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

• Market Cap: HK$40.84B
• Dividend Yield: 1.57%
• Average Volume (3M): 640.69K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 1.44
• 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: 27,553,260
• 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: 65 Neutral
• Price Target: HK$91.00 ▲(23.31% Upside)

The score is primarily supported by a very strong balance sheet with minimal leverage, but it is held back by 2024 deterioration in revenue, margins, and free cash flow. Technicals are mixed with modest momentum but negative MACD, and valuation is reasonable but not compelling given the recent fundamental softening.

Positive Factors

Low leverage / strong balance sheet

Very low leverage and a large equity base provide durable financial flexibility and downside protection. This allows the company to absorb project delays, bid for multi-year commercial contracts, and invest in capacity without being constrained by interest expense or refinancing risk.

Integrated CDMO service offering

End-to-end small‑molecule CDMO capabilities (R&D through commercial manufacturing) create sticky customer relationships, enable cross‑selling, and support transitions from clinical to commercial supply. That business model fosters multi-year contracts and predictable recurring revenue over time.

Long-term revenue expansion track record

Material revenue expansion from 2019–2024 demonstrates structural demand for outsourcing and the firm's ability to scale operations. Even with recent softness, this multi-year growth trend supports the potential to rebuild commercial supply streams and win longer-duration programs.

Negative Factors

Recent revenue and margin deterioration

Sequential revenue declines and sharp margin compression (gross and net) point to pricing pressure, adverse mix, or cost inflation. These trends erode sustainable profitability, reduce reinvestment capacity, and can persist if structural customer shifts or competitive dynamics remain unaddressed.

Material drop in cash generation

A ~72% FCF decline and weaker operating cash conversion reduce internal funding for capex, working capital, and customer support. Lower cash generation increases reliance on external financing for growth or M&A and heightens vulnerability to cyclical project timing or working‑capital swings.

Sharply lower returns on equity

A steep ROE decline signals the company is generating much lower returns on shareholder capital despite low leverage. Sustained lower profitability reduces ability to fund dividends, organic growth, or strategic investments and weakens the competitive cushion versus higher‑return peers.

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

Asymchem Laboratories shows strong profitability and financial stability with a high equity ratio and low debt levels. However, recent declines in revenue and free cash flow suggest potential challenges in maintaining growth momentum.

Income Statement

The company experienced a significant decline in revenue from 2022 to 2023, with a 23.68% decrease. The gross profit margin for 2023 was 51.16%, and the net profit margin was 28.99%, both indicating strong profitability. However, the decline in revenue and income suggests challenges in sustaining growth.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.01, indicating minimal leverage. The equity ratio is high at 88.44%, showing strong financial stability. Return on equity for 2023 was 12.98%, demonstrating efficient use of equity to generate income.

Cash Flow

The operating cash flow to net income ratio is 1.56, indicating healthy cash generation relative to earnings. However, the free cash flow decreased significantly from 2022 to 2023, which could impact future investments or debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.43B	5.80B	7.83B	10.26B	4.64B	3.15B
Gross Profit	2.67B	2.46B	4.00B	4.86B	2.06B	1.47B
EBITDA	1.25B	1.58B	3.03B	4.08B	1.41B	973.69M
Net Income	1.06B	948.95M	2.27B	3.30B	1.07B	722.09M
Balance Sheet
Total Assets	21.65B	19.29B	19.77B	18.24B	15.16B	7.16B
Cash, Cash Equivalents and Short-Term Investments	8.26B	7.33B	9.02B	7.44B	6.64B	2.12B
Total Debt	348.19M	282.53M	118.71M	138.35M	434.49M	10.22M
Total Liabilities	2.67B	2.43B	2.26B	2.54B	2.55B	1.16B
Stockholders Equity	18.96B	16.85B	17.48B	15.65B	12.61B	5.99B
Cash Flow
Free Cash Flow	327.13M	124.33M	2.31B	1.14B	―	―
Operating Cash Flow	1.20B	1.25B	3.55B	3.29B	113.15M	569.29M
Investing Cash Flow	-218.30M	-1.18B	―	―	―	―
Financing Cash Flow	-339.51M	-1.93B	-542.03M	―	6.21B	2.27B

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

• Technical Analysis Sentiment: Positive
• Last Price: 73.80
• 50DMA: Positive
• 100DMA: Negative
• 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:6821, the sentiment is Positive. The current price of 73.8 is below the 20-day moving average (MA) of 76.55, below the 50-day MA of 79.10, and below the 200-day MA of 79.18, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 89.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$36.41B	40.91	27.37%	―	2.57%	18.79%
6821	65 Neutral	HK$40.84B	27.16	6.00%	1.57%	12.35%	34.32%
1548	60 Neutral	HK$31.17B	―	―	―	―	―
3759	59 Neutral	HK$58.34B	25.02	10.94%	1.04%	14.50%	-19.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1877	38 Underperform	HK$40.05B	-24.53	-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.

Asymchem Laboratories to Review Third Quarter Results

Asymchem Laboratories (Tianjin) Co., Ltd. has announced that its board of directors will convene on 30 October 2025 to review and approve the company’s third quarterly results for the period ending 30 September 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholder decisions and market positioning.

The most recent analyst rating on (HK:6821) stock is a Buy with a HK$123.00 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.