Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. Class H (8049) AI Stock Analysis

• Market Cap: HK$1.15B
• Dividend Yield: N/A
• Average Volume (3M): 47.79K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.26
• Revenue Growth: 10.26%
• EPS Growth: 6.24%
• Country: HK
• Employees: 745
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 172,500,000
• 10 Day Avg. Volume: 34,000
• 30 Day Avg. Volume: 47,793
• PEG Ratio: 0.15
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 3.48
• 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: 77 Outperform
• Price Target: HK$2.50 ▲(15.74% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

The overall score of 77 reflects strong financial performance driven by high profitability and a stable balance sheet as the primary strength. A low P/E ratio adds value appeal, though moderate revenue growth and declining free cash flow pose risks. Technical indicators suggest neutral momentum, contributing less to the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market presence and demand for the company's products, supporting long-term financial stability.

Margin Sustainability

High and stable margins reflect efficient cost management and pricing power, which are crucial for sustaining profitability over time.

Balance Sheet Health

A low debt-to-equity ratio indicates minimal leverage, reducing financial risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow can limit the company's ability to fund new projects or return capital to shareholders, potentially impacting growth and investor returns.

Operating Cash Flow Reduction

Reduced operating cash flow may indicate challenges in converting revenue into cash, which could affect liquidity and operational flexibility.

Decreased Cash Flow Growth

Decreased cash flow growth can signal potential issues in sustaining financial performance, affecting future investment capabilities and stability.

Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Jilin Province Huinan Changlong Bio-pharmacy Company Limited engages in the manufacture and distribution of Chinese medicines and pharmaceutical products in the People's Republic of China. It offers tablets, capsules, pills, Chinese medicine pretreatment and extraction products, powders for injections, lyophilized powder for injections, small volume injection solutions, APIs, and granules. The company markets its products under the Changlong and Qing Tong brands. The company was formerly known as Jilin Province Huinan Biochemical Pharmaceutical Company Limited. Jilin Province Huinan Changlong Bio-pharmacy Company Limited was founded in 1989 and is based in Kowloon, Hong Kong.

How the Company Makes Money

Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. generates revenue primarily through the sale of its biopharmaceutical products, including vaccines and therapeutic agents. The company operates on a business model that includes direct sales to healthcare providers, hospitals, and clinics. Additionally, the company may engage in partnerships with larger pharmaceutical firms for research and development collaborations, which can provide funding and resources in exchange for sharing the resulting products or technologies. Revenue is also supplemented by government contracts and grants aimed at supporting public health initiatives, particularly in vaccine development. The company’s strategic focus on innovation and compliance with regulatory standards positions it favorably within the competitive biotechnology landscape, contributing to its overall financial performance.

Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. Class H Financial Statement Overview

Summary

Strong profitability with a Net Profit Margin of 20.9% and Gross Profit Margin of 77.8% in 2024, alongside a solid balance sheet with a low Debt-to-Equity Ratio of 0.04. However, a 26.6% decline in Free Cash Flow and moderate revenue growth of 4.7% temper the outlook.

Income Statement

The income statement reflects strong performance with a Gross Profit Margin of 77.8% and a Net Profit Margin of 20.9% for 2024, indicating robust profitability. Revenue growth of 4.7% year-over-year shows steady top-line expansion. Additionally, EBIT Margin at 23.7% and EBITDA Margin at 26.8% highlight efficient operations. While profitability is a key strength, the moderate revenue growth suggests room for faster expansion in a competitive industry.

Balance Sheet

The balance sheet demonstrates financial stability with a low Debt-to-Equity Ratio of 0.04 in 2024, indicating minimal leverage risk. Return on Equity (ROE) stands at 11.3%, reflecting decent profitability from equity investments. The Equity Ratio of 64.4% shows a strong capital structure. However, total debt, though low, has increased slightly, which could pose minor risks if not managed carefully.

Cash Flow

Cash flow metrics show a mixed picture. Operating Cash Flow to Net Income Ratio of 1.19 in 2024 indicates healthy cash generation relative to earnings. However, Free Cash Flow declined by 26.6% year-over-year, and the Free Cash Flow to Net Income Ratio of 1.13, while positive, reflects reduced cash availability after capital expenditures. This decline in free cash flow is a concern, though operating cash flow remains a strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	926.93M	881.16M	841.54M	841.59M	705.46M	622.25M
Gross Profit	731.82M	685.25M	584.05M	648.03M	580.00M	530.74M
EBITDA	206.76M	236.33M	226.39M	231.43M	206.50M	172.92M
Net Income	182.97M	184.25M	148.21M	193.56M	143.28M	126.56M
Balance Sheet
Total Assets	2.65B	2.53B	2.32B	2.37B	2.07B	1.80B
Cash, Cash Equivalents and Short-Term Investments	748.30M	539.03M	655.59M	1.03B	262.25M	283.55M
Total Debt	72.40M	72.40M	80.40M	400.00K	400.00K	400.00K
Total Liabilities	915.73M	901.49M	838.44M	760.54M	618.56M	459.02M
Stockholders Equity	1.73B	1.63B	1.48B	1.61B	1.45B	1.35B
Cash Flow
Free Cash Flow	0.00	208.63M	284.11M	192.68M	122.25M	52.46M
Operating Cash Flow	0.00	219.65M	315.95M	203.99M	215.09M	151.23M
Investing Cash Flow	0.00	-310.93M	109.04M	-117.97M	-160.61M	-244.85M
Financing Cash Flow	0.00	-25.01M	-186.45M	-27.71M	-25.20M	-17.75M

Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8049, the sentiment is Neutral. The current price of 2.16 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 2.09, and above the 200-day MA of 2.14, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8049.

Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8049	77 Outperform	HK$1.15B	5.18	10.88%	―	10.26%	6.24%
2161	72 Outperform	HK$2.11B	5.29	20.10%	9.98%	12.83%	36.12%
3737	68 Neutral	HK$728.42M	20.07	1.87%	9.43%	-1.99%	-81.52%
2348	66 Neutral	HK$1.68B	4.06	5.33%	5.16%	2.89%	-68.83%
0950	64 Neutral	HK$736.04M	6.31	5.44%	2.92%	19.80%	55.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$926.38M	-2.84	-48.86%	―	-43.46%	-96.48%