Hansoh Pharmaceutical Group Company Limited (3692) AI Stock Analysis

• Market Cap: HK$234.58B
• Dividend Yield: 0.95%
• Average Volume (3M): 12.35M
• Price to Earnings (P/E): 44.4
• Beta (1Y): 0.77
• Revenue Growth: 8.68%
• EPS Growth: 0.82%
• Country: HK
• Employees: 8,989
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.58
• Shares Outstanding: 6,055,150,000
• 10 Day Avg. Volume: 5,935,509
• 30 Day Avg. Volume: 12,349,610
• PEG Ratio: 0.46
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 7.85
• P/FCF Ratio: 26.44
• 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$42.10
• Price Target Upside: 8.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• Price Target: HK$38.00 ▼(-1.91% Downside)

Hansoh Pharmaceutical Group's strong financial performance is offset by concerns over cash flow sustainability and a high P/E ratio. Technical indicators suggest a neutral market sentiment, with no significant momentum. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's expanding market presence and successful product adoption, supporting long-term business sustainability.

Equity Position

A strong equity position provides financial stability, reducing leverage risk and enhancing the company's ability to invest in growth opportunities.

Operational Efficiency

High operational efficiency, as indicated by strong EBIT and EBITDA margins, ensures effective cost management and profitability, supporting long-term growth.

Negative Factors

Cash Flow Concerns

Lack of recent cash flow data raises concerns about cash generation sustainability, potentially impacting the company's ability to fund operations and growth.

Debt Levels

While low debt levels indicate low leverage risk, the absence of recent cash flows may limit financial flexibility and investment capacity.

Cash Conversion Efficiency

The absence of recent cash flow data hampers the assessment of cash conversion efficiency, which is critical for evaluating financial health and operational effectiveness.

Hansoh Pharmaceutical Group Company Limited Business Overview & Revenue Model

Company Description

Hansoh Pharmaceutical Group Company Limited, an investment holding company, engages in the research, development, manufacture, and sale of pharmaceutical products in the People's Republic of China. The company provides products for therapeutic areas, including central nervous system diseases, oncology, anti-infectives, and metabolic diseases. Its principal products include Mailingda, a drug for the treatment of chronic myelogenous leukemia; and Ameile, Hansoh Xinfu, Pulaile, Zefei, Xinwei, Xinmei, Xintai, Tanneng, Oulanning, Ameining, Zetan, Hengjie, Hengsen, Fulaimei, Fulaidi, and Ruibote drugs. The company serves pharmaceutical product distributors. It has a strategic collaboration with Scynexis, Inc. to develop and commercialize ibrexafungerp for treatment of vaginal yeast infections; and strategic collaboration with Keros to develop, manufacture, and commercialize KER-050 for treatment of cytopenias, anemia, and thrombocytopenia. The company also has a collaboration with Olix Pharmaceuticals for development of drug candidates for cardiovascular, metabolic, and other diseases associated with the liver; and strategic collaboration with Silence Therapeutics plc to develop siRNAs for three targets leveraging Silence's mRNAi GOLD platform. The company was founded in 1995 and is headquartered in Lianyungang, the People's Republic of China. Hansoh Pharmaceutical Group Company Limited is a subsidiary of Stellar Infinity Company Ltd.

How the Company Makes Money

Hansoh Pharmaceutical Group Company Limited generates revenue through the sale of its pharmaceutical products across multiple therapeutic areas. The company's revenue streams are primarily derived from its oncology, central nervous system, anti-infectives, and diabetes treatment products. Hansoh also invests in research and development to create innovative drugs, which can lead to lucrative patents and exclusive marketing rights. Additionally, the company forms strategic partnerships and collaborations with other pharmaceutical enterprises to expand its market reach and enhance its product offerings. These partnerships often involve co-development, co-marketing, or licensing agreements that contribute significantly to its earnings.

Hansoh Pharmaceutical Group Company Limited Financial Statement Overview

Summary

Hansoh Pharmaceutical Group has demonstrated strong revenue and profit growth, a robust equity position, and efficient operations. However, the recent absence of operating and free cash flows could pose a risk if not addressed.

Income Statement

Hansoh Pharmaceutical Group has demonstrated strong revenue growth, with a notable increase from the previous year. The gross profit margin is robust, indicating efficient production processes. Their EBIT and EBITDA margins are healthy, reflecting strong operational efficiency. Net profit margin has also improved, showcasing the company's ability to convert revenue into profit effectively.

Balance Sheet

The company maintains an excellent equity position with a high equity ratio, indicating financial stability and low leverage risk. The debt-to-equity ratio is very low, suggesting a conservative approach to leveraging. Return on equity has improved, reflecting efficient use of shareholder funds to generate profits.

