Lee's Pharmaceutical Holdings Limited (0950) AI Stock Analysis

• Market Cap: HK$1.35B
• Dividend Yield: 2.04%
• Average Volume (3M): 8.80M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.48
• Revenue Growth: 19.80%
• EPS Growth: 55.09%
• Country: HK
• Employees: 1,022
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.11
• Shares Outstanding: 588,835,300
• 10 Day Avg. Volume: 6,966,150
• 30 Day Avg. Volume: 8,799,872
• PEG Ratio: 0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 24.27
• 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$2.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: HK$2.50 ▲(8.70% Upside)

The overall stock score of 66 reflects strong technical momentum and a stable financial position, offset by challenges in cash flow and profitability. The valuation is moderate, providing a balanced risk-reward profile.

Lee's Pharmaceutical Holdings Limited Business Overview & Revenue Model

Company Description

Lee's Pharmaceutical Holdings Limited, an investment holding company, develops, manufactures, markets, and sells pharmaceutical products primarily in the People's Republic of China. The company focuses on various disease areas, including cardiovascular, woman health, paediatrics, rare diseases, oncology, dermatology, obstetrics, and urology. It operates through Proprietary and Generic Products; and Licensed-In Products segments. The Proprietary and Generic Products segment manufactures and sells self-developed and generic pharmaceutical products, such as Livaracine to treat blood clots and deep vein thrombosis; Yallaferon for viral infection; Slounase for hemostasis; Eyprotor for corneal ulcers; Treprostinil injection for pulmonary arterial hypertension; fondaparinux sodium injection for deep vein thrombosis; and Sodium Phenylbutyrate Granules to treat Urea cycle disorders. The Licensed-In Products segment trades in licensed-in pharmaceutical products, including Carnitene for the treatment of carnitine deficiency; Aloxi and Sancuso for chemotherapy induced nausea and vomiting; Bredinin to treat Immunosuppression in renaltransplantation; Centraxal Plus for acute otitis media with tympanostomy tubes; Episil to treat oral mucositis pain; Ferplex to treat iron deficiency anemia; and Gaslon N for gastric ulcer and gastritis. This segment also offers Intrarosa for vulvovaginal atrophy; Levocarnitine oral solution to treat primary and secondary carnitine deficiency; Mictonorm for urinary incontinence; Natulan for Stage III and IV Hodgkin's disease; Omacor to treat Omega-3-acid ethyl esters; Zanidip and Rasilez for hypertension; Readyfusor for post-operative pain management; Teglutik to treat Amyotrophic lateral sclerosis; Trittico for insomnia/depression; Unidrox for urinary and respiratory tract infections; Dicoflor and VSL#3 for probiotics; and Zingo for topical local analgesics. The company was founded in 1994 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Lee's Pharmaceutical Holdings Limited generates revenue primarily through the sale of its proprietary pharmaceutical products in China and international markets. The company earns income by developing and commercializing drugs and medical devices, focusing on therapeutics for cardiovascular diseases, oncology, and other specialized fields. Key revenue streams include direct sales to hospitals, clinics, and healthcare providers, as well as through distribution partnerships and licensing agreements with other pharmaceutical companies. Strategic collaborations with international firms also play a significant role in enhancing its product portfolio and expanding its market reach, contributing to its overall earnings.

Lee's Pharmaceutical Holdings Limited Financial Statement Overview

Summary

Lee's Pharmaceutical Holdings Limited displays strong revenue growth and a stable balance sheet with low leverage, but faces challenges with profitability and cash flow generation. The company should focus on improving net margins and cash flow management to enhance financial stability.

Income Statement

The company shows a stable gross profit margin of 53.8% in 2024, indicating efficient production processes. However, the net profit margin is relatively low at 6.6%, suggesting high expenses or cost pressures. Revenue growth was 32.9% from 2023 to 2024, a strong recovery from previous periods, but historically, revenue has been inconsistent, highlighting potential market challenges.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 63.1%, showing financial stability. The debt-to-equity ratio is low at 0.14, indicating prudent leverage levels. However, the return on equity (ROE) is modest at 5.6%, suggesting room for improved profitability.

