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Luye Pharma Group
(2186)
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Rating:59Neutral
Price Target:
HK$2.00
▼(-6.54% Downside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by solid profitability and a de-risking balance sheet, offset by a steep 2025 revenue contraction and historically inconsistent free cash flow. Technically, indicators point to weak-to-neutral momentum, while valuation looks reasonable on a ~11.6 P/E.
Positive Factors
Strong Operating Profitability
High gross, EBIT, and EBITDA margins indicate that Luye retains substantial economics from its branded pharmaceutical portfolio. This profitability provides resources for research, commercialization, and product life-cycle management, while offering some resilience against pricing pressure and operating-cost volatility.
Negative Factors
Sharp Revenue Contraction
A steep annual revenue decline challenges the durability of Luye’s commercial growth base, even though profitability remains solid. Prolonged contraction could reduce operating leverage, weaken the funding available for research and launches, and make future earnings more dependent on a smaller group of products.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Operating Profitability
High gross, EBIT, and EBITDA margins indicate that Luye retains substantial economics from its branded pharmaceutical portfolio. This profitability provides resources for research, commercialization, and product life-cycle management, while offering some resilience against pricing pressure and operating-cost volatility.
Read all positive factors
Luye Pharma Group (2186) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$7.44B
Dividend Yield2.66%
Average Volume (3M)33.18M
Price to Earnings (P/E)9.4
Beta (1Y)0.89
Revenue Growth2.84%
EPS Growth71.92%
CountryHK
Employees5,221
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.16
Shares Outstanding3,994,515,900
10 Day Avg. Volume39,698,713
30 Day Avg. Volume33,184,897
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)0.60
Price to Sales (P/S)1.52
P/FCF Ratio12.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.68Price Target Upside25.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.18
Revenue Forecast (FY)HK$6.14B
Luye Pharma Group Business Overview & Revenue Model
Company Description
Luye Pharma Group Ltd. functions as a global investment holding enterprise, focusing on the worldwide development, production, marketing, and sales of pharmaceutical products. The company's diverse portfolio includes several key oncology treatment...
How the Company Makes Money
Luye Pharma Group makes money primarily by selling pharmaceutical products (mainly prescription drugs) that it develops, manufactures (directly or via qualified manufacturing arrangements), and commercializes. Revenue is generated when products ar...
Luye Pharma Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.31B | 6.06B | 6.14B | 5.98B | 5.20B |
| Gross Profit | 4.16B | 4.04B | 4.20B | 4.14B | 3.40B |
| EBITDA | 2.01B | 1.79B | 2.08B | 1.81B | 906.88M |
| Net Income | 618.75M | 471.89M | 532.61M | 604.81M | -134.39M |
Balance Sheet | |||||
| Total Assets | 32.84B | 29.61B | 25.49B | 24.25B | 22.58B |
| Cash, Cash Equivalents and Short-Term Investments | 8.88B | 6.50B | 6.11B | 5.54B | 5.51B |
| Total Debt | 9.42B | 10.32B | 8.42B | 9.10B | 9.49B |
| Total Liabilities | 14.19B | 13.86B | 11.96B | 13.21B | 13.47B |
| Stockholders Equity | 16.08B | 14.15B | 12.53B | 10.18B | 8.49B |
Cash Flow | |||||
| Free Cash Flow | 780.44M | -1.54B | 430.23M | 490.14M | -1.36B |
| Operating Cash Flow | 1.78B | 167.76M | 1.60B | 1.65B | 182.37M |
| Investing Cash Flow | -3.99B | -1.47B | -1.42B | -1.66B | -3.44B |
| Financing Cash Flow | 1.79B | 2.96B | 841.60M | 54.15M | 1.88B |
Luye Pharma Group Technical Analysis
Negative
2.14
Price Trends
2.04
Negative
2.18
Negative
2.49
Negative
Market Momentum
-0.04
Positive
38.38
Neutral
9.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2186, the sentiment is Negative. The current price of 2.14 is above the 20-day moving average (MA) of 2.05, above the 50-day MA of 2.04, and below the 200-day MA of 2.49, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 9.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2186.