Cash Flow

While Hansoh Pharmaceutical has shown positive free cash flow growth over the years, the recent year shows zero operating and free cash flow, which could be a concern for cash generation sustainability. Historically, the operating cash flow to net income ratio was strong, indicating efficient cash conversion, but recent data is lacking for a complete assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.19B	12.26B	10.10B	9.38B	9.94B	8.69B
Gross Profit	11.98B	11.16B	9.07B	8.51B	9.06B	7.89B
EBITDA	4.79B	4.28B	4.20B	2.93B	3.08B	2.99B
Net Income	4.78B	4.37B	3.28B	2.58B	2.71B	2.57B
Balance Sheet
Total Assets	35.07B	31.66B	33.04B	30.00B	27.16B	20.79B
Cash, Cash Equivalents and Short-Term Investments	27.12B	23.39B	24.86B	21.63B	18.94B	13.73B
Total Debt	116.86M	117.89M	4.30B	4.38B	3.83B	92.75M
Total Liabilities	3.97B	2.98B	7.24B	7.35B	7.13B	2.92B
Stockholders Equity	31.10B	28.68B	25.79B	22.65B	20.03B	17.88B
Cash Flow
Free Cash Flow	1.06B	3.64B	2.90B	2.47B	2.12B	962.83M
Operating Cash Flow	1.18B	3.86B	3.12B	2.74B	2.58B	2.39B
Investing Cash Flow	-3.76B	-1.39B	1.07B	-5.94B	-2.26B	-2.87B
Financing Cash Flow	-1.87B	-6.07B	-753.70M	-818.14M	3.42B	-1.04B

Hansoh Pharmaceutical Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3692, the sentiment is Positive. The current price of 38.74 is above the 20-day moving average (MA) of 36.27, above the 50-day MA of 36.23, and above the 200-day MA of 26.06, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 63.12 is Neutral, neither overbought nor oversold. The STOCH value of 97.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3692.

Hansoh Pharmaceutical Group Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0874	80 Outperform	$43.23B	9.72	7.53%	7.30%	-1.36%	-26.81%
1513	74 Outperform	$35.98B	13.61	15.72%	3.39%	-2.20%	11.99%
0512	73 Outperform	HK$29.99B	14.35	12.65%	3.05%	10.56%	-13.58%
3692	66 Neutral	HK$234.58B	44.42	16.09%	0.95%	8.68%	0.82%
2196	65 Neutral	$83.51B	20.15	6.88%	1.34%	-1.12%	76.16%
3320	62 Neutral	€30.22B	9.98	5.90%	2.79%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Hansoh Pharmaceutical Group Company Limited Corporate Events

Hansoh Pharmaceutical’s XINYUE Gains Second Indication Approval in China

Hansoh Pharmaceutical Group Company Limited announced that its innovative drug XINYUE (Inebilizumab Injection) received approval from the National Medical Products Administration of China for a second indication, targeting immunoglobulin G4-related disease in adults. This approval, which follows a priority review, enhances the company’s product offerings and strengthens its position in the pharmaceutical market, potentially benefiting stakeholders by expanding treatment options for patients.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

Hansoh Pharmaceutical Announces New Share Placement to Raise HK$3.9 Billion

Hansoh Pharmaceutical Group Company Limited announced the placement of 108,000,000 new shares under a general mandate, with the shares priced at HK$36.30 each. This placement is expected to generate gross proceeds of approximately HK$3,920.40 million, which will be used for purposes detailed in the company’s announcement. The placement represents about 1.82% of the company’s total shares in issue and is subject to certain conditions and approvals. The move is part of the company’s strategy to strengthen its financial position and support its operational goals.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$39.93 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

Hansoh Pharmaceutical Declares Interim Dividend for H1 2025

Hansoh Pharmaceutical Group Company Limited announced an interim dividend of HKD 0.2316 per share for the six months ending June 30, 2025. The dividend will be paid on October 30, 2025, and reflects the company’s strong financial performance and commitment to delivering value to its shareholders. This announcement may positively impact the company’s market position and investor confidence.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$34.83 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.

Hansoh Pharmaceutical Reports Strong Growth and Key Drug Approvals in H1 2025

Hansoh Pharmaceutical Group reported a 14.3% increase in revenue for the first half of 2025, driven by innovative drugs and collaborative products, which accounted for 82.7% of total revenue. Key achievements include FDA Breakthrough Therapy Designation for a B7-H3-targeted ADC and multiple drug approvals by the NMPA, enhancing the company’s market position and growth prospects.

The most recent analyst rating on (HK:3692) stock is a Buy with a HK$34.83 price target. To see the full list of analyst forecasts on Hansoh Pharmaceutical Group Company Limited stock, see the HK:3692 Stock Forecast page.