Asymchem Laboratories (Tianjin) Co., Ltd. Class H (6821) AI Stock Analysis

• Market Cap: HK$39.21B
• Dividend Yield: 1.57%
• Average Volume (3M): 640.69K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.49
• Revenue Growth: 12.35%
• EPS Growth: 34.32%
• Country: HK
• Employees: 9,595
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.55
• Shares Outstanding: 27,834,510
• 10 Day Avg. Volume: 442,016
• 30 Day Avg. Volume: 640,687
• PEG Ratio: -0.32
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 2.95
• P/FCF Ratio: 137.93
• 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$98.40
• Price Target Upside: 33.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: HK$90.00 ▲(21.95% Upside)

The score is held back primarily by weakening top-line trends and poorer cash-flow quality despite still-positive profitability. Offsetting these risks are a very conservative balance sheet and moderately positive technical momentum, while valuation (P/E ~26.76 with ~1.42% yield) is not especially supportive.

Positive Factors

Conservative balance sheet

Very low leverage meaningfully reduces refinancing and downturn risk, giving Asymchem durable financial flexibility. This supports multi-year customer contracts, capacity investments, and R&D funding without reliance on frequent capital markets access, strengthening resilience over cycles.

Healthy gross and net margins

Sustained high gross margins and reasonably healthy net margins reflect pricing power and operational efficiency in complex small-molecule CDMO work. Margins provide buffer vs. pricing pressure and support reinvestment into GMP capacity and technical capabilities over the medium term.

Integrated CDMO service offering

End-to-end capabilities (process R&D to commercial API supply) create multi-stage customer relationships and higher switching costs. This diversified service mix supports recurring commercial supply contracts and milestone revenues, improving long-term revenue visibility and client retention potential.

Negative Factors

Weakening revenue trend

Sequential multi-year revenue contraction signals structural softness in demand or portfolio mix shifts. Lower top-line momentum can depress utilization of specialized GMP capacity and limit operating leverage, making it harder to restore prior profit and growth trajectories over the next several quarters.

Weak cash conversion and volatile FCF

Subpar cash conversion and variable free cash flow reduce internal funding for capex and working-capital needs. Even with low debt, this volatility forces reliance on retained earnings or equity to fund expansion, increasing execution risk for capacity investments and reducing buffer for shocks.

Compressed profitability and lower returns

Declining ROE and material margin compression versus peak years indicate reduced capital efficiency and lower returns on invested capital. Sustained lower profitability can constrain reinvestment, weaken ability to win price-sensitive contracts, and limit long-term shareholder value creation.

Asymchem Laboratories (Tianjin) Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Asymchem Laboratories (Tianjin) Co., Ltd. provides contract development and manufacturing organization services in Mainland China and internationally. The company offers drug research and development, and manufacturing services for pharmaceutical and biotech companies. Its solutions range from early clinical stage to commercial stage, including research and development, and cGMP production of advanced intermediates, active pharmaceutical ingredients, and formulations, as well as clinical research services. The company also engages in the provision of pharmaceutical analysis and testing services; sale, wholesale, and retail of drugs; and pharmaceutical science and technology development activities. The company was founded in 1999 and is headquartered in Tianjin, China.

How the Company Makes Money

Asymchem Laboratories generates revenue primarily through contract-based services provided to pharmaceutical companies. These services include research and development (R&D) support, process optimization, and commercial-scale manufacturing of APIs and intermediates. The company earns money by entering into service agreements with its clients, where it charges fees based on the scope and complexity of the projects. Key revenue streams include fees for preclinical and clinical development services, manufacturing services, and technology transfer. Asymchem's strategic partnerships with major pharmaceutical firms and its reputation for high-quality, efficient service delivery significantly contribute to its financial performance.

Asymchem Laboratories (Tianjin) Co., Ltd. Class H Financial Statement Overview

Summary

Financials are mixed: a very strong, low-leverage balance sheet (debt-to-equity ~0.02) supports stability, but revenue is still contracting (TTM -3.1% after larger declines in 2023–2024), profitability has compressed versus 2022–2023, and cash conversion is weak (operating cash flow ~0.65x net income; free cash flow relatively low versus earnings).

Income Statement

TTM (Trailing-Twelve-Months) revenue is down modestly (-3.1%), following a larger decline in 2024 (-25.8%) and 2023 (-23.7%), signaling a weaker top-line cycle after the strong 2022 surge. Profitability remains solid in TTM with ~40.6% gross margin and ~16.5% net margin, but margins have compressed materially versus 2022–2023 (when net margins were ~29–32%). Net income in TTM (~1.04B) is stable versus 2024 (~0.95B) but well below peak earnings in 2022–2023, indicating reduced operating leverage and a less favorable mix/demand environment.

Balance Sheet

The balance sheet appears very conservatively financed with minimal leverage: debt-to-equity is ~0.02 in TTM (and similarly low in prior years), which meaningfully reduces refinancing and downturn risk. Equity has been broadly stable at a high level relative to assets, supporting financial flexibility. Returns on equity are positive (~6.1% TTM) but have stepped down sharply from 2022–2023 levels, suggesting profitability normalization rather than balance-sheet strain.