Luye Pharma Group Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$11.19B | 8.43 | 25.10% | 5.36% | 15.05% | 20.58% | |
80 Outperform | HK$111.41B | 12.73 | 20.68% | 2.99% | 25.21% | 103.93% | |
59 Neutral | HK$7.44B | 9.39 | 4.37% | 2.66% | 2.84% | 71.92% | |
52 Neutral | HK$23.57B | -15.19 | -27.40% | ― | 5.38% | 16.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | HK$7.85B | 27.53 | 17.36% | ― | 46.90% | ― | |
47 Neutral | HK$9.74B | -19.59 | -43.54% | ― | 116.67% | -0.42% |
* Healthcare Sector Average
HK:2186
Luye Pharma Group
1.89
-1.99
-51.42%
HK:1093
CSPC Pharmaceutical Group
9.68
-1.38
-12.46%
HK:9688
Zai Lab Ltd
20.08
-5.24
-20.70%
HK:1681
Consun Pharmaceutical Group Ltd.
13.63
-1.76
-11.44%
HK:2157
Lepu Biopharma Co. Ltd. Class H
4.27
-3.80
-47.08%
HK:2616
CStone Pharmaceuticals
6.07
-6.83
-52.95%
Luye Pharma Group Corporate Events
Luye Pharma Delivers Higher H1 Profit Despite Revenue Decline
Aug 30, 2026
Luye Pharma Group reported interim results for the six months ended 30 June 2026 showing a mixed performance, with revenue falling 5.6% to RMB3,002.1 million and gross profit down 11.8% to RMB1,902.3 million, although the gross margin remained rel...
Luye Pharma Advances HPV mRNA Vaccine LY01620 to Phase II in China
Aug 20, 2026
Luye Pharma Group is advancing its presence in therapeutic vaccines with LY01620, a Class 1 therapeutic biological mRNA vaccine targeting HPV16 E6/E7 antigens for cervical precancerous lesions and HPV-related tumors. The candidate is designed to i...
Luye Pharma Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 17, 2026
Luye Pharma Group has scheduled a board meeting for 29 August 2026 to review and approve the interim results for the six months ended 30 June 2026, along with their planned publication. The board will also consider the potential payment of an inte...
Luye Pharma Advances CNS Portfolio With Successful U.S. Bridging Trial for LY03015
Aug 5, 2026
Luye Pharma Group has successfully completed a U.S. bridging clinical trial for LY03015, its in-house VMAT2 inhibitor and Sigma-1R agonist, designed to treat tardive dyskinesia and Huntington’s disease-related chorea. The study found compara...
Luye Pharma Wins Shareholder Backing for All AGM Resolutions and Capital Mandates
Jun 26, 2026
Luye Pharma Group reported the results of its 26 June 2026 annual general meeting, where all resolutions put to shareholders by poll were approved. Shareholders adopted the 2025 audited financial statements, re-elected non-executive and long-servi...
Luye Pharma’s Novel CNS Drug LY03015 Delivers Strong Phase 2 Data in Tardive Dyskinesia
Jun 16, 2026
Luye Pharma Group reported that its class 1 innovative CNS drug candidate LY03015, a dual VMAT2 inhibitor and Sigma-1 receptor agonist, achieved positive results in a phase 2 trial in China for tardive dyskinesia, meeting its primary endpoint. Des...
Luye Pharma Halves 2028 Convertible Bond Float With US$89.74 Million Buyback
Jun 11, 2026
Luye Pharma Group has completed a concurrent repurchase of part of its outstanding 6.25% convertible bonds due 2028, buying back US$89.74 million in principal amount. This repurchased portion represents approximately 49.9% of the initial US$180 mi...
Luye Pharma Raises US$180 Million via Premium-Priced 2031 Convertible Bonds
Jun 11, 2026
Luye Pharma Group has completed the issuance of US$180 million in 5.25% convertible bonds due 2031, with listing on the Vienna Stock Exchange and approval for listing of the conversion shares in Hong Kong. The initial conversion price of HK$2.71 p...
Luye Pharma Wins Vienna MTF Listing Approval for New Bond Issue
Jun 8, 2026
Luye Pharma Group has obtained approval from the Vienna Stock Exchange for the admission to listing and trading of its bonds on the Vienna MTF, with the first trading day expected on 10 June 2026. The move broadens the company’s financing ch...
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.