Shanghai Haohai Biological Technology Co., Ltd. Class H (6826) AI Stock Analysis

• Market Cap: HK$11.00B
• Dividend Yield: 4.28%
• Average Volume (3M): 211.55K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.85
• Revenue Growth: -8.49%
• EPS Growth: -9.46%
• Country: HK
• Employees: 2,156
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.45
• Shares Outstanding: 36,509,740
• 10 Day Avg. Volume: 238,704
• 30 Day Avg. Volume: 211,551
• PEG Ratio: -0.53
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 20.61
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$27.00 ▲(8.43% Upside)

Shanghai Haohai Biological Technology Co., Ltd. receives a score of 64, primarily influenced by its stable financial performance and attractive valuation. The company's strong profitability margins and low leverage contribute positively, while the low P/E ratio and high dividend yield suggest potential undervaluation. However, the stock's technical indicators are bearish, indicating a downtrend and oversold conditions, which weigh negatively on the overall score.

Positive Factors

Strong Profitability Margins

High profitability margins indicate effective cost management and pricing power, supporting long-term financial stability and competitive positioning.

Low Leverage

Low leverage reduces financial risk and interest obligations, providing the company with greater flexibility to invest in growth opportunities.

Positive Cash Flow Trend

Growing free cash flow enhances the company's ability to fund operations, invest in R&D, and return capital to shareholders, supporting sustainable growth.

Negative Factors

Declining Revenue

Declining revenue can signal weakening demand or competitive pressures, which may impact long-term growth prospects and market share.

Negative EBIT Margin

A negative EBIT margin suggests operational inefficiencies or cost pressures, which could hinder profitability and require strategic adjustments.

Revenue Growth Challenges

Ongoing revenue growth challenges may limit the company's ability to scale operations and invest in new market opportunities, affecting long-term competitiveness.

Shanghai Haohai Biological Technology Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai Haohai Biological Technology Co., Ltd. is a leading biotechnology company based in Shanghai, China, specializing in the research, development, production, and commercialization of innovative medical devices and biopharmaceuticals. The company primarily operates in the fields of surgical sutures, wound care products, and regenerative medicine, focusing on enhancing patient outcomes through advanced technology and high-quality products. Haohai is committed to innovation and is dedicated to providing superior healthcare solutions to both domestic and international markets.

How the Company Makes Money

Shanghai Haohai Biological Technology Co., Ltd. generates revenue through multiple key streams, including the sales of its core products such as surgical sutures and wound care solutions, which are distributed to hospitals and healthcare providers. The company also engages in research partnerships with medical institutions and universities to develop new biopharmaceutical products, which can lead to licensing agreements and collaborative projects that provide additional income. Furthermore, Haohai benefits from government grants and subsidies aimed at promoting biotechnology innovation, contributing to its overall financial stability and growth. The company’s strategic focus on expanding its market presence internationally, coupled with ongoing investments in R&D, positions it well for sustained revenue generation.

Shanghai Haohai Biological Technology Co., Ltd. Class H Financial Statement Overview

Summary

Shanghai Haohai Biological Technology Co., Ltd. demonstrates a stable financial position with strong profitability margins and low leverage. However, the company faces challenges with declining revenue and a negative EBIT margin in the TTM period. The cash flow situation is positive, with growth in free cash flow, but there is room for improvement in cash conversion efficiency. Overall, the company is financially sound but should address revenue growth and EBIT performance to enhance its financial health.

Income Statement

The company's income statement shows mixed results. The TTM data indicates a slight decline in revenue, with a negative revenue growth rate of -1.009%. However, the company maintains a healthy gross profit margin of 67.59% and a net profit margin of 15.38%. The EBIT margin is negative, which is a concern, but the EBITDA margin remains positive at 18.90%. Overall, while profitability margins are strong, the declining revenue and negative EBIT margin are areas of concern.

Balance Sheet

The balance sheet is relatively strong, with a low debt-to-equity ratio of 0.07, indicating low leverage. The return on equity is modest at 6.84%, suggesting moderate efficiency in generating profits from shareholders' equity. The equity ratio is solid, reflecting a stable financial position with a significant portion of assets financed by equity. Overall, the balance sheet reflects financial stability with low risk from debt.

