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Grand Pharmaceutical Group Limited (HK:0512)
:0512
Hong Kong Market
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Grand Pharmaceutical Group Limited (0512) AI Stock Analysis

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HK:0512

Grand Pharmaceutical Group Limited

(0512)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
HK$5.50
â–²(3.38% Upside)
Action:Reiterated
Date:07/03/26
Overall score reflects acceptable financial quality but clear 2025 deterioration in margins and cash-flow conversion, which is the largest negative driver. Technicals also weigh on the score as the stock trades below key medium/long-term moving averages with a negative MACD. Offsetting these, valuation is relatively reasonable (P/E 14.55) and the dividend yield (~3.31%) provides support.
Positive Factors
Resilient Revenue Growth
Consistent revenue expansion indicates resilient underlying demand across the company’s pharmaceutical and medical-device portfolio, supporting a durable base for future growth even as profitability has weakened.
Negative Factors
Material Margin Compression
The sharp decline in operating and net margins signals weaker earnings quality and may reflect persistent cost, pricing or product-mix pressure, reducing the profitability of otherwise stable revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient Revenue Growth
Consistent revenue expansion indicates resilient underlying demand across the company’s pharmaceutical and medical-device portfolio, supporting a durable base for future growth even as profitability has weakened.
Read all positive factors

Grand Pharmaceutical Group Limited (0512) vs. iShares MSCI Hong Kong ETF (EWH)

Grand Pharmaceutical Group Limited Business Overview & Revenue Model

Company Description
Grand Pharmaceutical Group Limited, an investment holding company, engages in the research and development, manufacture, and sale of pharmaceutical preparations and medical devices, biotechnology and healthcare products, and pharmaceutical raw mat...
How the Company Makes Money
Grand Pharmaceutical Group Limited primarily makes money by commercializing healthcare products: it generates revenue from selling pharmaceutical products and related healthcare offerings through its sales and distribution channels. Key revenue st...

Grand Pharmaceutical Group Limited Financial Statement Overview

Summary
Steady revenue growth through 2021–2025 supports demand resilience, but 2025 showed a sharp profitability step-down (net margin ~10.1% vs ~21.2% in 2024; operating margin ~12.6% vs ~24.8%) alongside weaker cash conversion (FCF ~52% of net income, down from ~67% in 2024). Balance sheet leverage remains moderate (debt-to-equity ~0.28), but ROE also cooled (~7.3% vs ~15.0%), consistent with the earnings slowdown.
Income Statement
64
Positive
Balance Sheet
71
Positive
Cash Flow
56
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.56B12.28B11.64B10.53B9.56B8.60B
Gross Profit6.55B6.78B6.74B6.52B5.95B5.25B
EBITDA2.32B2.31B3.39B2.97B3.09B3.10B
Net Income1.13B1.24B2.47B1.88B2.08B2.40B
Balance Sheet
Total Assets28.11B27.17B24.99B22.52B22.37B21.06B
Cash, Cash Equivalents and Short-Term Investments1.27B2.09B3.14B2.47B2.48B2.87B
Total Debt5.05B4.72B4.44B3.40B4.48B3.65B
Total Liabilities10.75B9.99B8.47B7.24B8.16B7.61B
Stockholders Equity17.26B17.02B16.47B15.16B14.14B13.39B
Cash Flow
Free Cash Flow971.39M774.37M1.28B1.93B245.79M1.49B
Operating Cash Flow1.50B1.50B1.90B2.42B1.92B2.12B
Investing Cash Flow-1.04B-952.79M-2.00B-515.75M-2.58B-1.77B
Financing Cash Flow46.50M-795.17M29.96M-1.89B464.49M-333.17M

Grand Pharmaceutical Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$10.84B8.1525.10%5.93%15.05%20.58%
68
Neutral
HK$28.21B5.957.92%5.59%7.94%52.83%
67
Neutral
HK$25.01B14.4711.97%13.71%-5.90%-18.84%
61
Neutral
HK$26.93B15.428.60%3.08%14.80%-2.88%
60
Neutral
HK$17.57B15.596.61%3.38%7.35%-45.49%
59
Neutral
HK$36.34B12.786.64%6.34%6.58%-4.29%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0512
Grand Pharmaceutical Group Limited
5.00
-3.97
-44.31%
HK:0867
China Medical System Holdings
11.18
-2.77
-19.86%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
13.61
-3.90
-22.28%
HK:1513
Livzon Pharmaceutical Group
21.24
-13.29
-38.49%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.47
-0.26
-5.52%
HK:1681
Consun Pharmaceutical Group Ltd.
13.15
-1.88
-12.49%

Grand Pharmaceutical Group Limited Corporate Events

Grand Pharmaceutical Schedules Board Meeting to Approve Interim Results
Aug 10, 2026
Grand Pharmaceutical Group Limited has scheduled a board meeting for 26 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The meeting will also address other potential business matters, signaling an upcom...
Grand Pharmaceutical Wins FDA Fast Track Status for Innovative Tumor Imaging Drug
Aug 9, 2026
Grand Pharmaceutical Group has secured U.S. FDA Fast Track Designation for GPN01530-2, a radionuclide-drug conjugate independently developed for diagnosing solid tumors, following earlier approval to conduct Phase I/II clinical trials. The designa...
Grand Pharmaceutical Shifts Bermuda Registered Office and Share Registrar
Jul 31, 2026
Grand Pharmaceutical Group Limited announced an administrative change to its corporate infrastructure, shifting its principal share registrar and registered office address in Bermuda to Richmond House, 12 Par-la-Ville Road, Hamilton HM 08, effecti...
Grand Pharmaceutical Advances Innovative TCM Antidepressant into Phase III Trial in China
Jul 23, 2026
Grand Pharmaceutical Group has enrolled and dosed the first patient in a Phase III randomized, double-blind, placebo-controlled multicenter trial in China for its Class 1.1 innovative traditional Chinese medicine GPN01360, developed from the class...
Grand Pharmaceutical formalizes Huadong Medicine supply deal as continuing connected transaction
Jun 8, 2026
Grand Pharmaceutical Group Limited has entered into a Huadong Medicine Supply Agreement under which its subsidiary Grand Pharm (China) or related companies will continue supplying pharmaceutical preparations, raw materials and related services to ...
Grand Pharmaceutical Shareholders Approve All AGM Resolutions, Back Dividend and Mandates
Jun 5, 2026
Grand Pharmaceutical Group Limited reported that all resolutions at its 5 June 2026 annual general meeting were approved by shareholders through a poll, with no restrictions or abstentions on voting. The meeting confirmed strong shareholder backin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2026