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

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

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HK:3759

Pharmaron Beijing Co., Ltd. Class H

(3759)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
HK$23.50
▼(-2.65% Downside)
The score is driven primarily by solid but mixed fundamentals: strong longer-term revenue growth and manageable leverage, offset by margin compression, a recent step-down in earnings, and uneven/low free cash flow versus profits. Technicals are neutral with only modest positive momentum and elevated volatility (high beta). Valuation is moderate-to-rich with a low dividend yield, limiting the upside from a price/return perspective.
Positive Factors
Revenue Scaling
Consistent multi-year revenue scaling indicates durable demand for Pharmaron's CRDMO services and successful client wins. Persistent topline growth supports returns on capacity investment, broadens client mix, and enhances long-term contract visibility, strengthening sustainable cash generation.
Manageable Leverage
Moderate, improving leverage and rising equity enhance financial flexibility and reduce refinancing risk. A stronger balance sheet supports capex and facility expansion for long-term service capacity, enabling pursuit of multi-year client contracts without excessive external funding dependency.
Operating Cash Flow
Consistently positive operating cash flow shows the core services business generates cash from contracts. Reliable OCF underpins reinvestment in labs and manufacturing, funds working capital needs, and lowers reliance on equity or debt, supporting sustainable operations and capacity growth.
Negative Factors
Margin Compression
Meaningful margin compression from earlier peak levels reduces long-term profitability and free cash available for reinvestment. A sustained decline in net income suggests pricing pressure, mix shifts toward lower-margin work, or rising costs that could weaken enduring earnings power.
Volatile Free Cash Flow
Frequent swings and historically weak free cash flow limit the company's ability to self-fund growth, acquisitions, or payouts. Inconsistent FCF increases reliance on external financing, heightening risk if revenues slow and reducing resilience through multi-year investment cycles.
Rising Debt & Lower ROE
An upward trend in total debt alongside easing ROE indicates incremental capital is generating lower returns. This mix raises interest burden and constrains strategic flexibility, making funding future expansion costlier and potentially reducing shareholder return prospects over time.

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
Income statement is solid but not peak: long-term revenue expansion with TTM net margin ~11% and EBITDA margin ~20%, yet margins have compressed versus 2020–2021 and net income declined from 2024 to TTM. Balance sheet is reasonably healthy with moderate leverage (debt-to-equity ~0.41–0.44) and rising equity, though debt has increased and ROE has eased to ~11%. Cash flow is the main weak spot: operating cash flow is positive, but cash conversion is only moderate and free cash flow has been volatile and relatively low versus earnings.
Income Statement
74
Positive
Revenue has scaled materially over the cycle (strong growth in 2020–2022, then slowed to low-single digits in 2024 and accelerated again in TTM (Trailing-Twelve-Months)). Profitability remains solid (TTM net margin ~11% and EBITDA margin ~20%), but margins have compressed versus 2020–2021 levels (when net margins were ~22%+ and EBITDA margins ~33%+). Net income also stepped down from 2024 to TTM, signaling some near-term pressure on earnings power despite continued topline expansion.
Balance Sheet
71
Positive
Leverage is moderate and generally manageable: debt-to-equity sits around ~0.41–0.44 in 2024 and TTM (Trailing-Twelve-Months), improving meaningfully from the higher leverage in 2023 (~0.75). Equity has grown steadily over time, supporting balance sheet resilience. However, total debt has trended upward into TTM, and returns on equity have eased from the mid-teens earlier in the period to ~11% in TTM, suggesting incremental capital is generating lower returns recently.
Cash Flow
56
Neutral
Operating cash flow is consistently positive and increased in TTM (Trailing-Twelve-Months), which supports underlying business quality. That said, cash conversion is only moderate (operating cash flow is well below net income in both 2024 and TTM), and free cash flow is volatile—negative in 2021–2023, modestly positive in 2024, and improved in TTM but still relatively low versus earnings. The sharp swing in free cash flow growth in TTM highlights higher variability and potential reinvestment or working-capital swings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.49B12.28B11.54B10.27B7.44B5.13B
Gross Profit4.61B4.20B4.12B3.77B2.68B1.92B
EBITDA2.22B3.38B2.95B2.53B2.49B1.72B
Net Income1.51B1.79B1.60B1.37B1.66B1.17B
Balance Sheet
Total Assets25.80B23.93B26.48B20.49B18.39B11.91B
Cash, Cash Equivalents and Short-Term Investments2.28B2.81B6.72B2.24B5.10B3.85B
Total Debt6.39B5.54B9.36B6.12B5.29B1.05B
Total Liabilities10.62B9.70B13.24B9.65B8.09B2.98B
Stockholders Equity14.61B13.62B12.56B10.55B10.13B8.87B
Cash Flow
Free Cash Flow812.99M536.02M-111.78M-807.04M-34.78M332.77M
Operating Cash Flow3.27B2.58B2.75B2.14B2.06B1.65B
Investing Cash Flow-3.90B-2.02B-2.25B-2.21B-5.26B-3.37B
Financing Cash Flow-237.76M-4.80B3.92B-1.42B3.66B-280.18M