Cash Flow

The cash flow statement shows a positive trend in free cash flow growth at 6.48% in the TTM period. The operating cash flow to net income ratio is 0.67, indicating a decent conversion of net income into cash. The free cash flow to net income ratio is also healthy at 0.66. While cash flow metrics are generally positive, the company should focus on improving its operating cash flow coverage ratio to enhance liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	2.68B	2.63B	2.10B	1.75B	1.32B
Gross Profit	1.32B	1.87B	1.85B	1.45B	1.26B	990.42M
EBITDA	594.47M	549.05M	713.41M	447.55M	550.45M	394.80M
Net Income	383.88M	420.45M	416.12M	180.47M	352.23M	230.07M
Balance Sheet
Total Assets	7.12B	7.12B	7.11B	6.89B	6.95B	6.30B
Cash, Cash Equivalents and Short-Term Investments	2.60B	2.76B	2.75B	2.56B	2.91B	3.11B
Total Debt	412.87M	448.43M	407.95M	118.26M	105.51M	108.08M
Total Liabilities	1.23B	1.20B	1.09B	990.02M	890.07M	564.46M
Stockholders Equity	5.62B	5.58B	5.65B	5.51B	5.71B	5.49B
Cash Flow
Free Cash Flow	413.50M	283.08M	367.22M	-85.85M	70.19M	66.21M
Operating Cash Flow	633.75M	648.57M	634.45M	231.30M	342.29M	262.07M
Investing Cash Flow	-254.17M	282.28M	-376.65M	-681.82M	-148.09M	316.92M
Financing Cash Flow	-548.74M	-390.35M	-257.73M	-288.35M	-231.25M	-190.06M

Shanghai Haohai Biological Technology Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6826, the sentiment is Negative. The current price of 24.9 is below the 20-day moving average (MA) of 25.75, below the 50-day MA of 26.16, and below the 200-day MA of 26.31, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6826.

Shanghai Haohai Biological Technology Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2315	70 Outperform	HK$18.65B	122.12	16.13%	―	48.38%	―
6826	64 Neutral	HK$11.00B	14.47	6.69%	4.28%	-8.49%	-9.46%
1672	54 Neutral	HK$13.14B	-47.65	-12.74%	―	-76.58%	-4.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2171	44 Neutral	HK$9.19B	-15.58	-42.46%	―	1219.19%	25.15%
2162	41 Neutral	HK$16.21B	-54.55	-8.79%	―	964.40%	65.90%
2157	40 Underperform	HK$9.20B	-43.25	-21.42%	―	240.05%	-140.09%

Shanghai Haohai Biological Technology Co., Ltd. Class H Corporate Events

Haohai Biological Defends Valuation and Clarifies Ownership in Jiangxi Ruiji Equity Deal

Shanghai Haohai Biological Technology Co., Ltd. has issued a supplemental announcement regarding its connected transaction to acquire equity in Jiangxi Ruiji Bio-Engineering Technology Co., Ltd., elaborating on the valuation basis and ownership structure of the target. The company reiterated that the agreed price of RMB4.53 per share was set after arm’s length negotiations, benchmarked against the target’s last trading price and historical buyback prices, and is positioned at the lower end of industry price-to-sales ratios despite continued revenue growth and stable fundamentals. Management emphasized that recent losses at Jiangxi Ruiji stem from strategic upfront investments in sales, R&D, management expansion and pipeline development in biomedical materials, which are intended to support future commercialization, efficiency and compliance improvements; Haohai expects its acquisition and the grant of nationwide distribution rights to drive higher market share, revenue growth and scale-driven cost reductions. The announcement also clarified that Jiangxi Ruiji is ultimately controlled by investor Zhong Hongbin via a partnership structure, and that the target company and its ultimate owner did not influence the negotiation of the transaction terms, addressing governance and independence concerns for shareholders.

The most recent analyst rating on (HK:6826) stock is a Hold with a HK$27.00 price target. To see the full list of analyst forecasts on Shanghai Haohai Biological Technology Co., Ltd. Class H stock, see the HK:6826 Stock Forecast page.