Cash Flow

Cash flow performance is concerning with zero operating and free cash flow in 2024, indicating potential liquidity issues. The free cash flow growth rate is unavailable due to missing data, and the operating cash flow to net income ratio cannot be determined, pointing to challenges in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.05B	1.23B	1.27B	1.22B
Gross Profit	753.36M	551.31M	770.75M	806.28M	781.07M
EBITDA	260.87M	193.05M	229.06M	2.13B	279.43M
Net Income	93.10M	16.70M	51.28M	1.99B	78.53M
Balance Sheet
Total Assets	2.62B	2.89B	2.78B	3.64B	3.25B
Cash, Cash Equivalents and Short-Term Investments	216.84M	171.00M	189.30M	277.53M	414.54M
Total Debt	227.30M	204.14M	163.49M	267.14M	156.71M
Total Liabilities	1.07B	930.07M	939.50M	1.25B	1.14B
Stockholders Equity	1.65B	2.04B	1.92B	2.46B	2.15B
Cash Flow
Free Cash Flow	34.45M	-45.89M	69.81M	-160.04M	-139.23M
Operating Cash Flow	242.01M	110.08M	283.63M	210.68M	218.91M
Investing Cash Flow	-192.36M	-145.22M	-256.05M	-370.28M	-523.74M
Financing Cash Flow	-1.96M	13.44M	-128.60M	60.97M	-9.80M

Lee's Pharmaceutical Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.30
• 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:0950, the sentiment is Positive. The current price of 2.3 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 1.96, and above the 200-day MA of 1.48, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0950.

Lee's Pharmaceutical Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2877	73 Outperform	6.22B	6.88	11.25%	6.14%	-20.64%	-25.39%
2348	73 Outperform	1.85B	9.71	―	5.12%	2.89%	-68.83%
0719	70 Outperform	10.16B	10.81	―	4.13%	2.32%	-14.41%
0950	66 Neutral	HK$1.35B	14.63	5.35%	2.04%	19.80%	55.09%
0460	55 Neutral	14.83B	-167.37	-4.96%	3.61%	19.21%	-115.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Lee's Pharmaceutical Holdings Limited Corporate Events

Lee’s Pharmaceutical Enhances Governance with New Nomination Committee

Lee’s Pharmaceutical Holdings Limited has established a Nomination Committee to enhance its corporate governance structure. The committee’s primary role is to identify and recommend suitable candidates for the company’s board of directors, ensuring a diverse and effective board composition. This initiative is expected to strengthen the company’s leadership and align with applicable laws and regulations, potentially impacting the company’s strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:0950) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Lee’s Pharmaceutical Holdings Limited stock, see the HK:0950 Stock Forecast page.

Lee’s Pharmaceutical Announces Interim Dividend for First Half of 2025

Lee’s Pharmaceutical Holdings Limited announced an interim cash dividend of HKD 0.022 per share for the six months ending 30 June 2025. The ex-dividend date is set for 12 September 2025, with the payment date scheduled for 03 October 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.

The most recent analyst rating on (HK:0950) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Lee’s Pharmaceutical Holdings Limited stock, see the HK:0950 Stock Forecast page.

Lee’s Pharmaceutical Reports Revenue Growth Amid Strategic Product Diversification

Lee’s Pharmaceutical Holdings Limited reported a 5.5% increase in revenue for the first half of 2025, driven by strong sales in its product portfolio, particularly in rare disease and specialty products like Treprostinil Injection and Bredinin. Despite a slight decrease in gross profit margin due to a strategic shift towards a more diversified product portfolio, the company achieved a 2.7% increase in gross profit. This growth reflects the company’s adaptation to market demands and its focus on stabilizing its financial performance amid changing industry dynamics.

The most recent analyst rating on (HK:0950) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Lee’s Pharmaceutical Holdings Limited stock, see the HK:0950 Stock Forecast page.

Lee’s Pharmaceutical Announces Board Meeting to Review Interim Results

Lee’s Pharmaceutical Holdings Limited has announced a board meeting scheduled for August 26, 2025, to discuss and approve the unaudited interim results for the first half of 2025, and to consider the recommendation of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Lee’s Pharmaceutical Gains Approval for New Oncology Drug in China

Lee’s Pharmaceutical Holdings Limited announced the approval of Socazolimab, an oncology drug developed by its subsidiary China Oncology Focus Limited, for marketing in combination with chemotherapy for the first-line treatment of extensive-stage small-cell lung cancer in Mainland China. The approval by the National Medical Products Administration is based on a successful Phase III clinical trial that demonstrated significant overall survival benefits without increasing safety risks. This development strengthens Lee’s Pharm’s position in the oncology market and underscores its commitment to advancing cancer treatment options.