Pharmaron Beijing Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price24.14
Price Trends
50DMA
21.68
Negative
100DMA
23.53
Negative
200DMA
20.40
Positive
Market Momentum
MACD
-0.24
Positive
RSI
40.50
Neutral
STOCH
15.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3759, the sentiment is Negative. The current price of 24.14 is above the 20-day moving average (MA) of 22.27, above the 50-day MA of 21.68, and above the 200-day MA of 20.40, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 15.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
63
Neutral
HK$55.94B22.3210.94%1.04%14.50%-19.24%
62
Neutral
HK$39.21B25.956.00%1.57%12.35%34.32%
60
Neutral
HK$27.95B
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
42
Neutral
HK$14.67B-8.64-30.41%23.87%30.08%
38
Underperform
HK$36.44B-20.84-15.06%38.56%48.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3759
Pharmaron Beijing Co., Ltd. Class H
20.68
6.86
49.68%
HK:1548
Genscript Biotech
12.85
2.33
22.15%
HK:9688
Zai Lab Ltd
13.13
-7.72
-37.03%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
21.38
10.78
101.70%
HK:2096
Simcere Pharmaceutical Group Limited
11.69
4.88
71.66%
HK:6821
Asymchem Laboratories (Tianjin) Co., Ltd. Class H
81.45
32.50
66.39%

Pharmaron Beijing Co., Ltd. Class H Corporate Events

Pharmaron Raises HK$1.32 Billion via H-Share Placement to Fund Capacity Expansion
Jan 22, 2026

Pharmaron Beijing Co., Ltd. has completed a placing of 58,440,762 new H shares under its general issuance mandate, raising net proceeds of approximately HK$1.32 billion through placements to at least six independent investors at HK$22.82 per share. The funds will primarily be used to expand project development and increase capabilities and production capacity in laboratory services and drug process development and manufacturing facilities, with smaller portions allocated to debt repayment and working capital. Following the transaction, total issued share capital has risen to 1,829,372,987 shares, increasing the proportion of H shares from 16.62% to 19.28% and slightly diluting existing A-share and H-share holdings, thereby broadening the company’s international investor base and optimizing its capital structure.

The most recent analyst rating on (HK:3759) stock is a Hold with a HK$24.00 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 to Raise Capital via HK$22.82-per-Share H-Share Placement
Jan 14, 2026

Pharmaron Beijing Co., Ltd. has entered into a placing agreement with Goldman Sachs (Asia) L.L.C. and The Hongkong and Shanghai Banking Corporation Limited to issue 58,440,762 new H shares at HK$22.82 per share under its existing general issuance mandate. The new shares represent about 19.86% of its existing H-share capital and 3.30% of total issued shares, and will be allocated to at least six independent professional, institutional and other investors, with listing approval to be sought from the Hong Kong Stock Exchange; while the transaction is not subject to further shareholder approval, completion remains conditional and may not proceed, prompting the company to urge shareholders and investors to exercise caution.

The most recent analyst rating on (HK:3759) stock is a Buy with a HK$26.00 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 Forecasts Strong 2025 Revenue and Core Profit Growth Despite Drop in Headline Net Profit
Jan 13, 2026

Pharmaron Beijing Co., Ltd. has issued an estimate for its 2025 annual results, projecting revenue between RMB 13.87 billion and RMB 14.24 billion, representing a year-on-year increase of 13% to 16%. Despite this top-line growth and an expected 36% to 41% rise in net profit attributable to owners of the parent excluding non-recurring items, as well as a 10% to 15% increase in non-IFRS adjusted net profit, the company anticipates a 6% to 10% decline in reported net profit attributable to owners of the parent due to non-recurring gains or losses and other adjustments. The guidance highlights solid underlying operational momentum and improved core profitability, while signaling that headline net profit will be pressured by non-recurring factors, a distinction that is likely to be closely watched by investors assessing the company’s earnings quality and growth trajectory in the competitive pharmaceutical services sector.

The most recent analyst rating on (HK:3759) stock is a Hold with a HK$21.00 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 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.

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: Jan 22, 2026