Cash, Cash Equivalents and Short-Term Investments2.16B2.81B6.72B2.24B5.10B3.85B
Total Debt5.61B5.54B9.36B6.12B5.29B1.05B
Total Liabilities10.33B9.70B13.24B9.65B8.09B2.98B
Stockholders Equity14.27B13.62B12.56B10.55B10.13B8.87B
Cash Flow
Free Cash Flow518.73M536.02M332.77M
Operating Cash Flow2.21B2.58B2.75B2.14B2.06B1.65B
Investing Cash Flow-1.74B-2.02B-2.25B
Financing Cash Flow-101.03M-4.80B3.92B3.66B

Pharmaron Beijing Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.14
Price Trends
50DMA
22.32
Positive
100DMA
23.46
Negative
200DMA
19.83
Positive
Market Momentum
MACD
-0.12
Negative
RSI
60.50
Neutral
STOCH
92.34
Negative
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 24.14 is above the 20-day moving average (MA) of 21.20, above the 50-day MA of 22.32, and above the 200-day MA of 19.83, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 92.34 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
HK$40.84B27.166.00%1.57%12.35%34.32%
60
Neutral
HK$31.17B
59
Neutral
HK$58.34B25.0210.94%1.04%14.50%-19.24%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
42
Neutral
HK$16.21B-9.55-30.41%23.87%30.08%
38
Underperform
HK$40.05B-24.53-15.06%38.56%48.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3759
Pharmaron Beijing Co., Ltd. Class H
23.18
10.49
82.65%
HK:1548
Genscript Biotech
14.33
5.36
59.75%
HK:9688
Zai Lab Ltd
14.51
-4.41
-23.31%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
25.16
14.86
144.27%
HK:2096
Simcere Pharmaceutical Group Limited
12.15
5.70
88.37%
HK:6821
Asymchem Laboratories (Tianjin) Co., Ltd. Class H
85.25
39.99
88.36%

Pharmaron Beijing Co., Ltd. Class H Corporate Events

Pharmaron Shareholders Back Board Changes and Governance Policy Upgrades at 2025 EGM
Dec 18, 2025

Pharmaron Beijing Co., Ltd. announced that it successfully held its first extraordinary general meeting of 2025 in Beijing, with shareholders representing approximately 48.6% of voting share capital participating either in person or by proxy. All proposed ordinary resolutions were passed by a large majority, including the by‑election of an independent non‑executive director for the third session of the board and a series of amendments to key corporate governance and risk‑management policies, covering related‑party and connected transactions, external guarantees, external investments, independent non‑executive directors’ working procedures, use of proceeds, cumulative voting rules, and director nomination procedures. The strong approval rates underscore broad shareholder support for the company’s governance framework, which may strengthen regulatory compliance, enhance oversight of capital use and transactions, and reinforce the board’s independence, with potential implications for investor confidence and the company’s long‑term governance standards.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Beijing Names CFO Li Shing Chung Gilbert as Employee Representative Director
Dec 18, 2025

Pharmaron Beijing Co., Ltd. has appointed its chief financial officer and board secretary, Mr. Li Shing Chung Gilbert, as the employee representative director for the third session of its board, following his election at an employee representatives’ meeting held on 18 December 2025 in line with PRC company law and the company’s articles of association. Mr. Li, a long-serving finance executive with extensive experience in accounting, corporate finance, and M&A, will not receive separate remuneration for this board role and holds an indirect minority stake in the company through Pharmaron Holdings Limited, a move that further integrates employee representation into the boardroom without altering the existing shareholder approval process or control structure.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Beijing Sets Out Board and Committee Structure for Third Board Session
Dec 18, 2025

Pharmaron Beijing Co., Ltd. has announced the current composition of its board of directors, which includes executive, non-executive, independent non-executive and employee representative directors, led by chairman Dr. Lou Boliang. The company has also detailed the structure of its four key board committees—Audit, Remuneration and Appraisal, Nomination, and Strategy—clarifying chairperson and member roles among directors, a move that underscores its corporate governance framework and may provide investors and other stakeholders with greater transparency into oversight and strategic decision-making.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Beijing Announces 2025 Extraordinary General Meeting
Nov 27, 2025

Pharmaron Beijing Co., Ltd. has announced its first extraordinary general meeting of 2025, scheduled for December 18, 2025. The meeting will address several resolutions including the by-election of an independent non-executive director and amendments to various management policies and articles of association. These changes are aimed at enhancing corporate governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Expands CRO Market Presence with Biortus Acquisition
Nov 17, 2025

Pharmaron Beijing Co., Ltd. announced a supplemental update regarding its acquisition of an 82.54% interest in Biortus, a move that constitutes a connected transaction. The company conducted a comprehensive valuation of Biortus by comparing it with four other listed companies in the same industry, focusing on profitability as a key indicator. This acquisition is expected to strengthen Pharmaron’s position in the CRO market, leveraging Biortus’ steady growth in revenue and profits.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Beijing Co., Ltd. Strengthens Corporate Governance with New Audit Committee
Oct 28, 2025

Pharmaron Beijing Co., Ltd. has established an Audit Committee under its Board of Directors to enhance corporate governance and ensure effective oversight of senior management. The committee, composed of independent non-executive directors, will oversee the company’s financial disclosures and audit processes, thereby strengthening decision-making and internal controls.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Beijing Co., Ltd. Enhances Governance with New Committee
Oct 28, 2025

Pharmaron Beijing Co., Ltd. has established a Remuneration and Appraisal Committee to enhance its governance structure by formulating appraisal standards and remuneration policies for its directors and senior management. This initiative aims to optimize corporate governance and ensure accountability within the company’s leadership, potentially strengthening its industry position and stakeholder trust.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Beijing Co., Ltd. Enhances Governance with New Nomination Committee
Oct 28, 2025

Pharmaron Beijing Co., Ltd. has established a Nomination Committee to enhance its corporate governance by regulating the appointment of directors and senior management. The committee, composed of five directors with a majority being independent non-executive directors, is tasked with researching selection criteria and advising on candidates, aiming to optimize the board’s composition and improve governance structure.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Acquires Majority Stake in Biortus for RMB1.3 Billion
Oct 28, 2025

Pharmaron Beijing Co., Ltd. has announced its acquisition of an 82.54% equity interest in Biortus for approximately RMB1,346 million. This acquisition, structured as a connected transaction under the Hong Kong Listing Rules, will position Biortus as a subsidiary of Pharmaron, potentially enhancing its market presence and operational capabilities. The transaction involves several connected parties and is subject to certain conditions precedent, highlighting its strategic importance and potential impact on Pharmaron’s growth trajectory.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Announces Board Changes with New Director Nomination
Oct 28, 2025

Pharmaron Beijing Co., Ltd. has announced the resignation of Mr. Tsang Kwan Hung Benson from his role as an independent non-executive director due to the nearing completion of his six-year term. The company has nominated Prof. Tsang King Fung as a candidate for the position, pending approval at the upcoming extraordinary general meeting. This change in leadership is part of the company’s ongoing efforts to maintain compliance and ensure robust governance, which could impact its strategic direction and reassure stakeholders of its commitment to regulatory standards.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

Pharmaron Beijing Schedules Board Meeting to Review Q3 Results
Oct 14, 2025

Pharmaron Beijing Co., Ltd. announced that its board of directors will convene on October 28, 2025, to review and approve the company’s third-quarter results for the period ending September 30, 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.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$28.10 price target. To see the full list of analyst forecasts on Pharmaron Beijing Co., Ltd. Class H stock, see the HK:3759 Stock Forecast page.

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: Dec 30, 2025