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Hua Medicine
(2552)
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Rating:42Neutral
Price Target:
HK$2.00
▼(-15.25% Downside)
Action:Reiterated
Date:10/03/26
The score is weighed down primarily by weak cash generation and ongoing operating losses despite improved revenue growth and gross margin. Technicals add further pressure with the stock trading below key moving averages and negative MACD. Valuation is constrained by a negative P/E and no provided dividend yield.
Positive Factors
Revenue Growth
Rapid 2025 revenue expansion indicates stronger commercial traction for dorzagliatin and growing demand in the company’s diabetes franchise. If maintained, this top-line momentum can broaden market penetration, improve operating leverage, and support greater reinvestment in the product pipeline.
Negative Factors
Negative Cash Generation
Negative operating and free cash flow show that reported business performance is not currently translating into internally generated funding. Persistent cash burn could require greater use of financial resources or external funding, reducing flexibility to expand commercialization and advance pipeline programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Rapid 2025 revenue expansion indicates stronger commercial traction for dorzagliatin and growing demand in the company’s diabetes franchise. If maintained, this top-line momentum can broaden market penetration, improve operating leverage, and support greater reinvestment in the product pipeline.
Read all positive factors
Hua Medicine (2552) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.11B
Dividend YieldN/A
Average Volume (3M)815.13K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth83.49%
EPS Growth-110.21%
CountryHK
Employees424
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.10
Shares Outstanding1,056,605,000
10 Day Avg. Volume601,450
30 Day Avg. Volume815,133
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.71
Price to Sales (P/S)5.69
P/FCF Ratio-45.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$3.52Price Target Upside49.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.07
Revenue Forecast (FY)HK$1.06B
Hua Medicine Business Overview & Revenue Model
Company Description
Hua Medicine (Shanghai) Ltd., a biopharmaceutical enterprise established in 2011 and headquartered in Beijing, China, specializes in the clinical development of novel therapeutic solutions, with a primary focus on addressing diabetes within the Ch...
How the Company Makes Money
Hua Medicine primarily makes money from the commercialization of its diabetes drug dorzagliatin in China. Revenue is generated through product sales, where the company (directly and/or via commercial partners, depending on the arrangement) earns i...
Hua Medicine Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
52
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 644.58M | 480.18M | 255.89M | 76.61M | 17.60M | 0.00 |
| Gross Profit | 390.90M | 273.10M | 124.72M | 37.37M | 7.69M | -38.48M |
| EBITDA | -77.12M | -108.66M | -325.72M | -167.09M | -168.06M | -290.08M |
| Net Income | -106.08M | 1.08B | -250.14M | -211.23M | -203.77M | -330.95M |
Balance Sheet | ||||||
| Total Assets | 1.51B | 1.47B | 1.53B | 1.73B | 1.12B | 903.55M |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 1.09B | 1.14B | 1.46B | 490.63M | 675.24M |
| Total Debt | 354.20M | 301.80M | 300.18M | 167.75M | 97.58M | 71.53M |
| Total Liabilities | 522.28M | 463.48M | 1.66B | 1.62B | 841.92M | 453.22M |
| Stockholders Equity | 992.50M | 1.01B | -135.47M | 101.15M | 279.58M | 450.33M |
Cash Flow | ||||||
| Free Cash Flow | -37.19M | -59.70M | -421.83M | 879.52M | -257.58M | -339.87M |
| Operating Cash Flow | -31.85M | -52.15M | -417.97M | 889.37M | -230.11M | -272.98M |
| Investing Cash Flow | -10.63M | -654.00K | 10.04M | 8.08M | -4.75M | -68.22M |
| Financing Cash Flow | 96.46M | 9.10M | 83.72M | 69.07M | 21.48M | -6.13M |
Hua Medicine Technical Analysis
Negative
2.36
Price Trends
2.35
Negative
2.39
Negative
2.80
Negative
Market Momentum
-0.04
Negative
44.52
Neutral
66.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2552, the sentiment is Negative. The current price of 2.36 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.35, and below the 200-day MA of 2.80, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2552.
Hua Medicine Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$196.24B | 24.96 | 18.26% | 1.50% | 24.97% | 43.23% | |
74 Outperform | HK$26.72B | 16.30 | 11.32% | 6.71% | -9.56% | -23.22% | |
68 Neutral | HK$29.12B | 6.18 | 7.92% | 5.17% | 7.94% | 52.83% | |
60 Neutral | HK$18.13B | 143.19 | 1.43% | ― | -8.55% | -96.20% | |
56 Neutral | HK$14.42B | 185.14 | 1.58% | 4.22% | 3.10% | -46.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
42 Neutral | HK$2.11B | -18.09 | -10.61% | ― | 83.49% | -110.21% |
* Healthcare Sector Average
HK:2552
Hua Medicine
2.18
-1.44
-39.75%
HK:0013
HUTCHMED (China)
20.78
-2.98
-12.54%
HK:1513
Livzon Pharmaceutical Group
23.18
-5.02
-17.81%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.64
-0.11
-2.26%
HK:9989
Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Class H
3.94
-1.40
-26.20%
HK:3692
Hansoh Pharmaceutical Group Company Limited
32.36
-2.99
-8.45%
Hua Medicine Corporate Events
Hua Medicine Grants Share Options to Senior Manager Under Incentive Scheme
Aug 21, 2026
Hua Medicine has granted 200,000 share options to a senior manager under its existing share option scheme, with each option allowing subscription for one new share at an exercise price of HK$2.6. The options have a ten-year validity, with 25% vest...
Hua Medicine Accelerates Dorzagliatin Commercialization With Strong H1 2026 Growth
Aug 20, 2026
Hua Medicine reported strong interim results for the first half of 2026, driven by rapid commercialization of its Type 2 diabetes drug HuaTangNing® and expansion of its sales footprint in China. Sales volumes and revenue surged, supported by ...
Hua Medicine Sets August Board Meeting to Approve Interim Results
Aug 10, 2026
Hua Medicine has scheduled a board meeting for August 20, 2026, to review and approve the group’s interim financial results for the six months ended June 30, 2026. The board will also consider the publication of these results and address any...
Hua Medicine Issues Profit Warning as One-Off Bayer Gain Drops Out
Aug 6, 2026
Hua Medicine has warned shareholders that it expects to post a loss of about RMB30.2 million for the six months ended June 30, 2026, compared with a profit of roughly RMB1,183.9 million a year earlier. The sharp swing reflects the absence of a RMB...
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.