Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H (9989) AI Stock Analysis

• Market Cap: HK$20.40B
• Dividend Yield: 0.89%
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.97
• Revenue Growth: -5.05%
• EPS Growth: N/A
• Country: HK
• Employees: 1,926
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.11
• Shares Outstanding: 220,094,500
• 10 Day Avg. Volume: 7,608,400
• 30 Day Avg. Volume: 5,349,950
• PEG Ratio: N/A
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.04
• 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$3.88
• Price Target Upside: -43.11% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

Shenzhen Hepalink Pharmaceutical Group shows a balanced outlook with strengths in cash flow and a solid capital structure contributing positively. Technical indicators suggest moderate upward momentum, but caution is advised due to nearing overbought levels. Valuation metrics indicate potential undervaluation, but the lack of dividend yield remains a downside for income-focused investors. Overall, the stock presents moderate investment potential with room for improvement in revenue stability and profitability.

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. engages in the manufacture and sale of pharmaceutical products in Hong Kong, the United States, Europe, Mainland China, and internationally. The company operates through four segments: Finished dose pharmaceutical products, Active Pharmaceutical Ingredients (API), Contract Development and Manufacturing Organization, and Others. Its pharmaceutical products consist of finished dose pharmaceutical products, which primarily include enoxaparin sodium injection; API products, including heparin sodium API and enoxaparin sodium API; and other products, such as pancreatin API. The company is also involved in the provision of research and development, manufacturing, quality management, and program management services; and development and manufacture of recombinant pharmaceutical products, critical non-viral vectors, intermediates for gene therapy, and naturally derived pharmaceutical products. In addition, it engages in property management, investment management and consulting, biopharmaceutical technology development and consulting, and equity and venture investment activities; research, development, and production of biopharmaceuticals; production and sale of heparin sodium; provision of services on pharmaceutical related activities; and trading of medical and biopharmaceutical products. The company was formerly known as Shenzhen Hepalink Pharmaceutical Co.,Ltd. and changed its name to Shenzhen Hepalink Pharmaceutical Group Co., Ltd. in February 2017. Shenzhen Hepalink Pharmaceutical Group Co., Ltd. was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. generates revenue primarily through the manufacturing and sale of heparin-based products, including APIs and finished dosage forms. These products are supplied to pharmaceutical companies, hospitals, and healthcare providers around the world. The company also engages in contract manufacturing services, leveraging its advanced production facilities and expertise to produce drugs on behalf of other pharmaceutical firms. Additionally, Hepalink has strategic partnerships and collaborations with international biopharmaceutical companies, which expand its product offerings and market reach. Licensing agreements and royalties from proprietary technologies and products further contribute to its revenue streams.

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H Financial Statement Overview

Summary

Shenzhen Hepalink Pharmaceutical Group demonstrates moderate financial health with areas of strength in cash flow generation and capital structure. However, challenges remain with fluctuating revenue and profitability metrics, necessitating improved cost management and revenue stabilization efforts to enhance financial performance.

Income Statement

The company displays a fluctuating revenue trajectory with a declining trend in total revenue from 2022 to 2024. Gross profit margin for 2024 is solid at approximately 33.24%, but net profit margin is about 12.25%, indicating room for improvement in cost management. EBIT and EBITDA margins are reasonable, showing operational efficiency. However, the company experienced a decline in EBIT in 2023, which affects profitability outlook.

Balance Sheet

The company's debt-to-equity ratio improved from 2023 to 2024, standing at approximately 0.25, which reflects a solid capital structure. However, the equity ratio decreased over the years, indicating rising liabilities compared to assets. The ROE for 2024 is about 5.32%, showing moderate returns on equity; however, there's a need to boost profitability to enhance shareholder returns.

Cash Flow

The operating cash flow shows significant improvement in 2024 compared to previous years, demonstrating effective cash generation from operations. Free cash flow is positive and growing, indicating good liquidity and ability to fund operations and investments. The company shows a strong operating cash flow to net income ratio, reflecting efficient conversion of earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.28B	5.45B	7.16B	6.37B	5.33B
Gross Profit	1.76B	1.80B	2.33B	2.03B	2.09B
EBITDA	1.20B	―	1.37B	726.64M	1.88B
Net Income	646.74M	―	727.43M	240.79M	1.02B
Balance Sheet
Total Assets	17.34B	19.20B	20.81B	19.11B	19.03B
Cash, Cash Equivalents and Short-Term Investments	2.56B	2.27B	3.45B	3.93B	3.54B
Total Debt	2.98B	3.78B	6.46B	5.65B	5.65B
Total Liabilities	5.14B	7.22B	8.41B	7.58B	7.34B
Stockholders Equity	12.15B	11.91B	12.31B	11.41B	11.57B
Cash Flow
Free Cash Flow	1.99B	―	―	―	―
Operating Cash Flow	2.19B	398.22M	―	―	37.28M
Investing Cash Flow	―	1.22B	249.84M	719.93M	―
Financing Cash Flow	―	―	329.56M	―	2.51B

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9989, the sentiment is Positive. The current price of 6.82 is above the 20-day moving average (MA) of 5.94, above the 50-day MA of 5.40, and above the 200-day MA of 4.35, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 67.62 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9989.