Cash Flow

Cash generation has become less consistent. In TTM (Trailing-Twelve-Months), operating cash flow (~1.16B) is positive but covers only ~0.65x of net income, pointing to weaker cash conversion than in 2022–2023 (when it was >1x). Free cash flow is positive in TTM (~0.28B) but low relative to earnings (~0.24x of net income) and shows a sharp decline versus the prior period. The historical pattern also includes years of negative free cash flow (2020–2021), indicating potential volatility driven by working capital swings and/or investment intensity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.29B	5.80B	7.83B	10.26B	4.64B	3.15B
Gross Profit	2.62B	2.46B	4.00B	4.86B	2.06B	1.47B
EBITDA	1.23B	1.58B	3.03B	4.08B	1.41B	973.69M
Net Income	1.04B	948.95M	2.27B	3.30B	1.07B	722.09M
Balance Sheet
Total Assets	19.81B	19.29B	19.77B	18.24B	15.16B	7.16B
Cash, Cash Equivalents and Short-Term Investments	7.56B	7.33B	9.02B	7.44B	6.64B	2.12B
Total Debt	318.56M	282.53M	118.71M	138.35M	434.49M	10.22M
Total Liabilities	2.45B	2.43B	2.26B	2.54B	2.55B	1.16B
Stockholders Equity	17.35B	16.85B	17.48B	15.65B	12.61B	5.99B
Cash Flow
Free Cash Flow	283.20M	124.33M	2.31B	1.14B	-1.55B	-445.67M
Operating Cash Flow	1.16B	1.25B	3.55B	3.29B	113.15M	569.29M
Investing Cash Flow	-201.41M	-1.18B	-2.69B	-4.67B	-2.21B	-1.10B
Financing Cash Flow	-347.61M	-1.93B	-542.03M	-742.53M	6.21B	2.27B

Asymchem Laboratories (Tianjin) Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6821, the sentiment is Negative. The current price of 73.8 is below the 20-day moving average (MA) of 83.89, below the 50-day MA of 79.50, and below the 200-day MA of 81.62, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 12.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6821.

Asymchem Laboratories (Tianjin) Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	66 Neutral	HK$31.14B	34.99	27.37%	―	2.57%	18.79%
3759	63 Neutral	HK$55.94B	22.32	10.94%	1.04%	14.50%	-19.24%
6821	62 Neutral	HK$39.21B	25.95	6.00%	1.57%	12.35%	34.32%
1548	60 Neutral	HK$27.95B	―	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1877	38 Underperform	HK$36.44B	-20.84	-15.06%	―	38.56%	48.26%

Asymchem Laboratories (Tianjin) Co., Ltd. Class H Corporate Events

Asymchem to Repurchase and Cancel 33,000 Restricted A Shares After Staff Resignations

Asymchem Laboratories (Tianjin) Co., Ltd. has approved the repurchase and cancellation of 33,000 restricted A shares previously granted under its 2025 A Share restricted share incentive scheme to eight participants who have resigned from the company. Following this move, the number of incentive participants and total restricted shares under both the initial and reserved grants will be slightly reduced, and the company’s A share capital will decrease marginally from 333,040,460 to 333,007,460 shares, with total share capital falling to 360,560,720 shares. The repurchase will be funded entirely from internal resources at adjusted prices of RMB36.42 and RMB53.24 per share for the initial and reserved grants, respectively, and management expects no material impact on the company’s financial position, operating results or the continued implementation of the 2025 A Share Scheme, signaling that the change is largely administrative in nature for shareholders and other stakeholders.

The most recent analyst rating on (HK:6821) stock is a Buy with a HK$98.40 price target. To see the full list of analyst forecasts on Asymchem Laboratories (Tianjin) Co., Ltd. Class H stock, see the HK:6821 Stock Forecast page.

Asymchem Adjusts Restricted A Share Repurchase Price After 2024 Dividend Payout

Asymchem Laboratories (Tianjin) Co., Ltd. has adjusted the repurchase price for the first grant of restricted A shares under its 2025 A Share Restricted Share Incentive Scheme, following the approval and implementation of its 2024 profit distribution plan, which included a cash dividend of RMB11.00 per 10 shares. In line with the scheme’s terms, the repurchase price has been reduced from RMB37.52 to RMB36.42 per share to reflect the dividend payout, a change the company states will not have a material impact on its financial position or operating results; the adjustment has been endorsed by the Remuneration and Examination Committee and confirmed as compliant with relevant PRC regulations and stock exchange self-regulatory guidelines by the company’s legal advisers, underscoring the formal and regulatory soundness of its equity incentive management.

The most recent analyst rating on (HK:6821) stock is a Buy with a HK$98.40 price target. To see the full list of analyst forecasts on Asymchem Laboratories (Tianjin) Co., Ltd. Class H stock, see the HK:6821 Stock Forecast page.

Asymchem Laboratories Reports Strong Year-to-Date Financial Growth Despite Quarterly Decline

Asymchem Laboratories reported its unaudited financial results for the third quarter of 2025, showing a slight decline in quarterly operating revenue by 0.09% compared to the same period last year, but an overall increase of 11.82% from the beginning of the year. Despite a decrease in quarterly net profit by 13.46%, the company experienced a 12.66% increase in net profit for the year to date, indicating a strong performance in the broader financial context. The report highlights a positive trend in the company’s financial health, which could bolster its market position and reassure stakeholders of its growth trajectory.

The most recent analyst rating on (HK:6821) stock is a Buy with a HK$106.30 price target. To see the full list of analyst forecasts on Asymchem Laboratories (Tianjin) Co., Ltd. Class H stock, see the HK:6821 Stock Forecast page.