Haohai Biotec Discloses CSRC Penalty Against Controlling Shareholder for Unrelated Insider Trading Case

Shanghai Haohai Biological Technology has disclosed that one of its controlling shareholders and de facto controllers, Mr. Jiang Wei, has received an administrative penalty decision from the China Securities Regulatory Commission relating to insider trading and recommending securities trades to others, in matters explicitly stated as unrelated to the company. The CSRC has ordered the confiscation of approximately RMB4.71 million in alleged illegal gains and imposed a fine of about RMB14.63 million on Mr. Jiang, and while the announcement emphasizes that the case does not concern the company’s operations, it nonetheless underscores governance and regulatory scrutiny surrounding key shareholders, which may be closely watched by investors and other stakeholders.

The most recent analyst rating on (HK:6826) stock is a Hold with a HK$27.00 price target. To see the full list of analyst forecasts on Shanghai Haohai Biological Technology Co., Ltd. Class H stock, see the HK:6826 Stock Forecast page.

Shanghai Haohai Announces Equity Acquisition in Jiangxi Ruiji Bio-engineering

Shanghai Haohai Biological Technology Co., Ltd. has announced a connected transaction involving the acquisition of a 22.2554% equity interest in Jiangxi Ruiji Bio-engineering Technology Co., Ltd. The acquisition will be executed in stages between 2025 and 2026, with Shanghai Haohai acquiring approximately 19.8000% and a co-buyer acquiring 2.4554%. The transaction, valued at RMB43,107,466.41, is subject to reporting and announcement requirements under the Hong Kong Listing Rules, but is exempt from circular and independent shareholders’ approval.

The most recent analyst rating on (HK:6826) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Shanghai Haohai Biological Technology Co., Ltd. Class H stock, see the HK:6826 Stock Forecast page.

Shanghai Haohai Announces Key Corporate Governance Changes

Shanghai Haohai Biological Technology Co., Ltd. has announced a change in its corporate governance team. Mr. Chiu Ming King has resigned from his roles as Joint Company Secretary, Authorized Representative, and Process Agent, effective December 12, 2025. He will be succeeded by Ms. Lai Ying Tung, who brings nearly a decade of experience in corporate secretarial services and holds a master’s degree in Corporate Governance. The company expressed gratitude to Mr. Chiu for his contributions and welcomed Ms. Lai to her new roles.

The most recent analyst rating on (HK:6826) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Shanghai Haohai Biological Technology Co., Ltd. Class H stock, see the HK:6826 Stock Forecast page.

Shanghai Haohai Acquires Full Ownership of Subsidiary

Shanghai Haohai Biological Technology Co., Ltd. announced the acquisition of the remaining 20% equity interest in a previously non-wholly owned subsidiary, making it a fully owned subsidiary. This transaction, valued at RMB74,000,000, consolidates the company’s control over the subsidiary, potentially enhancing its operational efficiency and financial performance. The acquisition is classified as a connected transaction under Hong Kong’s Listing Rules, but it is exempt from the requirement for independent shareholders’ approval due to the applicable percentage ratios.

The most recent analyst rating on (HK:6826) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Shanghai Haohai Biological Technology Co., Ltd. Class H stock, see the HK:6826 Stock Forecast page.

Shanghai Haohai Biological Technology Releases 2025 Q3 Financial Report

Shanghai Haohai Biological Technology Co., Ltd. has released its unaudited third quarterly report for 2025, detailing financial results for the three and nine months ending September 30, 2025. The report, prepared in accordance with Chinese Accounting Standards, highlights the company’s financial performance and is intended to inform shareholders and potential investors about the company’s current financial status. The board emphasizes the importance of understanding the investment risks associated with the company’s financial data.

The most recent analyst rating on (HK:6826) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Shanghai Haohai Biological Technology Co., Ltd. Class H stock, see the HK:6826 Stock Forecast page.

Shanghai Haohai Biological Technology Schedules Board Meeting for Q3 Results

Shanghai Haohai Biological Technology Co., Ltd. has announced a board meeting scheduled for October 24, 2025, to consider and approve the company’s third quarterly 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:6826) stock is a Buy with a HK$29.00 price target. To see the full list of analyst forecasts on Shanghai Haohai Biological Technology Co., Ltd. Class H stock, see the HK:6826 Stock Forecast page.