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9989	68 Neutral	HK$20.40B	13.92	5.33%	0.89%	-5.05%	―
Sector *	52 Neutral	$7.60B	0.11	-62.95%	2.07%	16.16%	0.31%
HCM	―	£2.32B	75.88	5.02%	―	―	―
SFOSF	―	$9.22B	13.39	6.22%	1.16%	―	―
640	―	€3.85B	8.54		4.91%	―	―
1558	65 Neutral	HK$14.96B	28.61	5.88%	―	-42.02%	-76.29%
6185	47 Neutral	HK$12.99B	―	-4.41%	―	94.98%	85.69%

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H Corporate Events

Shenzhen Hepalink Announces 2024 AGM and Key Resolutions

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. has announced the schedule for its 2024 Annual General Meeting (AGM), set to take place on May 22, 2025, in Shenzhen, China. The AGM will address several key resolutions, including the approval of the 2024 Work Reports, Annual Report, Profit Distribution Proposal, and amendments to the Share Incentive Schemes. Additionally, special resolutions will cover the re-appointment of auditors, purchase of wealth management products, and application for credit lines. These resolutions are crucial for the company’s strategic planning and financial management, potentially impacting its operational efficiency and stakeholder relations.

Shenzhen Hepalink Releases 2025 Q1 Financial Report

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. has released its unaudited first quarterly report for 2025, covering the period ending March 31, 2025. The report, prepared according to PRC Accounting Standards, was approved by the board of directors, with all directors in attendance. The company emphasizes the accuracy and completeness of the report, reflecting its commitment to transparency and accountability in its financial disclosures.

Shenzhen Hepalink’s Ivenoxin Gains Approval for South African Market

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. announced that its enoxaparin sodium injection, Ivenoxin, has received approval from the South African Health Products Regulatory Authority for sale in South Africa. This approval enhances the company’s global market share and demonstrates its capability to penetrate overseas markets. The company plans to continue its international expansion and strengthen its sales channels worldwide.

Shenzhen Hepalink Schedules Board Meeting for Q1 Results

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. announced that its board of directors will meet on April 24, 2025, to review and approve the company’s first-quarter results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance, potentially impacting its market positioning and stakeholder interests.

Shenzhen Hepalink Announces Changes in Nomination Committee

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. announced a change in the composition of its Nomination Committee, effective March 31, 2025. Mr. Li Li, the chairman of the board, has stepped down from the committee, while Ms. Li Tan, an executive director and deputy general manager, has been appointed as a new member. This change may impact the company’s governance structure and strategic decision-making processes.

Shenzhen Hepalink Announces Board of Directors and Committee Roles

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. has announced the composition of its board of directors and their respective roles within the company. This announcement includes the appointment of executive and independent non-executive directors, as well as the allocation of roles within the company’s four board committees, which are crucial for strategic decision-making and governance.

Shenzhen Hepalink Announces Final Dividend for 2024

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. has announced a final cash dividend of RMB 2.5 per 10 shares for the financial year ending December 31, 2024. The dividend will be paid on July 22, 2025, following shareholder approval on May 22, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, potentially impacting its market position positively.

Shenzhen Hepalink Reports Strong Profit Recovery in 2024 Annual Results

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. reported its consolidated annual results for the year ending December 31, 2024, showing a slight decrease in revenue to RMB5,258.9 million compared to the previous year. However, the company achieved a significant increase in gross profit to RMB1,739.3 million, with a gross profit margin of 33.1%. The company also reported a profit attributable to equity holders of RMB646.7 million, a notable recovery from the previous year’s loss. The Board has proposed a final cash dividend, reflecting a positive outlook for stakeholders.

Shenzhen Hepalink to Approve Annual Results and Consider Dividend

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. has announced that its board of directors will convene on March 28, 2025, to approve the annual results for the year ending December 31, 2024, and to consider recommending a final dividend. This meeting is significant as it will determine the company’s financial performance for the past year and potentially impact shareholder returns through dividend announcements.

Shenzhen Hepalink’s Enoparin Gains Approval in Argentina, Boosting Global Expansion

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. announced that its enoxaparin sodium injection, Enoparin, has received approval from Argentina’s National Administration of Drugs, Food and Medical Devices for market sales. This approval is expected to enhance the company’s global market share and demonstrates its capability to penetrate international markets, supporting its strategy to expand its global footprint and strengthen its sales channels.

Shenzhen Hepalink Receives Approval for Clinical Trial of New Cancer Drug

Shenzhen Hepalink Pharmaceutical Group has received approval from the National Medical Products Administration for a clinical trial of its new drug, H1710, designed to treat advanced solid tumors. H1710 is a novel heparanase inhibitor showing significant anti-tumor effects in preclinical studies, positioning the company at the forefront of developing unique anticancer therapies. However, the approval for clinical trials marks just the beginning, as there are inherent risks and uncertainties involved in the drug development process.

Shenzhen Hepalink Strengthens European Market Position with EMA GMP Certification

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. has obtained a GMP certificate for its new pre-filled formulation production lines from the European Medicines Agency, indicating compliance with EU standards. This certification is expected to enhance the company’s market competitiveness in Europe, where it already holds a strong position in the Enoxaparin Sodium formulations market, and support its internationalization strategy.